Fleet-wide renovations planned for Norwegian ships

Posted on 28 June, 2014 by Spacejunkie2

Norwegian Cruise Line has revealed it plans to invest $250 million (£147 million) in fleet-wide renovations that will take place during the course of 2015.

The NEXT makeover programme will focus on bringing “new enhancements, experiences and transformations” across the fleet and will include improvements to food and drink facilities, as well as entertainment amenities.

According to the firm, the renovations will bring older ships inline with the more modern Norwegian Breakaway and Norwegian Getaway liners.

Kevin Sheehan, chief executive officer of Norwegian Cruise Line, said: “The youngest fleet at sea continues to get even better with our robust enhancement taking place over the next two years, and we want to continue to provide fresh and relevant experiences to our guests every time they sail with us.”

The firm will continue its partnership with children’s television network Nickelodeon and plans to create further entertainment options for its youngest passengers.

According to Norwegian, the iConcierge app will be rolled out to all ships and Wi-Fi facilities will be upgraded. In addition, touch screens and digital signage will be fitted across the whole fleet.

Further technological improvements are planned, focusing specifically on improving efficiency and reducing the carbon footprint of the fleet.

Norwegian Cruise Line pricing weak, equity analyst says

Posted on 19 June, 2014 by Spacejunkie2

By Tom Stieghorst

Norwegian Cruise Line’s prices are sagging, according to SunTrust Robinson Humphrey analyst Patrick Scholes, who reduced his 2014 earnings estimate as a result.

“Based on our survey data, we remain concerned about the persistent direction of pricing trends,” said Scholes, who downgraded his recommendation on the stock from “buy” to “neutral.”

Scholes said a periodic survey of pricing done in May showed prices down in the mid-single digits over the next 12 months. Advertised sailings 1-3 months out were down 5% from last year, an improvement from April, but the fifth consecutive month of decline, he said.

Prices for cruises 4-6 months out were down 6.5%, compared with 8% in April, the second month of decline, while prices 7-12 months out were down 6% for the second straight month.

Contributing to the declines was a narrowing of the premium Norwegian gets on its newer ships, Scholes said, with Norwegian Getaway selling for 3-5% less in May than other ships in the fleet that sail to similar destinations.

In addition, Scholes said onboard spending per passenger has been flat to down for three quarters “suggesting either the newer ships are not as productive as planned or the older ships are fading faster than expected.”

He reduced his 2014 earnings estimate to $449 million from $457 million previously.

Norwegian did not have any comment on the report, a spokeswoman said.

Separately, Scholes said Royal Caribbean International is on track to exceed its own forecast of profits for 2014, with pricing up double digits in May, according to survey data. Carnival Corp. prices were up 8% in May from a year earlier, “as the company laps the easy compares that resulted from the Carnival Triumph incident last year,” Scholes said.

Norwegian spending big on fleet upgrade

Posted on 26 May, 2014 by Spacejunkie2

Norwegian Cruise Line has set out on a major overhaul of its fleet, which will see the giant investing a quarter of a billion dollars over the next year.

The company is investing $250 million in a fleetwide renovation project called Norwegian Next that will see many of the entertainments and dining venues from its newer Breakaway-class ships rolled out across the rest of its fleet in the coming months.

A number of ships have already been refurbished recently including Norwegian Jewel and Norwegian Spirit. Norwegian Gem is set to get a makeover this year, while Norwegian Star and Norwegian Epic will go into the dry dock in 2015.

The Norwegian Next programme features a large number of changes including entertainment, children’s activities and onboard connectivity. In terms of the dining establishments found on Getaway and Breakaway, Norwegian will be bringing O’Sheehan’s Bar & Grill and Carlo’s Bake Shop to all of its ships, along with the Sugarcane Mojito bar.

It will also be bringing the main dining room on the other ships in line with its newest vessels and introducing Garden Cafes. There will also be new wine and cocktail menus, while bartenders and wine stewards across the rest of the fleet are set to receive additional training.

Among the new children’s activities will be more Nickelodeon entertainments and a special area at the cruise line’s private island Great Stirrup Cay. It is also introducing new bars on the island and ensuring that passengers calling here have access to larger beach areas and more cabanas.

“The youngest fleet at sea continues to get even better with our robust enhancement program taking place over the next two years,” said Kevin Sheehan, Norwegian Cruise Line’s chief executive.

“We want to continue to provide fresh and relevant experiences to our guests every time they sail with us. We are investing significantly in making sure that our guests have the vacation of a lifetime and fully experience what it means to Cruise like a Norwegian.”