Norwegian Cruise Line is set to pay agent commission on the portion of the fare that was previously non-commissionable.
Starting from January 1, 2023, agents will earn extra commission for new bookings made up to 120 days prior to the sailing on cruises departing from May 1, 2023.
To qualify for the non-commissionable fare (NCF) payments, agents must submit a marketing plan to their NCL sales support team by December 31, 2022.
NCFs relate to sections of a cruise fare on which travel agents are not paid commission. The practice is common among established cruise lines, and although details of the NCF portion of a fare are not published, they traditionally relate to costs such as port fees and other charges.
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NCL said the move to pay NCF commission was part of its commitment to be “the easiest cruise line to do business with by providing agents with educational tools, promotions, and marketing assets”.
It also claimed to be “the first major contemporary cruise line to compensate travel agents on NCFs for new reservations booked outside of the 120-day window”.
President and chief executive Harry Sommer 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.”
Gary Anslow, UK and Ireland senior director of sales, said: “Our travel partners are incredibly important to us and our business. It is a true partnership.”
Travel Weekly in the US reported that some lines had previously courted the trade by paying commission on NCFs during targeted promotions. It also said some newer entrants, including Viking, Virgin Voyages and Explora Journeys, had refrained from using NCFs in their pricing.
MSC Cruises also highlighted it had “always” paid full commission to agents on the total cruise fare including NCFs and taxes.