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Royal Caribbean and Norwegian: Differing Strategies on Caribbean Cruises

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Royal Caribbean International and Norwegian Cruise Line are taking different business approaches when it comes to Caribbean deployment.

Caribbean itineraries will make up roughly 65 per cent of Royal Caribbean’s deployment this year, compared to approximately 33 per cent for Norwegian Cruise Line, according to the 2023 Cruise Industry News Annual Report.

Next year those numbers should climb for Royal Caribbean, which will put the Icon of the Seas in the year-round Caribbean market, sailing week-long cruises from Miami in January. That will be followed by the Utopia of the Seas, which will sail short voyages year-round from Port Canaveral, with the Miami-based cruise line betting big on the Caribbean cruise market, including the short cruise business.

“Utopia will be the first Oasis-class ship that will be entirely focused on short cruises in the Caribbean, supporting our strategy of competing with land-based vacation alternatives and driving new-to-cruise customers into our vacation ecosystem as we seek to close the value gap,” said Jason Liberty, president and CEO of Royal Caribbean Group, on the company’s second-quarter earnings call in July.

Norwegian Cruise Line has taken the opposite approach.

Norwegian’s short cruise portfolio, which account for 25 per cent of its deployment in 2019, will make up just seven per cent of cruises in 2023, according to the company’s second-quarter earnings presentation.

It also means Caribbean deployment is down some nine per cent this year when compared to 2023.

“We strategically shifted our deployment to longer, more immersive itineraries at the Norwegian Cruise Line brand and increased our concentration of premium destinations while reducing our Caribbean deployment,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, speaking on the company’s second-quarter earnings call.

“This was designed to attract a higher quality guest and maximize our competitive position.”

CFO Mark Kempa noted: “This is really about yield and EBITDA where we believe being in more premium itineraries that are booked further in advance, giving us a much longer booking curve and a more stable and predictable demand profile, which allows us to manage demand, manage our marketing a little bit more effectively and not rely so much on close-in, unstable and unpredictable demand is really key to our success.”

MSC Opens 2024-25 Cruise Deployment for Sale

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MSC Virtuosa in Flam Norway to view the inside images of MSC Virtuosa click the link (Flickr) or Image

MSC Cruises today opened sales for a range of its winter 2024-25 season sailings. The line will soon provide details for its winter 2024-25 sailing programs in South America, Southern Africa and the Far East but today unveiled the voyages now available to book, according to a press release.

Highlights include six ships serving the Caribbean Sea and MSC Cruises’ flagship MSC Euribia operating for the first time in the Middle East.

Details are:

NORTH AMERICA AND THE CARIBBEAN

The MSC Meraviglia will operate from New York with seven- to 11-night itineraries to Port Canaveral for Orlando, Nassau in the Bahamas and MSC Cruises’ private island Ocean Cay MSC Marine Reserve.

The MSC Seascape will sail every Saturday from Miami with either 7-night cruises to the Dominican Republic, Puerto Rico and Ocean Cay or to Jamaica, the Cayman Islands, Mexico and Ocean Cay.

The MSC Seaside every Sunday will offer 7-night voyages from Miami, alternating between the Bahamas, Puerto Rico, and the Dominican Republic or Mexico, Honduras or Belize, and the Bahamas.

The MSC Divina will also be based in Miami and offer an array of three- to 10-night itineraries, all including calls to Ocean Cay.  Longer sailings will take guests to Jamaica, Aruba, Curaçao, Dominican Republic and the Bahamas.

The MSC Seashore will homeport in Port Canaveral for three- to four-night mini cruises to the Bahamas, including calls at Ocean Cay, and also sail seven-night voyages with additional stops in Cozumel and Costa Maya in Mexico.

The MSC Virtuosa will homeport in Fort-de-France, Martinique and embark on back-to-back 7-night itineraries including Guadeloupe, the Virgin Islands, St. Maarten, Saint Kitts and Nevis, Antigua & Barbuda, Saint Vincent & The Grenadines, Barbados, Grenada, and Saint Lucia.

ARABIAN GULF

The line’s newest flagship the MSC Euribia will make her debut in the region from Dubai, United Arab Emirates (UAE). It will offer seven-night sailings to two other UAE destinations, Abu Dhabi and Sir Bani Yas Island, plus Doha, Qatar and Manama in Bahrain.

MEDITERRANEAN SEA

The MSC World Europa will sail every Sunday from Genoa for a seven-night voyage with calls at Civitavecchia for Rome, Messina in Sicily, Valletta, Malta; Barcelona, Spain and Marseille, France

NORTHERN EUROPE

The MSC Preziosa will operate seven-night voyages every Sunday from Hamburg, Germany with calls at Zeebrugge for Bruges and Brussels in Belgium; Rotterdam in the Netherlands; Le Havre for Paris and Southampton for London. Additionally, one 21-night long cruise from Southampton will visit the Canary Islands, Madeira and Morocco.

RED SEA

The MSC Musica will offer seven-night sailings from Safaga, Egypt to Jeddah, Saudi Arabia; Aqaba for Petra in Jordan, Sharm El-Sheikh in Egypt and Sokhna Port for the country’s capital Cairo before returning to Safaga for an opportunity to visit Luxor.

Sommer: New NCLH Leadership Brings ‘Fresh Perspective and Energy’

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“With new leadership not only in my seat but in all three of our award-winning brands and most recently for our vessel operation function, there is a possible feeling of reinvigoration and excitement about the future across the entire company,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings (NCLH), speaking on the company’s second-quarter earnings call.

Sommer took over as president and CEO of the company earlier this year, following Frank Del Rio’s retirement.

“We are approaching every decision with fresh perspective and new energy, challenging the status quo at every level and encouraging our entire team to think outside of the box and come to the table with new ideas, however big or small,” Sommer said, noting his focus is on the future and how to refine and enhance our strategy to optimize the company’s existing fleet of high-quality assets, further differentiate the business model, build resiliency, advance efforts to drive a positive impact on society in the environment and ultimately drive more value.

“Our executive team has an average of over 20 years in the cruise industry and nearly all have been with NCLH for a decade plus,” he continued.

“I have the unlost confidence that this team is the right one to take the company to even greater heights.”