This Industry Brief is provided for background purposes only. Reporters may quote from the document with attribution to ASTA but we ask that you not link directly to the member-only brief in published coverage.
WHAT:
The American Society of Travel Advisors (ASTA) today released a new member-exclusive Industry Brief examining non-commissionable fares (NCFs), a long-standing supplier pricing practice that continues to limit travel advisor compensation, especially in the cruise sector.
The brief, “The History, Economic Impact and Future of Non-Commissionable Fares (NCFs) in the Travel Industry”, provides ASTA members with a comprehensive look at how NCFs work, why suppliers use them and how they affect advisors, host agencies, consortia and the broader travel distribution ecosystem.
Among the high-level findings, ASTA’s analysis shows that NCFs can meaningfully reduce the effective commission rate advisors earn on cruise bookings, even when headline commission rates appear unchanged. The brief also explores how these structures can disproportionately affect lower-priced bookings, reduce override revenue across the agency channel and influence supplier preference as more cruise lines move toward fully commissionable fare models.
The Industry Brief also highlights recent momentum toward eliminating NCFs, including supplier policy shifts that may signal growing recognition of the value travel advisors deliver. ASTA continues to advocate for transparent, equitable compensation models that align advisor earnings with the full value of the sale, excluding only true pass-through charges such as government taxes and fees.
WHY IT MATTERS:
Non-commissionable fares can significantly reduce the compensation travel advisors earn. As more suppliers reassess these structures, ASTA’s Industry Brief gives members timely context on how NCFs affect advisor earnings, agency economics and supplier competitiveness, while reinforcing the need for transparent compensation models that recognize the value advisors bring to the sale.
QUOTE FROM ZANE KERBY, ASTA PRESIDENT AND CEO:
“Non-commissionable fares have a real and measurable impact on the economics of the travel advisor channel. 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.”
ACCESS:
The Industry Brief is now available to ASTA members. Members must log in to access the full brief.
