Norwegian Cruise Line Confident in Europe 2023 Despite Baltic Limitations

Norwegian Cruise Line Confident in Europe 2023 Despite Baltic Limitations

Norwegian Cruise Line Holdings is increasing its capacity by six per cent in Europe in 2023, coming at the expense of the Caribbean, according to Frank Del Rio, president and CEO, speaking on the company’s third-quarter earnings call.

He said that yields on ticket prices and onboard revenue for cruises in Europe were “dramatically better.”

And this is in despite of limitations in the Baltic, with ships not calling at Russia’s Saint Petersburg. 

“If you had asked me what is the single city in the world, port in the world that you cannot live without, I'd tell you it's Saint Petersburg, and we lost it,” Del Rio said. “Very, very high yields, incredible shore excursion sales. So onboard revenue was just higher than any other itineraries that I can think of, and it’s a relatively long season. You can get (there) in mid-May and you can leave in mid-September.”

That limitation in 2022 sent one Norwegian ship elsewhere, as the Getaway moved to the Caribbean for the summer sailing from Port Canaveral.

“It did affect load factors and no question, it affected pricing. And the impact on EBITDA has to be in the tens of millions of dollars,” Del Rio explained.

But both the Baltic and the Mediterranean look encouraging for 2023, with Del Rio noting that Americans travelling to Europe book the highest cabin categories earliest.

“This revenge travel or pent-up demand that we've been talking about for months is really alive and well for Americans going to Europe,” he said.

“We believe that Europe is poised for an incredible 2023 season. That's why we increased our capacity there by 6 percentage points of occupancy at the expense of the Caribbean. And I'll take that trade all day long because the yields both on a ticket and on onboard revenue are so dramatically better for European cruises that we'll take that trade.”

Norwegian Cruise Line Rules out UK Sailings.

Norwegian Cruise Line’s UK chief has ruled out operating round-Britain sailings this summer in favour of recently announced fly-cruise itineraries which “fit our brand better”.

NCL announced plans to restart voyages from July – with Norwegian Jade sailing from Athens, Norwegian Gem out of Punta Cana (Dominican Republic) and Norwegian Joy homeporting in Jamaica’s Montego Bay.

 

Speaking to TTG on Thursday (8 April) Eamonn Ferrin, vice-president and managing director UK, Ireland, Middle East and Africa, said the line had looked at deployment “from a global level” and felt the destinations and itineraries announced were “much more suitable” for guests across its source markets.

 

“People want to go on a fly cruise to the Med or Caribbean, and we feel that’s a better market for us to go for,” he said. “We feel it fits our brand better and our customers better. So I don’t think we’ll be looking to stand up a UK ship for this season.”

 

Ferrin said a late July restart, coupled with NCL’s global outlook, meant favouring sailings away from the UK.

 

“It got a bit late to be starting up at the end of July. You’re getting into a late-season process – so we felt [the announced itineraries] were a better fit. The three we’ve chosen on a global basis are stunning itineraries that Brits love and there’s already a lot of demand.”

However, Ferrin asserted NCL’s commitment to the UK market through its partnership with ABP Southampton on a new terminal at the port.

 

“Our long-term goal is to have a lot more capacity from Southampton – so we definitely see a bright future for more departures.”

 

Speaking alongside Ferrin, NCL president and chief executive Harry Sommer described being able to restart as “like Christmas in April”, adding how “in a typical year” the Greek Isles are NCL’s most popular destination among UK customers.

 

“We normally have three ships out of Athens, Venice and Rome that are extremely well booked by the Brits," he said.

 

Sommer shared his hopes British travellers would be able to join NCL cruises in Jamaica and the Dominican Republic once travel restrictions were relaxed later in the summer “certainly by August”.

Disney Confirms Summer 2021 Magic Staycation Sailings in the UK

Disney Cruise Line has become the latest cruise operator to confirm UK home sailings in summer 2021. According to a press release, United Kingdom residents will be able to sail on the brand-new Disney Magic at Sea "staycation" sailings from UK ports this summer for a limited time.

