It’s the other TAs in the Industry that loses. That is probably why certain lines don’t allow Costco to “discount “ the cruise with a backdoor rebate. They understand that that allows Costco to undersell the other agencies.
Smaller companies not being able to compete with larger companies is nothing new. See Amazon. So many small business around me are closing their doors because amazon has changed the way people shop. Just the way it is in today’s world.
Lol. I know Disney Wins!! They always do! It’s the other TAs in the Industry that loses. That is probably why certain lines don’t allow Costco to “discount “ the cruise with a backdoor rebate. They understand that that allows Costco to undersell the other agencies. And yes Costco gets the 16% top commission I’m sure because if volume. I guess it’s even possible Disney could pay them more if they want. Im sure there has been push back about it from the other agencies so I was thinking this is one of the reasons for the harder line on making people spend in the store. You yourself said this is money in your pocket because you would have spent that money at Costco so you are getting the cruise cost, at least in actual dollar cost to you as a discount. Please understand I don’t blame anyone for taking advantage of it, I’m just looking at the bigger picture of how Costco is impacting the other agencies. I don’t believe that there are that many huge agencies that can give half their commission back to the customer on every trip they book. They have to actually pay their agents commission right? Doesn’t sound like Costco does. Although I know they have people working in the travel department.
Really? I’ve never been on any cruise but Disney. You can cash out an OBC? Of course I don’t think I’d ever have any left. Lol
This!! That’s all I was stating is that I believe it’s an unfair to the travel industry. They aren’t doing what a travel agent does. They are essentially a booking agent while getting the highest commission for the volume they produce. And then their incentive is for you to come spend that money back in our store where you’ll buy other things. They are a big corporation and able to offer half the commission back to clients. When you could cash out the card it was more of a loss to them because hard cash was paid. If made to only allow rebates as OBC that means they have to transfer money to the cruise line for your account. But now they just are essentially giving you products (for which they are making a profit) as your Rebate.Agree 100%. Costco isn't a travel agency but just a way to get a discounted Disney Cruise. Is Costco providing any service that you couldn't get from booking directly with Disney on their website? Of course not. I would argue they aren't providing any value added service at all. It is just a backdoor to get a rebate. DIsney is doing a dis-service to other real travel agents that are providing value added services. The current commission system is destroying the small mom and pop travel agencies. WIth the current system they are unable to charge a fair price for their services. People have been conditioned into thinking their services aren't worth anything.
I dont understand your argument. Is it the amount back that Costco offers that is the problem for you or the fact that it is as a Gift card? If its the amount that Costco offers back, what do you suggest is fair...for Disney (and other lines) to give less commission to Costco s o they have less to share? As one of their largest volume sales reps that hardly seems fair. Or do you want cruise lines to cap what can be given back so that Costco keeps more of the profit? That doesnt seem like a great solution as a consumer. If the problem is that Costco gives it back in the form of a Gift Card, a "back door rebate" as you call it, I *still* dont understand what is preventing these other agencies from offering store Gift Cards, Visa Gift cards, future credit with their agency or even cold, hard cash as an incentive. Are the TAs getting the OBC at a discount so they arent fully paying for what is given (a more bang for their buck situation) and that is why they always choose OBC or something fro the gift catalog?
Yes. On Celebrity, for example, OBC is labeled (on the TV account screen or on a printout from the front desk) as OBN (nonrefundable) or OBR (refundable). They will use up the OBN first as you charge things, and will automatically refund any unused OBR at the end of the cruise.Really? I’ve never been on any cruise but Disney. You can cash out an OBC? Of course I don’t think I’d ever have any left. Lol
Agree 100%. Costco isn't a travel agency but just a way to get a discounted Disney Cruise.
I just think to be somewhat fair they should have to actually shell out the money not just give you a store card.
Costco giving us a $100 shop card means we get to spend $100 in their store to buy $100 worth of products that they probably had to pay only $50-75 for.
Really? I’ve never been on any cruise but Disney. You can cash out an OBC? Of course I don’t think I’d ever have any left. Lol
Obviously people were taking advantage of it and Costco clamped down.
A travel agent is a service product. They should get commission for assisting a client to book travel. Their expertise and knowledge is why Disney or any other cruise line offers to pay them a commission. A regular travel agency doesn’t have warehouses full of products for which once sold is making them a profit as is the case with Costco. A TA would have to buy a $100 gift card to give to you. That’s $100 off the commission they earned from DCL plus the commission they pay their agent who actually booked the trip and spent their time. Plus of course the agency has to keep some so they can do the overhead. Costco giving us a $100 shop card means we get to spend $100 in their store to buy $100 worth of products that they probably had to pay only $50-75 for. So they are making money on their generous ship card rebate all while we consumers say ok. Good for us. All I’m saying is that they should be made to do what the industry has done and if they are going to give you cash back it should be their cash back in forms of OBC. No the normal TA is not getting a discount on OBC. They have to take a cut of the small commission they get to compete with other agencies that are doing this. Plus now they have to compete with box stores like Costco who it seems simply is a booking agent getting full commission.
