Regent to Cut Capacity on Explorer Class Ships by 10 Percent

Regent to Cut Capacity on Explorer Class Ships by 10 Percent

Regent’s Explorer-class ships will feature improved crew- and space-to-guest ratios following their upcoming refits.

According to the company’s website, passengers will take advantage of more space and more personalized service following the updates announced in late July.

The Seven Seas Explorer, the Seven Seas Splendor and the Seven Seas Grandeur are set to undergo drydocks between late 2027 and late 2028.

Described by the company as a “transformative reimagining of select onboard accommodations,” the project will reduce the vessels’ overall capacity to 688 passengers.

With larger suites replacing smaller staterooms, the ships will see nearly a 10 percent drop in their cabin and guest count.

Regent said the crew-to-guest ratio will change from 1:1.3 to 1:1.2, allowing for more attentive and personal service.

Guest-to-space ratio will have a larger upgrade, going from 1:74 to 1:80, which Regent said provides more room for every onboard experience.

Following the changes, the ships will also offer what Regent called the largest entry-level suites, spanning between 38 and 43 square meters.

The company said the enhanced accommodations were designed for comfort and effortless livability, “offering more room to relax, entertain and settle into life at sea.”

Other updates include the debut of a new category, Horizon Penthouse Suite, and the addition of three extra Distinctive Suites on each ship.

The Splendor will be the first ship to debut the enhancements, offering its reimagined suites starting on December 6, 2027.

The Explorer and the Grandeur follow suit in 2028, introducing the upgrades on May 22 and November 13, respectively.

Built at the Fincantieri shipyard in Italy, the Explorer-class vessels are currently the newest ships in Regent’s fleet and entered service between 2016 and 2023.

In addition to refurbishing its Explorer-class ships, the company is introducing a new ship class later this year with the debut of the Seven Seas Prestige. The 822-guest vessel will be followed by sisters in 2030, 2033 and 2036.

Norwegian Cruise Line Holdings Orders Three More Ships

Norwegian Cruise Line Holdings Orders Three More Ships

Norwegian Cruise Line Holding today announced that it has entered into an agreement with Fincantieri for the design and construction of three new cruise ships.

The order includes one ship for each of the company’s brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, with one vessel to be built as a sister ship to Oceania Sonata, one as a sister ship to Seven Seas Prestige, and one as a sister ship to the previously announced Norwegian Cruise Line newbuilds order.

All three ships will be built at Fincantieri’s shipyards in Italy and delivered between 2036 and 2037.

“Together with Fincantieri, a trusted partner for decades, we continue to advance a disciplined approach to fleet growth that builds on the strength of our brands, defines the future of cruising and elevates the guest experience for years to come,” said John W. Chidsey, President and Chief Executive Officer of NCLH. “This agreement secures access to valuable shipyard capacity through the end of 2037, supporting our long-term growth while maintaining financial discipline and driving sustainable shareholder value.”

The company said this new ship order supports the Company’s long-term growth pipeline and competitive position with modest initial capital outlays, allowing it to remain focused on strengthening the balance sheet and reducing leverage.

Following this agreement, NCLH now has a total of 17 newbuilds on order; with Norwegian Cruise Line totaling eight newbuilds through 2037, five newbuilds for Oceania Cruises to be delivered through 2037 and four newbuilds to be delivered through 2036 for Regent Seven Seas Cruises. This newbuild pipeline supports an expected 4 percent compound annual growth rate (CAGR) from 2026 through 2037, consistent with the company’s measured approach to expanding its fleet while investing in next-generation ships.

