Cruise Lines Test Waters for Bookings on Internet

It’s been six months since Carnival Cruise Lines, the 800-pound gorilla of the cruise industry, pumped up its Internet site to allow consumers to make online bookings. So by now the rest of the industry must be just about caught up, right?

Wrong. Some competitors have started taking bookings from consumers online, notably Norwegian Cruise Line and renegade Renaissance Cruises.. But many North American lines, including Carnival’s largest rival, Royal Caribbean Cruise Lines, say they won’t be following follow Carnival’s lead.

What, a cruise aficionado may ask, gives?

It may seem downright backward that the cruise industry has hung back from the home computer revolution--especially when cutting out travel agents means not having to pay agent commissions, typically 10% to 14%.

But while airlines have been quick to woo passengers on the Internet, cruise lines have been far more reluctant to make the agents angry. Basically, cruise lines fear the power of travel agents in a way that airlines no longer do.

“Buying a cruise is not like buying an air ticket from L.A. to San Francisco,” said Princess spokeswoman Julie Benson. “It’s a much more complex booking. And a knowledgeable travel agent is extremely valuable.”

Right now, industry veterans say about 97% of cruises are sold through travel agents, because competent agents can explain the differences between one ship and another, know a good discount from a fake sale and can describe the relative merits of different itineraries. It would cost most cruise lines a fortune to handle such questions (although most lines will sell directly to a consumer if he or she calls and insists).

But Internet bookings don’t take the time that telephone bookings do, and that has cruise companies wondering: How many customers will book online directly? How much extra revenue would that bring? And how can we make that possible without enraging travel agents and causing them to steer business away?

Since March, Carnival Cruise Line (https://www.carnival.com) has been taking Internet bookings from consumers, but gingerly. “While it is not necessary to have a travel agent to use our online reservations system,” the Carnival Web page notes, “a travel agent will be glad to answer any additional questions, as well as customize your vacation.”

Citing competitive concerns, the line declines to disclose exactly how many bookings it’s getting from online consumers. But “the vast, vast majority of our Internet bookings are coming from travel agents, not consumers,” says Carnival spokesman Tim Gallagher.

“Our guess and forecast is that a small minority of bookings will continue to come directly [from online consumers]. However, you’ve got people out there who just won’t use travel agents. So as a company you have to be in a position to still capture that business. We’re not suggesting that anyone not use a travel agent.”

Officials at Norwegian Cruise Lines (https://www.ncl.com), who pay similar homage to agents, recently told Cruise Week, a trade publication, that they hope to have an Internet booking engine for agents only in place by Dec. 15. But like Carnival, the company is working both sides of the street: NCL aims to offer Internet booking for consumers early next year.

The other cruise line selling itself aggressively online is Renaissance Cruises, which has only two ships as well as a reputation for going its own way. Not only does Renaissance take bookings from consumers over its Web site, it also is encouraging them. When I initiated an Internet search for the cruise line’s address, the page gave this summary: “By selling our cruise vacation directly to you we lower our overall expenses and pass the savings directly to you.”

Princess Cruise Line, meanwhile, has pledged that it will have an Internet booking site for travel agents only by late this fall, and further pledges that it will not in the foreseeable future allow consumers to directly book online.

Other lines, including Crystal and Royal Caribbean, have announced similar agent-dependent strategies. (On Royal Caribbean’s Internet site, https://www.rccl.com, the line suggests that first-time cruise customers peruse a list of travel agencies in their ZIP code.) This is a becalming trend for travel agents, whose role in the marketplace has been under assault for most of the last decade.

Not only have the airlines been taking more direct bookings from consumers, they’ve also been whittling their commission payments to travel agents. As a result, agencies have been urging their troops to make up for those losses by selling more cruises and tours.

Sell they have. North American cruise line passengers grew from 1.4 million in 1980 to 5.4 million in 1998, and those companies aim to grow a lot more: They’re enlarging their capacity by more than 30% between now and 2003.

So what does this mean for the consumer?

If you’re a veteran cruiser who already has a ship, itinerary, date and price in mind, it would be handy to be able to book your cabin online. In some cases, it might even save a few dollars. (Renaissance Cruises’ Internet site promises $100 savings if you “buy online today.”) But consumers usually get no substantial discount for booking directly, whether they do it by phone or computer.

Another issue is homework. The Internet is potentially a great research tool, but in a highly complex, competitive marketplace, many consumers may be shortchanging themselves by not shopping around more.

It may be wiser for novice cruisers to find a cruise-specialist agent. (Ask for references from friends and relatives). Several guidebooks give solid overviews of ships, ports and the way it all works. Three are Fielding’s “World Wide Cruises” (by Shirley Slater and Harry Basch and editor Kathy Koles), Berlitz’s “Complete Guide to Cruising” (by Douglas Ward), and Access Guidebooks’ “Access Cruise.”

Christopher Reynolds welcomes comments and suggestions, but cannot respond individually to letters and calls. Write Travel Insider, Los Angeles Times, Times Mirror Square, Los Angeles 90053, or send e-mail to chris.reynolds@latimes.com.