Tag Archives: Norwegian Cruise Line

Royal Caribbean and Norwegian: Differing Strategies on Caribbean Cruises

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Royal Caribbean International and Norwegian Cruise Line are taking different business approaches when it comes to Caribbean deployment.

Caribbean itineraries will make up roughly 65 per cent of Royal Caribbean’s deployment this year, compared to approximately 33 per cent for Norwegian Cruise Line, according to the 2023 Cruise Industry News Annual Report.

Next year those numbers should climb for Royal Caribbean, which will put the Icon of the Seas in the year-round Caribbean market, sailing week-long cruises from Miami in January. That will be followed by the Utopia of the Seas, which will sail short voyages year-round from Port Canaveral, with the Miami-based cruise line betting big on the Caribbean cruise market, including the short cruise business.

“Utopia will be the first Oasis-class ship that will be entirely focused on short cruises in the Caribbean, supporting our strategy of competing with land-based vacation alternatives and driving new-to-cruise customers into our vacation ecosystem as we seek to close the value gap,” said Jason Liberty, president and CEO of Royal Caribbean Group, on the company’s second-quarter earnings call in July.

Norwegian Cruise Line has taken the opposite approach.

Norwegian’s short cruise portfolio, which account for 25 per cent of its deployment in 2019, will make up just seven per cent of cruises in 2023, according to the company’s second-quarter earnings presentation.

It also means Caribbean deployment is down some nine per cent this year when compared to 2023.

“We strategically shifted our deployment to longer, more immersive itineraries at the Norwegian Cruise Line brand and increased our concentration of premium destinations while reducing our Caribbean deployment,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, speaking on the company’s second-quarter earnings call.

“This was designed to attract a higher quality guest and maximize our competitive position.”

CFO Mark Kempa noted: “This is really about yield and EBITDA where we believe being in more premium itineraries that are booked further in advance, giving us a much longer booking curve and a more stable and predictable demand profile, which allows us to manage demand, manage our marketing a little bit more effectively and not rely so much on close-in, unstable and unpredictable demand is really key to our success.”

Sommer: New NCLH Leadership Brings ‘Fresh Perspective and Energy’

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“With new leadership not only in my seat but in all three of our award-winning brands and most recently for our vessel operation function, there is a possible feeling of reinvigoration and excitement about the future across the entire company,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings (NCLH), speaking on the company’s second-quarter earnings call.

Sommer took over as president and CEO of the company earlier this year, following Frank Del Rio’s retirement.

“We are approaching every decision with fresh perspective and new energy, challenging the status quo at every level and encouraging our entire team to think outside of the box and come to the table with new ideas, however big or small,” Sommer said, noting his focus is on the future and how to refine and enhance our strategy to optimize the company’s existing fleet of high-quality assets, further differentiate the business model, build resiliency, advance efforts to drive a positive impact on society in the environment and ultimately drive more value.

“Our executive team has an average of over 20 years in the cruise industry and nearly all have been with NCLH for a decade plus,” he continued.

“I have the unlost confidence that this team is the right one to take the company to even greater heights.”

Norwegian Cancels Most of Spirit’s Sailings for 2024 and 2025

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After announcing the cancellation of the ship’s 2024 summer program, Norwegian Cruise Line is cancelling more scheduled sailings onboard the Norwegian Spirit.

According to different statements sent to booked guests, all of the 2025 departures were cancelled, as well as additional dates in 2024.

Essentially leaving the 1999-built ship with no schedule beyond next April, the new cancellations are the result of redeployment moves, Norwegian Cruise Line said in one of the letters.

“As a company, we are committed to providing exceptional vacation experiences, both aboard our ships and by taking our guests to some of the most sought-out destinations around the world. As a result of a fleet redeployment, Norwegian Spirit’s sailings from February 8, 2025, through and including November 23, 2025, have been cancelled,” the company explained.

“We sincerely apologize for the inconvenience this may cause,” Norwegian added.

In 2024, the sailings not long going ahead include cruises previously scheduled to depart between May through early June, in addition to itineraries scheduled to sail between September and December.

The Norwegian Spirit was scheduled to sail in the Pacific during the period, offering itineraries across Australia, New Zealand, Alaska, Hawaii and Tahiti.

While no cruises had originally been planned for January and early February 2025, and the ship’s 2024 summer program had already been cancelled back in May, the new cancellations leave the Spirit with no schedule after the 2023-2024 winter season.

Impacted passengers will receive several compensations, including full refunds and discounts for rebooking on different dates.

Originally built for Star Cruises in 1999, the Norwegian Spirit is currently one of the oldest in the Norwegian Cruise Line fleet.

With a capacity for 2,000 guests, it went through a $100-million refurbishment in early 2020. The major modernization project saw the addition of 14 new venues to the ship’s public areas, in addition to cabin updates and technical upgrades.