Year	Brand	Detail	Tons	Berths
Q1 2026	Norwegian Cruise Line	Norwegian Luna	~156,000	~3,565
Q4 2026	Regent Seven Seas	Seven Seas Prestige	~77,000	~822
2027	Norwegian Cruise Line	Norwegian Aura	~170,000	~3,880
2027	Oceania Cruises	Oceania Sonata	~86,000	~1,390
2028	Norwegian Cruise Line	Next Generation “Methanol-Ready” Norwegian Prima Class	~170,000	~3,880
2029	Oceania Cruises	Oceania Arietta	~86,000	~1,390
2030	Norwegian Cruise Line	New Class 1	~227,000	~5,000
2030	Regent Seven Seas	Seven Seas Prestige Class 2	~77,000	~822
2032	Oceania Cruises	Sonata Class 3	~86,000	~1,390
2032	Norwegian Cruise Line	New Class 2	~227,000	~5,000
2033	Regent Seven Seas	Seven Seas Prestige Class 3	~77,000	~822
2034	Norwegian Cruise Line	New Class 3	~227,000	~5,000
2035	Oceania Cruises	Sonata Class 4	~86,000	~1,390
2036	Norwegian Cruise Line	New Class 4	~227,000	~5,000
2036	Regent Seven Seas	Seven Seas Prestige Class 4	~77,000	~822
2037	Norwegian Cruise Line	New Class 5	~227,000	~5,000
2037	Oceania Cruises	Sonata Class 5	~86,000	~1,390

NCLH To Remove 5,000+ Berths from Fleet by 2027

NCLH To Remove 5,000+ Berths from Fleet by 2027

Norwegian Cruise Line Holdings will remove over 5,000 berths from service by 2027, with four ships now set to exit the line’s trio of brands.

After previously announcing the departures of Regent’s Seven Seas Navigator and Oceania’s Insignia, NCLH confirmed on Monday that it is also retiring the Norwegian Sky and the Norwegian Sun.

Currently in service for Norwegian Cruise Line, the 2,000-guest sister ships will be handed over to Cordelia Cruises in 2026 and 2027, respectively.

With the Seven Seas Navigator and the Insignia being handed over to Crescent Seas in 2026 and 2027, the NCLH fleet will see a reduction of roughly 5,200 berths over the next two years.

Pursuing an aggressive newbuild strategy, the company will add new vessels to offset this reduction.

All of NCLH’s three brands are welcoming new ships over the next three years, including Oceania, which is taking delivery of new vessels in 2025 and 2027, adding 2,650 berths to its fleet

Regent Seven Seas also welcomes a new vessel, the Seven Seas Prestige. The 850-guest ship is scheduled to enter service in 2026.

Norwegian Cruise Line is set to take delivery of two Prima-class ships during the timeframe, including the 3,571-guest Norwegian Luna in 2026. The company will also welcome a fifth ship in the Prima series in 2027. This follows the new Norwegian Aqua, which was delivered by Fincantieri in March.

According to CIN data, the five new vessels will add more than 10,000 berths to Norwegian Cruise Line Holdings’ fleet.

For a breakdown of the company’s fleet, see the Global Cruise Ship Index by Cruise Industry News,

13 New Cruise Ships to Enter Service in 2026

13 New Cruise Ships to Enter Service in 2026

According to the latest edition of the cruise ship orderbook by Cruise Industry News, 13 cruise ships will enter service in 2026.

As part of a strong year for the shipbuilding business, 13 vessels are set to be delivered to 12 cruise lines, including Viking, which is set to welcome two luxury vessels from Fincantieri.

[Download a PDF of the orderbook here]

The year will be particularly strong in the luxury segment, with seven upscale vessels set to enter service.

In addition to Viking, other brands taking delivery of high-end newbuilds include Emerald Cruises, Explora Journeys, Atlas Ocean Voyages and Regent Seven Seas Cruises.

Marking Orient Express’s official debut, the OE Corinthian is also set to enter service in 2026, kicking off the company’s first-ever cruise program.

The industry is welcoming several large ships next year as well, including the Legend of the Seas.

Currently being built for Royal Caribbean International at the Meyer Turku in Finland, the 250,000-ton vessel will be the second in the company’s Icon-class series.

Norwegian Cruise Line and TUI Cruises are also welcoming large vessels to their fleets with the debuts of the Norwegian Luna and the Mein Schiff Flow.

Continuing its record-breaking World class, MSC Cruises is set to take delivery of the MSC World Asia from the Chantiers de l’Atlantique.

Other ships entering service include the Adora Flora City, which will become the largest cruise ship ever built in China, and the Magellan Discovery, which was designed to offer expedition cruises in Antarctica.

According to CIN’s independent research, the new ships will add roughly 38,000 berths to the industry in 2026.

With an average size of 112,377 tons and an average cost of $805,066,667, the newbuilds will cost over $12 billion.

