Norwegian Cruise Line: Prices Higher Going Into 2023

Norwegian Cruise Line: Prices Higher Going Into 2023

Norwegian Cruise Line Holdings has provided a business update ahead of its 2022 Q4 and year-end financial earnings release.

As of December 31, 2022, the company said its booked position was approximately 62 per cent for the full year 2023, in line with previously outlined expectations, and at higher prices than 2019 at a similar time.

Fourth quarter Occupancy was approximately 87 per cent, with the gap versus 2019 levels continuing to narrow sequentially.

‘We are also experiencing strong and broad-based onboard revenue generation even as occupancy increases,” the company said, noting it expects to report a net loss for the quarter and full year ended December 31, 2022, and the first quarter of 2023.

Destination will be the "dominant influence" for customers in 2023

Destination will be the "dominant influence" for customers in 2023

Celebrity Eclipse at the Hubbard Glacia photo credit Spacejunkie2 (Flickr)

A poll of 1,000 people carried out by cruise.co.uk found almost half (44%) of respondents describe destination as the "main factor" in their holiday decision-making process.

 

A quarter of respondents said the price tag was most influential, while a fifth indicated it was the cruise brand which swayed their choice. The specific ship and departure date were the lowest-ranking, with 5% of responses each.

 

The survey also revealed more than 50% of respondents had travelled on three or more cruise lines, and less than 20% stayed loyal to one brand, choosing instead to holiday based on destination and cost.

Tony Andrews, deputy managing director of cruise.co.uk, said: "Cruising is such a great way to see the world, so it’s easy to see why destination came up trumps in our survey.

 

"The ability to reach all corners of the globe from the comfort of a ship, combined with the value for money a holiday at sea offers, means we’re seeing customers coming back time and time again to discover new destinations or revisit firm favourites."

Norwegian Cruise Line Raises Onboard Prices and Posts Strong Onboard Revenue Numbers

Norwegian Cruise Line Raises Onboard Prices and Posts Strong Onboard Revenue Numbers

Onboard revenue is seen as a real-time now indicator of how guests are feeling about their financial situation right now and while onboard company ships, according to Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings.

"Onboard revenue generation has continued to be impressive, even as we continue to ramp up occupancy carrying more guests across all ships and cabin classes. In the second quarter, onboard revenue per passenger cruise day was approximately 30 per cent higher than during the comparable 2019 period," he said, on the company's second-quarter earnings call.

Mark Kempa, CFO, added that the company had raised prices for "all of our offerings" onboard the ships.

"We've gotten smarter in the pre-marketing of our products, creating that sense of urgency before the consumer steps onboard," he said. "Those consumers who have a stronger propensity for presales, they also spend more, about 30% or 40% more once they're on board. So, it's a combination of all those. But the numbers are strong. We're seeing a strong consumer today, spending today's dollars. And we feel that bodes well for ourselves and the industry."

Del Rio said that pre-cruise revenue was up 50 per cent compared to 2019 levels.

"We continue to focus on enhancing our market-leading bundled offerings and increasing quality touch points with our guests starting from the time of booking to capture even more revenue pre-cruise, allowing guests to arrive on board with an ever fresher wallet, which ultimately results in higher overall spend. In fact, our pre-cruise revenue on a per passenger day basis for the second quarter of '22 is up over 50% versus 2019 levels. At a high level, guests who make pre-cruise purchases tend to spend approximately double that of guests who do not pre-book onboard activities," he said.

MSC Cruises Adds Electric Buses for Shore Excursions in Barcelona

MSC Cruises Adds Electric Buses for Shore Excursions in Barcelona

MSC Magnifica under the Forth Bridge, Queensferry, Edinburgh.

MSC Cruises has chosen Barcelona as its main port this summer for shore excursions to be operated by electric buses as part of the line’s ongoing sustainability drive, the company said, adding that it is committed to achieving net-zero carbon emission operations by 2050.

Daily excursions for guests from the Spanish port number between 20 and 25 journeys and the use of electric buses will make an annual saving of nearly 10,500 kilograms of CO2 emissions compared to petrol-driven vehicles., according to a statement.

The electric buses are also significantly quieter and reduce potential noise impact on local communities. 

MSC Cruises estimates that the new electric buses will transport up to 2,000 passengers every week during the summer from Barcelona and it is working with local tour operators to increase the figure to 4,000 customers with the introduction of more eco-friendly buses to join its sustainable ground transport fleet.

The busses will be available this summer for cruise passengers calling at Barcelona onboard the MSC Armonia, MSC Bellissima, MSC Divina, MSC Fantasia, MSC Grandiosa, MSC Lirica, MSC Magnifica, MSC Meraviglia, MSC Opera, MSC Orchestra, MSC Poesia, MSC Seaview and MSC Virtuosa.

