It used to be that I could find footwear in a variety of attractive styles and colors in my size, 11½ B, at a number of shoe stores. Even Thom McAn, where I worked part time after school, had them, and they were noted for being a low-cost, affordable brand when compared with the likes of Nunn-Bush, Florsheim or Johnston & Murphy.
My, how times have changed.
Some years ago, I finally gave up trying to find shoes at local stores that carried my size in styles that I would wear for less than $250. And of late, even the varieties I can find locally aren't all that attractive.
This brings me to an online store I found that has dozens of styles and colors of shoes in my size. After exhausting all local sources for shoes that I liked and would fit, I ordered two pairs that I liked. A few days later, the cognac-colored pair came, along with a notation that the black pair was on back order for delivery in May. Rats! And then, later that same day, I received an email from the company that sold the shoes announcing a 30% discount on any shoe, still with free delivery.
I immediately called the seller to ask if there was any way to adjust the cost on my undelivered pair of shoes. In short order, I was transferred to a supervisor, who proceeded to apply the 30% discount not only to the undelivered pair but also to the pair I had in my hands.
Perhaps you're wondering what that anecdote has to do with travel in general and cruise vacations in particular.
In the '80s and even into the early '90s, it was unusual for cruise prices to drop after a booking was made. And when that happened, even after final payment had been made, my recollection is that cruise lines adjusted existing bookings by upgrading or refunding the differential when asked.
At least one cruise line not only offered fare adjustments but protected the agency's commission at the original amount because, as an executive with the line at the time explained, it wasn't the agent's fault that the price had dropped, hence the policy of not reducing commission paid to the agency.
My, how times have changed.
Over the last few years, we have grown accustomed to sporadic periods of rate reductions after cruises were booked. In the main, cruise lines permitted rate adjustments for bookings eligible for the lower price prior to final payment, though sometimes only after trying to upgrade the booking or offer onboard credit.
Generally, it is to the agent's advantage to work toward one of the alternatives that do not drop the rate, because commissions are no longer protected. In recent months, agents have told tales of woe about bookings that have seen three, sometimes more, rate drops with accompanying commission decreases and added work in the administration of the bookings.
Lately, a more challenging situation has presented itself: Price reductions, sometimes hundreds of dollars per person, seem to be offered only after the final-payment due date for booked passengers has passed. Those clients who booked far in advance end up being very disappointed, because most cruise lines do not make any sort of concession -- refund, upgrade or onboard credit -- once final payment has been made.
To bring this issue into focus, we recently had clients bring to our attention a price drop on their cruise less than one week after having made final payment. Efforts to get suitable amenities to compensate for the drop were unsuccessful. Then the price dropped again, until the discount from the price they had paid now totaled $700 per person.
The reason this particular incident is so important is these clients book six to eight cruises a year with this line. In all, they have sailed with the line 92 times. They cruise so frequently that they are known to shipboard staff on sight by first name on practically any of this line's ships they board. There is only one past-guest status higher than that which they have earned.
Yet they are now disgruntled long-time customers, and they have discovered what seems to them to be a perfectly reasonable future plan of action.
Following this less-than-satisfactory resolution of the price-drop situation, these clients found themselves on a cruise with the same line, having dinner at the captain's table (as they often do). Another multicruise guest at the table recounted a past-final-payment price drop on an upcoming cruise and adamantly declared that he would never book early again; instead he would wait until after the final-payment due date for the price drops that he was all but certain would come. The guest also stated that he had canceled all his upcoming cruises and was willing to take his chances on being able to get the accommodations he wanted.
Already, our clients have canceled two cruises valued at $6,400, and I am sure they will cancel others, as well. They might or might not book additional cruises, but they have told us that from now on, they will wait until after the final-payment due date for the cruise of interest has passed before they do commit.
These are challenging times for some suppliers, and their management teams must do their best to maximize earnings. At some point, however, a balance must be struck that transcends bean-counting, taking into account passenger loyalty and the ramifications of handling client concerns in a way they perceive as dismissive.
Cruise vacation spending is totally discretionary. Our clients won't die if they don't spend their vacation on a ship. At the same time, the cruise lines are conditioning passengers to expect large discounts if only they wait long enough to book.
So, I have two questions for cruise lines:
- Do you really want to embrace a business model that ends up filling the ship six weeks out?
- Do you really want to play "chicken" with the consuming public to see who blinks first? You should know that his game always plays to the consumer's advantage.
The next surge of first-time cruise passengers will not arrive until 2014. In the meantime, cruise lines would do well to take especially good care of their most loyal past guests.
Charlie and Sherrie Funk own Just Cruisin' Plus in Brentwood, Tenn., and have provided agent and agency-owner training throughout North America on every facet of travel agency operations. They are the authors of several books, including "A Recipe for Travel Agency Success," "Creating a Blueprint for Growing Your Agency" and "You're Invited," a complete guide to hosting consumer travel events.