booking through DCL vs. Costco?

Because TAs get a commission. When you book direct the commission is "paid" to Disney. Costco share their commission with members.

Why doesn't Disney give you the commission if you are not using the services of a travel agent? It makes no sense to book direct with Disney if they are not giving you a discount. At least Costco gives you a 8-10% discount when you are not using the services of a travel agent.
 
Why doesn't Disney give you the commission if you are not using the services of a travel agent? It makes no sense to book direct with Disney if they are not giving you a discount. At least Costco gives you a 8-10% discount when you are not using the services of a travel agent.
The moment anyone gives you the commission for booking on your own, it ceases to be a commission for sellers and becomes a cost to purchasers.

That's always been the guarantee in the travel industry... the fees were paid by the seller, not the purchaser. Maybe commissions will one day go away, as the internet continues to eliminate the need for a middle man. Maybe there will no longer be travel agents one day.
 
Why doesn't Disney give you the commission if you are not using the services of a travel agent? It makes no sense to book direct with Disney if they are not giving you a discount. At least Costco gives you a 8-10% discount when you are not using the services of a travel agent.

Because Disney can keep it as profit margin, of course. That's why they don't.

And in general, that's why it makes sense to use either a low-service TA (like costco) or a higher-service TA (like DU) and get OBC and/or presents. Not everyone is aware of this, or understands how industry commission rates work. Disney isn't going to undercut its affiliate network.

Even outside of travel, that's how affiliate marketing works. Whether you go to, say, Amazon directly, or via an Amazon affiliate or charity program (who get X% of your Amazon purchase), the cost to you will be the same. Who pockets the profit margin is the difference.
 
Because Disney can keep it as profit margin, of course. That's why they don't.

And in general, that's why it makes sense to use either a low-service TA (like costco) or a higher-service TA (like DU) and get OBC and/or presents. Not everyone is aware of this, or understands how industry commission rates work. Disney isn't going to undercut its affiliate network.

Even outside of travel, that's how affiliate marketing works. Whether you go to, say, Amazon directly, or via an Amazon affiliate or charity program (who get X% of your Amazon purchase), the cost to you will be the same. Who pockets the profit margin is the difference.

But Costco is no service just like Disney. Disney is losing money by selling cruises at Costco.com. Is anyone booking a cruise at Costco.com because of the advice or service they are getting???? No. 100% of the customers at Costco are booking a Disney cruise only for the discount.
 


By that logic, every affiliate marketer loses money selling through an affiliate.

The point is that they gain market reach, and can reduce service staff because the role is handled externally.
 
We always use Costco Travel for Disney Cruises. Still don't understand why you wouldn't get an equal discount by booking directly with Disney Cruise though.


Travel agents get somewhere around 10% of the cruise cost. If you book with DCL, they keep it.

Some TAs give you a few hundred or so for a 7 day cruise.

Costco just happens to give you 8.5% back. You're only going to give it back to them anyway :)
 
Why doesn't Disney give you the commission if you are not using the services of a travel agent? It makes no sense to book direct with Disney if they are not giving you a discount. At least Costco gives you a 8-10% discount when you are not using the services of a travel agent.


DCL isnt losing any money. The extra their TA service gets is a bonus.

In exchange they get a huge network of agents selling for them and recommending them. They dont have to advertise as much, the TAs do it all. Its like getting a massive workforce with no liability for pennies.
 



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