The American Society of Travel Advisors (ASTA) has released a new member-exclusive Industry Brief showcasing the impact of non-commissionable fares (NCFs) on the travel advisor industry.
The History, Economic Impact and Future of Non-Commissionable Fares (NCFs) in the Travel Industry is available exclusively to ASTA members, providing a comprehensive look at how NCFs work, why suppliers choose to use them and how they affect advisors, host agencies, consortia and the travel distribution ecosystem as a whole.
Perhaps most alarmingly, the analysis shows that "NCFs can meaningfully reduce the effective commission rate advisors earn on cruise bookings, even when headline commission rates appear unchanged."
Additionally, the report found that "these structures can disproportionately affect lower-priced bookings, reduce override revenue across the agency channel and influence supplier preference."
On a positive note, the Industry Brief highlights recent momentum toward eliminating NCFs, with major players phasing them out.
"Non-commissionable fares have a real and measurable impact on the economics of the travel advisor channel," ASTA President and CEO Zane Kerby said in a statement. "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," said Kerby.
Travel advisors can join ASTA at ASTA.org to access the Industry Brief.
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