Onboard revenue is seen as a real-time now indicator of how guests are feeling about their financial situation right now and while onboard company ships, according to Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings.
“Onboard revenue generation has continued to be impressive, even as we continue to ramp up occupancy carrying more guests across all ships and cabin classes. In the second quarter, onboard revenue per passenger cruise day was approximately 30 per cent higher than during the comparable 2019 period,” he said, on the company’s second-quarter earnings call.
Mark Kempa, CFO, added that the company had raised prices for “all of our offerings” onboard the ships.
“We’ve gotten smarter in the pre-marketing of our products, creating that sense of urgency before the consumer steps onboard,” he said. “Those consumers who have a stronger propensity for presales, they also spend more, about 30% or 40% more once they’re on board. So, it’s a combination of all those. But the numbers are strong. We’re seeing a strong consumer today, spending today’s dollars. And we feel that bodes well for ourselves and the industry.”
Del Rio said that pre-cruise revenue was up 50 per cent compared to 2019 levels.
“We continue to focus on enhancing our market-leading bundled offerings and increasing quality touch points with our guests starting from the time of booking to capture even more revenue pre-cruise, allowing guests to arrive on board with an ever fresher wallet, which ultimately results in higher overall spend. In fact, our pre-cruise revenue on a per passenger day basis for the second quarter of ’22 is up over 50% versus 2019 levels. At a high level, guests who make pre-cruise purchases tend to spend approximately double that of guests who do not pre-book onboard activities,” he said.
Several cruise ships were specifically built to serve the booming Chinese market in the last decade.
Too much capacity followed by COVID-19, in addition to other factors, changing the course of the local business, all of the vessels are now sailing elsewhere.
Here’s what happened to all of the former China-bound newbuilds:
Ovation of the Seas Company: Royal Caribbean International Built: 2016 Capacity: 4,100 guests Tonnage: 158,000 Current Sailing Region: North America
The Ovation of the Seas became the first Royal Caribbean International new build to debut in China when it arrived in Tianjin in 2016.
With several custom-designed features, the Quantum-class ship continued to serve the local market until 2018.
Beginning in 2019, the ship started to alternate summer seasons in North America – where it is currently sailing – and winter seasons in Australia.
Genting Dream Company: Dream Cruises (Genting Cruise Lines) Built: 2016 Capacity: 3,400 guests Tonnage: 150,000 Current Sailing Region: Southeast Asia
With several features to cater to Chinese guests, the Genting-owned cruise ship had already been repositioned out of China when the pandemic broke in 2020.
The vessel, which later became the Norwegian Encore, would add capacity to the local market, which was already being serviced by the 2017-built Norwegian Joy.
The plans, however, were scrapped while the ship was still being built at the Meyer Werft shipyard. Instead of China, the Norwegian Encore debuted in the North American market, where it’s still sailing to this day.
The spectrum of the Seas Company: Royal Caribbean International Built: 2019 Capacity: 4,200 guests Tonnage: 168,666 Current Sailing Region: Southeast Asia
Royal Caribbean International sent a second new build to China in 2019 with the Spectrum of the Seas.
Built-in Italy, the 135,500-ton vessel offers custom-designed features, including a karaoke entertainment complex and larger casino and shopping areas.
Costa Firenze Company: Costa Cruises Built: 2020 Capacity: 4,232 guests Tonnage: 135,500 Current Sailing Region: Mediterranean
A sister to the Costa Venezia, the Costa Firenze was set to debut in China in late 2020. Also, custom-designed to serve the local market, the 4,232-guest cruise ship was equipped with several unique features.
The pandemic, however, forced Costa Cruises to change plans for the vessel. Unable to sail to Asia, the Firenze debuted in Europe in 2021 and has been serving Western markets ever since.
The wonder of the Seas Company: Royal Caribbean International Built: 2022 Capacity: 5,448 guests Tonnage: 227,625 Current Sailing Region: Mediterranean
Currently, the world’s biggest cruise ship, the Wonder of the Seas was originally bound for year-round service in China.
Featuring interior designs and concepts to appeal to the local public, the Royal Caribbean International ship was set to debut in the Chinese market in mid-2021, offering a series of cruises departing from Shanghai.
Norwegian Prima Year Built: 2022 Capacity: 3,215 guests Status: Under construction Location: Marghera, Italy
Nearing the completion of its construction, the Norwegian Prima recently returned from the first set of sea trials. With its first cruise now scheduled in September, the vessel is being built at the Fincantieri shipyard in Marghera, Italy.