Regent Announces 2027 World Cruise with 71 Ports

Regent Announces 2027 World Cruise with 71 Ports

Regent Seven Seas Cruises announced its 2027 World Cruise, sailing from January 11, 2027, onboard the Seven Seas Splendor, according to a press release.

Sailing from Miami, Florida to New York, the 2027 World of Splendor adventure travels to 71 ports of call in the Caribbean, the Pacific Islands, Australia and New Zealand, Asia, Africa and Europe. Guests will travel 35,668 nautical miles across three oceans, exploring 40 countries on six continents.

Also included are over 480 shore excursions and 14 overnight stays,  as well as a chance to visit 73 UNESCO World Heritage Sites.

Prices for the 140-night world tour start at $91,499 per guest for a Veranda Suite and up to $839,999 per guest for the Regent Suite.

“We have seen continued interest and demand to venture further afield and for longer durations and so we are thrilled to announce that our 2027 World Cruise will take place on board Seven Seas Splendor, offering more luxury travelers the opportunity to enjoy this once-in-a-lifetime experience,” said Andrea DeMarco, president of Regent Seven Seas Cruises.

“This will be the first time a World Cruise will sail on board one of our magnificent Explorer-Class ships, Seven Seas Splendor, which was launched in 2020 and offers the highest standards of unrivaled luxury, and features the one-of-a-kind, 4,443 square foot Regent Suite.”

In addition, for the first time, travelers can embark on this World Cruise in the most exclusive address residence at sea – the Regent Suite. The Regent Suite experience onboard is priced at $1.7 million dollars for two guests.

Seven Seas Grandeur reveals first Fabergé egg at sea

Regent Seven Seas Cruises hosted a gala celebration in Miami, Florida on 10 December 2023, to welcome its newest ship Seven Seas Grandeur 

As part of the celebrations, Regent unveiled Journey in Jewels, the first Fabergé egg to permanently reside at sea. The pièce de résistance of a 1,600-piece art collection, the custom-designed masterpiece will now be on display in Seven Seas Grandeur’s atrium.

“Seven Seas Grandeur is the most anticipated new luxury ship to set sail this year, an achievement made possible through the combined craftmanship and exquisite eye for design excellence by Studio DADO and Fincantieri, who together with our team at Regent, have delivered a truly remarkable work of art,” said Norwegian Cruise Line Holdings president and chief executive Harry Sommer.

“Each feature of this ship is more jaw-dropping than the last, from the world-class collection of art and tantalising epicurean experiences, to the lavishly designed suites, restaurants, bars and lounges. Seven Seas Grandeur sets a new standard for service and comfort in the travel industry, and we are delighted to present this incredible new ship to discerning travellers as they explore the world with Regent.”

Designed by the award-winning Studio DADO, there are reimagined designs for signature restaurants such as Compass Rose, Chartreuse and Prime 7 among the dining choices. Seven Seas Grandeur features 15 accommodation categories including the palatial, US$11,000-a-night Regent Suite, Distinctive Suites and Spacious Suites.

During the ceremony, guests were treated to a reveal of the exclusive objet d’art known as the Fabergé x Regent Journey in Jewels Egg Objet, which is the first Fabergé egg to permanently reside at sea. 

Crafted in England from 18k white gold, the outer shell of the egg has been enamelled in an ombre of blues, representative of the colours of the sea. This shell consists of seven intricate blades, a number carefully chosen to celebrate the seven seas that Regent’s ships traverse. Just like a wave, each blade breaks into a sea foam of pearls and white diamonds at the tips in a truly extraordinary aesthetic feat.

The egg sits upon a plinth adorned with emeralds, tsavorites, blue sapphires and white diamonds, set in Fabergé’s Emotion style, with colourful gems specially chosen to evoke the colours of the ocean. This gem-set plinth is anchored to a stand which reflects layers of waves accented with pearls and diamonds at the edges; more geometric and symmetrical in a nod to the helm of Seven Seas Grandeur.

