Norwegian Cruise Line and Avis Budget sign marketing deal

By Tom Stieghorst

Avis Budget Group and Norwegian Cruise Line said they’ve signed a multiyear marketing agreement that will make Avis Budget part of pre-cruise tour packages for Norwegian Getaway, the line’s newest ship.

The packages will be available to guests and travel agents through Norwegian’s call center.

Information about the Avis and Budget car rental brands will be featured in Norwegian's electronic marketing channels, while Norwegian Cruise Line will be featured in communications to Avis and Budget customers.

Norwegian Getaway is scheduled to begin cruises from Miami in February. 

In keynote, Norwegian's Sheehan to share success strategies

Kevin Sheehan, CEO of Norwegian Cruise Line Holdings, has accomplished a lot in the relatively short time that he has held that title, and creating and executing a business strategy will be the focus of his address when he gives the keynote speech at Travel Weekly's CruiseWorld on Nov. 8 in Fort Lauderdale.

Putting plans into action is the theme for that day, the final day of the three-day conference, and Sheehan will share not only what he had to do at Norwegian, but also the lessons he learned that apply to businesses of any size, from a one-person, home-based operation to an agency with tens of millions of dollars in annual sales.

When he arrived at the cruise line in 2007, "We had the right assets and proposition, but we didn't communicate well, and we didn't execute well," he said in a recent interview at his office at Norwegian's Miami headquarters. "We put in the right management team that could really demonstrate what the brand stood for. And what it didn't."
In his keynote, Sheehan will stress the importance of relationships in execution, including the importance of team building and nurturing supplier/retailer relations.

"When the recession hit, we held onto every single employee," he continued. "We rode through it together. Getting the team behind the culture with passion and the belief that they can get things done is critical.

"I'm not the guy who makes it happen, but I'm on ships every month, connecting with the crew. We have all-hands meetings, and we talk about what we're doing. I meet with senior officers and then with all the officers. And we follow that with a series of meetings with crew that officers aren't allowed to attend and discuss what's good, bad and what can improve."

Sheehan also focused on relations with travel agents, initiating the Partners First program.

"At the end of the day, [relationships] are why we have best-in-class margins and return on investor capital," he said. "We had none of that before."

Following the address, Sheehan will sit down onstage for an interview with Travel Weekly Editor in Chief Arnie Weissmann. The two will explore the decision-making processes in business and look at why, for instance, Norwegian, unlike its competitors, has so far stuck with a single brand. They will also look at what opportunities are ahead for the line and for agents.

Sheehan is one of three top cruise line executives who will be addressing agents. On Nov. 6, delegates will hear from Carnival Corp. CEO Arnold Donald, and on Nov. 7, Royal Caribbean Cruises Ltd. Chairman Richard Fain will address attendees.

Each will also sit for an onstage interview with Weissmann.

The conference, which also features seminars, a trade show and networking opportunities, will be held at the Fort Lauderdale Convention Center Nov. 6 through 8; ship inspections of vessels such as the Royal Princess, the Carnival Breeze, the Oasis of the Seas, the Nieuw Amsterdam and the Norwegian Epic will bookend the show on Nov. 5 and Nov. 9 and 10. Registration for ship inspections closes Oct. 18.

By Tom Stieghorst

Norwegian reveals entertainment for Getaway

The Norwegian Getaway, coming to Miami in 2014, will have three new entertainment options.

At a news conference aboard the Norwegian Breakaway, which is making its debut in New York, Norwegian Cruise Line CEO Kevin Sheehan said the musical version of "Legally Blonde" will be a featured production on the Getaway.

In addition, a new version of a Breakaway show called "Burn the Floor" will be produced. "Burn the Floor Ballroom Reinvented" will be a mix of Latin dance and ballroom with vocals in English, Spanish and Portuguese.

Comedy on the Getaway will be supplied by Levity Entertainment Group, rather than Second City, as on the Breakaway. Sheehan said Norwegian is happy with Second City but that Levity is a leading name in comedy, booking more than 300 comedians a week at casinos, comedy clubs and events. That provides a deep supply of comic talent and lends itself to frequent changes in acts, he said. 

Norwegian says sales uplift vindicates 10% commission move

By Phil Davies

Norwegian Cruise Line attributed its switch to 10% commission a year ago to a big lift in UK business - and stressed there are no plans to alter its course on remuneration.

Executive vice president sales Andy Stuart revealed that business from the UK was 25% ahead of this time last year.

This vindicated the move to cut commission as it helped eradicate retail cruise discounting and provide price clarity to consumers.

And Stuart stressed that his door was always open to negotiate with Advantage Travel Centres after the consortium took the rare decision to take the line off its preferred supplier list due to the reduction in commission.

"We were clearly disappointed because we felt we were doing something positive to discourage rebating in the industry," he said.

Speaking as Norwegian showcased new 4,000-passenger ship Norwegian Breakaway in Southampton to 2,000 UK agents, he claimed Advantage had "misunderstood" the company's intentions and there continued to be ongoing positive dialogue.

"We believe 10% is a fair commission which will result in a higher retention and better margins for agents while ensuring that consumers are less confused about pricing," Stuart added.

