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Tag Archives: Norwegian Cruise

Norwegian spending big on fleet upgrade

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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.”

Carnival CEO downplays MSC growth but sees pricing risk

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Donald - Impact of MSC newbuilds depends on how they're positionedDonald – Impact of MSC newbuilds depends on how they’re positioned

Addressing how the big MSC newbuilds may reshape the competitive climate, given they are headed to ‘the most sought-after warm weather destinations in the Mediterranean, South America and Caribbean,’ Carnival chief Arnold Donald first downplayed the impact then conceded there may be risk for pricing.

‘It’s four ships. We have 102. In the scheme of things, you’re looking at a tiny percent impact, depending how they’re positioned in the market,’ the Carnival Corp. & plc CEO said Thursday, shortly after MSC’s orderbook went from two to four big ships, all above 150,000gt.

MSC ordered today at Carnival’s traditional builder of choice—Fincantieri—and broke the news just as Donald headed into the second informal media call of his tenure as CEO.

After his initial remarks, Donald was pressed on the potential impact to the Caribbean business of large capacity increases. And how can pricing go up for Carnival if it constrains capacity growth but competitors don’t?

Cruising’s major players have reported lower net yields in the industry’s most important region this year. Recently Norwegian Cruise Line CEO Kevin Sheehan singled out MSC Divinaas a big factor in the softer Caribbean rates.

The Caribbean issues weren’t due to one new ship, Donald told reporters, adding: ‘It was a 20% increase in a market that’s highly saturated anyway’ and coming during a period of recovery from incidents.

Yet Donald allowed there is the ‘risk of a psychological impact’ on customers. If they see very low pricing they may think ‘cruises only cost so much and I’m not going to pay more.’

Also, the Carnival chief said MSC, or any single brand that adds new ships, risks ‘cannibalizing’ its existing vessels.

‘On a positive note,’ he added, ‘I’m sure they will be nice ships’ and newbuilds create ‘energy and excitement.’

As for Carnival’s strategy to raise pricing, the company is looking at best practices of all the brands for ways to push up on-board and ticket revenue. Given its scale, if Carnival can do so by even a small amount, ‘we will generate extraordinary returns,’ Donald said.

At the same time the company will leverage its scale to cut costs. As an example, Carnival is the fifth largest purchaser of airline travel in the world yet ‘we never behaved like that. We behaved like 10 brands.’

The greater focus, though, is on revenue. ‘Best practices across brands will lift us a dollar, 2 dollars or 3 dollars. An extra few dollars on cruise tickets means a lot with 78m cruise days,’ Donald said.

These efforts are needed to get back to double-digit returns, ‘where we should be.’

Carnival to again sail Mexico’s Pacific Coast year-round

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By Gay Nagle Myers
Carnival Cruise Lines will resume year-round sailings to the Mexican Riviera from Long Beach, Calif., beginning in October.

The line last sailed to Mexico’s Pacific Coast year-round in 2012, although it has operated some cruises on a seasonal basis since then.

The Carnival Miracle will operate three seven-day itineraries, starting next April.

One itinerary is a three-port sailing with calls in Mazatlan, Cabo San Lucas and Puerto Vallarta. That cruise will mark the return of Carnival to Mazatlan since its pullout in early 2011, citing safety and security issues for passengers following several incidents of crime near the port.

Other lines also cut the Mazatlan stop at the time but have since returned.

“With the return of Carnival, five major cruise lines have now resumed service to Mazatlan, including Princess Cruises, Holland America Line, Norwegian Cruise Line and Azamara Club Cruises,” said Frank Cordova, secretary of tourism for the state of Sinaloa.

“We are extremely pleased with the positive developments that have transformed Mazatlan over the past several years, including those in the cruise industry, and are excited about the prospect of future growth in tourism to the destination,” he said.

Those developments include a new $3 million tourism corridor between the Port of Mazatlan and the city’s historic center, making it easier and safer for cruise visitors to reach the heart of the city.

Carnival’s two other Mexican Riviera itineraries include a two-port voyage that pairs a stop in Cabo San Lucas with a two-day overnight stay in Puerto Vallarta.

The third itinerary pairs a visit to Puerto Vallarta with a two-day call in Cabo San Lucas.