Norwegian Cruise Line Reveals NFT Collection

Norwegian Cruise Line Reveals NFT Collection

Norwegian Cruise Line today announced it will sail into the Metaverse with the launch of the cruise industry’s first collection of NFTs.

The company said it will open for auction and sale a collection of six NFTs to celebrate the launch of the company’s Norwegian Prima Class on Wednesday, April 13, 2022, at 9 a.m. ET on NCL’s soon to launch online NFT marketplace.

The NFT art pieces were created by Manuel Di Rita, widely known as "Peeta," the Italian artist who designed the hull art on the Norwegian Prima and her sister vessel Norwegian Viva.

The first of the six art pieces will be auctioned at the starting rate of $2,500, with the remaining NFTs sold for prices beginning at $250.

The winner of the auction will also be awarded a balcony stateroom on one of Norwegian Prima’s U.S. inaugural voyages, setting sail from the brand's new PortMiami terminal.

"We are so excited to partner with Peeta on this first for our brand and for the industry," said President and CEO Harry Sommer. "Peeta is a talented artist who has brought the magic and beauty of the ocean to our ships, so we are happy to share this with our guests and to donate the proceeds of this new venture to Teach For America, an organization and a cause very near and dear to our hearts."

The first piece in the NFT collection resembles the hull art of the Norwegian Prima and provides the buyer with an opportunity to own a piece of the Norwegian Prima for years to come.

The additional five NFT pieces showcase some of the innovative 3D designs often depicted in Peeta’s works and will be featured aboard Norwegian Prima including in the ship’s three-level Penrose Atrium.

"We strive to adopt the most cutting-edge technology at Norwegian Cruise Line and strongly believe that providing our guests the opportunity to own digital assets that connect them with an unforgettable cruise experience is an essential step forward," says Scott Piccolo, Chief Digital Experience Officer at Norwegian Cruise Line Holdings (NCLH). "We are incredibly proud to work with Peeta on the cruise industry’s first-ever NFT collection."

All proceeds from the NFT auction and sales will be donated to Teach For America. Teach For America finds, develops, and supports a network of leaders who expand opportunities for children from classrooms, schools, and every sector and field that shapes the broader systems in which schools operate. 

MSC Cruises to Increase Dominance in Europe

MSC Cruises to Increase Dominance in Europe

MSC Magnifica in Queensferry Edinburgh, Photo credit Spacejnkie2

The European market will increase by dominated by MSC Cruises, according to the 2022 Cruise Industry News Annual Report.

By 2027 MSC will not only have the most passenger cruise capacity in Europe but also be the single largest brand, based on its new build program and projected ship deployments.

MSC Cruises, including its Explora Journeys brand, will have a total passenger capacity of 4.3 million in Europe in 2027, compared to 4.0 million for Carnival Corporation brands and 1.5 million for the TUI Group.

In addition, would be ships deployed from Carnival’s North American brands and by the Royal Caribbean Group, but their passenger sourcing, pending circumstances, is primarily from the U.S.

From 2022 to 2027, MSC will see its capacity grow by 36.2 per cent, Carnival by 3.3 per cent and the TUI Group by 41.7 per cent.

MSC is a pan-European brand, along with Costa Cruises, while national brands dominate some markets, such as P&O in the UK, AIDA and TUI in Germany.

The market capacity of the Europe-based brands is estimated at 9.2 million passengers this year and is projected to grow to 11 million by 2027.

Holland America Line’s Volendam will be used to accommodate around 1,500 Ukrainian refugees.

HAL will provide three hot meals per day, private stateroom accommodations, housekeeping services, use of public spaces, fitness facilities, internet access and other necessities

It comes as part of a larger commitment from the Netherlands to accommodate 50,000 people who have fled the country following the Russian invasion.

 

HAL will provide three hot meals per day, private stateroom accommodations, housekeeping services, use of public spaces, fitness facilities, internet access and other necessities while the vessel is docked in Rotterdam. It will be staffed with around 650 crew members.

 

HAL president Gus Antorcha said the line was in a "unique position" to accommodate the immediate need for food and housing.

 

"Our company was founded in Rotterdam around the mission of helping immigrants find a better life," he added. "So today we’re proud to be a small part of a similar mission for Ukrainians who have tragically been displaced."

Volendam was scheduled to return to service on 15 May, with voyages from Rotterdam to Norway, the British Isles and Iceland.

 

To accommodate the three-month commitment, Holland America Line will cancel three of those voyages and resume service on 3 July instead. Guests on cancelled cruises are being notified and will be accommodated on similar itineraries.

 

"We are very sorry for the inconvenience this will cause to guests booked on the three cancelled cruises," Antorcha said.

