At CruiseWorld, Norwegian Cruise Line Execs Explain NCF Plan

At CruiseWorld, Norwegian Cruise Line Execs Explain NCF Plan

FORT LAUDERDALE - Norwegian Cruise Line said travel agents would earn about 40% more commissions through its pre-booking no commission fee (NCF) program, but at CruiseWorld 2022 on Friday, company executives said there are queues.

"It's a consideration," said Frank Del Rio, CEO of Norwegian Cruise Line Holdings. “No matter how good we are, it's not a gift. This is not a free gift... We expect something in return and in return we expect more support from you."

He expects further orders to offset the $20 million needed to pay NCF consulting fees. Del Rio said if the strategy goes as planned, the increase in bookings will also allow NCL to reduce advertising costs.

“I don't spend millions, even millions, on television ads, radio ads, billboards or direct mail. I'd rather pay you guys," Del Rio said. "Math works great for everybody."

If that strategy works at NCL, Del Rio said liner subsidiaries Oceania Cruises and Regent Seven Seas Cruises could use the same strategy.

But if there are no more orders, this strategy may fail. When asked by Travel Weekly editor-in-chief Ernie Weissman whether the plan was permanent, Del Rio replied "probably," implying that it was not a permanent policy change.

This week, advisers welcomed the announcement, with Nexion chairman Jackie Friedman saying the plan was a "game changer".

Marketing plan template for consultants

Cruise lines said Wednesday they will pay NCF travel consultants if they book at least 120 days in advance, starting with bookings on Jan. 1. Consultants must submit a marketing plan to NCL to participate.

Todd Hamilton, NCL's senior vice president of sales, said the requirement will encourage consultants to think more about marketing and open the door for cruise lines to discuss their marketing plans with agents, which he says will increase demand.

Agents who want to get paid for NCF can follow a template to indicate what they're selling, how much they're selling and what they'll do to promote both, Hamilton said.

"As long as we think it's good enough, we're going to say, 'Yes, let's sign you up for NCF payouts,'" he said.

competition

In a meeting with individual cruise line executives at Norwegian Cruise Line Holdings, NCL CEO Harry Sommer said he was not bothered by the "me too" response from other modern cruise lines. Instead, Sommer says, shore vacations are the real competition in places like Mexico and the Dominican Republic, where agents are turning to cruises.

Since NCL pays commissions on flights, Wi-Fi, drink packages and beach trips, he says NCFE is the last thing agents buy to maximize commissions so they are more profitable than resorts.

“We give you all the tools you need to succeed, you give us love and support. We will all win," he said.

Full salary for cruise crew. |: Captain Leo

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