By rotating the pearl helm anti-clockwise, the seven blades delicately open in unison, to reveal a surprise hidden within – another hand painted egg, which is cradled by a wave and delicately rotates, revealing the changing gradient of colours of the sunrises and sunsets at sea, and seasonal elements you can witness aboard Seven Seas Grandeur. This egg has also been decorated with gemstones, including a diamond-set frost pattern which wraps around the egg surprise, inspired by the Fabergé Winter Egg of 1913. Hand-carved mother-of-pearl clouds, alongside white opals set in 18k yellow gold, are also featured – the warmth of the yellow gold evokes the sunshine, and the opals represent the rainbows which emerge through the clash of weather.

In two firsts, Fabergé has applied the complex technique of ombre lacquering to Journey in Jewels and has developed a bespoke mechanism which powers the rotation of the egg surprise. 

NCLH Concentrating on Product, People and Partnerships

NCLH Concentrating on Product, People and Partnerships

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 Viva Christened in Miami Ceremony

Norwegian Viva Christened in Miami Ceremony

Norwegian Cruise Lin has celebrated the christening of Norwegian Viva in a Miami ceremony.

“To christen Norwegian Viva in Miami is incredibly special to many of us at NCL, not only because Miami is our hometown, but also because we can share this moment with our local family and friends,” said David J. Herrera, president of Norwegian Cruise Line. “Launching a ship is no solo endeavor. I am overwhelmed with gratitude towards the entire NCL team, our partners and especially our amazing crew who have contributed to bringing Norwegian Viva to life and who care for and deliver exceptional vacation experiences for our guests.”

Following Norwegian Viva’s debut this past August and its inaugural summer season of European voyages, today, over 1,500 guests joined the christening ceremony held in the Company’s LEED® Gold Certified terminal at PortMiami.

“As a Company, it has been a milestone year with the debut of next-generation ships across all three of our best-in-class cruise brands, Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises,” said Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.

“The addition of Norwegian Viva further elevates our world-class fleet, providing our valued guests with another incredible way to vacation, discover new experiences and create unforgettable memories. Since she launched in August, Norwegian Viva’s initial guest satisfaction scores have outshined any newbuild in the history of the NCL fleet, a testament to not only how stunning this ship is, but also the exceptional level of service and attention provided by our amazing crew onboard.”

Luis Fonsi, Norwegian Viva’s godfather and GRAMMY Award-nominated singer, songwriter, musician, and producer, officially named and christened the vessel with the ceremonial champagne bottle break across the ship’s hull which signifies good fortune and safe travels for all who sail aboard. As a native Puerto Rican, who is also based in Miami, Fonsi embodies the vibrant energy guests can enjoy aboard Norwegian Viva with warm-weather itineraries spanning from the Caribbean to the Mediterranean.

The celebration continues through the evening with an unparalleled and next-level entertainment lineup headlined by Fonsi performing his award-winning and global chart-topping hit “Despacito,” among his other beloved Latin hits like “No Me Doy Por Vencido” and “Échame La Culpa.” Other talented performers with authentic Miami and Latin roots are taking the stage, including “Saturday Night Live” cast member and Miami-native, Marcello Hernandez; the Queen of Latin Pop, Paulina Rubio; and recently announced GRAMMY® Award-nominated artist, Pedro Capó.

“It is so exciting to celebrate the magnificent Norwegian Viva in true Latin-style in Miami and alongside fellow A-list Latino entertainers,” said Luis Fonsi, award-winning global artist. “We are giving her a proper despedida before she makes her debut in my hometown of San Juan, Puerto Rico.”

 

Regent’s New Seven Seas Grandeur Delivered by Fincantieri

Regent’s New Seven Seas Grandeur Delivered by Fincantieri

Regent Seven Seas Cruises' newest ship, the Seven Seas Grandeur, was delivered at the Fincantieri Ancona shipyard on Monday, November 13, according to a press release.

The Seven Seas Grandeur is the third cruise ship in this series that Fincantieri has built for the cruise line and the last of the Explorer class. The shipyard delivered the Seven Seas Explorer in 2016 and the Seven Seas Splendor in 2020.

With a capacity to accommodate 746 passengers onboard, the 55,000-ton ship has been built using the latest environmental protection technologies.

Sailing from Miami this winter he ship will take guests to visit Caribbean destinations such as Costa Maya, Mexico; Great Stirrup Cay, Bahamas; San Juan, Puerto Rico; and St Barthelemy.

