Newly launched Viking Ocean Cruises is the first cruise line
in several years to not include noncommissionable fees (NCFs) as part of the cruise
commission structure.
The line made its official debut on May 17 with the naming
of its first ship, the Viking Star, in Bergen, Norway.
From the start, Viking Chairman Torstein Hagen has made “no
nickel and diming” one of the cornerstones of the new line. For passengers,
that translates into benefits like unlimited free Internet access and
complimentary wine and beer with lunch and dinner.
For agents, it means the line items that other cruise lines
designate as “noncommissionable,” such as port charges and taxes, are included
in the amount on which commissions are calculated. Viking is hoping that this
will help distinguish it from other lines in the small-ship, upper-premium
category. Several agents said that the policy is welcome, and that if their clients
are otherwise qualified for Viking, they would recommend it as a good business
move.
“They have to have what my client needs,” said Amal Mulham,
senior travel consultant for Carole’s Travel Service, Tinley Park, Ill. “I’m
not going to send them there for that sole purpose, but if they’re doing a good
job all around — great ship, great service — but they’re not going to penalize
me for selling excursions and if they’re going to pay me on [port charges and
fees], then I’ll say, ‘Hey, go on Viking.’”
Most NCFs range from 7% to 15% of the cruise cost, according
to a 2014 ASTA study. Eliminating them puts more money in travel agents’
pockets. “It’s obviously a good thing, and I don’t know anybody who would
complain about that,” said Howard Moses, president of the Cruise and Vacation
Authority in Atlanta. “It kind of harkens back to the good old days when those
fees weren’t separated out.”
NCFs date to the late 1990s when an agreement with Florida’s
attorney general led cruise lines to stop lumping port charges in with taxes
and fees in their fare advertisements. Rather than pay commission on the port
charge amount, cruise lines created NCFs, according to the ASTA study. Some
agents said that the no-NCF policy could tip the balance for Viking if several
cruise lines are in the running.
“Obviously, it depends on what the client wants,” said Patti
Rossetti, owner of ASAP Travel, in Jupiter, Fla. “I’m in business to make
money, so if that’s going to fit my client and I prosper for the better,
absolutely it’s a tie-breaker.”
Rossetti said her agency has one client booked on the Viking
Star so far. “They were regular Viking River Cruise passengers and they’re
going to try the ocean experience,” she said. Rossetti and other agents said
clients seem to be hanging back a bit, waiting to see how the ocean product
pans out.
“We’ve not had a lot of interest in it, honestly,” said
Moses. “My sense from chatting with people is they’re still waiting to see how
it shakes out and … what’s being posted about the quality and the experience of
the ship before they’re really willing to commit.”
Viking Ocean is brand new and has just one ship, which
limits the amount of customer feedback available, said Mulham. A second
930-passenger ship, Viking Sea, is due out next spring. Delivery of a third
ship, Viking Sky, was recently postponed to June 2017 because of shipyard
delays in building an unrelated vessel. To minimize the impact on bookings
already made, Viking said it has redeployed five cruises each from June to
September 2016 scheduled on Viking Sea and Viking Sky.