The future of travel agents was one topic during a top-level executive
discussion chaired by former CLIA chairman, Rod McLeod, at CLIA's annual cruise3sixty
conference in Fort Lauderdale
on Saturday. McLeod asked panelists whether agents are doing a good job and
will the agency distribution model continue. Frank Del Rio, president of
Oceania Cruises, who formerly worked for Renaissance Cruises when it cut agent
commissions, said cruise lines or airlines who have tried in any way, shape or
form to bypass agents have paid a huge price for it. "I don't think anyone
in this business will want to make that mistake again," said Del Rio, who noted the
cruise industry is growing, the lines need to fill vessels, and the
distribution system works efficiently. "That doesn't mean to say there
won't be shifts and modifications, but I don't see a change in the next 10–20
years; the center of the distribution system will be agents," Del Rio said. In response
to a recent Goldman-Sachs investment report that cruise lines, will phase out claimed
agents Bob Dickinson, president and CEO, Carnival Cruise Lines, says the author
"doesn't have any idea what he's talking about," and that the agency
distribution system will continue moving forward; that said, he also said
agents must evolve, to focus on sales skills, and not rebate. Alan Buckelew,
president of Princess Cruises, said agents are more than twice as effective as
they were just a decade ago while Lynn Torrent, president for North
America, Costa Cruises, said customers tell her line they are comfortable
booking through agents and while agency models are changing, that's for the
better. The key ingredient is the consumer, said Dan Hanrahan, president,
Celebrity Cruises, who stressed agencies must continue to give a wide range of
options, and with all the new tonnage coming, agents have a very bright future.
Andy Stuart, executive vice president of marketing, sales and passenger
services, NCL Group, said agents must seize the opportunity to build
personalized relationships with the customer, and that agencies must use
technology to help them in getting closer to customers. Rick Sasso, president
of MSC Cruises, North America, says one big
plus for an agent is "the amount of money agents can touch" has
soared. Thirty years ago, he said, there were only 500,000 cruise guests and
not that far different an agent base, but today the relatively same complement
of agents is handling more than 11 million customers, providing huge revenue
opportunities.