NCL rethinks trade ties in bid to target top-selling retailers

Under-performing agents face losing sales and promotional support from NCL

NCL rethinks trade ties in bid to target top-selling retailers

Report by TANYAJEFFERIES

NORWEGIAN Cruise Line is looking to shake-up its relations with the trade in an effort to target its top-selling agents more effectively.

NCL is looking closely at multiples and leading miniples to work out which of their agents produce bookings and which don’t. Those branches that do not do much business could lose sales and promotional support. However, it has said it has no plans to cut commission.

Executive director Bill Ellerington said: “The problem with some multiples and miniples is you have to support them wherever the shop locations are, regardless of whether they do any sales. If a shop is not doing many sales, it either does not rack the brochures or they gather dust.

“We are starting from scratch to see where our business opportunities are.”

Ellerington said NCL had been working on its new trade strategy for the past seven months and it plans to unveil more details within the next four to six weeks.

He claims it is important for all travel suppliers to focus on how they distribute their product. “Companies don’t have money to burn,” he said. “You have to make a decision as to where you spend your money.”

Meanwhile, Ellerington claimed that NCL’s bookings were up 20% compared with last year. He attributed this mainly to an increase in sales through its 30 tour operator partners.

“We went through a phase where it was difficult to work with tour operators,” he admitted. “We were not keeping to the itineraries we had arranged so it was difficult for operators to keep their programmes going.”

Ellerington said itineraries had now stabilised, which has allowed NCL to re-establish its partnerships with British Airways Holidays and Jetsave from next year.

The operators stopped featuring NCL cruises in 1998 and last year respectively.

Ellerington: has been working on NCL’s new trade strategy for the past seven months