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Royal Caribbean promises to protect travel agent commissions on deferred cruises from coronavirus concerns

In:
10Mar2020
By: 
Matt Hochberg

Royal Caribbean has told its travel agents any cruises that are canceled and converted to a future cruise credit will have their commission protected on both the canceled booking and the future reservation where the FCC is redeemed.

Royal Caribbean made headlines when it announced a "Cruise with Confidence" policy to ensure passengers worried about the Coronavirus outbreak will have far more flexibility in being able to cancel up to 48 hours before the cruise. However, this policy created a cash flow issue for travel agents, whom would have their commissions deferred until the passenger actually went on a sailing.

Traditionally, when someone books a Royal Caribbean (and most cruise lines) cruise with a travel agent, the agent receives the commission once the passenger actually goes on the cruise.  If the passengers would cancel and take a future cruise credit, the agent would not be paid by the cruise line until the subsequent cruise was taken.

After doing some rethinking, Royal Caribbean changed their policy so that guests who take advantage of the Cruise with Confidence program and are opting for a Future Cruise Credit in the full amount paid, will have earned commission to the travel agent protected on both the canceled booking and the future reservation where the FCC is redeemed.