The failure of Cruise Value Center is a shame but just goes to show
you how tough it has gotten for travel agents to make a living in this
economy.
The company, as run by Jeff Kivet, should be recognized as an
innovator in many of the customs of cruise sales that have become de
rigeur over the years for the biggest volume cruise sellers.
Kivet claims to have invented the concept of rebating, and others who
followed agree that he did. Even as flat-pricing was implemented to
curb the practice his company continued to innovate by offering value-
adds such as free cruise insurance or prepaid tips. As cruise fares
went lower in the last couple of months the amount of commissionable
portion of the fare shrank by a larger percentage. Although Kivet
always managed to run his business profitably it appears the people he
sold it to were not as nimble. They likely fell victim to lack of
credit and too much overhead.
The Kivet family, however, definitely made their indelible mark in the
cruise business and deserve recognition.
I never met Jeff, but I talked to his son Spencer who worked for
Viking River and other jobs in between stints of returning to CVC to
help his father Jeff run the business. Jeff passed away unexpectedly
and tragically a few years, and he was an intelligent and capable
person who knew this business through and through.
This is a significant change in the world of cruise sales. |