Featuring enchanted entertainment and with multiple layers of health and safety measures, the Disney Magic cruise ship plans to sail mostly two- and three-night voyages, as well as limited four-night sailings round-trip from London Tilbury, Newcastle, Liverpool and Southampton.

"Our teams are bringing tremendous ingenuity and fun to these new cruises, tailoring them with care to the times we are living in, yet filling them with everything you'd expect from Disney, from great service and entertainment to immersive dining experiences and magic for the whole family," said Thomas Mazloum, president of Disney Cruise Line.

Guests will remain aboard the Disney Magic throughout the sailing and will enjoy a cruise experience with world-class accommodations, dazzling entertainment and a variety of included dining options. Children and adults alike will delight in spaces created just for them, including family pools and waterslides, whimsical kids clubs, and adult-only retreats such as a secluded pool and spa, a lively entertainment district and a fine-dining restaurant.

According to the press release, favourite Disney stories, characters and entertainment will come to life during these special Disney Magic at Sea cruises, including a celebration with Mickey Mouse, Minnie Mouse and their pals, a Frozen flurry of fun with Anna, Elsa and Olaf, and an epic encounter with Marvel's greatest Super Heroes.

Guests will cherish special moments with beloved Disney friends, from capturing physically distanced photos with Captain Mickey, to enjoying a royal promenade with Disney Princesses or seeing favourite Toy Story pals. West End-quality stage shows will captivate guests of all ages in the elegant Walt Disney Theatre.

Disney Cruise Line said it was implementing multiple layers of health and safety measures considering guidance from the UK government, health authorities and medical experts. This includes COVID-19 testing, health screenings, face coverings, reduced guest capacity, physical distancing and enhanced cleaning.

The cruise line added that the Disney Magic at Sea staycation itineraries are expected to go on sale in April 2021 for summer 2021 sailings, pending the issuance of UK government guidelines and authorizations. 

Cruise sailings could restart on 17 May.

A government minister has raised hopes that domestic cruise sailings could restart on 17 May.

According to a report in The Independent, maritime minister Robert Courts announced the news at an All-Party Parliamentary Maritime and Group (APPMPG) meeting on 8 March.

In a tweet, the APPMPG said: “**NEWS** Maritime Minister Robert Courts announces the reopening of the domestic #cruise market in England on 17 May at tonight’s @APPMPG meeting.”

It added: “From repatriation procedures and risk mitigations to CV-19 protocols and the domestic vaccination program, a great @APPMPG session w/ @robertcourts who delivered some much-appreciated news. A pathway to the domestic cruise market re-opening on 17 May.”

A Department for Transport spokesperson also told The Independent: “We are committed to restarting cruise travel when it is safe to do so, and we are working closely with the sector to prepare for a safe and successful restart.

“The restart of domestic cruises in England will be aligned with the wider resumption of the domestic tourism and indoor hospitality sectors. As set out in the prime minister’s roadmap, the earliest possible date for this step is 17 May.”

Industry ‘welcomes’ news

In recent weeks, cruise lines have altered their schedules to prepare for shorter UK sailings later this summer.

Princess Cruises said it was “clear that holidays in the UK will be the first to restart before the gradual return of international travel”, while P&O Cruises has confirmed a range of sailings that will depart Southampton and sail around UK coastal waters.

CLIA and the UK Chamber of Shipping said in a joint statement: “We strongly welcome the announcement that cruise will be included alongside the restart of other domestic tourism in the UK.

“The industry has been working with the government over the last year on health protocols which put the safety of our passengers and crew first. Many of these protocols have already been tested successfully where cruise has been able to operate elsewhere in Europe.

“The industry has long planned a phased restart for the cruise, with domestic cruises representing the first stage of this plan. We look forward to continuing to work collaboratively with the government, including through the Global Travel Taskforce in order to ensure the safe restart of the international cruise in time for the summer season.”

