In keynote, Norwegian’s Sheehan to share success strategies

In keynote, Norwegian’s Sheehan to share success strategies

2013 CruiseWorldKevin Sheehan, CEO of Norwegian Cruise Line Holdings, has accomplished a lot in the relatively short time that he has held that title, and creating and executing a business strategy will be the focus of his address when he gives the keynote speech at Travel Weekly’s CruiseWorld on Nov. 8 in Fort Lauderdale.

Putting plans into action is the theme for that day, the final day of the three-day conference, and Sheehan will share not only what he had to do at Norwegian, but also the lessons he learned that apply to businesses of any size, from a one-person, home-based operation to an agency with tens of millions of dollars in annual sales.

When he arrived at the cruise line in 2007, “We had the right assets and proposition, but we didn’t communicate well, and we didn’t execute well,” he said in a recent interview at his office at Norwegian’s Miami headquarters. “We put in the right management team that could really demonstrate what the brand stood for. And what it didn’t.”

Kevin SheehanIn his keynote, Sheehan will stress the importance of relationships in execution, including the importance of team building and nurturing supplier/retailer relations.

“When the recession hit, we held onto every single employee,” he continued. “We rode through it together. Getting the team behind the culture with passion and the belief that they can get things done is critical.

“I’m not the guy who makes it happen, but I’m on ships every month, connecting with the crew. We have all-hands meetings, and we talk about what we’re doing. I meet with senior officers and then with all the officers. And we follow that with a series of meetings with crew that officers aren’t allowed to attend and discuss what’s good, bad and what can improve.”

Sheehan also focused on relations with travel agents, initiating the Partners First program.

“At the end of the day, [relationships] are why we have best-in-class margins and return on investor capital,” he said. “We had none of that before.”

Following the address, Sheehan will sit down onstage for an interview with Travel Weekly Editor in Chief Arnie Weissmann. The two will explore the decision-making processes in business and look at why, for instance, Norwegian, unlike its competitors, has so far stuck with a single brand. They will also look at what opportunities are ahead for the line and for agents.

Sheehan is one of three top cruise line executives who will be addressing agents. On Nov. 6, delegates will hear from Carnival Corp. CEO Arnold Donald, and on Nov. 7, Royal Caribbean Cruises Ltd. Chairman Richard Fain will address attendees.

Each will also sit for an onstage interview with Weissmann.

The conference, which also features seminars, a trade show and networking opportunities, will be held at the Fort Lauderdale Convention Center Nov. 6 through 8; ship inspections of vessels such as the Royal Princess, the Carnival Breeze, the Oasis of the Seas, the Nieuw Amsterdam and the Norwegian Epic will bookend the show on Nov. 5 and Nov. 9 and 10. Registration for ship inspections closes Oct. 18.

Revenue rises, but IPO expenses put Norwegian Cruise Line in the red

Revenue rises, but IPO expenses put Norwegian Cruise Line in the red
By Tom Stieghorst
Norwegian Cruise Line posted a $96.4 million first-quarter loss, but said accounting rules that require it to recognize some one-time expenses masked a solid improvement in its business.

Revenue rose to $527.6 million from $515.4 million.

Norwegian said that without $110 million in expenses related to its public offering in January, income would have been $12.9 million. Norwegian’s net profit was $3.3 million in last year’s first quarter.

“We had a fantastic quarter — above consensus,” said CEO Kevin Sheehan in an interview.

The expenses include costs tied to prepaying bonds and stock compensation for former executives.

Sheehan said by using the proceeds of the public offering, Norwegian was able to replace secured debt that carried 11.5% interest rates with unsecured debt that costs about 5%.

Norwegian raised $447 million in the quarter by selling 23.5 million shares for $19 each.

Excluding fuel, net cruise costs fell 1.5% in the quarter. Sheehan said the expense of introducing Norwegian Breakaway will likely raise cruise costs by 5% to 6% in the current quarter.

The New York-themed Breakaway is set to arrive before daybreak on May 7 at the Manhattan Cruise Terminal. The ship will be named the next day by the Rocketttes before starting a series of seven-day cruises to Bermuda.

Norwegian Cruise Line unveils magic-themed dinner theater

Norwegian Cruise Line unveils magic-themed dinner theater

By Tom Stieghorst
IllusionariumMIAMI BEACH — Norwegian Cruise Line unveiled a magic-themed dinner theater called Illusiionarium for the Norwegian Getaway ship, a ship that will debut in Miami in early 2014.

Speaking at the Cruise Shipping Miami conference, Norwegian CEO Kevin Sheehan said the concept was inspired by magicians, the science fiction of Jules Verne and popular blockbuster movies featuring supernatural characters.

Illusionarium will replace the space occupied by Cirque Dreams on Norwegian Epic and Breakaway. It will have between 230 and 240 seats and the charge will be in the range of $35.

The centerpiece of the restaurant will be a video dome 30 feet in diameter that will serve as a projection screen for mystical places and scenes.

“When we saw some depictions of this, it was unbelievable to me that we could actually pull this off,” Sheehan said.

The Illusionarium will offer 12 shows a cruise, two shows a night.

Norwegian also announced it will feature a fireworks show on each Getaway cruise.