I just think to be somewhat fair they should have to actually shell out the money not just give you a store card.
No that’s not obvious. I just said that smaller travel agents can’t compete when Costco gives a backdoor discount. One that is as of right now perfectly legal. I’m sure Costco and other big membership stores are killing other industries as well. Personally I was surprised that Disney allows that because if they force them to give you a rebate in OBC Disney gets the money for you to spend on their ship. Seems other lines understand that. Now that I heard the other lines require that I’m wondering why Disney , who always looks out for themselves is not clamping down on this policy. I guess they are just moving with the times. With sites like the Disboards you absolutely can plan your whole trip without the help of a TA. And a TA needs to now give you back their commission in order to get your business in which you don’t pay them anything( in most cases). We just see it differently. Probably because I know people in the industry. Luckily I own DVC so I don’t ever really need a TA but I love helping family and friends so I’ll have to tell them to join Costco for the best discount on Disney cruise. We can all At least agree on that right? Lol. Sorry if I offended anyone. No-one Has to defend their decision to use Costco rebate!! It’s a good deal unless you don’t like the new rule that you have to use in their store.Obviously you feel like there should only be 2 ways to purchase cruises, buying directly from the cruise line or using a traditional TA. Costco is definitely a third option and a great one for people that dont mind doing a little extra work in exchange for, effectively, a better rate.
No that’s not obvious. I just said that smaller travel agents can’t compete when Costco gives a backdoor discount. One that is as of right now perfectly legal. I’m sure Costco and other big membership stores are killing other industries as well. Personally I was surprised that Disney allows that because if they force them to give you a rebate in OBC Disney gets the money for you to spend on their ship. Seems other lines understand that. Now that I heard the other lines require that I’m wondering why Disney , who always looks out for themselves is not clamping down on this policy. I guess they are just moving with the times. With sites like the Disboards you absolutely can plan your whole trip without the help of a TA. And a TA needs to now give you back their commission in order to get your business in which you don’t pay them anything( in most cases). We just see it differently. Probably because I know people in the industry. Luckily I own DVC so I don’t ever really need a TA but I love helping family and friends so I’ll have to tell them to join Costco for the best discount on Disney cruise. We can all At least agree on that right? Lol. Sorry if I offended anyone. No-one Has to defend their decision to use Costco rebate!! It’s a good deal unless you don’t like the new rule that you have to use in their store.
Oh thank you! I enjoy a lively discussion and I am sorry I hijacked the post!! I respect everyone’s opinion because we all come from different perspectives. I hope everyone who has the Cash card gets to use it the way they want!!Even though I may not be able to cash it out in store, it still looks like the best deal if you need DCL and no real TA services. Costco doesnt do MSC and I actually found the best deal for two different MSC cruises on Expedia. One was just flat out the lowest price I could find and the other gave the best OBC/ points combo I could find on the room class I wanted. But I have to admit, I did check Costco first. LOL
And I dont think you offended anyone, certainly not me and Im sorry if I came off that way. While you have deep opinions, you are respectful and it was great "meeting" you here.
Costco and other big membership stores are killing other industries as well.
Just to be clear, you aren't getting a discounted Disney cruise with Costco. The price is exactly the same as if you had booked a cruise with Disney or any travel agent or booking agency.
The only thing Costco does, is give their members(who are paying an annual membership fee) a rebate of the portion of their commission they receive from Disney. Some people seem to be arguing that Costco isn't doing enough as a travel agent to receive their commission.
What is the difference between booking a cruise with Costco and one directly with Disney? If you go the Disney route, you don't get a discount, nor a rebate and I dare say, not much expertise because you didn't use a travel agent at all. If you go the Costco route, Costco says because you are a member, we will give you some cash for booking with us. Seems fair to me. It doesn't really matter to me whether the cash is OBC, a cash card or a shop card.
I am a paying member of a club that shares some of it's "profit", which is why I belong to the club. That rebate can be a card for travel or a giant bag of oranges at a discounted price. I appreciate the fact that my membership entitles me to some perk, much as being a Platinum Castaway Cay member allows me some perks.
Travel agents are all different. You have Disney experts like Dreams Unlimited and a few others that are going to give you a lot of service for their commission and they have decided what is appropriate to give you for your business. You can find other agents that aren't Disney experts, that aren't giving you any expertise either and Disney still gives them a commission. They either give you something for your business or they don't.
Who you choose to book your cruise with should be determined by the amount of help you need and who can best provide that for you. It shouldn't be determined by the amount of commission an agent receives, nor the amount of rebate you receive.