Kelly Clarkson and Norwegian Celebrate Educators During Prima Debut in Galveston

Norwegian Cruise Line has commemorated the debut of its all-new Norwegian Prima, and the brand’s first-ever voyage from Galveston, Texas, with an exclusive concert by artist Kelly Clarkson, according to a press release. 

The ship also served as the special venue for this year’s Norwegian’s Giving Joy awards ceremony, during which Norwegian Cruise Line and Clarkson recognized 100 teachers with a free cruise and nearly $170,000 for the top three Grand Prize winners and their schools.

“It was such an honour to celebrate the 100 deserving winners of Norwegian’s Giving Joy program at Norwegian Prima’s inaugural sailing, which embarked from my home state of Texas!,” said Clarkson. “Teachers are our true everyday unsung heroes, and they play an integral role in our society, not only shaping the future of their students but the future of their communities as well. I couldn’t miss the opportunity to participate in this program and give a special performance before they set sail on the trip of a lifetime.”

Norwegian’s Giving Joy is a month-long campaign launched during National Teacher Appreciation Week (May 2 – 6, 2022) to recognize deserving educators for their unwavering commitment to bringing joy to the classroom.

To celebrate these incredible individuals, and their often-times undervalued profession, as well as to kick off Norwegian Prima’s first voyage from the Lone Star State, Norwegian Cruise Line hosted a showstopping award celebration. Special guests included NCL President and CEO Harry Sommer; Norwegian Bliss Godfather Elvis Duran, American radio personality and host of “Elvis Duran and the Morning Show;” and superstar and godmother to Norwegian Encore, Kelly Clarkson, who delivered a stellar performance of her chart-topping hits including “Miss Independent,” “Stronger,” and “Since You’ve Been Gone.” 

To conclude the Norwegian’s Giving Joy Award Ceremony, Sommer, unveiled the top three Grand Prize winners who received the most votes, awarding them with donations for their schools.

The Grand Prize winners are:

  • Patricia Hosmer from Bayonne High School in Bayonne, N.J. ($25,000)
  • Theresa Schrager from Falcon Cove Middle School, Fla. ($15,000)
  • Anthony Stirpe from New Rochelle High School in New Rochelle, N.Y. ($10,000)

In addition to the expected donations to their schools, each of the Grand Prize winners received a big surprise – nearly $40,000 each in prize money thanks to Norwegian Cruise Line partners.

Harry Sommer: Norwegian Prima Reimagines the Cruise Industry

The new Norwegian Prima is helping to reimagine the cruise industry, according to Harry Sommer, president of Norwegian Cruise Line, speaking on the ship in New York City on Thursday.

“When we sat down in 2017 to decide what we wanted the next class of ship to be, we surveyed the universe and started primarily with what NCL (Norwegian Cruise Line) had in its offering at the time,” he said.

That offering ranged from 2,000-guest ships to the Jewel class at 2,400, then ships in the high 3,000-guest range and up.

“We thought there was a gap as we had nothing between the Jewel class at 2,400 and the Epic, Breakaway- and Breakaway-plus class ships. We thought this would be a perfect thing to fill out our portfolio,” Sommer said, noting the Prima was “97 per cent perfect” and the company would make some minor adjustments on the Viva when it debuts in 2023.

Of note, Sommer pointed to the largest bathrooms the company has ever put in its staterooms and the largest balcony cabins as well.

“Different ship class sizes can go to different ports. There are different customers in our base and we appeal to a wide range of guests … we also wanted to reimagine the cruise industry.”

Thus, working with President and CEO of Norwegian Cruise Line Holdings Frank Del Rio, the idea was to build a ship that didn’t look like a cruise ship but was more similar to a high-end hotel.

“Part of that required us not to have those larger spaces, so we have smaller intimate spaces. There are no venues where you are with 500 or 600 people,” Sommer said.

“It was a little bit of a risk as all our competition keeps getting bigger and bigger. That is okay and there is a market for that too, but we did not want to create something that looked like a large indoor shopping mall.”

With the Norwegian Prima entering service in 2022, the Viva follows in 2023 and four more sister vessels are on order for Norwegian Cruise Line at Fincantieri through 2027.

Frank Del Rio Forecasting Record 2023 for Norwegian Cruise Line Holdings

Norwegian Cruise Line Holdings (NCLH) will generate record EBITDA and net yield in 2023, according to a very upbeat and confident Frank Del Rio, CEO and president, who spoke at a two-hour presentation aboard the Norwegian Prima in New York City on Thursday morning.

Del Rio said that bookings for 2023 were up from 2019, including a 16 per cent capacity increase, and at significantly higher prices.

Talking about the so-called key value drivers, Del Rio asked analysts not to lump NCLH in the same pool as the other cruise companies, and that the company differentiates itself in many ways, including targeting a more upmarket demographic, featuring ships for its three brands that are at the top of each market segment, and premium itineraries.

Other companies, he said, have so many brands they are sabotaging each other. In contrast, Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises (the NCLH brands) are clearly differentiated, each in a different market segment.  Del Rio described the brands as stand-alone that do not compete against each other.

Del Rio went on to say that itineraries are the number one driver of pricing and that he spends more time on itinerary planning than anything else. Another key driver is the cabin mix and he noted that the brands have a richer mix of cabins, with a higher percentage of outside balcony cabins.

He said that NCLH’s go-to-market strategy is focused on filling the ships, offering consumers value and deals they are happy with, while not discounting, and noted that they are beating their competitors by a large margin.

Pricing is almost irrelevant, according to Del Rio, who said the key is to have consumers feel they get a deal. And when products are bundled in that consumers buy dining and beverage packages up front, as well shore excursions, they come onboard with a so-called “fresh wallet” and spend more.

He noted that onboard spending on the Norwegian Prima on its trans-Atlantic crossing had been double of the company’s average.

By comparison, in 2018, 52 per cent of the passengers bought packages in advance of their cruise. For 2022, Del Rio said that number has increased to 85 per cent. He added that also means that more cruises are “sticking,” meaning there are fewer cancellations and higher advance deposits.

The average booking curve is now more than eight months out, he noted. From 171 days in 2016, the booking curve is now 245 days. The extended booking window also gives the company more visibility and the ability to manage pricing to maximize ticket and onboard yield.

Another key factor contributing to a strong 2023 is that NCLH is a U.S.-centric company, according to Del Rio, who said that 78 per cent of the passengers come from the U.S.

Among the trends noted were more direct bookings with the travel agency community constricting during the pandemic and with consumer behaviour changing to more online purchasing.

Looking forward, Del Rio and Mark Kempa, CFO and executive vice president, said the brands will continue to benefit from the underserved and unserved markets while continuing to be U.S.-centric.

They also said that NCLH has a lot of “headroom” to raise prices while comparing cruise to land vacations.

Among the key takeaways from the presentation, Del Rio underscored that not all cruise companies are created equal and that NCLH has laid the foundation for a strong 2023, surpassing 2019, targeting a higher-end demographic, which is reflected in its stronger pricing and bookings.