Carnival warns of direct sell move

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

WATCH: The Travel Weekly Wrap | 14 February 2025
Feel like your story should have got a run in our new video wrap? We'll be the judge of that, thanks.

Entire Travel Soirée puts the spotlight on niche travel
Niche travel is one of the hot topics at the moment, so we couldn't pass up the chance to learn more with Entire.

Happy Valentines! Jetstar launches 8 hour flash sale
Chocolate is nice, but a trip away is a lot better! You'll be in your partner's good books for months.

Chick-In, now open! KFC launches its own airline
We wonder if they are going to have a detailed plan, or, if they are just going to...WING IT!!

Travelport introduces Finnair NDC content and servicing solutions
The national carrier of the happiest country on earth knows a thing or two about NDC, just ask the team at Travelport.

Turkish Airlines confirms daily flights between Sydney-Istanbul
Ok Melbourne, you may have got in first, but Sydney is set to be the lead gateway between the two cities. Score: 1-1.

CATO opens nominations for International Women’s Day lunch ticket giveaway
With one of the Queens of last year's Olympic Games already announced, we know it's going to be one hell of a day!

Boutique luxury hotel opens in Redfern’s Wunderlich Lane
Looking at the rooftop pool, this hotel looks like its situated deep in a Thai forest rather than the concrete jungle.

Croatia Airlines unveils new and restored routes to Milan, Prague, Madrid, Bucharest and Hamburg
When routes were scrapped early in the pandemic, no one would have thought it would be five years until they returned!

Salamander Voyages launches slow sailing itinerary in Türkiye
Okay everyone, time to sing - 'We are sailing, we are sailing, we are sailing...slowly...'

EXCLUSIVE: Emirates’ Captain Emily Sidoti on why gender disparity in aviation comes down to education
Emily is challenging stereotypes and inspiring a younger generation of women to earn their stripes.

Tura Turizm joins World Travel & Trade Council to promote tourism in Türkiye
Should we wind up on a famil in Türkiye, we're making sure to get on one of the famed hot air balloons tours!

Can you guess the world’s top spa destination?
If they ever need anyone to come and try the facilities for them, we are free most weekdays and weekends.

Qatar Airways wins big at Cellars in the Sky Awards
They say you feel the effect of alcohol faster in the sky... Only one way to find out.

Klook hosts inaugural Partner Awards with Tourism Australia’s Pip Harrison as special guest
As Pip said, when people come to Australia they do so for the experiences not their hotel's sheet thread count.

APT Travel Group launches early release of 2026 Canada and Alaska Holidays
For anyone with clients craving an icy getaway, APT is serving up some steals right now.

Film, photography and so much more to explore this year in Berlin
Often known for its grungy aesthetics, or perhaps a currywurst stall, there's so much more on offer this year in Berlin.

TravelManagers welcomes two new directors to HOTA Board
We wish Narendra and Judith the best of luck in trying to remember the rest of the Boards' names.

Tauck celebrates 100 years of hosting travellers around the globe
Tauck would only ever celebrate its 100th birthday in pure style - and Italy is just that!

Travelglobe unveils exclusive food tour with MasterChef’s Kirsten Tibballs
Fancy brushing up on your skills making delicious chocolate and pastry-based treats? Meet us on this tour!

Fiji Airways to bring South Australians closer to paradise with third weekly flight from Adelaide in April
South Australians might say they're already in Paradise, but how can they be sure without checking Fiji out?

Bookings for Vanuatu surge with Aussies ready to support earthquake-struck tourism hotspot
In times like those Vanuatu is surfacing from, the tourism dollar goes a long way and Aussies aren't holding back.

Bullo River Station shares its first ever sustainability report
If you would like to be inspired to be a little more green, then check out what Bullo River Station is up to.

‘Fortune favours the bold’: luxury brand leader Anna Burgdorf departs Flight Centre after 6 years
Time for a pop quiz - who first came up with above quote? Was it A) Virgil B) Shakespeare or C) Aristotle?

Cruise Guru unveils Channel Nine show featuring Ponant, Viking, NCL and more
A little offended that we weren't invited on as the 'Cruise Guru' ourselves, but we'll be tuning in regardless.

Explore Worldwide gives agents a chance to win an exclusive Sri Lanka famil
It's like finding a ticket in Charlie and the Chocolate Factory! And the prize is even better than unlimited sweets.

Heathrow Airport to upgrade operations as part of multi-billion-pound cash injection
We're usually a bit scared of injections, however a 'cash injection' is one we would welcome with both arms (literally).

Club Med announces Manveer Ramdhian as new MICE manager in Pacific
Rest-assured, being a MICE manager has nothing to do with our furry little friends.

Sydney Airport welcomes daily flights from Hong Kong Airlines
To top it all off, it looks like the representatives scored a cracker of a day for the celebratory photo!

Collette’s Karen Deveson on what Aussies really want from luxury
For Aussies, we're a little bit more laid back when it comes to luxury. No gold-plated cars for us, thanks!

Intrepid Travel partners with Helloworld Travel for exclusive food tour with Luke Nguyen
Vietnamese is one of our favourite cuisines, so we're headed to the Bánh mì shop for lunch in celebration.

Quark Expeditions opens its Antarctic 2026/27 season
You'd have to be Quarking mad to not have a trip like this on your bucket list.

Federal government to purchase REX Airlines if no buyers arise, Albanese says
News that is sure to ruffle some feathers in the offices of competing airlines this morning, but we're all for it!

Topdeck discounts select 2025-26 trips with up to $1,000 off
Knowing my Gen Z sister, that $1,000 saved would be headed straight to the shopping fund.

Windstar Cruises unveils ‘Basil + Bamboo’ on Star Seeker yacht
Don't worry, we're talking about a restaurant here, not the materials used to build the stunning yacht.

Captain Cook Cruises celebrates 55 years of excellence on the water in the habour city
With a view like Sydney Harbour as your office this would be a hard job to leave.