MSC Cruises’ new 11,670 square meter cruise terminal at Barcelona is due to open in 2024 and sustainability credentials will be incorporated into the building.  The new cruise terminal is on track to be ‘Gold Rated’ under the Leadership in Energy and Environmental Design - LEED - standard, a widely used global green building rating system.

Carnival UK questions how lines sell port excursions

By Hollie-Rae Merrick 

Carnival UK’s Gerard Tempest (pictured) believes cruise lines need to reassess their shore-excursion model as 
third-party suppliers continue to expand.

Speaking at the Clia Selling Cruise Conference in Southampton, chief commercial officer Tempest said in light of the expansion of third-party suppliers he was putting a lot of thought into the best approach for selling shore excursions and tours.

Attraction World recently started selling cruise excursions and Cruisingexcursions.com increased its agent commission at the end of April.

Tempest said: “I just wonder whether third parties have been in our blind spot and we have let some of those parties eat our lunch. We, and I dare say some other cruise lines, are wondering about our traditional model of offering shore excursions and tours. How fit for the future is it? And is there another model we could look at?

“That requires a lot of thought and understanding of the marketplace, but it is something that we are certainly paying attention to.”

Tempest, who was a keynote speaker at the Clia conference, also spoke about the excitement surrounding P&O Cruises’ Britannia and Royal Caribbean International’s Anthem of the Seas, which will both sail from Southampton on launch next year.

“Anthem of the Seas and Britannia will complement each other and will work together to stimulate the market,” he said. “The customers for Britannia and those for Royal Caribbean will sit comfortably together.

“We are excited about Anthem coming into the UK because of what it will do to stimulate cruise.”

Stuart Leven, UK boss of Royal Caribbean, agreed, saying: “The industry’s job becomes far easier with companies such as Royal Caribbean and P&O deploying their newest and best hardware in the UK.”

Tenn. agent proves timing isn’t everything

By Laura Del Rosso

Muffett Grubb is one travel agent who made lemonade from a load of lemons, as the saying goes, when the economy plummeted along with the stock market five years ago. It was 2008 when Grubb decided to follow her dream and open a Cruise Holidays franchise agency from her home in Knoxville, Tenn. The following months were a test of her commitment to the business.

“I bought my franchise two weeks before the market crashed and I looked it at this way: There was nowhere for things to go but up at that point,” she said. “I took the attitude that the slow time was a good time to get my feet wet and gradually learn the business.”
Since then, business has been all up for Grubb, who previously worked in purchasing and marketing for a national retail chain. She recently received Cruise Holiday's “Best Customer Service Award” based on an incident that took place in Alaska last summer when a cruise ship was idled by propulsion problems. Unable to leave port for four days, Grubb’s 20 clients were left with nothing to do, along with 2,000 other passengers who scrambled to book excursions.

Using industry connections and Cruise Holidays programs, Grubb booked her clients on shore excursions to make the most of their four days in Alaska. She also rebooked their future cruise, which was fully paid for by the cruise line as part of a compensation package.

It's part of the services that Grubb says she provides that she hopes set her apart from direct, online bookings. “I often have to explain to people how a travel agent works, that it doesn't cost them more money to use a travel agent. This is the value I provide. These are the things I do for my clients. Once I have a client they generally are my client forever.”

Grubb credits her success with networking. Shortly after opening the franchise, she joined a local business group in Knoxville and spread the word among a wide circle of family and friends that she was open for business. Many people already knew she loved to plan travel, long before she opened the agency.

“I used to plan trips for friends or friends of friends just because I had a passion for it. A few times I planned cruises and just put the word out and got as many as 16 people signed up for a cruise. That's when I started thinking of making it a second career.”

Grubb looked at different types of business models for her travel agency and settled on Cruise Holidays because it matched her cruise expertise. Also, she said, the franchise system offers the technology and back-office systems that enable her to concentrate on sales and not administration. Now her business has grown to the point that she is considering expanding and hiring staff. And office space may also be in the picture at some point.

“The beauty of starting a home-based agency is that there was a low initial outlay because I'm not paying rent. It afforded me time to build my business. Now I'm at the point that I realize I can't do it all myself.”

In the last couple of years, Grubb has evolved her social media marketing and has gained new customers, mostly on Facebook. However, she doesn't promote herself with a “hard sell,” she says.

“I do a lot on Facebook, but it's mainly posting about my trips and sharing what my clients have done on their trips. It's not an aggressive marketing technique but a casual way of saying ‘here's where I've gone’ to generate a conversation. Then people will call and tell me they saw I went somewhere that interests them, and I've got a sale.”