Norwegian Encore Year Built: 2019 Capacity: 4,200 guests Status: In service Location: Alaska
The Norwegian Encore is currently sailing a summer program in Alaska. Based in Seattle, the vessel is offering weekly departures to Victoria, Ketchikan, Juneau, Skagway and Glacier Bay.
Norwegian Bliss Year Built: 2018 Capacity: 4,200 guests Status: In service Location: Alaska
In Alaska for the summer, the Norwegian Bliss is offering week-long cruises departing from Seattle. The ship’s regular itinerary includes Victoria, Ketchikan, the Tracy Arm Fjord, Juneau, Icy Strait Point and Sitka.
Norwegian Joy Year Built: 2017 Capacity: 4,200 guests Status: In service Location: Bermuda
Based in New York City, the Norwegian Joy is offering a series of cruises to Bermuda. The seven-night itineraries include a visit to Norfolk and a three-day stop in King’s Wharf.
Norwegian Escape Year Built: 2015 Capacity: 4,200 guests Status: In service Location: Eastern Mediterranean
The Norwegian Escape is currently sailing varied itineraries in the Eastern Mediterranean. Departing from Italy, the seven- to 11-night cruises feature visits to ports in Greece, Croatia, Malta, Montenegro and more.
Norwegian Getaway Year Built: 2014 Capacity: 4,000 guests Status: In service Location: Eastern Caribbean
Returning to North America after a short season in the Baltic, the Norwegian Getaway recently kicked off a summer program in the Caribbean. Sailing from Port Canaveral, the vessel is offering seven-night cruises to the Bahamas, Puerto Rico, St. Thomas and the Dominican Republic.
Norwegian Breakaway Year Built: 2013 Capacity: 4,000 guests Status: In service Location: Western Caribbean
Based in Miami, the Norwegian Breakaway is sailing a rotating schedule of seven-night Western and Eastern Caribbean cruises.
Norwegian Epic Year Built: 2010 Capacity: 4,200 guests Status: In service Location: Western Mediterranean
Capacity: 2,400 guests Status: In service Location: Eastern Mediterranean
Another Norwegian ship in Europe, the Norwegian Gem is currently positioned in the Eastern Mediterranean, offering cruises to ports such as Trieste, Dubrovnik, Corfu and Santorini.
Norwegian Jade Year Built: 2006 Capacity: 2,400 guests Status: In service Location: Eastern Mediterranean
The Norwegian Jade is currently based in Piraeus for a series of cruises to the Greek Islands and Turkey that includes visits to Istanbul, Mykonos, Rhodes, Santorini and more.
Norwegian Pearl Year Built: 2006 Capacity: 2,400 guests Status: In service Location: East Coast
Based in Boston, the Norwegian Pearl is offering week-long cruises to Bermuda and Maine.
Norwegian Jewel Year Built: 2005 Capacity: 2,400 guests Status: In service Location: Alaska
Pride of America Year Built: 2005 Capacity: 2,000 guests Status: In service Location: Hawaii
As the industry’s only large U.S.-flagged cruise ship, the Pride of America continues to offer its year-round schedule of Hawaii cruises. Sailing from Honolulu, the vessel’s regular itinerary includes visits to Kahului, Hilo, Kailua Kona and Nawiliwili.
Norwegian Dawn Year Built: 2002 Capacity: 2,200 guests Status: In service Location: Northern Europe
The Norwegian Dawn is presently in Northern Europe for a series of Baltic cruises. Leaving from Stockholm and Copenhagen, the itineraries feature visits to Finland, Estonia, Denmark, Sweden and more.
Norwegian Star Year Built: 2001 Capacity: 2,200 guests Status: In service Location: Northern Europe
Based in Reykjavik, the Norwegian Star is presently offering a series of cruises to Iceland and Greenland.
Norwegian Sun Year Built: 2001 Capacity: 2,002 guests Status: In service Location: Alaska
After hitting a growler in late June, the Norwegian Sun recently resumed its program of five- to nine-night cruises in Alaska.
Norwegian Spirit Year Built: 1999 Capacity: 2,000 guests Status: In service Location: Alaska
As the last ship to resume service for Norwegian Cruise Line, the Norwegian Spirit welcomed guests back in May. Before arriving in Alaska – where it’s currently sailing – the 1999-built vessel offered itineraries to the South Pacific and Hawaii.
Norwegian Sky Year Built: 1999 Capacity: 2,000 guests Status: In service Location: Miami, Florida
The Norwegian Sky is in Miami today for yet another short cruise to the Bahamas. The three-night sailing includes visits to Nassau and Great Stirrup Cay – Norwegian’s private island destination in the region.
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