President's Message
In late March, cruise line analysts working for the Goldman Sachs investment firm issued a report urging Carnival Cruise Lines and Royal Caribbean International to cut travel agent pay to a standard 10 percent level (basically, cutting out override commissions).

Cruise Lines Drive Future Growth by Betting on Travel Agents
By Gary M. Fee, OSSN President

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Obviously, the Goldman Sachs analysts -- like a multitude of major airline executives in the late 1990s -- don't truly understand the symbiotic, win-win relationship between cruise lines and hardworking travel agents.

Here's the basic truth that stock analysts and big airline CEOs keep missing:

Travel agents don't cost money for travel suppliers. Instead, they make money for suppliers.

Twenty CLIA cruise lines (and a few other cruise companies) do a great job planning and operating thousands of sailings every year. And, they develop excellent TV ads and brochures and Web sites and collateral marketing materials that make consumers think about taking a cruise.

Then, savvy travel agents step into the picture -- and we close and service those sales to a degree that would cost cruise lines much more than 10 percent or 14 percent or 16 percent of the final cruise fare.

We're not an expense item for smart suppliers. We're a huge cost savings. Instead of hiring their own customer relations staffers -- and sales reps in every big, midsize, and small town across North America -- OSSN agents and other travel retailers continue delivering consistent sales and very satisfied passengers to the world's major cruise lines.

In fact,Royal Caribbean went a step further this month by declaring April as "Travel Agent Appreciation Month." It's the kickoff of a year-long recognition by Royal Caribbean that will include new taglines for the cruise line's ads: "Royal Caribbean recommends using a travel agent." That's a huge vote of confidence in travel agents everywhere who've dedicated their professional lives to selling cruises to the 15 percent of Americans who have already enjoyed a vacation at sea -- and persuading the other 85 percent to skip that new dining room furniture or second car purchase this year in favor of their first cruise!

And, for those travel suppliers out there who're still thinking they can save a few bucks in the short term by bypassing agents and going directly to consumers, I have two words for you to remember: Renaissance Cruises. Like the big airlines, Renaissance presented the perfect example of the perils of ignoring agents as the world's best travel sales force.