Over the years, I have seen it all. I have seen airline commissions dwindle and finally be eliminated. The Internet has done its best to thwart me. Tour operators have now become my competitor by selling directly to my client. And cruise lines kept lowering their fares while raising their fees so they could pay less. With all that, imagine my surprise when I saw this subject line in my e-mail.
NORWEGIAN CRUISE LINE TO PAY TRAVEL AGENT PARTNERS COMMISSION ON NON-COMMISSIONABLE FARES
What? Pinch me please, I must be dreaming.
Well, it is true, NCL has backed off a longtime policy of not paying a commission on NCFs for cruises.
As we all know, over the years, NCFs have grown larger and larger. In fact, on some shorter, low-cost cruises, the NCF has exceeded the cruise fare. One study showed that the average NCF (across several brands) amounted to 23% of the total cruise fare.
So how does this relate to the agent? Let’s back it out.
OLD VERSION
- Cruise Fare $799
- NCF $180
- Comm Fare $619
- 10% Comm $61.90
NEW VERSION
- Cruise Fare $799
- Comm Fare $799
- 10% Comm $79.90
If my math skills are as sharp as I hope, that’s a 30% increase in commissions! If you were to sell 100 of these a year, that is another $1800 directly to your bottom line. Who can’t use that?
As Harry Sommer, President and CEO of Norwegian Cruise Lines said:
Our Partners First philosophy remains top of mind, and our decision to pay commission on NCFs is further proof of our commitment to this community. We want our partners to thrive; we want to see their businesses grow all around the world.
And to everyone on the NCL team that pushed for this…thank you from an industry that is trying to recover along with you.
I am not holding my breath, but it would be nice for the others to follow suit. Time will tell, and now, NCL is a top-tier preferred supplier with me!
One thought on “Pinch Me, I Must Be Dreaming”
FYI – Viking has been paying on NCFs for the past couple of years. It is nice that NCL has begun this practice also. Now, perhaps other cruiselines will follow suit. We do appreciate it.