Norwegian Cruise Line Holdings: Brand by Brand Restart Update

Building up its return to service, Norwegian Cruise Line Holdings plans to have most of its fleet back in service by early 2022.

Here's the latest, brand by brand: 

First sailing: July 25, 2021
Ships: Norwegian Jade, Norwegian Bliss, Norwegian Epic, Norwegian Getaway, Norwegian Joy, Norwegian Breakaway, Pride of America, Norwegian Encore, Norwegian Escape, Norwegian Pearl, Norwegian Jewel, Norwegian Sun and Norwegian Spirit
Regions: Mediterranean, Caribbean, Bermuda, Hawaii, West Coast, Bahamas, Panama Canal, Asia and Australia

According to its current plans, Norwegian Cruise Line will have 13 ships back in service by February 2022.

The first ship to resume cruising will be the Norwegian Jade, which is set to offer new itineraries from Greece starting on July 25. Later, in September, two additional vessels are entering service in Europe as the Norwegian Epic and the Norwegian Getaway resume their originally announced schedule in the Western Mediterranean.

The return to the United States and the Caribbean is set to start in August, with the Norwegian Bliss sailing in the Alaska. Gradually, more vessels are being reactivated, including in other destinations, such as Asia and Australia.

Oceania Cruises
First sailing: August 29, 2021
Ships: Marina, Riviera, Insignia and Sirena
Regions: Northern Europe, Mediterranean, Caribbean and World Cruise  

Norwegian’s upper premium brand, Oceania Cruises plans to reenter service in August. The company announced that it will resume cruise operations with the 1,250-guest Marina sailing in Scandinavia and Western Europe.

The vessel will resume her originally published voyage schedule, commencing on August 29, 2021, in Copenhagen.

Phased restart dates for the balance of the Oceania Cruises fleet are on the plans, with three additional ships resuming service between October 2021 and January 2022.

Regent Seven Seas
First sailing: September 11, 2021
Ships: Seven Seas Splendor, Seven Seas Explorer, Seven Seas Mariner, Seven Seas Navigator and Seven Seas Voyager  
Regions: Northern Europe, Mediterranean, Caribbean, Panama Canal and World Cruise

Regent Seven Seas Cruises announced its return to sailing with Seven Seas Splendor. The vessel will begin cruising from the UK in September, resuming its previously scheduled itineraries in Northern Europe and the Mediterranean.

The resumption plan for the rest of the fleet includes all vessels being reactivated until February 2022.

While most of the ships are set to sail previously announced itineraries in Europe or the Caribbean, the Seven Seas Mariner will offer a World Cruise. The vessel is poised to sail on a published Panama Canal itinerary, before starting the 120-night itinerary on January 5, 2022.

Norwegian Cruise Line Holdings Cancels All April Cruises

Norwegian Cruise Line Holdings today announced an extension of its previously announced suspension of global cruise voyages as the company continues to work through its return to service plan to meet the requirements of the Framework for Conditional Sailing Order issued by the U.S. Centers for Disease Control and Prevention (“CDC”).

The suspension now includes all voyages on Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises embarking through April 30, 2021.

The company will continue to work in tandem with global government and public health authorities and its Healthy Sail Panel expert advisors to take all necessary measures to protect its guests, crew and the communities visited.

Guests who are currently booked on cancelled voyages on Norwegian Cruise Line, Oceania Cruises or Regent Seven Seas Cruises are asked to contact their travel advisor or the cruise line for more information.

NCLH CHIEF 'ENCOURAGED BY FUTURE DEMAND' AMID COVID CHALLENGES

Norwegian Jade currently in Naples.

Despite Norwegian Cruise Line Holdings (NCLH) facing “a long road of recovery ahead”, the group’s chief says he is “encouraged by continued demand” for future sailings from customers across its brands.

In an update released with NCLH’s 2020 third-quarter results, president and chief executive Frank Del Rio said recently issued framework by the US CDC was “a step in the right direction” on the industry’s path to a safe resumption of operations.

 

“We will continue to collaborate with the CDC on next steps to relaunch operations with a shared goal of protecting the health and safety of our guests, crew and the communities we visit.”

