Carnival warns of direct sell move
![Carnival warns of direct sell move](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Carnival Australia has warned it may be forced to start selling direct to the public if the Travel Compensation Fund is scrapped.
In an alarming response to the potential shake-up of consumer financial protection in the travel industry, the cruise line said it may have no option but to bypass retailers and begin a direct sell strategy.
Should the TCF be axed, as seems likely, and without a process to ensure the financial stability of agents “we may find it more attractive to drive direct sales”, Carnival said.
The pro-TCF response from such a major and travel agent-reliant company will set alarm bells ringing in the trade and adds a new twist to the reform issue.
Until now the debate has been largely one-sided and in favour of reform. To add further intrigue, the Travel Compensation Fund response to the draft Travel Industry Transition Plan has also been made public.
Carnival said the absence of the TCF will put pressure on the operator to honour the booking when a travel agency collapses.
“It seems to us the practial effect of removing the Fund and the licensing requirements will be to pass the risk of travel agent insolvency on to operators,” Carnival said in its submission. “This will inevitably mean operators such as us will need to reassess the ways in which we use agents as a distribution channel.
"Without a collective approach to ensuring the financial stability of agents, we may find it more attractive to drive direct sales.”
To protect against the risk of agent insolvency the cruise line said it “may insist that customers pay us directly for their booking where they use an agent”.
“This might in turn have an effect of the usage of travel agents,” it said.
Carnival added that operators may need to draw up their own criteria and deal with agents they know are solvent. “This may mean smaller agents are not given the opportunity to sell an operator’s products if they cannot meet whatever criteria the operator puts in place,” the submission said.
The risk for cruise lines is even more acute because of the long lead time between the time a booking is made and the departure date.
The result is that agents could hold a client’s money for a long time before it needs to be remitted to the operator, Carnival said.
Should reform progress and the TCF vanish, the company insisted the government must draw up regulations requiring travel agents to pass clients’ money to an operator within two business days of receiving the money.
Alternatively, money should be held in a trust account, with “trust account inspectors” recruited to police the schemes.
The inspectors could be funded from TCF reserves, Carnival said.
“It seems to us as though some form of regulation dealing with the handling of consumer’s money is necessary,” Carnival argued.
In another suggestion in a move to protect operators, Carnival said agents should be required to hold insurance that meets certain minimum requirements, including fidelity coverage.
“The Fund reserves could be used to finance inspectors, as well as an advertising and communications campaign advising consumers that they should only pay money to agents with the necessary coverage,” Carnival said.
Proponents of reform have argued there is sufficient safeguards under existing consumer and corporations law to protect consumers.
But Carnival claimed that such laws “will be of little assistance if the agent has no resources to pay a compensation order”.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Latest News
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Low-cost Indian carrier SpiceJet continues to burn cash
It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024
AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Journey Beyond launches first brand-led campaign during Paris Olympics
Journey Beyond is pushing the boundaries. On The Ghan, you can't even see them!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Ascott Australia partners with Hotels for Trees
Hoteliers can take a 'Lyf' out of this book and improve their green credentials.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Victoria’s TAC Top Tourism Town Award winners for 2024
Keep looking in our own backyard. There are plenty of places to go.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Uniworld partners with Camilla Franks with Egyptian-inspired collection
We are in de-Nile about making puns combining Crocs and leopard prints, given this luxe partnership.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Aussies at Paris Olympics anxious about travel risks, with incidents already recorded
Fortunately one of our biggest gold medal hopes still held onto his pedals.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Banyan Tree Seaview Villas elevates Laguna Lang Co
If you've ever played golf in the tropics, start early. LIke way early. It's hot! Damn hot.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Silversea taps Barbara Biffi as senior vice president for global sales
Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Wendy Wu unveils new Japan travel brochure and itineraries
Get outta town! Off-beat Japan will be a lot less congested we figure than the usual tourist hotspots.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
UK and Europe event organisers look to venues with sustainability integrity, ICC Sydney survey finds