P&O Cruises president Paul Ludlow added: “We are delighted that the government has acknowledged that UK domestic cruise holidays can begin from May 17.

MSC Cruises to halt ex-UK sailings in 2015

By Hollie-Rae Merrick 

MSC Cruises is halting its ex-UK sailings in 2015 as it looks to focus on its fly-cruise Mediterranean offering.

As part of the major refit of Lirica class ships, MSC Opera – currently sailing out of Southampton – will be out of action for part of the summer months in 2015.

The cruise line said this led to a decision to halt ex-UK sailings for a year to focus on fly-cruise capacity out of the UK.

Giles Hawke, executive director for UK, Ireland and Australia, said the line would be introducing new tools to support agents booking fly-cruises with MSC.

He said: “As market leader for Mediterranean cruises it is important that we work to reinforce this position by increasing our fly-cruise capacity, along with improving our ships to include more balcony cabins, more onboard entertainment and additional technological advancements.

“We are considering various charter options and working with our air partners to come up with the best approach to keep up with the current customer demand for fly-cruises direct to the Mediterranean.

“We will also be introducing tools supporting travel agents in order to make the fly-cruise booking process easier than ever.”

In total the Lirica class ships, made up of MSC Armonia, MSC Sinfonia, MSC Opera and MSC Lirica, will be in dry dock for 28 weeks.

In September, the cruise line revealed it was doubling its capacity out of Southampton for this year by sending MSC Magnifica to join Opera for four seven-night cruises.

MSC Cruises to stretch Lirica class of ships/Hawke reassures agents as he takes on MSC role

MSC Cruises to stretch Lirica class of ships

By Hollie-Rae Merrick 

MSC Cruises is poised to announce a major refit of its 1,500-passenger Lirica class of ships.

Travel Weekly understands the ships will be cut and stretched, with up to 800 extra cabins being installed across the fleet.

The cruise line is focusing on ensuring its current fleet is of the highest standard and it is unlikely any new ships will be added within the next three years.

However orders for ships to be introduced after that period are expected to be placed soon.

The Lirica refit is likely to be part of the company's strategy to build revenue from the UK market, and to help build greater brand awareness.

More balconies will be added to the ships during their refit in order to attract more UK customers.

One of the ships could also sail from the UK on a regular basis.Hawke, Giles Hawk,

Hawke reassures agents as he takes on MSC role

By Hollie-Rae Merrick 

The new UK managing director of MSC Cruises has insisted he is not looking to repeat a strategy he spearheaded at former employee Carnival UK.

Speaking to Travel Weekly on his first day in his new position, Giles Hawke moved to reassure agents that he wouldn't be "coming in and slashing commission".

When asked about commission, he said: "I think most of the big commission moves in the market have already been made. The market has been stabilised, discounting is largely gone.

"MSC is in a good place and well positioned and I don’t see going in to the market and slashing commission happening."

He added: "You do different things at different companies. There isn’t a one size fits all model, whatever the industry you don’t move from one company to another and decide to repeat everything that you did before.

"To reassure travel agents, I haven’t come in here with a mindset to repeat everything I did at Carnival UK."

Hawke reiterated the importance of travel agents in helping to raise brand awareness for MSC.

He said: "I want people going into travel agents and asking about MSC because they already have awareness and I also want travel agents to know what MSC is all about and to understand the brand.

"I think currently you ask 10 different travel agents to tell you about MSC Cruises and you get 10 different answers.

“I would like 10 agents and 10 answers that are the same.

"I’m in the listening, learning and understanding mode for the next few months – then working out how we market to customers and give them clarity and getting people’s minds more on the brand than they have ever been before."

Giles said MSC had always been a very trade-focused brand, and maintained that would not change. He said the line would be doing more ship visits and fam trips for agents because agents represent a large proportion of MSCs sales.

In the short term, Giles said he would be meeting with key agents to hear their thoughts on MSC, he hopes to see a many agents as possible before the end of the year.