Norwegian’s Del Rio sees room for expansion

Posted on 11 March, 2018 by Spacejunkie2

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 Announces New Terminal at PortMiami

Posted on 7 March, 2018 by Spacejunkie2

Cruising from Miami is about to become even more stylish. Norwegian Cruise Line has announced plans for a new and exclusive terminal at PortMiami slated for completion by fall 2019, just in time to welcome Norwegian Encore to her homeport where she will offer seasonal cruises to The Caribbean. Pending final approval by the Miami-Dade County Board of County Commissioners, the project will begin May 2018.

“Norwegian has been sailing from Miami for over fifty years, longer than any other cruise line, and we are honored to be partnering with PortMiami and Miami-Dade County to construct an iconic terminal that will contribute to Miami’s world-famous skyline and strengthen its position as the Cruise Capital of the World,” said Frank Del Rio, President and Chief Executive Officer of Norwegian Cruise Line Holdings Ltd. “We look forward to welcoming Norwegian Encore and the thousands of guests sailing on Norwegian Cruise Line and her sister brands to this state-of-the-art terminal.”

So if you’re cruising from Miami, what can you expect? At nearly 166,500 square feet, the new Norwegian Cruise Line Terminal, designed by Miami-based global architecture firm Bermello Ajamil & Partners, will accommodate ships of up to 5,000 passengers, and feature new technology to support faster and more efficient embarkation and disembarkation processes, as well as expedited security screening and luggage check-in.

Groups and charters will also feel a warm welcome arriving at a dedicated lounge and service area. A new parking garage and valet parking area with direct access to the terminal and lounge are also scheduled to be completed. The project will be constructed to LEED Silver standards, focusing on innovation in design and terminal operation to create a platform that will optimize energy performance, indoor air quality, water efficiencies and maximize the use of local materials and resources.

The modern terminal design draws inspiration from a nautilus, with a spiralled and multi-level façade opening up to grand ocean views. Innovative lighting, inviting indoor and outdoor waiting areas, and other guest-centric elements will enhance the overall passenger experience in what will surely be a gem in Miami’s skyline. Take a look at renderings of PortMiami’s upcoming Norwegian Cruise Line Terminal below.

PortMiami Norwegian Cruise Line Terminal

Cruise Lines Agree: Europe Is Back

Posted on 27 February, 2018 by Spacejunkie2

The downturn in the European cruise market is history as leaders from Carnival Corporation, Royal Caribbean Cruises and Norwegian Cruise Line Holdings painted a picture of a strong and robust European cruise environment on year-end earnings calls.

Capacity in the Mediterranean will be up significantly this summer, and the same goes for Northern Europe.

“You will recall that successive geopolitical events through the summer of 2016 resulted in a noted depressed demand environment for European sailings. 2017, however, saw an unprecedented turnaround in demand for Europe voyages from our core North American customer, particularly for the brands that were disproportionately negatively impacted in 2016,” said Frank del Rio, president and CEO of Norwegian Cruise Line Holdings, on the company’s year-end earnings call. “The strength and speed of this turnaround was faster than anticipated, taking only one year for European itinerary pricing to recover and surpass 2015 prior peak levels.”

Royal Caribbean Cruises will position its newest hardware in the Mediterranean, with the Symphony of the Seas this summer followed by the Celebrity Edge’s 2019 summer program in the Mediterranean,.

“Recent trends have been particularly strong for North America, Europe and Asia Pacific itineraries,” said Richard Fain, chairman and CEO of Royal Caribbean Cruises.

CFO Jason Liberty added: “Demand for both Mediterranean and Northern Europe sailings has consistently surpassed our expectations with all key source markets booked nicely ahead of last year in both rate and volume.”

At Carnival Corporation, CFO David Bernstein said on the company’s December earnings call that its seasonal Europe program was considerably ahead of the prior year on both occupancy and pricing.

“For our EAA (Europe, Asia, Australia) brands, for European deployment, occupancy is nicely ahead at higher prices,” he said.

“We don’t go into details by brands, but a number of times we have talked about seeing an improving economy in the southern part of Europe for a long time. We had talked about it bouncing along the bottom, but we have started to see some improvement, and we have seen that Costa has done very well in 2017, and we expect it to do well in 2018,” Bernstein continued. “So, we are comfortable and very confident and happy to see the improvement in that part of the world.”