 

NCLH reported a net loss during the three months to 30 September of $677.4 million compared with a profit of $450.6 million year-on-year.

 

Revenue fell to $6.5 million, from $1.9 billion over the same period last year “due to the complete suspension of voyages in the quarter”.

 

NCLH added that it had a sustained monthly average cash burn of $150 million in the third quarter – which it expected to rise to $175 million a month in the current quarter.

 

Despite booking levels as a result of Covid-19 remaining “below historical levels”, NCLH said there “continues to be demand for future cruise vacations” particularly for sailings in the second half of 2021.

The group reported $1.2 billion of advance ticket sales at the end of September, including about $850 million of future cruise credits.

 

NCLH said pricing for 2021 “is in line with pre-pandemic levels”, even after including “the dilutive impact” of future cruise credits.

 

The company emphasised its claims for “pent-up future demand” through recent booking records in September and October.

 

Successes included Oceania Cruises’ Labor Day upgrade sale which was the most successful holiday promotion in the line’s history, a new World Cruise opening day booking record for Regent Seven Seas Cruises’ 2023 World Cruise and a new all-time largest single booking day in Regent’s history with the launch of its 2022-2023 Voyage Collection.

 Agents hailed as Regent Seven Seas Cruises reports record booking day

Regent Seven Seas Cruises saw its largest ever booking day when sales for its 2022-2023 Voyage Collection opened on October 21.

The previous booking day record for the 28-year-old cruise line was set in April 2018 with the launch of Seven Seas Splendor’s inaugural season.

All destinations saw high levels of interest, but cruises in Africa, Asia, the Mediterranean and northern Europe – especially the Baltics – were notably popular.

Jason Montague, president and chief executive, said: “The staggering response to our 2022-2023 Voyage Collection demonstrates the incredible future demand for the unrivalled Regent experience.

“Luxury travellers simply cannot wait to get back on the oceans to see the world again.

“Our loyal guests wasted no time in securing their perfect itinerary and suite with last year’s Voyage Collection launch day total eclipsed after only 90 minutes of being on sale.”

Graham Sadler, senior vice president and managing director, added: “This phenomenal achievement is a testament to the professionalism and tenacity of our talented UK travel partners and we would like to thank them for their support, without which the hugely successful launch of our 2022-2023 Voyage Collection would not have been possible.”

The collection features 148 sailings from April 2022 to April 2023, with 17 maiden ports of call for the line and 105 overnight visits.

Travellers will have access to more than 350 Unesco World Heritage Sites across thousands of free, unlimited shore excursions.

Norwegian Plans Phased Return to Service

Norwegian Plans Phased Return to Service

Norwegian Dawn

“I will do everything humanly possible to be able to look my own family in the eyes and say they will be safe on our cruise ships,” said Frank Del Rio, chairman and CEO of Norwegian Cruise Line Holdings (NCLH), on the company's first-quarter earnings call.

Del Rio said NCLH is working with experts to develop health protocols that will be robust to gain CDC approval and generate confidence among the public. The same process must be replicated around the world.

When the no-sail order is lifted by the CDC, Del Rio said he expects that the company’s brands will return to service in a phased order of roughly five vessels a month, assuming ports are open and they can sail their designated itineraries.

Norwegian Bliss

With 28 vessels, it will take roughly six months to bring the whole fleet back into service. It is also unknown at this point whether they will be allowed to sail at 100 per cent capacity.

Consumer demand is still there, according to Del Rio, despite all the negative press. He noted that bookings are still coming in, despite the suspension of marketing activities, and expects that cash coming in will overtake the net cash outflow (refunds) in the next 60 days.

“There is pent up demand; people want to cruise again,” he added, noting that world cruise segments for the Regent and Oceania brands were sold out, with customers flying to embarkation points in Japan and Dubai.

However, with a booking curve from six to eight months out, it will take time before the pipeline is full or nearly full, he said.

Mark Kempa, CFO and executive vice president, commented that he sees 2021 as a transition year and that NCLH may be able to rebuild in earnest in 2022, bringing the company back on the track it was prior to COVID-19.

Newbuild deliveries may be delayed 12 to 18 months, added Del Rio.

