Norwegian Cancels Sun Alaska Program; Drops Prices On Other Ships

Norwegian Sun

Norwegian Cruise Line announced that the Norwegian Sun’s summer program, ranging from May 21 to October 18, has been cancelled, citing a fleet redeployment. The ship was poised to sail long itineraries to Alaska.

Guests booked on Norwegian Sun departures from May 21 to August 12, 2020:will receive a refund in the form of a future cruise credit worth 125% of the fare paid, which will be valid for a period of one year and can be applied to any future published sailing through December 31, 2022.

Guests booked on cruises from August 13 to October 18 will receive a 100% refund of the fare paid which will be reimbursed to the original form of payment. Additionally, guests who rebook their vacation by April 27, 2020, for any sailing beginning October 1, 2020, will receive a 20% discount off the voyage fare.

“In conjunction with the cancellation of the Norwegian Sun voyages to Alaska, you will notice we have reduced our rates for cruises in July, August and September across the three vessels that will continue to sail Alaska – Norwegian Joy, Norwegian Bliss and Norwegian Jewel,” the company said, in a letter sent to travel partners. “We urge you to review the pricing on those dates, as you will likely find extremely favourable fares.”

Seattle: Alaska Drives Demand

Seattle

Quantum of the Seas in Seattle.

 While moving ahead with plans to build a third terminal, the Port of Seattle set another record last year with 1,210,000 passengers on 211 calls and is forecasting a further increase this year to 1,380,000 passengers on 225 calls.

“We are also extending our season starting as early as April 1 with the Grand Princess and closing on Oct. 19 with the Ruby Princess,” said Michael McLaughlin, director of cruise and maritime operations. “Norwegian Cruise Line will also bring a third ship, the Norwegian Sun, joining the Bliss and the Encore at Pier 66. The Sun will sail 11-day Alaska cruises.

“Next year, the new Norwegian Encore will replace the Joy,” he continued. “It is a good example of how Norwegian is keeping their newest and best products in the market.

“Also in 2021, Carnival will replace the Spirit with the larger Freedom.”

Last year marked Seattle’s 20th year as a cruise port, during which it has seen nearly 14 million passengers.

“What stands out over those two decades,” said McLaughlin, “is that even during the recession we continued to grow our market share year-over-year. There was some flattening out in Alaska when that head tax was put into place, but it had less effect on Seattle in that we had entered into berthing agreements with the brands where they needed to meet their annual guarantees. So when they decided to pull ships out of the market as a result of the taxation in Alaska, it had less effect on Seattle.

“Over the long run, the growth trend has been really positive.”

Having released a Request for Proposals (RFP) for a new terminal last summer, the port has announced three groups that were shortlisted. They were the so-called Cruise Industry Leaders Group, with Royal Caribbean, MSC Cruises, Carnival Corporation and SSA Marine, a Seattle-based stevedoring company; Global Ports Holding and Miami-based Civil & Building North America; and Ports America, teaming up with Jacobs Engineering Group, headquartered in Dallas.

With the goal of having the new terminal ready for the 2023 season, it means Seattle will have three cruise terminals and four berths: Terminal 46 with one berth; the Bell Street Terminal at Pier 66 with one berth, and the Smith Cove Terminal at Pier 91 with two berths.

Norwegian Strategic on Alaska

Norwegian Bliss

Norwegian Cruise Line Holdings (NCLH) President and CEO Frank Del Rio underscored his enthusiasm for Alaska on the company’s third-quarter earnings call.

He said the company will continue to make investments and cultivate partnerships in the region, noting the new pier NCLH has agreed to build in Ketchikan, its $20 million purchase of 2.9 acres of waterfront property in Juneau, and the construction of a second pier at Icy Point Strait.

“We are investing in port facilities and guest experiences,” he said. “Alaska is destination-centric and you much have the land capabilities in place. We have almost doubled our capacity in Alaska over the past three years and will be even stronger as we finalize our investments.”

NCLH’s Q3 Alaska capacity was up 17 per cent over the same period last year.

In Ketchikan, NCLH has entered into a 30-year preferential berthing agreement with Ward Cove Dock Group, which allows for the construction of a new double ship pier in Ward Cove.

Meanwhile, current zoning laws are said to prevent a pier from being built on the property in Juneau.

The pier will be built to simultaneously accommodate two of Norwegian Cruise Line’s 4,200-passenger Breakaway-Plus class ships and is expected to be ready for the summer 2020 season.

NCLH partnered with the Port of Seattle in 2015 on the renovation and expansion of the Bell Street Terminal at Pier 66 which was ready for the 2018 season and the 4,000-berth Norwegian Bliss.

NCLH and the port entered into a 15-year lease agreement providing its ships priority berth space in Seattle for the full term of the lease in return for passenger volume guarantees. NCLH manages the cruise operations at Pier 66, while the port operates the facilities outside the cruise season.

Next year, the Norwegian brand will have three ships in Alaska, with the Norwegian Bliss, Joy and Sun will be from Seattle. In 2021, the new Encore will take over for the Joy. Oceania and Regent will each have one ship in the Alaska market, with the Regatta and the Seven Seas Mariner from Seattle, Vancouver and Seward.

Del Rio cited what he called “incredibly strong ticket pricing and onboard spend” in the Alaska market and also noted the lengthening of the season, which now runs all the way from April to October.

“In the coming years, we will further bolster our presence and commitment to the region,” Del Rio noted.