ASTA and a group of travel agency leaders on Tuesday issued a statement lauding Norwegian Cruise Line's elimination of NCFs (the noncommissionable portion of fares) while calling on other cruise lines to do the same.
"The practice of NCFs has long been a barrier to fair and transparent compensation for travel advisors," the statement reads. "Removing NCFs entirely reflects a trend toward more equitable and transparent commission models industry-wide, honoring the full scope of the work advisors do in service of shared clientele."
The statement was signed by ASTA's executive and consortium councils as well as a number of agency executives.
In addition to applauding NCL's move, it highlighted other cruise lines that have no NCFs: Explora Journeys, Viking and Virgin Voyages.
The statement encourages "all cruise lines and travel suppliers to examine their compensation structures with an eye toward transparency, fairness and mutual success."
It argues that eliminating NCFs results in "more equitable commercial relationships," recognizing the value of advisors and ultimately serving the end traveler if their advisor is "fully and fairly compensated" and can "invest more in delivering exceptional service, personalized planning and valuable expertise."
Travel advisors were encouraged to prioritize booking with cruise lines that have no NCFs.
ASTA is holding a town hall on Jan. 16 with NCL's John Chernesky, senior vice president of North American sales, to discuss the cruise line's move to eliminate NCFs.
Retailers urged to support no-NCF lines
NCL's move away from NCFs came up during a Travel Leaders Network media briefing in New York on Jan. 13.
Network president Lindsay Pearlman, who sits on ASTA's consortium council, was one of the agency executives who signed the statement.
Stephen McGillivray, chief partner marketing officer for TLN parent company Internova Travel Group, applauded NCL's decision. He theorized it could have come after seeing the success of other cruise lines that don't have NCFs, like Virgin Voyages and Viking.
McGillivray hopes advisors will increasingly book the lines that don't have NCFs, saying it's "the only way" to get other cruise lines to follow.
For travel advisors, eliminating NCFs can mean a $400 to $500 boost in commission, he said.