More than 100 Advantage agents were on board for the overnight showcase of the ship and the opportunity to earn additional commission by ensuring they saw different parts of the vessel.

Stuart conceded that the line would continue to run tactical promotions such as the current short-term bonus commission offer to coincide with the introduction of Norwegian Breakaway.

But he insisted that there would be no shift in the ongoing 10% level as part of Norwegian's Partners First philosophy.

He declined to be drawn on a rise in the company's share price but industry observers believe investors see positive returns from ongoing improvements in profitability and the introduction of both Breakaway and sister ship Norwegian Getaway from Miami from January 2014.

Stuart revealed that there would be tweaks to the second new ship to reflect its Florida home port.

Norwegian expects UK passengers to be attracted to the Miami-based ship due to the popularity of Florida as a holiday destination and good levels of airline capacity.

The line is aiming for "more than double digit" percentage growth from the UK in 2014.

Norwegian to deploy two ships in Europe in winter 2014-15

By Tom Stieghorst

Norwegian Cruise Line said it will keep two ships in Europe in the winter of 2014-15.

Norwegian Jade will sail 7- and 10-day cruises in the eastern Mediterranean and an 11-day western Med itinerary.

Norwegian Spirit will offer 12-day Grand Mediterranean cruises and 10-day Canary Islands and Morocco itineraries.

The cruises are now on sale. 

Norwegian unveils Caribbean lineup for winter 2014

By Tom Stieghorst

Norwegian Cruise Line will shuffle its lineup in the Caribbean in the winter of 2014 after the arrival of Norwegian Getaway in Miami.

Norwegian Sun, currently sailing to the southern Caribbean from Miami, will shift to Tampa, while Norwegian's current Tampa vessel, Norwegian Dawn, will debut in New Orleans.

In addition, Norwegian Jewel will sail from Houston, giving Norwegian passengers five homeports (including New York) to choose from when going to the Caribbean.

Norwegian's itineraries for 2014-15 also include an increased schedule of Mexican Riviera cruises. Norwegian Star will offer seven-day cruises from Los Angeles to Mexico in December 2014 and March of 2015. 

Norwegian offers drinks plan on three ships

By Tom Stieghorst

Norwegian Cruise Line is testing a beverage package on three of its ships, similar to plans being evaluated by other lines, to see if it is worth offering fleet-wide in the future.

The package, currently offered on the Norwegian Sun, Norwegian Gem and Norwegian Jade, includes unlimited alcoholic drinks for $49 per person, per day, a spokeswoman said.

"We're being very cautious about it," said Norwegian President Kevin Sheehan. "But if the market is moving in this direction, we don't want to be left behind."

Carnival in August offered a drinks package on the Carnival Victory at $42.95 per person per day, for beer, wine, mixed drinks and soft drinks priced under $10 a day. It has since expanded the test program to four of its ships. 

Other lines including Celebrity and Royal Caribbean have similar programs on at least some of their ships. 

Norwegian Breakaway to spend first winter in Florida, Caribbean

By Donna Tunney

Norwegian Cruise Line’s Norwegian Breakaway will sail a series of cruises roundtrip from New York to the Bahamas, Florida and the Caribbean during the 2013-14 winter season.

The 4,000-passenger ship is under construction at the Meyer Werft shipyard in Papenburg, Germany. It will enter service in April 2013 and sail seven-day Bermuda cruises from New York in the spring and summer.

A series of 25 seven-day cruises to the Bahamas and Florida will begin Oct. 13, 2013. The ship also will sail two 12-day Southern Caribbean itineraries on Jan. 5 and 19, 2014, along with two Weekend Escape cruises on Jan. 17 and 31, 2014.

Through April 27, 2014, the ship’s Bahamas & Florida cruises will depart New York on Sundays and include stops in Nassau, Bahamas; Great Stirrup Cay, and Port Canaveral, Fla.

The 12-day Southern Caribbean cruises will call at San Juan, St. Thomas, St. Maarten, St. Lucia, Barbados and St. Kitts.

The cruises go on sale to Norwegian’s top travel partners and Latitudes Rewards members on Jan. 4 and to the general public on Jan. 6.

A sister ship, the Norwegian Getaway, is slated to enter service in 2014

Profits up for Norwegian Cruise Line after 'strong' summer

Norwegian Cruise Line has hailed a strong summer season for an 18% jump in quarterly profits.

Operating profits were up to $162.7 million in the three months to September while adjusted EBITDA came in 13.4% up at $210 million over the same period last year. Net revenue grew by 4.6% to $491.6 million mainly as a result of an increase in net yield of 3.8% driven by higher ticket prices.

Net cruise costs declined by 5.3%, excluding a 17.9% rise in the price of fuel, helped by ongoing business improvement initiatives coupled with non-recurring expenses in the third quarter of 2010 related to the launch of Norwegian Epic last year.

President and chief executive Kevin Sheehan said: “A strong summer season resulted in solid top-line growth in the quarter. “Pricing was up across the fleet despite several voyages being impacted due to tropical weather conditions in the [US] Northeast and Caribbean.”