Under stress, NCL Holdings hit a liquidity grand slam

Arnie Weissmann (left) and Frank Del Rio at Travel Weekly's CruiseWorld in 2018. Photo Credit: Jamie Biesiada

In the first of two parts of a wide-ranging interview with Travel Weekly editor in chief Arnie Weissmann, Norwegian Cruise Line Holdings CEO Frank Del Rio gave the back story on closing a $2.4 billion round in tough times. Part 2: Del Rio on relaunching and the importance of travel advisors in cruising’s recovery. 

On March 13, Norwegian Cruise Line Holdings CEO Frank Del Rio learned that to stem the spread of Covid-19 on cruise ships, the Centers for Disease Control and Prevention (CDC) had issued a no-sail order, effectively halting cruising out of U.S. ports.

No cruising, no revenue. No revenue, no assurance of the liquidity needed to survive for an unknowable amount of time. “I knew our world was going to change,” Del Rio told Travel Weekly in an interview on Thursday.

Del Rio sees the journey from potential ruin to bountiful liquidity as a testimony to the resiliency of cruising and NCLH’s unique position in the cruising ecosystem.

On Wednesday, Del Rio finished what would be considered a remarkable round of funding even during the best of times. His underwriter, Goldman Sachs, told him it was the first simultaneous “quad” it had seen: releasing a private placement memorandum and at the same time announcing three different kinds of public capital. And, as icing on the cake of the $2.23 billion initially announced, an oversubscription in each tranche triggered what Wall Street calls a “greenshoe” event, allowing additional shares to be sold, bringing the total above $2.4 billion.

What should have been an unqualified grand slam was temporarily dampened when some investors and media noticed two sentences in a 59-page public filing on Tuesday which seemed to disclose “substantial doubt” about the company’s ability to continue “as a going concern,” and another warning that, should investment not be forthcoming, “it may be necessary for us to reorganize our company in its entirety, including through bankruptcy proceedings.”

The language, Del Rio said, was a “mandatory, technical accounting reporting requirement that our auditor, Price Waterhouse, was required to issue in conjunction with the offering memorandum.” Though the details the following day about the success of the offering would render the point moot, NCL stock dropped 22% the day before the full scope of the investments were announced.

The $2.4 billion, combined with $1.1 billion in cash the company already had, “probably gives us the biggest liquidity cushion -- the longest runway -- of any company in the cruise space,” Del Rio said. “I challenge you to find another company in any industry that can say that they can withstand a 100% cessation of operations with zero revenue for more than 18 months.”

When this is all over, Del Rio asserts, “Norwegian will be one of the survivors, one of the success stories. This was truly a team effort. Yesterday I addressed them all, and it was a very emotional moment because what was being saved was a great institution. We invented the cruise industry more than 50 years ago and I would be damned if, under my watch, that was going to change.”

Norwegian Cruise Line Holdings brands extend the suspension of sailings

Norwegian Cruise Line Holdings brands extend the suspension of sailings

Norwegian Sky leaving the Port of Miami, photo credit Dave Jones

Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises have extended the suspension of all cruises until June 30.

The Norwegian Cruise Line Holdings brands extended the current extension from May 11 as they bid to help stem the spread of Covid-19.

The company said it will continue to work with the US Centers for Disease Control and Prevention (CDC), the federal government and global public health authorities to take “all necessary precautions” to ensure the health, safety and security of guests, crew and the communities it visits.

“We are committed to taking all appropriate actions to combat the spread of Covid-19 and, as such, have extended our global voyage suspension through June 30,” said Frank Del Rio, president and chief executive of Norwegian Cruise Line Holdings. “We continue to work closely and in partnership with the US CDC, global public health authorities and local, state and federal governments to build upon our already rigorous health and safety protocols to ensure that our brands are ready to safely resume operations with these new protocols in place.

“Our teams are working around the clock to do what is right by our loyal guests and valued travel partners and we greatly appreciate their understanding as we continue to adapt to the ever-evolving global health environment.”

Guests who are booked on voyages with embarkation dates between May 11 and June 30, 2020, on Norwegian Cruise Line, Oceania Cruises or Regent Seven Seas Cruises are asked to contact their travel agent or the cruise line for more information.