It's been four-plus months since Norwegian Cruise Line (NCL) eliminated the non-commissionable portion of cruise fares (NCFs), and a lot has changed at parent company Norwegian Cruise Line Holdings in that time.
There's a new CEO, new board members and an ongoing conversation about missteps at Norwegian Cruise Line that executives and analysts say have hampered the company's financial progress.
Amidst it all, the NCF policy is, so far, protected.
During the company’s Q1 earnings call, CFO Mark Kempa said he expects the financial gains from the NCF policy to outpace the "minor cost impact" over time.
He described the policy as an initiative intended to get "the travel agency community instilled with the Norwegian brand."
CEO John Chidsey says Norwegian Cruise Line is the company's brand that needs the biggest boost and represents the greatest opportunity for financial improvement.
"The feedback we have received since we announced the elimination has been overwhelmingly positive, reinforcing our commitment to keeping the policy intact," Chernesky said.
Another indication that eliminating NCFs is a welcome policy under new company leadership is that Oceania Cruises has now eliminated them, too. Last week, the cruise line announced that its new policy will apply to any cruises going on sale for the first time, and it is preparing to release its 2028 itineraries.
Chief commercial officer Nathan Hickman said NCL's decision to eliminate NCFs first made Oceania's easier. The brands communicate with each other and share data, and they also have many of the same agency partners, he said.
"We have the same goal of filling our ships and driving that demand and being the partner of choice for the trade," he said.
As for whether Regent Seven Seas Cruises is next, Hickman said the luxury cruise line currently pays amongst the highest commissions in the industry.
"They already have a point of distinction, just because they include so much in that cruise fare," he said.
Regardless of whether Regent follows its sister brands, NCLH is now an industry leader in supporting travel advisors through the elimination of NCFs with two-of its brands.
Viking, Explora Journeys and Virgin Voyages also do not have NCFs, and travel agencies, of course, want even more cruise lines to eliminate them.
In the meantime, this agency-friendly policy enables NCL and Oceania to stand out in the view of advisors.
Source: Travel Weekly