P&O Cruises and Cunard raise commission

P&O Cruises and Cunard are raising their commission levels from 5% to 7.5% across all products

The email said: “Great News! As part of our commercial transformation and Agent Matters programme, we are delighted to announce that we are improving travel agent commercial terms for both P&O Cruises and Cunard.

“In recent months we have appointed a new commercial directorship team and just some of the initiatives we have implemented are to extend our Mediterranean fly cruise programme earnings which allows agents to earn commission on flight packages, we have implemented a new fare structure to support you to sell cruises earlier in the booking curve and tested various agent initiatives across the market.

“As a direct result of agent feedback and the success of the above initiatives, we have developed a new travel agent remuneration package following months of consultation with you, our trade partners. We believe travel agents are critical to our business and the new commission structure recognises the absolute value we place on travel agent partners.

“A new base rate of commission payment has been agreed, together with tailored marketing support for individual agents. A base rate of 7.5% commission will be paid to all agents for both brands from 09 December, 2013 and covers all departures from this date onwards.

“Please also join us in welcoming Jeremy McKenna to the team as our new Head of Sales. Jeremy will start on 02 January, 2014 and will lead the business efforts working with our trade partners. Jeremy brings with him a wealth of sales and commercial experience leading teams in customer centred environments and can’t wait to get started in his new role!”

Sales and distribution support director Chris Truscott said the cruise operator would also be offering tailored marketing support to individual agents as well as the commission increase.

He added:  “The new commission structure recognises the absolute value we place on agents, who are critical to our business, and is part of a much wider process of positive change for both brands.”

Complete Cruise Solution, the trade sales and marketing arm of P&O Cruises, Princess Cruises and Cunard announced plans to cut commission from 15% to 5% back in 2011.

The move was met with fierce opposition from agents. In March this year Princess increased commission on the cruise element of bookings for 2014 departures back up to 10% but at that time there was no change for P&O or Cunard.