Fresh off the launch of a new marketing campaign and news that it is eliminating non-commissionable fees (NCFs), Norwegian Cruise Line (NCL) has been the talk of town lately.
We sat down with John Chernesky, senior vice president of sales for North America for the line, to discuss the above, and what else is ahead.
How has the removal of NCFs been received, and what initially prompted the policy change?
The response has been fantastic. When we first tested commission on NCFs a few years ago, it was a little convoluted — it wasn't for every agency, it applied only to select categories (balconies and above) and only on select voyages based on booking windows.
One of the principles I helped introduce when I joined NCL was that we wanted to be the easiest cruise line to work with. We know that's not something you can just say and have happen overnight — it takes work and effort. You have to identify where your problems lie, and we understand that travel advisors work with multiple suppliers.
Rather than trimming around the edges and simply adjusting the NCF amount, we decided to go big and make a bold decision to eliminate them completely. It applies to everything, so there's no complications.
Executives, travel agencies and frontline advisors that I personally know have been effusive about it, and we're very happy with the decision.
Another thing that’s great for advisors is the Free at Sea Plus offer. How should advisors leverage that?
It's a great question, because they really do tie together. [Agents are] earning more on the cruise booking itself, and then they have the opportunity to talk to their clients about upselling from the base Free at Sea bundle to Free at Sea Plus, which is as inclusive as it gets. There's a lot of opportunity for advisors to influence their clients and say, ‘Have you considered Norwegian?’
Our service continues to get better each year. We travel to so many popular We have 18 North American homeports that people can drive to, so you don't even have to get on a plane (in most cases) to go on a cruise with us.
Free at Sea Plus is the best way for guests to have a great experience at a relatively low price point. If you combine the cost of Free at Sea and Free at Sea Plus, it averages to about $90 per day. On other brands, that’s the beverage cost alone. We're including premium beverages, specialty dining, prepaid gratuities, unlimited Wi-Fi, Starbucks [and] bottled water. All the things that come with those two packages combined [are] by far the best value proposition out there.
How is wave season shaping up for NCL?
We are off to a great start and a great year — our partners have embraced NCL. Anecdotally, we’re hearing that one of the reasons is because of the elimination of NCFs, and they appreciate that we took such a big, bold approach.
Now that it's cold in so many parts of the world, the beauty of wave season is that people are sitting at home thinking [about] spring break. We're seeing strong demand, not just for sun-and-fun [destinations], but also for Europe and Alaska. It's been a very good start.
When you think back a couple years, we had Free at Sea, then we shifted to More at Sea. From a marketing and brand perspective, I don't think we consider just how much brand equity we have with the concept of freedom and flexibility.
We wanted to raise some eyebrows with this campaign, and we want people to think of us as not just another cruise line, but as a unique proposition.
With what we've created now, we are bringing back what's old and making it new again: We are reintroducing ‘It's different out here,’ our tagline [from] decades ago, to underline our brand promise. We believe we're different. We have a lot to offer across multiple segments, and premium families and seasoned travelers are two core markets that we are really leaning into. We wanted to raise some eyebrows with this campaign. We want people to think of us as not just another cruise line, but as a unique proposition. We're very excited for it.
Other things to be excited about include Great Stirrup Cay enhancements and the forthcoming Norwegian Luna. What can you share about those?
We're thrilled that the pier at [Great Stirrup Cay] is up and running, ensuring successful calls and significantly improving satisfaction scores, and the newly opened pool and Vibe Beach Club have been fantastic. I'll be going in a couple weeks and can’t wait to see it.
There’s even more excitement to come this summer, with the debut of the Great Tides Waterpark, featuring 19 water slides, a dynamic river and cliff jumps. There is so much to offer; we still have the fundamental best island in terms of that true tropical getaway.
As for Norwegian Luna, we're thrilled to welcome her as the sister ship to Norwegian Aqua. I look forward to being there for the inaugural festivities. It's always nice to add a new member of your family.