Virgin Voyages has apologised to guests sailing on Valiant Lady

Valiant Lady seeking into the Port of Liverpool photo credit Spacejunkie2

Virgin Voyages has apologised to guests sailing on Valiant Lady this week and will offer them a free European voyage this summer, after an onboard medical emergency and overboard incident delayed the ship’s return to Portsmouth as well as its subsequent sailing, which had been due to depart from Portsmouth on Friday (1 April).

During the early hours of Thursday morning (31 March), the ship’s crew were alerted to reports of a guest going overboard, sparking an "extensive" search and rescue mission.

"We are deeply saddened by this news and our thoughts are with this passenger’s family and loved ones," said the line in a statement issued to TTG. "Our investigation has indicated this was an intentional act and no foul play is suspected."

Earlier in the voyage, another guest suffered a non-Covid-related medical emergency requiring airlift and shoreside care, delaying the ship’s arrival in Lisbon.

"We’re very happy to report that this person is doing well," said the line. "As a result of seeking timely medical care for this passenger, we did experience a delay in arrival to Lisbon of several hours. Virgin Voyages did not market this port as a two-night stop, the itinerary was a morning arrival and late debark."

The line said the combination of the two incidents meant the ship, which had been due to sail a three-night Long Weekender in Zeebrugge itinerary from Portsmouth on Friday, was now due back in the UK "no sooner than 6pm on 1 April".

This has forced the line to delay embarkation for the ship’s next sailing until the morning of 2 April.

 

"As a gesture of awareness that some were disappointed, we are offering all sailors [guests] a free voyage this summer in Europe onboard either of our ships, Valiant Lady or Resilient Lady," said Virgin Voyages.

The line added: "We set ourselves a very high standard and in this case, we have fallen short on some things – we are very sorry the experience for some has not been ideal.

"While not everything is in our control, including global supply chain challenges, the weather, or medical emergencies, we remain focused on the sailor [guest] experience and knowledge we need to keep improving."

Norwegian Star Welcomes Passengers Back in Spain

Norwegian Star Welcomes Passengers Back in Spain

Norwegian Star smiling again Photo credit Spacejunkie

After a two-year hiatus, the Norwegian Star is welcoming passengers back to Spain today. As the 14th ship to resume service for Norwegian Cruise Line, the vessel is kicking off a European program that includes itineraries in the Mediterranean and Northern Europe.

For its first post-pandemic cruise, the 2001-built ship is sailing a ten-night voyage to Italy. Departing from Spain, the itinerary sails from Barcelona and includes visits to St. Tropez, Livorno, Civitavecchia, Naples, Messina, Corfu, Kotor, Dubrovnik and Split, before arriving in Trieste.

Through November, the vessel’s program also includes a series of cruises in Northern Europe, with visits to Iceland, the British Islands, the Norwegian Fjords, the Baltic and more.

The program is highlighted by two special ten- and 11-night sailings in July that feature visits to four different ports in Greenland. Departing from Reykjavik, the itineraries also include calls to three additional destinations in Iceland.

In early December, the vessel repositions to South America, ahead of a winter season in the region.

Originally ordered for Star Cruises, the Norwegian Star entered service in 2001. With 91,000 tons, it can carry up to 2,200 guests on double occupancy, in addition to 1,031 crew members.

Offering Norwegian’s Freestyle Cruising concept, the ship features more than ten dining venues. Options include favourite speciality restaurants, such as the French Le Bistro and the Cagney’s Steakhouse.

The vessel also boasts nine bars and lounges, a swimming pool, five hot tubs, a casino, a full-service spa and salon, and a fitness centre.

As part of the Norwegian Edge program, the Norwegian Star was completely refurbished in 2018. During an 18-day drydock, the vessel received several enhancements, including a revamped atrium, renovated cabins and redesigned restaurants.

Following the Norwegian Star, the Pride of America is also scheduled to resume service for the Norwegian Cruise Line in April.

The Hawaii-based vessel is welcoming back for its seven-night inter-island cruises on April 9.

After first resuming guest service in July 2021, Norwegian Cruise Line has now brought 14 ships back into revenue operations.

Silversea debuts third new cruise ship in nine months

Silversea Cruises has debuted its third new cruise ship in nine months, after christening Silver Dawn in Lisbon, Portugal on 31 March.

The vessel, which is the third in the Muse class and the 10th ship to join the fleet, was inaugurated during a traditional christening ceremony followed by a gala dinner. Both were attended by executives from Silversea Cruises, parent company Royal Caribbean Group, shipbuilder Fincantieri, local dignitaries and other invited guests.

During the ceremony, guests watched a bagpipe performance, a theatrical re-telling of the story of Silversea’s Muse-class ships, a blessing from a religious leader, speeches from dignitaries, and singers reciting the national anthems of the USA, Italy and Portugal. Finally, godmother Nilou Motamed, an Emmy-nominated television personality and former editor-in-chief of several culinary publications cut a ribbon to trigger a champagne bottle to smash on the ship's hull to close the ceremony.

