Club Med Sets Policy to Stop Rebating of Commissions

Club Med is cracking down on rebating, saying in a prepared statement that “rebating of commissions is a disservice to the travel agent profession.” The company said that no travel agency or company may advertise or promote to the general public Club Med vacations online, in print or by any other means at a price below Club Med's published prices unless specifically authorized by Club Med. For the purposes of this policy, Club Med's published vacation prices are defined as those which appear on Club Med's website.

When making a payment using a client’s credit card, travel agents will be required to charge the gross amount according to the payment policies for deposit and/or final payment. Club Med will not accept short payments on a reservation using a client’s credit card. Travel agents who are paying by agency check may continue to pay Club Med the amount due net of commission. Under no circumstance will a travel agent’s personal credit card be accepted to pay for the client’s travel.

A client booking may be transferred within 72 hours of the initial booking date and before final payment. In this instance, the new travel agency of record will be paid in accordance with Club Med’s standard commission tiers. The originating travel agency of record will not be paid a commission. For purposes of this policy, the initial booking date means the date that the original initial deposit is received by Club Med.

A booking may be transferred on an exception basis as approved by a regional sales director more than 72 hours after the initial booking was made or anytime inside the final payment window. In this instance, a 10 percent commission will be paid to the originating travel agency and no commission will be paid to the new travel agency of record.

Club Med reserves the right to reduce commissions and/or marketing funds, or take any other actions it deems appropriate if a travel agency violates this Advertising and Rebating policy. “Club Med values the important role that travel agents play in the distribution and sale of Club Med vacations,” the company said. “Only through a healthy distribution system will Club Med be assured of their continued success as the pioneer and innovator of all-inclusive resort vacations around the globe.”

Source: Travel Pulse, http://www.travelpulse.com/club-med-sets-policy-to-stop-rebating-of-commissions.html