Here in Sydney, you can even eat the table centrepieces. Although we advise they be cooked first.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Renos Rologas new general manager ANZ for FCM Travel
Two decades in the travel game! Let's hope Renos is in for the long haul at FCM.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Untamed Escapes to offer Cultural Day Tour from Port Lincoln in partnership with Maba Idi
International visitors travel thousands of kilometres for this experience. Time to share.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Luxe Finish Line Penthouses offer the best vantage point for the finish of the Sydney-Hobart
Long have we been following the yachts leavings Sydney Harbour and one day, we will see the finish, from this place!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
In a busy world, proximity to nature is the new luxury
Forget Raffles, treat your nearest and dearest to a stay at the local campsite. They'll be super close to nature.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Circular Quay welcomes new Korean dining experience to Sydney Place
We once took Korean-American chef David Chang around Koreatown, Eastwood. Not happy about driving rain, loved the food.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
MSC Cruises unveils a new outdoor kid-friendly attraction on World America
Drop your kid down the jaws of a shark and they come out 11 decks below. Sounds good to me.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy
Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Australian travellers abandon peer-to-peer stays and gravitate back to big hotels, survey finds
Doom scrolling Airbnb for the best-possible stay options two days out from departure was wearing us down, apparently.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Quark Expeditions launches the Ultimate Summer in the Arctic sweepstakes for travel advisors
Summer in the Arctic still means it's freezing. But hopefully a winning sweepstakes tickets will warm your cockles.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘I bet it smells weird’ – Internet divided over floating restaurant in China
I you are still feeling peckish at the end of your meal, their fish tank is full. But can you eat koi?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Turn up in the Northern Territory this Spring’ campaign deals
Agents and airlines get all hot and sweaty over these enticing deals. Or did someone just turn the air-conditioning up?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Like nothing on earth’: Saudi Arabia’s new Treyam resort set in a Star Wars-style landscape
As long as Jar Jar Binks is not there, we would like a seat at the Mos Eisley Cantina please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Raffles Hotels and Resorts is set to open in Tokyo in 2028
Time to get your vision boards at the ready! Raffles is landing in Tokyo!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘A true honour’ – Andrew Stark wins Flight Centre Director’s Award for the second time
Congratulations Andrew! If you're a fan of British reality TV you might notice a familiar face.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Club Med debuts travel agent portal 2.0 with bonus prize for tops sales
See those people by the pool. That could be you. Start selling through the portal people!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Envoyage announces 2024 Australian Icons and rewards event in the Maldives
We were going to edit our name into the list but we chickened out.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
HIF Global signs collaboration agreement with Airbus on eFuels
We know it's a good thing but can a jet fuel geek out there send in a diagram explaining this please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Crystal announces release dates for 2026 itineraries
If you have started collecting 2026 itineraries then here is another one for you.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Cairns Airport unveils display of support for FNQ youth
If you were craving some winter sun now you have a cultural reason for booking a flight to Cairns.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Viking announces six new cruise itineraries
Now's the time to start learning Putonghua, Nihongo and Lhasa. Or maybe even know where these are spoken.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Join Qatar Airways, Celebrity Cruises & Klook – Showcase Your Brand at Click Frenzy Travel August 2024!
Clicking calmly will also be welcome when it comes to this particular deal. Click calmly here to find out more.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
InsideAsia Tours launches new incentive that doubles agent commission
Double commission! We like the sound of that. Hope their system doesn't crash as a result.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Push to revive Parramatta’s iconic Roxy Theatre into entertainment destination
Long have we wished for this iconic heritage cinema to be revived as a tourist destination. Still waiting.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Qatar Airways signs an expansion to Boeing 777-9 aircraft order
Known as a quiet rural town in England, the entire global aviation industry now has its eyes on Farnborough.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Flight Centre shares down following revised profit guidance
The stock market moves fast. What will the rest of the week hold for Flight Centre?