Home-Based Travel Agent - July 2008 - (Page 50)

Cruise FOR THE AGENT EXCLUSIVE EXPERIENCE ON THE HIGH SEAS Here’s what you need to know about chartering ships for your clients are booked and have to be offloaded. A Seabourn Balcony Suite That range can be significant. Many lines can give a price quote to a client within 24 hours after receiving the parameters. Once the charter is reserved, the group or agent is then bound. If the cruise ship can’t be filled as promised for whatever reason, the group or agent still has to come up with the money. Although there are great benefits to chartering a ship, there is also more liability. In most cases, whoever books the charter will have to sign an Irrevocable Standby Letter of Credit, which is a piece of paper or a legal promise that the line will be paid the full amount for the ship. Once committed, you are locked in. In other words, don’t charter a ship until you are 100 Chartering entire ships for either corporate incentive travel or affinity groups has long been the realm of corporate travel managers or third-party practitioners. In most cases, if a company is looking to charter a ship, it will turn to the people in charge of that company’s travel program. In other cases, a company may seek out a third party whose specialty is chartering full ships. Needless to say, the incentive travel market has exploded over the past five or so years as employers find new incentives for their employees. While companies have traditionally looked to practitioners who specialize in booking ships, many cruise lines that deal in chartering ships are seeing a growth of incentive travel in distribution with traditional sellers or travel agents. Like today’s vacationing clientele, corporations are becoming more savvy and looking elsewhere for travel support. Sometimes they may not require full services and may use a local agent to keep costs down. That said, chartering an entire ship takes expertise: It’s not just about giving someone a great cruise; it’s about giving many people a great cruise and, many times, meeting a business objective. As an agent, chartering a cruise ship for a large group or company can be a windfall; however, it’s notable that most times payment is received not from the cruise line but from the group. Instead of receiving a commission, agents will usually work on a costplus basis, wherein they will quote the group a net rate, then make arrangements for services rendered. Be aware, however, that chartering an entire cruise ship is no light matter. Once a party asks a cruise line to reserve a ship, that ship is taken out of the line’s rotation and reserved for the group. Either way, the line is making a significant amount of money. Pricing varies according to itinerary, time of year, when the charter is booked and how many guests percent sure you can fill it. When chartering much smaller ships for affinity groups, agents should play up the fact that the ship will cater to most whims, but, most importantly, they will have the run of the ship to use for whatever they desire. That is something a group will not get on a regular cruise. Agents should market toward affinity groups, and add this type of business into the mix. It’s a surefire way to boost revenues, and, in most cases, can be as easy as making a booking on a normal cruise. If you are thinking of chartering a small ship for a group or company, here are some lines you should keep in mind. Note that this is not an exhaustive list. There are many small, sometimes offthe-radar lines that offer charters. Seabourn Cruises (www.seabourn. com): Seabourn has a mix of luxury ships and says its biggest charter business is corporate incentives; however, 50 Home-BasedTravelAgent JULY /AUG US T 2008 http://www.seabourn.com http://www.seabourn.com

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Home Based Travel Agent - July 2008 Contents Editor's Note Publisher's Note Your Lifeline Agent Spotlight New Technology Industry News Hot Deals Tips for a Smooth Trip Agent Symposium Hotels For the Traveler - Destinations - Mexico For the Agent - Destinations - Mexico For the Traveler - Destinations - Dubai For the Agent - Destinations - Dubai Thailand For the Traveler - Cruise For the Agent - Cruise For the Traveler - Tours For the Agent - Tours New Products

Home-Based Travel Agent - July 2008

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