“Celebrating the naming of Silver Dawn in Lisbon marked an incredibly proud moment for all involved,” said Jason Liberty, president and CEO at Royal Caribbean Group. “I thank and congratulate Roberto Martinoli [president and CEO of Silversea] and our entire team, including Captain Failla and the crew, as well as everyone at Fincantieri, our shipbuilding partner. Silver Dawn is a jewel in the Silversea fleet and speaks to Royal Caribbean Group’s commitment to delivering the best vacation experiences in a responsible way.”

Silver Dawn can accommodate 596 guests in 298 ocean-view suites, 96 per cent of which have a private veranda. The vessel is the first to debut Silversea’s new Otium wellness programme, which is inspired by the cruise line’s Italian heritage and ancient Roman culture, where ‘otium’ denoted a period of time dedicated exclusively to leisure. It will provide guests with customised, multi-dimensional wellness offerings across the ship, including curated spa treatments, gourmet snacks, champagne, signature cocktails, bespoke in-suite experiences and more.

In addition, guests sailing on Silver Dawn will benefit from the next iteration of Silversea's immersive S.A.L.T. culinary programme, which launched in 2021 on the other Muse-class ships.

“An evolution of our unique take on luxury, Silver Dawn is the third Silversea ship to be named in the last nine months,” said Martinoli. “As well as S.A.L.T., our immersive culinary programme, Silver Dawn enriches guests’ travels with Otium, our indulgent new wellness programme, which is inspired by the ancient Roman lifestyle. She really is magnificent. I extend my gratitude to Jason Liberty and all involved at Royal Caribbean Group, as well as to the team at Silversea, Fincantieri, and Captain Failla and his crew—our most valuable asset. Moreover, I proudly welcome Nilou Motamed as the godmother of Silver Dawn."

Speaking about her role as godmother, Motamed said: “It’s a great honour to have been selected as the godmother of Silver Dawn and to have been on board for her naming ceremony in Lisbon. Growing up in multiple countries [Iran, France and the USA] has helped me recognise that one of our deepest common bonds, wherever we go, is food. Like many of Silversea’s guests, I always pair my cultural explorations with culinary ones. That’s why I’ve loved seeing the world through Silversea’s S.A.L.T. programme. I've dedicated my career to celebrating authentic, local cuisines and cultures. For me, nothing is more rewarding than connecting with people over a shared meal.”

Silver Dawn embarked on her maiden voyage on 1 April, sailing from Lisbon to Barcelona, Spain. The vessel will sail Mediterranean itineraries until November 2022 and then cross the Atlantic Ocean, via the Canary Islands, to begin a season of voyages in the Caribbean and Central America.

Cruise companies to commit to shore power in the Baltic Sea

MSC Virtuosa Photo credit SpaceJunkie2

Five major cruise companies will commit to using shore power on all cruises in the Baltic Sea from 2024 at the Sustainable Cruising conference hosted by business-to-business network Cruise Baltic, to be held in Copenhagen, Denmark, on 5 April. 

Carnival Corporation, Royal Caribbean Group, MSC Cruises, Viking Ocean Cruises andCarnival Corporation, Royal Caribbean Group, MSC Cruises, Viking Ocean Cruises will sign a memorandum of understanding at the conference, with the Danish minister for environment Lea Wermelin in attendance. 

“We are extremely proud that these cruise lines now commit to shore power in the region, and it shows that the cruise industry is taking an important responsibility when it comes to sustainability,” said Claus Bødker, director of Cruise Baltic. 

The Sustainable Cruise conference will take place at the Copenhagen Marriot Hotel and will feature talks by representatives of cruise lines and Baltic ports and destinations, along with Wermelin and the Lord Mayor of Copenhagen Sophie Hæstorp Andersen.

Sales Open for MSC Euribia’s Inaugural Summer 2023 Season

Sales Open for MSC Euribia’s Inaugural Summer 2023 Season

MSC Cruises has opened sales for the MSC Euribia, the line’s most environmentally advanced ship in its fleet and its second LNG-powered ship currently under construction at the Chantiers de l’Atlantique shipyard in France, due to launch in early June 2023.

The ship will spend her inaugural season in Northern Europe from the German port of Kiel.

The Euribia will offer seven-night itineraries sailing to the Norwegian fjords with calls including Copenhagen, Denmark; Hellesylt, Norway for the Geirangerfjord; as well as Alesund and Flam, also in Norway, among others.

According to a press release, Euribia will look different from her sister ships in the Meraviglia-Plus class, thanks to “an exclusive artwork designed as a commitment by MSC Cruises to the sea.”

