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Canadian agent group asks Carnival to change NCF policy

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Canadian agent group asks Carnival to change NCF policy

By Tom Stieghorst

The Association of Canadian Travel Agents (ACTA) has sent Carnival Corp. a letter asking that it reconsider its handling of the noncommissionable portion of cruise fares.

In a dispatch to members, group President David McCaig said he is raising the issue now to respond to newly named Carnival CEO Arnold Donald’s call for improved relations with agents.

“The hope is that under Mr. Donald’s leadership, ACTA’s voice will not fall on deaf ears,” the memo said.

Commenting on the letter, a Carnival spokesman said, “Travel agents are absolutely critical to our long-term success, and we are doing a number of positive things across our 10 brands to continue to strengthen our ties with our agency partners around the world. We certainly understand and appreciate the issues being raised, and I know Arnold plans to look into this further and give this issue a thorough review with his leadership team.”

McCaig said that noncommissionable fees (NCFs) create misunderstanding and distrust with clients because the charges are hard to explain.

He wrote that traditionally an agent will present NCFs to a client with terms such as “supplemental fares,” “nondisclosed cruise fees,” “add-on fares” or “hidden surcharges.”

“When a travel agent seeks support from Carnival Cruise Lines’ reservations to quantify NCFs, they are always at a loss to do so,” McCaig said. “It is unfair that travel agents are portrayed as an obstacle to lower fares.”

NCFs are used not only by Carnival’s brands but by most cruise lines, which say that the fees reflect unspecified government fees and other charges that amount to pass-through costs not part of the product.

Eric Maryanov, president of All-Travel.com, said he thinks NCFs could be better detailed by the industry in general.

“Taxes, port charges, I get it,” he said. But some cruise invoices have a line item for port charges and then another that simply says “NCF” with no explanation of what that NCF is, he said.

McCaig said the letter to Carnival asks Donald to “seriously consider changing Carnival brands’ NCF commission policy by establishing familiar and consistent terminology for the travel agency community to use with their clients.” It also asks Carnival to commission the cruise “with both amounts combined (commissionable and noncommissionable) at current levels.

McCaig said in the dispatch to members that he sent the letter on Oct. 23.

Carnival Corp.’s Arison praises agents in new ‘open letter’ ad

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Carnival Corp.’s Arison praises agents in new ‘open letter’ ad

By Tom Stieghorst
Carnival Corp. is making it personal.

In a new advertisement scheduled to appear this week in several publications, including Travel Weekly, Carnival Corp. Chairman Micky Arison spells out his appreciation for travel agents, citing their crucial role in making Carnival’s brands successful over the years.

The ad takes the form of an open letter and bears a photo of Arison and his signature at the bottom.

Micky Arison, CEOIt is an unusually direct communication from Arison, who recently stepped down as CEO of Carnival Corp. while retaining the title of chairman. In the letter, Arison also introduces his chosen successor as CEO, Arnold Donald, as someone travel agents can trust.

“Together, we will continue to work hard to exceed guests’ expectations and to position Carnival brands as your customers’ cruise lines of choice,” Arison writes.

Roger Frizell, vice president for corporate communications at Carnival Corp., said of Arison, “This is something he wanted to do as a way to reach out to the travel agent community to personally thank them for their support over the years, while also using the opportunity to introduce Arnold as our new CEO.”

The letter carries the logos of all 10 Carnival Corp. brands, clearly differentiating it from initiatives announced recently by Carnival Cruise Lines under the Carnival Conversations banner.

“The fact that it comes from the chairman says a great deal,” said Stewart Chiron, a Miami-based travel agent and a regular commentator on broadcast and cable networks.

Chiron said the letter sends a message of stability, direction and continuity at the top during a period of corporate transition.

It also reflects Arison’s genuine sympathy for agents, he said, adding, “I know his support for travel agents has been unwavering over the years.”

Meanwhile, the Carnival Cruise Lines brand continues to roll out changes built on the feedback it received in Carnival Conversations.

The latest volley is the reinstatement of a printed brochure, which was announced by Mike Julius, Carnival Cruise Lines’ senior managing director of U.S. trade sales, at the end of September.

“Travel agents have told us loud and clear that they want a printed brochure,” Julius said when making the announcement. “We’re thrilled to introduce one that is customized with the information that matters most to them.”

Although the number of pages is still being decided, the brochure will be printed in an 8½-by-11-inch format and will contain enough content to be more like a catalog than a brochure.

It will include deck plans, which agents complain are hard to share with clients in an online format, and detailed itineraries by destination as well as cabin photos, a Frequently Asked Questions page and an At-a-Glance ship-deployment grid.

Travel agents can pre-order the free brochures beginning Nov. 15 through GoCCL.com. Carnival Cruise Lines said it expects to begin shipping them late in the year, in time for the start of Wave season on Jan. 1.