FORT LAUDERDALE -- Norwegian Cruise Line said travel agents will earn close to 40% more in commission through its plan to pay on noncommissionable fees, but company executives made clear at CruiseWorld 2022 Friday that there are strings attached.
Frank Del Rio said that this was a quid pro quo. This is not a free gift. This isn't a free item. What we expect in return is more support from you.
He expects more bookings to offset the cost of paying advisors commission on NCFs. The rise in bookings will allow NCL to reduce its advertising expenses.
I don't get a kick out of spending a lot of money on advertising. Del Rio said he would rather pay you. The math works well for everyone.
If the strategy works at NCL, the line's sister companies could follow suit.
This strategy can go away if more bookings don't come through. When asked if the plan was permanent, Del Rio said it could be.
The plan was hailed as a "game-changer" by the president of the company.
Travel advisers will be paid by the cruise line when they book at least 120 days in advance. NCL requires a marketing plan from advisors.
According to Todd Hamilton, senior vice president of sales for NCL, this requirement would encourage advisors to think more about marketing and open a door for the cruise line to engage with agents about their marketing plan.
To be paid for NCFs, agents need to tell the line what they're marketing, how much they're marketing and what they're going to do to drive both.
If we think it's pretty darn good, we'll sign you up for NCF payments.
NCL chief Harry Sommer said he's not worried about other contemporary cruise lines reacting in the same way. Land-based vacations in countries like Mexico and the Dominican Republic are where the real competition is, Sommer said.
He said NCFs are the last thing to do to maximize commission for agents to make them more lucrative than resorts.
He said we all win because we provide you with all the tools you need to succeed.
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