Silversea Cruises hails success of revamped agency commission structure

The cruise line is paying out more after changing remuneration model

Silversea Cruises is paying out more in agency commission since changing its remuneration structure at the start of 2023.

President and chief executive Barbara Muckermann said the incentive structure had been “realigned” in January to reward agents who produce more sales, resulting in the operator spending more on agency commissions this year than in 2022.

The line also introduced “commission kickers” as a way for agents to earn bonus commission.

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Agents can earn an extra 1% commission on bookings for new-to-brand customers or expedition sailings, with both of these combinable for a 2% bonus. Agents booking a client’s second Silversea cruise are also rewarded with 1% bonus commission.

Muckermann said: “Our average commission cost has increased from last year – not because of an increase in revenue but as a percentage. I’m spending a higher percentage of my P&L on travel advisor commission than I was last year – and we want that.”

Muckermann, who described the move as “very successful”, said some agents weren’t transferred to the new structure immediately and data had shown they had performed worse than those agents that had been switched to the new terms.