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Travel Advisors May Benefit as Virgin Voyages Bundles Amenities Into Premium Prices


Skift Take

Virgin Voyage's decision to charge high fares that include gratuities, premium dining, and other onboard features means higher earning potential for travel advisors. That's because advisors often lose out when cruise lines offer cheap fares, and then make up for it with onboard, non-commissionable charges.

Virgin Voyages, which started its sales to the public last week, is not bashful about its pricing, but that could be good news for travel advisors. When the cruise line starts service in April 2020, a five-night cruise that includes Havana will start at $3,650 per cabin. However, that price will include most of the onboard experiences, including dining, gratuities, and Wi-Fi.

This is a marked contrast to the industry trend for cruise lines, especially at the mass market level, to entice passengers with cheap fares and then nickel-and-dime them with charges (mostly non-commissionable) once they get on board. So advisors stand to benefit from higher commissions, plus gain the ability to offer a new product that may appeal to clients who don’t normally take cruises. For more about Virgin Voyages' travel agency program, click here.

Also on the high-priced front, a new survey of Australian travelers shows that, despite the country’s weakening economy, demand for luxury vacations is strong. Australian travel advisors are benefitting from the trend, crafting customized experiences and providing the kind of high-touch service this segment requires.

For more coverage of pertinent issues, click here.

Any suggestions for the coverage you would like to see are welcome. Feel free to contact me at mbl@skift.com.
— Maria Lenhart, Travel Advisor Editor

Featured Stories

Virgin Voyages Wants Cruisers to Pay a Premium (and Like It): Virgin Voyages has set its prices much higher than a typical Caribbean cruise, but the operator is including more perks in the price — and insists it will be anything but typical. Will fans of the brand pony up?

Why Aren’t Visitors Splurging in Crazy Rich Singapore? Singapore grapples with affordability, as seen in drops in shopping, dining, and hotel spending by tourists, who are also staying a shorter time. Going for more high-yield tourists and giving them the value they’d expect from paying high prices is the solution, and Singapore must do it fast.

Australian Travel Advisors Find That Luxury Clients Still Care About Price: Survey findings about a healthy luxury travel market in Australia demonstrate significant and lucrative opportunities for travel advisors who can meet clients’ lofty expectations while still delivering value.

Tourism

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Skift Podcast: Why Travel Should Be Optimistic About 2019: Tune in to hear the reasons the travel industry could be in for a good year — or the factors that could steer 2019 off course.

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Deem Plans Growth With Backing From Enterprise: With support from Enterprise Holdings, Deem plans on growing and refining its existing products. On the horizon, though, lurks the promise of a new travel platform to help the company evolve in a competitive global corporate travel market.

Skift Travel Advisor Editor Maria Lenhart [mbl@skift.com] curates the Skift Travel Advisor Innovation Report. Skift emails the newsletter every Tuesday. Have a story idea? Or a juicy news tip? Want to share a memo? Send her an email.

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