MIAMI - NCL Corp.
became the third large cruise company this year to restrict agents
from advertising discounted cruise prices and the second to commit
to a "level playing field," giving all agents access to the same
fares.
The new policies
apply to the Norwegian Cruise Line and NCL America brands,
effective Jan. 19. Agents will be permitted to advertise only
approved rates or promotions in "any public medium."
NCL will continue
to approach specific agents with targeted promotions, but Andy
Stuart, NCL's executive vice president of sales and marketing, said
those promotions also will be available to any agent calling the
line's reservations department.
"We have worked
with a number of agents across the country to assist us with rates
that haven't been available to everybody," Stuart said. "It was
clear that's been a pricing practice that many, except the few who
receive those prices, are uncomfortable with."
NCL's new
policies come on the heels of August decisions by Carnival Cruise
Lines and Royal Caribbean Cruises' two brands, Royal Caribbean
International and Celebrity, to restrict agents from advertising or
selling discounted or rebated rates.
With its
reference to "any public medium," NCL's advertising policy appears
to be similar to that of Carnival, which has said it will not
extend its policy to discount deals struck in person or over the
phone.
"We're not going
to manage how people talk to their customers," Stuart
said.
But NCL does
differ in its explanation for changing its product-advertising
rules. While RCCL and Carnival both said they wanted to better
manage pricing confusion with the traveling public, NCL said its
policy change was based on requests from travel agents.
Stuart said the
subject came up often during a recent marketing
roadshow.
"It was clear
that's what the distribution system wants," he said.
According to
Marvin Davis, CEO of Cruise Planners, NCL's move likely would put
more pressure on lines such as Holland America Line and Princess
Cruises to make a similar move.
"But they're just
sitting back to wait and see how it works," he said.
Ron Russo, the
executive director of Best Price Cruises in Port St. Lucie, Fla.,
said, "We expected it to happen from all the cruise
lines.
"Am I slightly
surprised that Norwegian did it first? Yes," he said. "I would have
expected another Carnival Corp. company to do it first.
"I just thought
it'd be better business for some of them to hold out and use the
opportunity to get market share."
Neither Princess
nor HAL has committed to either a level playing field or
restrictions on advertising rebates.
In an e-mail
message, Rick Meadows, HAL's senior vice president of sales and
marketing, said rebating was "a distraction that keeps agents
focused on price vs. value."
Meadows also
said, "At this point, we are not changing our policy."
Jan Swartz,
Princess' senior vice president of sales, said Princess was
"listening, watching and studying" the issue.
"We haven't taken
a position," she said.
Pat Neidhardt,
president of Cruises-n-More in Lake Mary, Fla., said the
no-discount, level-playing-field policies could make it tougher to
attract new clients.
"There has to be
some incentive for the public to pick up the phone and call you,
and then from there it's up to the agency to upsell," she
said.
But Davis at
Cruise Planners said the new policies will increase the number of
calls - at least to Cruise Planners' members, who are home-based
agents.
"All the prices
are the same," he said. "It becomes, 'Who's the best
salesman?'"
To contact
reporter Rebecca Tobin, send e-mail to[email protected].