In this age of ever more demanding transparency, why do cruise line executives continue to evade providing straight explanations concerning "non- commissioned fares" a/k/a NCFs. We have not really heard anything substantial from the cruise lines regarding this very controversial subject. Some travel agents believe the NCF's are just another way to reduce agent commissions. Cruise line executives prefer to avoid the discussion and change the subject when asked. Rick Sasso, President of MSC cruises recently stated "Instead of wasting energy focusing on NCFs, retailers would be well advised to focus on selling more cruises to increase their compensation." Travel Agents have a history of "turning their cheek" when it comes to responding to this kind of insulting rhetoric.
What is the real answer? Is it all about a segment of the travel industry continuing to "screw" the travel agents or is it just about corporate policy determining that using the NCF is needed to earn a profit for the cruise line by reducing agent commissions or burying unexpected expenses and asking travel agents to pay for it.? Why the need to play games? Is it that the cruise lines don't want to be as direct in reducing and then eliminating commissions as the airlines did in the 90's? Is this just a different approach to eventually ending in the same result?
Travel agents have always been a patsy for many suppliers. First the airlines and more recently the cruise lines. I personally believe this will always be the case until the travel agents stop their petty bickering and shortsighted "what's in it for me" attitude and join together and create their own voice in this industry. It's one good reason to become a member of STARS. The suppliers have their CLIA for cruise lines and USTOA for the major tour operators. What do the travel agents have? No one!
I would love to hear more from reasonable cruise line executives and travel agents concerning this subject. I recently attended the Cruise World conference where they had a panel of cruise line Presidents. The NCF question was asked very sheepishly and only Rick Sasso responded. RCL and NCL remained mute. Mr. Sasso's response was one we have always heard. A bunch of unknown or extraordinary expenses that cruise lines can't or won't account for. Doesn't everyone in business incur these types of expenses? Is it just a "slush" fund to account for expenses that should have been budgeted in the first? I believe it all should be brought out into the open. Is the NCF just a ruse or is there legitimate reasons why it is there?
Why not turn the NCF problem over to CLIA to properly explain to travel agents. The cruise line executives are doing a terrible job of it and are putting their sales people in embarassing positions trying to explain it, when they are not sure either. There's a simple answer to the NCF misuse. Allow travel agents to add an additional commission when making a booking online.
I would like to continue this conversation and would like your input. Please send comments to [email protected].
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