NCL moving final-payment deadline to 120 days before departure

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Artists impression of the Norwegian Bliss.

FORT LAUDERDALE — Norwegian Cruise Line will advance the deadline for final payment on its cruises from 90 days to 120 days before departure, said Frank Del Rio, CEO of Norwegian Cruise Line Holdings.

Details about which cruises would be subject to the 120-day deadline and when the policy will be implemented are forthcoming.

The move means consumers will have to pay in full faster and is likely a reflection of the strong seller’s market for cruising that developed in 2017. The 120-day deadline already applies to Garden Villa and Haven accommodations.

Del Rio, who revealed the news at Travel Weekly’s CruiseWorld on Wednesday, told hundreds of travel agents that they will benefit directly from the decision.

“It’s great for both of us,” Del Rio said. “It locks in the customer early. You get your payment 30 days earlier, and it helps you with your cash flow. We think it’s wonderful for our agent community that you get to collect on your hard work 30 days earlier.”

Norwegian Cruise Line established the 90-day deadline in January 2016.

In a Q&A with Travel Weekly editor in chief Arnie Weissmann, Del Rio was asked if he wants to acquire any more of the eight former Renaissance Cruises ships for Oceania Cruises, which already has four (Insignia, Regatta, Nautica and Sirena).

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Azamara Club Cruises, a competitor owned by Royal Caribbean Cruises Ltd., recently acquired a third former Renaissance ship (P&O Cruises’ Adonia, to be renamed Azamara Pursuit). Del Rio said he hopes Azamara gets the one remaining (currently sailing for Princess Cruises as the Pacific Princess).

“It won’t be us,” he said. “We’re happy with our four and we’re happy with our Riviera and Marina ships. But the next introduction for Oceania will likely be a whole new concept we’re working on.”

Turning to Cuba, Del Rio said there’s no doubt that the market has rewarded Norwegian’s decision to use its four-day cruise from Miami to provide two full days and an overnight in Havana.

“The booking curve for a four-day cruise now looks more like a seven-day cruise to Alaska or to Europe. People are booking it way in advance, and therefore the prices have risen. It is now profitable for you to sell four-day cruises where it wasn’t before,” Del Rio said.

Norwegian next year will devote a second ship, the Norwegian Sun sailing from Port Canaveral, to a Havana itinerary. “That gives you an idea of how important, how profitable, Cuba is to us,” he said.

P&O’s Arcadia and Oceana to undergo refits before Christmas

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P&O Arcadia.

Two P&O Cruises ships are to undergo multi-million-pound refits before Christmas.

Hospitality interior design practice, RPW Design, has been drafted in to support the updating of adults-only ship Arcadia. Cabins, suites, public areas, bars, main dining restaurants and fine dining venues are to be revamped.

Oceana will enter dry dock in Hamburg at the end of November to be updated and refreshed.

Arcadia, which entered service in 2005, will undergo its refit in Hamburg this autumn in preparation for Christmas and a 99-night world cruise which departs Southampton on January 9, 2018.

Arcadia’s first cruise after its refit will be a three-night Belgium cruise from Southampton on November 15.

Work to Oceana, which joined the P&O Cruises fleet from Princess Cruises in 2002, includes refurbished youth spaces with improved entertainment equipment, new soft play equipment, revised nursery space and an updated area for teenagers.

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The Terrace Bar will gain refurbished hot tubs as well as a new canopy over a swimming pool which will extend out to cover the bar.

Following its refit, Oceana will embark on a 12-night Canary Islands and Portugal cruise from Southampton on December 17.

P&O Cruises senior vice president Paul Ludlow said “We continually invest in our ships in order to create a contemporary and comfortable environment while still keeping the unique character and key features that our guests know and love.

“Those traveling on Arcadia and Oceana can look forward to new design concepts and improvements to comfort while still enjoying the incomparable service that characterises a P&O Cruises holiday.”

Carnival Corp ups full year revenue forecast on back of higher prices

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Carnival Corporation’s cumulative bookings for the next three quarters are at higher prices than last year and concentrated in the core cruise markets in North America and Europe.

Adjusted net profits for the last quarter edged up by $8 million year-on-year to $370 million as revenues grew from $3.7 billion to $3.9 billion on the back of a 4% increase in capacity.

The figures for the three months to May 31 were boosted by a 5% improvement in overall cruise ticket prices for the parent company of brands such as P&O Cruises, Cunard and Princess Cruises.

The improved rates affirmed efforts to increase demand “by building positive word of mouth through the delivery of exceptional guest experiences as well as our innovative marketing and public relations programmes,” said president and chief executive Arnold Donald.

The company expects full year 2017 net revenue yields in constant currency to be up approximately 3.5%, better than guidance given in March of up by around 3%.

Chief finance officer David Bernstein said: “Since the end of February, booking volumes for the next three quarters have been running in line with the prior year at nicely higher prices.

“At this point in time, cumulative bookings for the next three quarters are ahead of the prior year, again, at nicely higher prices.”

Looking forward, Donald said: “We are realising sustained strength in booking trends across all core products.

“We are delivering on our strategy to grow demand in excess of measured capacity growth while leveraging our industry-leading scale resulting in increased return on invested capital.”

The world’s largest cruise conglomerate saw the delivery of Princess Cruises’ Majestic Princess, the first ship tailored for Chinese passengers, as well as the addition of AIDAperla to German brand, AIDA Cruises.

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AIDAperla.

Two additional Princess Cruises ships, Caribbean Princess and Royal Princess, were fitted with the technical requirements to switch them early next year to the Ocean Platform featuring Ocean Medallion, the interactive technology for passengers which will debut on Regal Princess in November.

Donald told analysts in a conference call: “We have and we’ll continue to create carefully engineered high-quality destination experiences that are uniquely tailored to our guest references from our private islands like Princess Cays and Half Moon Cay to the planned expansion of our cruise terminal in Barcelona to our most recently completed port destination Amber Cove, in the Dominican Republic.

“We’re providing exceptional guest experiences that enable our brands to capture a price premium. We have many more innovations planned in port development that we expect to rollout in the coming years.”

He identified “new destination opportunities” in Cuba, the Bahamas and China.

The company expects to benefit from growing populations, increasing wealth and developing countries in addition to increased spending by consumers on “experience versus products”, all of which are contributing to 4% annual growth expected in travel globally.