Big Three Cruise Corporations Set to Spend $2 Billion Food in 2023

Posted on 28 November, 2022 by Spacejunkie2

Norwegian Bliss in Ponta Delgarda, Azores. Photo credit Spancejunkie2 (Flickr)

Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings are on pace to spend roughly $2 billion on food and beverage items in 2023,( according to Cruise Industry News estimates).

This is based on third-quarter spending this year, which saw Carnival spend $259 million, Royal come in at $195 million and Norwegian at $77 million.

Compared to the last “normal year” in 2019, food spending was up at Royal Caribbean Group and Norwegian Cruise Line Holdings. The former spent roughly $150 million on food in the third quarter of 2019, while Norwegian spent $57 million.

Both companies have seen fleet expansion since then. Royal Caribbean Group not only completed its acquisition of Silversea but has welcomed a number of new big ships such as the Wonder of the Seas, Celebrity Apex and Celebrity Beyond.

Norwegian has also seen growth with the additions of new builds for the Norwegian and Regent brands since the third quarter of 2019.

Carnival, meanwhile, saw a reduction in food spending while growing with big new ships, but has also disposed of over 20 ships from its fleet over the same period.

Norwegian Cruise Line has delayed the launch of the second Prima-class vessel Norwegian Viva

Posted on 25 November, 2022 by Spacejunkie2

As a result, the vessel’s sailings from 3 July 2023 through 17 August 2023 have been cancelled.

In response, the line has repositioned Norwegian Getaway to take over Viva’s cancelled European voyages.

A spokesperson said: “Guests can rebook on Norwegian Getaway and receive a 20% discount on the voyage fare paid, or they can receive a full refund.

“Guests choosing either option will receive a 10% discount valid for any future sailing bookable from 23 August 2022 through 31 December 2024. We appreciate the understanding of our guests and travel partners.”

Norwegian Cruise Line Confident in Europe 2023 Despite Baltic Limitations

Posted on 15 November, 2022 by Spacejunkie2

Norwegian Cruise Line Holdings is increasing its capacity by six per cent in Europe in 2023, coming at the expense of the Caribbean, according to Frank Del Rio, president and CEO, speaking on the company’s third-quarter earnings call.

He said that yields on ticket prices and onboard revenue for cruises in Europe were “dramatically better.”

And this is in despite of limitations in the Baltic, with ships not calling at Russia’s Saint Petersburg.

“If you had asked me what is the single city in the world, port in the world that you cannot live without, I’d tell you it’s Saint Petersburg, and we lost it,” Del Rio said. “Very, very high yields, incredible shore excursion sales. So onboard revenue was just higher than any other itineraries that I can think of, and it’s a relatively long season. You can get (there) in mid-May and you can leave in mid-September.”

That limitation in 2022 sent one Norwegian ship elsewhere, as the Getaway moved to the Caribbean for the summer sailing from Port Canaveral.

“It did affect load factors and no question, it affected pricing. And the impact on EBITDA has to be in the tens of millions of dollars,” Del Rio explained.

But both the Baltic and the Mediterranean look encouraging for 2023, with Del Rio noting that Americans travelling to Europe book the highest cabin categories earliest.

“This revenge travel or pent-up demand that we’ve been talking about for months is really alive and well for Americans going to Europe,” he said.

“We believe that Europe is poised for an incredible 2023 season. That’s why we increased our capacity there by 6 percentage points of occupancy at the expense of the Caribbean. And I’ll take that trade all day long because the yields both on a ticket and on onboard revenue are so dramatically better for European cruises that we’ll take that trade.”