The line made a splash by announcing a no-NCFs policy for travel advisors who booked clients at least 120 days in advance of sailing. Advisors had to submit a marketing plan for approval by NCL, and the new policy kicked in Jan. 1, 2023.
It was enthusiastically welcomed by travel advisors.
However, in changing course, NCL played up other agent-friendly initiatives.
NCL's John Chernesky, SVP sales, told Travel Weekly eliminating NCFs did not result in a strong enough boost in business to justify continuing to pay advisors more money.
Travel Weekly said approximately 2,500 agencies had signed up for the program.
NCL's statement
In a statement, an NCL spokeperson said: 'As the cruise industry is once again on an upward trajectory, we are proud to have supported our partners by paying commission on NCFs. To continue to help our travel partners fully recover and grow, we have decided to extend our NCF commission program through the end of Q1 2024 for partners currently enrolled. The program, which was the first of its kind and supported travel partners during one of the most challenging times in the cruise industry by paying commissions on non-commissioned fares and boosting advisor earnings, will discontinue on April 1, 2024.
'However, with the program extending through the first quarter, the vast majority of bookings that sail in 2024 will provide a higher level of commission. As always, we look forward to continuing to support the travel partner community by investing heavily in marketing efforts with an enhanced Marketing Headquarters, a Travel Partner Resource Guide and NCLU’s Learning Lab and, ultimately, we are focused on being the easiest cruise line to do business with.'
Hope for higher revenues
Discussing the break-out no NCFs move with financial analysts in November 2022, Frank Del Rio, CEO of Norwegian Cruise Line Holdings, said the policy was an 'ROI-type of move' expected to generate higher revenues.
When an analyst asked about the timing of that decision and said wouldn't it just result in a net-zero if competitors followed NCL's lead, Del Rio explained the travel agency community wasn't fully back to pre-pandemic levels. While cruise lines were shut down for 500 days, advisors sold more resort vacations to make a living.
'We have to find a way to draw them back to the cruise industry and away from land vacations, our No. 1 competitor, as opposed to other cruise brands, and we think this is a way to do it,' Del Rio said.
Other lines
Subsequently another NCLH brand, Oceania Cruises, said it was testing no NCFs, and a spokesperson told Seatrade Cruise News the program is continuing with the line's top 50 agency partners. American Queen Voyages did away with NCFs beginning in 2023.
Other major brands have not followed suit.
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