Norwegian says sales uplift vindicates 10% commission move

Norwegian says sales uplift vindicates 10% commission move

By Phil Davies

Norwegian says sales uplift vindicates 10% commission moveNorwegian Cruise Line attributed its switch to 10% commission a year ago to a big lift in UK business – and stressed there are no plans to alter its course on remuneration.

Executive vice president sales Andy Stuart revealed that business from the UK was 25% ahead of this time last year.

This vindicated the move to cut commission as it helped eradicate retail cruise discounting and provide price clarity to consumers.

And Stuart stressed that his door was always open to negotiate with Advantage Travel Centres after the consortium took the rare decision to take the line off its preferred supplier list due to the reduction in commission.

“We were clearly disappointed because we felt we were doing something positive to discourage rebating in the industry,” he said.

Speaking as Norwegian showcased new 4,000-passenger ship Norwegian Breakaway in Southampton to 2,000 UK agents, he claimed Advantage had “misunderstood” the company’s intentions and there continued to be ongoing positive dialogue.

“We believe 10% is a fair commission which will result in a higher retention and better margins for agents while ensuring that consumers are less confused about pricing,” Stuart added.

More than 100 Advantage agents were on board for the overnight showcase of the ship and the opportunity to earn additional commission by ensuring they saw different parts of the vessel.

Stuart conceded that the line would continue to run tactical promotions such as the current short-term bonus commission offer to coincide with the introduction of Norwegian Breakaway.

But he insisted that there would be no shift in the ongoing 10% level as part of Norwegian’s Partners First philosophy.

He declined to be drawn on a rise in the company’s share price but industry observers believe investors see positive returns from ongoing improvements in profitability and the introduction of both Breakaway and sister ship Norwegian Getaway from Miami from January 2014.

Stuart revealed that there would be tweaks to the second new ship to reflect its Florida home port.

Norwegian expects UK passengers to be attracted to the Miami-based ship due to the popularity of Florida as a holiday destination and good levels of airline capacity.

The line is aiming for “more than double digit” percentage growth from the UK in 2014.

Norwegian Breakaway arrives in Southampton

Norwegian Breakaway arrives in Southampton

By Phil Davies

Norwegian Breakaway arrives in SouthamptonNorwegian Breakaway becomes one of the biggest ships to make its debut in Southampton today for a special trade preview.

The latest Norwegian Cruise Line ship made a pre-inaugural overnight sailing from Rotterdam to arrive in the UK port this morning.

Hundreds of agents will be on board as the 4,028-passenger ship is showcased today by senior executives led by chief executive Kevin Sheehan.

They will be able to earn up to 4% bonus commission for their agencies by attending educational sessions onboard.

Norwegian believes the Engage and Reward initiative on board new ship Norwegian Breakaway is a first for the travel industry.

Agents will be given a unique barcode on arrival, which they will have scanned as they attend ship tours and presentations from senior managers, Ace and Travel Weekly among others.

The maximum bonus commission they can earn is 4%, which will be available to all staff in their agencies between May 15 and June 14 for sailings before the end of 2013.

Agents are being given the opportunity to meet representatives from key cruise destinations as they move through check-in and embarkation at Southampton.

Participating destinations include Alaska, Seattle, Miami, Clearwater Beach, Barcelona, Malaga and Palma.

Breakaway

Norwegian is also providing £25 bonus commission on new bookings made by May 14 as part of promotional campaign involving price cuts of up to £150 per cabin across various ships in the fleet.

UK & Ireland business development director Nick Wilkinson said: “Our Partners First philosophy recognises the central part that the trade plays in product distribution, and the Engage & Reward programme idea is rooted in that.

“Attending agents will have the opportunity to earn incremental commission for their organisation through attending the various educational elements of the launch activity.”

Norwegian Breakaway leaves tomorrow for its homeport of New York where it will be officially named on May 8. Summer cruises to Bermuda start two days later.

Norwegian Breakaway features seafood restaurant Ocean Blue by New York celebrity chef Geoffrey Zakarian, three Broadway shows, a quarter mile long ‘broadwalk’ and five water slides.

The vessel will be joined in April 2014 by sister ship Norwegian Getaway.