TORONTO — NCL is walking back its NCF pivot, with changes to the program coming in spring 2024.

Back in November 2022, NCL made the groundbreaking announcement that it would start paying travel advisors commission on non-commissionable fares (NCFs). The new payment policy went into effect on Jan. 1, 2023, for reservations made outside of final payment, on sailings departing May 1, 2023 onward.

To qualify for the NCF commission, travel advisors were asked to submit a marketing plan through Norwegian Central.

Now NCL is phasing out the program. The last day will be March 30, 2024.

We reached out to NCL for comment.

An NCL spokesperson told Travelweek: “We are committed to supporting the travel partner community, and our legacy Partners First philosophy, which is rooted in empowering travel advisors to grow their business along with ours, together, by providing easy access to an extensive resource library, fostering strong relationships with the NCL Sales team and offering opportunities to experience the product through multiple avenues.

“As the cruise industry is once again on an upward trajectory, we are proud to have supported our partners by paying commission on NCFs. To continue to help our Travel Partners fully recover and grow, we have decided to extend our NCF Commission Program through the end of Q1 2024 for partners currently enrolled.

“The program, which was the first of its kind and supported travel partners during one of the most challenging times in the cruise industry by paying commissions on non-commissioned fares and boosting advisor earnings, will discontinue on April 1, 2024.

“However, with the program extending through the first quarter, the vast majority of bookings that sail in 2024 will provide a higher level of commission.

“As always, we look forward to continuing to support the travel partner community by investing heavily in marketing efforts with an enhanced Marketing Headquarters, a Travel Partner Resource Guide and NCLU’s Learning Lab, and ultimately, we are focused on being the easiest cruise line to do business with.”

NCFs LONG A THORN IN THE RETAIL TRAVEL INDUSTRY’S SIDE

While travel advisors produce huge volumes of bookings for cruise lines, NCFs have long been a thorn in the retail industry’s side for decades. Agents cheered when NCL first announced its pivot.Days after NCL made the November 2022 announcement, Travel Leaders Network said it had taken steps to ensure its members would qualify for the new initiative.

Payments on NCFs were bannered under NCL’s ‘Partners First’, the company’s commitment to the travel advisors community through the provision of educational tools, promotions and marketing assets. At the time, NCL said it was making the move to help travel partners establish a stronger relationship with their clients and increase brand loyalty, resulting in repeat business and higher earning potential.

Last month NCL’s parent company, Norwegian Cruise Line Holdings (NCLH) posted its Q3 2023 results, including total revenue of US$2.5 billion, a record for the company and up 33% compared to the same period in 2019. Net income was $345.9 million. NCLH also noted that forward bookings for Q4 were at record levels and at higher pricing, and said the company “remains within its optimal booked position on a 12-month forward basis and at higher pricing”. NCLH is also the parent company of Oceania Cruises and Regent Seven Seas Cruises.