Agents criticise ultra-low cruise deposits Josie Klein


Ultra-low deposits in the cruise sector are leading to more work, higher cancellation rates and lost commissions, according to the trade. Agents have shared their


frustration at increased workloads during low-deposit promotions, saying customers often book multiple sailings with the intention of cancelling the majority as they want to give themselves options and are happy to lose the deposits. The frustration comes after agents


voiced annoyance at lines dropping prices once on sale, resulting in customers cancelling and rebooking (Travel Weekly, March 7).


Paul Hardwick, head of


commercial at Fred Olsen Travel, said he avoids low-deposit bookings as typically customers who bo ok the sailings do not follow through when it comes to paying the full balance. “I’m not a fan of low deposits,” he


said. “The cancellation rate on those cruises is really high and I would avoid them as much as possible because we don’t get paid. “Last year, we saw deposits as low


as £1. Customers would book several cruises, but when it came to paying the balance, they didn’t want to go. “At Fred Olsen Travel, we account


for bookings on sale, so if a customer cancels the sailing, our balance sheet is down and it looks like we are losing money.”


Cross-government meetings on travel fail to materialise


Ian Taylor


The cross-government meetings set up by former tourism minister Nigel Huddleston to coordinate policy on travel and tourism between ministries have failed to take place since the initial meeting. Tourism Alliance executive


director Richard Toomer revealed last week only one initial meeting took place and the cross-departmental group “did not meet again”. Speaking at the Business Travel


Association (BTA) conference in London last week on industry relations with government, Toomer noted: “There are structures supposed


4 21 MARCH 2024


to deal with decisions [on travel and tourism] made across government departments, across Whitehall. We got a cross-departmental meeting up and running [during the pandemic]. But it met once and didn’t meet again. Ministers don’t want it.” Former Google head of travel


Huddleston, who was tourism minister during the pandemic, promised increased coordination across government and announced in 2021 that then culture secretary Oliver Dowden “will be leading regular cross-departmental meetings” as part of a Tourism Recovery Plan launched in June that year. Huddleston told Travel Weekly


It’s disheartening as


it is encouraging time-wasting and saying it’s acceptable, which it’s not


Travel Counsellors agent Emma


Otter described low deposits as a “gimmick”. She urged cruise lines to reevaluate their low-deposit offers and acknowledge the problems they cause. “I would love [lines] to review the


cancellation rate of those booking at such low deposits as it is significantly higher [than regular deposit bookings] and people even admit


they’re happy to book and lose the deposit money,” she said. “It’s disheartening as it is


encouraging time-wasting and saying it’s acceptable, which it’s not.” Alison Earnshaw, managing


director of World Travel Holdings, said “savvy” customers secure sailings on low-deposit cruises as a placeholder and then wait to see if the line launches a campaign where the same cruise is available at a cheaper cost, prompting them to cancel the initial booking, lose the deposit and rebook, creating more work for the agent. “Existing cruise customers are


increasingly savvy and will monitor pricing on the cruise they have booked,” she said.


Richard Toomer


at the time: “These [meetings] have not happened before. A more formal structure is an important signal of the government’s commitment.” But Huddleston moved to the


Whips’ Office in September 2022 and to the Treasury in November 2023. He was followed by three tourism


ministers in six months – Lord Syed Kamall, Stuart Andrew and current minister Julia Lopez. Former culture secretary Sir John Whittingdale held the post for much of last year while Lopez was on maternity leave. Whittingdale expressed


“frustration” that “time and again decisions are taken elsewhere” on travel and tourism when he spoke


at a Tourism Alliance policy conference last September. Toomer said: “Tourism doesn’t


have the profile it should have. It’s 9% of GDP, but doesn’t have the profile of some smaller sectors, such as agriculture.” He noted “our sponsoring department” is the Departure for Culture, Media and Sport (DCMS), but said: “Very little of what we want to achieve can be done by DCMS – it’s done by other departments.” Abta continues to push for a


dedicated minister for outbound travel. Asked if he could envisage a minister for travel and tourism, Toomer said: “I would love a dedicated minister, but I don’t think it will happen.”


travelweekly.co.uk


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