NCLH CFO Admits Caribbean Expansion Was Premature

NCLH CFO Admits Caribbean Expansion Was Premature

Norwegian Cruise Line Holdings’ Chief Financial Officer Mark Kempa offered commentary on the company’s Caribbean capacity strategy, acknowledging that a 40 percent capacity increase into the region was pushed forward prematurely.

“In hindsight, it is clear that this shift was executed without the necessary enterprise-wide coordination,” Kempa told investors on the company’s fourth quarter and year-end earnings call.

“The capacity increase was premature.”

At the center of that was Great Stirrup Cay, the company’s private Bahamian island, which is undergoing a significant enhancement program.

The capacity shift happened before the opening of Great Tides water park on the island, which expected to open later this summer.

Kempa said the commercial infrastructure needed to absorb the additional capacity simply wasn’t ready.

Revenue management, sales, marketing, itinerary planning, and on-island monetization strategies were not aligned or integrated under a single cohesive operating plan.

“The individual components were moving forward, but they were not integrated under a single cohesive operating plan designed to absorb the capacity at the right yield,” he said.

Kempa said the headwinds are more pronounced than the company anticipated.

Kempa did express confidence in the long-term Caribbean strategy, pointing to strong early guest satisfaction scores at Great Stirrup Cay following the opening of a new pier, expanded pool facilities, and enhanced amenities.

“The early feedback reinforces our confidence that our investments are improving the guest experience and will drive strong returns,” he said.

New Holland America Line ship Rotterdam departs on the maiden voyage

New Holland America Line ship Rotterdam departs on the maiden voyage

Holland America Line ship Rotterdam has departed on its 14-day maiden voyage from Amsterdam to Fort Lauderdale.

The 2,668-guest vessel was delivered in July 2021 and is the third in the line’s Pinnacle-class and the seventh ship to bear the name.

Following the transatlantic crossing to Florida, Rotterdam will spend from November through to April 2022 on its inaugural Caribbean season, with all sailings round-trip from Fort Lauderdale.

Itineraries will range from six to 11 days and span the entire region on southern, eastern, western and tropical voyages, Holland America Line said.

Guests looking for a longer cruise can embark on a Collectors’ Voyage – combined back-to-back itineraries that offer a more in-depth exploration covering more than one area.

Every Caribbean cruise will feature a call at Half Moon Cay, Holland America Line’s private Bahamian island.

President Gus Antorcha said: “Rotterdam’s maiden voyage has been highly anticipated for months by our guests and team members eager to welcome them aboard.

“Rotterdam is a beautiful ship and the fourth in our fleet to begin cruising this year. We are excited to bring her to Florida and the Caribbean soon on her first sailing.”

Her Royal Highness Princess Margriet of the Netherlands was recently announced as Rotterdam’s godmother – a position that will be formally confirmed when the ship is officially named in the spring.

Rotterdam features the 270-degree surround screen World Stage, Rudi’s Sel de Mer restaurant and Grand Dutch Café.

It also has the Half Moon Bar, an “immersive experience looking at the history of Holland America Line and cruising through the lens of a cocktail”, the line explained.

In other Holland America Line news, the line will celebrate 75 years of cruising in Alaska in 2022.

In addition, the line’s UK & Ireland director of sales Wendy Lahmich recently told CTN that “cruising has a really bright future”, adding: “The way that the cruise lines have handled themselves and the industry has handled itself [during the pandemic], and the way that we’ve come together, has been phenomenal.”

Carnival Cruise Line Back and Sailing from Miami

Carnival Cruise Line kicked off its first cruise in almost 16 months from PortMiami today with the departure of Carnival Horizon.

It's the second Carnival ship back in cruising action in two days as the Vista sailed from Galveston on Saturday.

Carnival Cruise Line President Christine Duffy, Carnival Corporation President and CEO Arnold Donald and Carnival Brand Ambassador John Heald kicked off the festivities with a ribbon-cutting ceremony officially welcoming guests onboard. Prior to Duffy’s remarks, a moment of silence was held to honour those affected by the tragedy in Surfside.

“PortMiami is our number one homeport in terms of ships and passenger embarkations and today’s return to cruising with Carnival Horizon represents an important first step in getting our company back to business while infusing much-needed capital to the thousands of workers who rely on the cruise industry for their livelihood,” said Duffy. “The past year has been challenging to say the least and I wish to thank our state and local officials, PortMiami, and our business partners and suppliers for their incredible support and patience during this time.”

“The restart of cruise ships from Miami is an exciting day for Miami’s longshoremen. We have approximately 800 members at PortMiami and their wages dropped as much as 80% during the nearly 16-month cruise suspension. Today with Carnival Horizon’s first sailing, we get back to work and look forward to supporting our families again,” said Torin Ragin, president, International Longshoremen’s Association (ILA) Local 1416.

Carnival Horizon will set sail today at 4 p.m. for a six-day cruise with stops in Amber Cove (Dominican Republic) and the private Bahamian island of Half Moon Cay.

In addition to Carnival Horizon’s departure this afternoon, Carnival Vista departed Galveston yesterday, with Carnival Breeze departing from Galveston July 15 and Carnival Miracle kicking off the line’s Alaska season from Seattle July 27. Mardi Gras, the line’s newest ship, sets sail from Port Canaveral on July 31. Other ships in the Carnival fleet will begin service in August.

Six Carnival ships to add calls at Princess Cays

Carnival Cruise Line said its ships will make greater use of Princess Cays, starting in May 2017.

The Bahamian island was developed by Princess Cruises prior to the acquisition of Princess by Carnival Corp. in 2003.

Carnival said that six of its ships will make calls at Princess Cays, with 40 calls scheduled this year and 98 next year.

Princess Cays will be featured on some seven-day cruises from Baltimore aboard the Carnival Pride, five-day voyages from Charleston on the Carnival Ecstasy, eight-day sailings from Fort Lauderdale on the Carnival Conquest, five-day voyages from Jacksonville on the Carnival Elation, four-day voyages from Port Canaveral on the Carnival Liberty, and four-day cruises from Miami aboard the Carnival Sensation.

The announcement comes even as Carnival Cruise Line is negotiating for use of a beach area in Grand Bahama to develop its own destination. In comments before the christening of the Seabourn Encore in Singapore last week, Carnival Corp. chairman Micky Arison said the deal was "very, very close" to being finalized.

Carnival Corp. also owns Half Moon Cay in the Bahamas, which is used primarily by Holland America Line. Carnival Corp. developed the Grand Turk Cruise Center in the nearby Turks & Caicos islands in 2006.