Tag Archives: Frank Del Rio

Norwegian’s Del Rio sees room for expansion

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Norwegian Cruise Line entered the Chinese market last year with the Norwegian Joy.Norwegian Cruise Line Holdings CEO Frank Del Rio told analysts that his ships were “in the right place at the right time” in 2017 but admitted that there were plenty of spots on the map he’d like to cover with new ships.

“We have so many markets that are unserved by us or grossly underpenetrated by us,” Del Rio said in a question-and-answer session with analysts to discuss fourth quarter and 2017 earnings in February.

“We don’t have a presence in the Mid-Atlantic states,” he said. “We’re not in Baltimore. We’re not in Charleston. We don’t have a presence at all in the world’s second-largest port, which is Fort Lauderdale.”

And the list kept growing.

“We don’t have a presence in the Gulf states of Texas or Alabama,” he said. “We don’t have a year-round presence in Tampa or New Orleans or Los Angeles. We only have three ships in Alaska, which is a very high-yielding market. Some of our competitors have up to eight vessels.”

Del Rio said that given the fleet size and the company’s intention to build only one new ship a year for its Norwegian Cruise Line brand, it could be a couple of years before he would consider adding a second ship in China, because, although profitable, it was not a banner year in China in 2017.

“I don’t think China is hitting on all cylinders as it can,” he said, referencing the continued tensions with South Korea and the resulting uniformity of short cruise itineraries, which only visit Japan.

Del Rio said that the Wave season for 2018 started strong and the company’s outlook is bullish, driven by a strong economy and consumer demand.

“Our overall booked position during the first seven weeks of 2018 further improved compared to the same time last year,” he said.

In addition to Norwegian Cruise Line, NCLH owns Oceania Cruises and Regent Seven Seas Cruises. The three lines operate a combined fleet of 25 ships with some 50,400 berths, offering itineraries to more than 450 destinations.

On average, guests of NCLH brands are booking five weeks earlier than they did at the end of 2016, Del Rio said.

NCLH net income rose 23% last year, to $780 million, as European pricing and bookings recovered faster than expected and the booking curve extended to a near-optimal length.

Revenue rose 10.7%, to $5.4 billion.

Norwegian Cruise Line Holdings’ momentum accelerates into 2018

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Norwegian Cruise Line Holdings’ net income rose 23% last year to $780 million, as European pricing and bookings recovered faster than expected and the booking curve extended to a near-optimal length.

Revenue rose 10.7%, to $5.4 billion.

The Wave season for 2018 has started strong and the outlook for 2018 is bullish, driven by a strong economy and consumer demand, CEO Frank Del Rio said.

“This year is by far the most excited, the most energized and the most optimistic I have ever been at the start of a new year,” Frank Del Rio said.

He said the strong demand environment of late 2016 and 2017 has “accelerated through this year’s early Wave season, as both the number of bookings sold and the price points achieved reach record levels” across all three brands — Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania Cruises.

“Our overall booked position during the first seven weeks of 2018 further improved compared to the same time last year,” he said.

He said on average NCLH guests are booking five weeks earlier than at the end of 2016.

Del Rio said the weak link if there is one, is China. “I don’t think China is hitting on all cylinders as it can,” he said, referencing the continued tensions with South Korea and the resulting uniformity of short cruise itineraries, which can only visit Japan. Nevertheless, he said China was profitable in 2017.

NCL moving final-payment deadline to 120 days before departure

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Image result for norwegian bliss
Artists impression of the Norwegian Bliss.

FORT LAUDERDALE — Norwegian Cruise Line will advance the deadline for final payment on its cruises from 90 days to 120 days before departure, said Frank Del Rio, CEO of Norwegian Cruise Line Holdings.

Details about which cruises would be subject to the 120-day deadline and when the policy will be implemented are forthcoming.

The move means consumers will have to pay in full faster and is likely a reflection of the strong seller’s market for cruising that developed in 2017. The 120-day deadline already applies to Garden Villa and Haven accommodations.

Del Rio, who revealed the news at Travel Weekly’s CruiseWorld on Wednesday, told hundreds of travel agents that they will benefit directly from the decision.

“It’s great for both of us,” Del Rio said. “It locks in the customer early. You get your payment 30 days earlier, and it helps you with your cash flow. We think it’s wonderful for our agent community that you get to collect on your hard work 30 days earlier.”

Norwegian Cruise Line established the 90-day deadline in January 2016.

In a Q&A with Travel Weekly editor in chief Arnie Weissmann, Del Rio was asked if he wants to acquire any more of the eight former Renaissance Cruises ships for Oceania Cruises, which already has four (Insignia, Regatta, Nautica and Sirena).

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Azamara Club Cruises, a competitor owned by Royal Caribbean Cruises Ltd., recently acquired a third former Renaissance ship (P&O Cruises’ Adonia, to be renamed Azamara Pursuit). Del Rio said he hopes Azamara gets the one remaining (currently sailing for Princess Cruises as the Pacific Princess).

“It won’t be us,” he said. “We’re happy with our four and we’re happy with our Riviera and Marina ships. But the next introduction for Oceania will likely be a whole new concept we’re working on.”

Turning to Cuba, Del Rio said there’s no doubt that the market has rewarded Norwegian’s decision to use its four-day cruise from Miami to provide two full days and an overnight in Havana.

“The booking curve for a four-day cruise now looks more like a seven-day cruise to Alaska or to Europe. People are booking it way in advance, and therefore the prices have risen. It is now profitable for you to sell four-day cruises where it wasn’t before,” Del Rio said.

Norwegian next year will devote a second ship, the Norwegian Sun sailing from Port Canaveral, to a Havana itinerary. “That gives you an idea of how important, how profitable, Cuba is to us,” he said.