Johanna Jainchill
NCFs, or noncomissionable fares, have long been a topic cruise lines don't want talked about.
But as soon as one of them does, it seems to be all that anyone can talk about.
Most recently, of course, it was Norwegian Cruise Line's decision to eliminate NCFs.
And while it's the second time in two years that NCL has made such a proclamation -- the last time, it didn't last -- this go-round the cruise line is doing it very differently.
The 2023 program didn't apply to all bookings, and advisors who wanted to be part of it had to submit marketing plans to participate. NCL ended it in early 2024.
John Chernesky, NCL's senior vice president and chief sales officer, told my colleague, cruise editor Teri West, that in the past year, advisors told the line that unfavorable commission rates were holding them back from booking. The brand mulled nixing NCFs again as a way to increase commission. But this time, NCL decided to simplify it by removing all strings and eliminating NCFs across the board.
Advisors have naturally applauded the decision and say NCL's new approach will stick this time, for various reasons.
One, for the other lines that have no NCFs -- Explora Journeys,Viking and Virgin -- "it's a tagline, no NCFs," said David Crooks, senior vice president of product and operations for World Travel Holdings. NCL couldn't do that two years ago because it still had NCFs for some agencies and on some sailings.
"They couldn't really say, 'No NCFs' the first time because it wasn't true," Crooks said. "Now it's easier to constantly shout about it, because there are no NCFs."
And simplicity and clarity make a big difference to advisors who prioritize companies that are easy to do business with.
The 2023 program came with "so many conditions," said Jackie Friedman, president of Nexion. "Certain sailings were eligible, certain weren't, and advisors didn't know for sure. This way, it's very clear."
What's come to light in all the recent chatter about the program is just how much of an impact NCFs can have on an advisor's bottom line.
"It can be real money for a retailer," said Stephen McGillivray, chief partner marketing officer for Internova Travel Group, at Internova's New York office in mid-January. On some itineraries he'd looked at, the difference was $400 to $500 more in commission.
Friedman said that the commission difference for a like-to-like NCL sailing without NCFs is "a pretty good number ... probably a 20% to 30% increase."
Crooks said the difference World Travel Holdings was seeing was close to what Chernesky suggested was the additional commission advisors would make, also up to 30%.
That's a far cry from when a former cruise executive, many years ago, called NCFs a "red herring" that only impacted advisors selling the cheapest sailings.
But to that point, Friedman said she thinks a benefit of the policy could be to encourage advisors to sell more of the shorter cruises that advisors often don't go after because the reward is so small.
"By removing the NCFs, we might see more advisors actively selling some of that short-cruise product, which I think is critical to bring new cruisers in," she said.
The question for NCL is: Will the elimination of NCFs move the needle enough in advisor sales? It didn't last time, but the program's parameters likely had a lot to do with that.
Advisors know that NCL is expecting growth. "They're not doing it out of the goodness of their hearts," Friedman said.
And as Crooks added, "NCFs have been a sore point for so many agents for so long, and you gotta put your money where your mouth is. If it doesn't provide an ROI to Norwegian, it's going to be a challenge to make it an issue in the future."
I've never spoken to an advisor who said they'd recommend one cruise line over another for better commission. But when it's apple to apples, an NCF policy could tip the scales.
No advisor will "sell the wrong product to someone if it's not a fit," Friedman said. But NCL's no-NCF policy is "just another tool in their tool chest" that advisors now have when weighing contemporary cruise products.
And Nexion is already seeing impact, with a bump in 2026 NCL sales over where they were at this time last year "by a pretty good number," Friedman said. "So the advisors are certainly embracing it and applauding it."
And from what I'm hearing, one of the most important reasons to support NCL's policy is that it's the only way other brands will follow suit.
"The competitors are going to be monitoring it and looking to see what type of impact it could have on their brands," Crooks said. "It does make other cruise lines more cognizant of how they support the trade."