The American Society of Travel Advisors (ASTA) released an exclusive Industry Brief analyzing non-commissionable fares and their continued effect on compensation, particularly within the cruise sector. The report, The History, Economic Impact and Future of Non-Commissionable Fares (NCFs) in the Travel Industry, outlines how these pricing structures lessen overall earnings even as commission percentages appear unchanged.
“Non-commissionable fares have a real and measurable impact on the economics of the travel advisor channel,” said Zane Kerby, ASTA President and CEO, in a press release. “These findings make clear that when advisors are asked to sell and service the full value of a booking, their compensation should reflect that full value. As more suppliers move toward transparent, fully commissionable fare structures, they are not only strengthening their relationships with advisors, but they are also making a smart investment in one of the most effective distribution channels in travel.”
ASTA vs NCFs
The organization’s research indicates that NCFs—charges excluded from commissionable revenue such as port fees or certain onboard costs—can substantially reduce income on lower-priced bookings. The analysis also notes how this system can cut override revenue across agency networks and shape supplier preferences as more cruise lines examine fully commissionable models.
Within the document, the association reports growing momentum toward reevaluating non-commissionable structures. Recent supplier policy changes may reflect increased acknowledgment of the role agencies play in cruise and package sales. These moves, according to the brief, demonstrate progress toward fairer, more transparent systems that tie commission to the complete purchase value, excluding only legitimate pass-through taxes and government fees.
In outlining these dynamics, the report delivers economic context around what has long been a point of discussion between suppliers and agency leaders. The association continues to emphasize transparent, consistent compensation frameworks that better reflect the value of professional sales support. For members, this briefing provides a timely examination of compensation challenges and evolving changes impacting distribution strategies across the industry.
For more information, visit asta.org.
