Tag Archives: Oceania

NCLH Concentrating on Product, People and Partnerships

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Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, said his strategy is built on the three Ps: product, people and partnerships.

Speaking aboard the brand new Regent Seven Seas Grandeur, Sommer said he was not worried about the influx of new luxury cruise competition, pointing to new tonnage from The Ritz-Carlton Yacht Collection and Explora Journeys, but instead was focused on competing with luxury hotels.

“We are super focused and passionate on delivering an unrivaled product to our guests across all three brands,” said Sommer. “The three brands are different. NCL is in the contemporary space. Oceania is in the upper premium and foodie space that we created, and Regent is in the ultra-luxury space.

“When you know your main mission in life is to deliver an outstanding product to guests it really focuses everyone on what they are doing,” Sommer continued.

Since taking the helm at Norwegian Cruise Line Holdings earlier this year, Sommer said he had visited about half of the ships in the company’s 32-ship fleet and has plans to visit the rest in 2024. He said when he’s aboard he makes time to meet with the captain, general manager and also talks to crew and guests.

“I sit down with guests and ask them what they like, and about challenges and what we can improve,” Sommer explained, noting he held a forum aboard the Grandeur, talking to some of Regent’s most loyal guests and asking for feedback.

The second P in his arsenal is for people, with Sommer noting the company’s 40,000 employees both shipboard and shoreside.

For partnerships, Sommer pointed to the high commission rates Regent pays its travel advisor partners, and said the company was committed to being the easiest and most profitable cruise line to do business with.

“I know the commissions we give the trade are the highest by far in the industry mostly due to our all-inclusive packaging,” Sommer said. “We essentially pay commission on everything.”

Norwegian Cruise Line Could Be Set To Move Some Asia Capacity

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With uncertainties still surrounding operating cruises in parts of Asia, Norwegian Cruise Line could be poised to redeploy ships in the near future, according to NCLH President and CEO Frank Del Rio, speaking on the company’s first-quarter earnings call.

Despite what Del Rio said were cruises selling at very high prices, there is still a risk.

“And so we will likely take some chips off the board in the coming weeks to balance that risk-reward, likely at the Norwegian brand, which has more flexibility in where it can achieve good pricing and accelerate the bookings, much faster than Oceania and Regent can, because of the longer booking curve there,” Del Rio said.

The Norwegian Sun has a scheduled Asia program for the 2022-2023 season, while the newly-refurbished Norwegian Spirit is scheduled to sail in Australia and New Zealand.

“The good news is that we heard from the Minister of Tourism in New Zealand that they expect New Zealand to open up no later than October to cruising. That opens up that whole Australasia area for us (including) Australia, New Zealand, Tahiti. And we hear good commentary coming out of some Asian countries, some Asian ports, (but) not China. And we’re not very big in China as you know,” he continued.

Del Rio said he was hopeful for Asia and also South America, where Argentina, Uruguay and Chile will be open to ships.

“The world is reopening perhaps at different paces. But it is reopening. And that’s good news for us.”

Cruise Industry Capacity Growth Concerns Have Been Debunked

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With the cruise industry set to grow at between 4 and 6 per cent per year according to the 2021 Cruise Industry News Annual Report, are there concerns about too many ships and weakened pricing? 

No, according to Norwegian Cruise Line Holdings President and CEO Frank Del Rio.

“I think that the narrative of too much capacity coming online pre-pandemic had pretty much been debunked,” he said, on the company’s first-quarter earnings call. “All the cruise line were taking on the new (ships), digesting that new capacity very nicely and increasing pricing. And so we always – our comeback always was, we only have 28 ships. There are many underserved markets that we simply don’t have ships to operate in.

“And so we’re eager to get our hands on our new vessels, all nine of them across the three brands. And what we’re seeing now within the pandemic is pricing is strong, demand is stronger than ever. I mean, to give you a nugget of data. The Oceania and Regent brands reached their 50 per cent load factor for 2022 over 100 days earlier than they did for the record year of 2019 … pricing power is there.”