The cruise line held an exclusive international design competition through Talent House to create a “unique artwork” for the ship’s hull, inspired by the sea and its important marine ecosystem.

The design highlights “the steps that the company is taking towards a greener future” and will be featured on the ship’s hull permanently.

MSC said that it had designs from 59 countries worldwide submitted. The winner was German artist Alex Flaemig whose artwork will adorn the ship’s exterior.

Five finalists will have their designs displayed onboard the ship in a new art gallery, MSC said.

Executive Chairman of the Cruise Division of MSC Group, Pierfrancesco Vago, said: “In response to the growing need to protect the ocean for future generations, we have made it our mission to equip our ships with the latest and most advanced environmental technologies and solutions, with MSC Euribia showcasing the best of them to-date.

“The contest to design the hull for our latest LNG ship was launched to help us communicate our unwavering commitment to the environment as this ship sails the world.

“Flaemig’s design perfectly captured this message of passion and dedication to preserving the marine environment and its complex ecosystem and delivers a strong call to action to everyone who sees this ship to save the seas.”

Competition winner Alex Flaemig added: “In order to make people even more aware of this unique underwater world with its precious life, I have graphically placed a small section of this ecosystem on the hull of the MSC Euribia. What was important to me was not only the representation of the underwater world but also a message about how it should be preserved.“

I also want to express that an intact sea is also the basis for a healthy ecosystem on land. I want to emphasize this with the representation of birds, insects and leaves, and last but not least with the globe. It is still important to me to inspire people and encourage them to participate.”

Flaemig is a native of Dresden, Germany, and was inspired by “the opportunity to transform the hull of the MSC Euribia into a giant, floating canvas to highlight the importance of respect for the environment.”

His #SaveTheSea design features an underwater world with its precious life and weaves together the colours of the MSC Cruises and MSC Foundation logos, the cruise line said. This blending creates a gradient effect that paints sea fauna and flora across the hull.

The winning artwork was selected from entries from around the world by a panel of international judges including sand artist Jben, known for his large-scale sand frescoes that wash away with the tide, architect Martin Francis and Executive Chairman of the Cruise Division of MSC Group, Pierfrancesco Vago.

Euribia will come into service in 2023 and become the second LNG-powered ship in the MSC Cruises fleet. The cruise line said that LNG plays a “key role” in the journey towards climate change mitigation and will reduce CO2 emissions by up to 25 per cent on the Euribia compared to standard fuels while also virtually eliminating other air emissions.

As bio and synthetic fuels become available, Euribia’s emissions will be further reduced, according to the press release.

LNG is key to the development of low carbon solutions for shipping as emerging technologies such as fuel cells can be operated with LNG until zero emissions bio-LNG or green hydrogen become available at scale.

MSC Cruises said it is “actively involved” in several projects to develop and make these technologies viable in partnership with regulators, academia, shipyards and industry. This includes a project to study the use of hydrogen fuel in cruise ships in partnership with Fincantieri and SNAM, as well as a pilot project for the development of solid oxide fuel cell technology for cruise ships with Chantiers de l’Atlantique and Bloom Energy.

Euribia will utilize an advanced wastewater treatment system, as well as an underwater radiated noise management system to minimize the effects of vibrations on marine life. Multiple energy efficiency features help reduce and optimize engine use.

MSC Cruises stated it was committed to powering at least three upcoming ships with LNG, representing a total investment exceeding 3 billion euros.

Hurtigruten Buys Into Metropolitan Touring for Galapagos Push

Hurtigruten Buys Into Metropolitan Touring for Galapagos Push

Hurtigruten Group has acquired a significant minority stake in Metropolitan Touring, one of South America’s leading travel companies and pioneers in the Galápagos Islands.

The long-term investment sees Hurtigruten Group take a 24.9% share in the company with headquarters in Quito, Ecuador, and further demonstrates Hurtigruten Group’s global growth ambitions in the adventure travel market, the company said, in a press release.

CEO of Hurtigruten Group Daniel Skjeldam said: “This investment signifies our growth journey and we are delighted to invest in Metropolitan Touring, a proud South American company that mirrors our expedition heritage and sustainability values. It is a unique opportunity for us to contribute to a more meaningful partnership, where we can expand quickly, strategically and deliver on our vision for the future together.”

The strategic partnership broadens Hurtigruten Group’s portfolio of products in iconic, natural destinations, reinforcing its position as a leader in sustainable adventure travel.

“Hurtigruten Group shares our passion for the wonders of South America and we are excited by the prospect of this partnership which brings together two companies that have a common long-term vision of our industry’s power to do good in the world. As we continue the post-Covid recovery, this announcement will bolster South America’s position as an exciting travel destination on the global stage, bringing its stunning natural and compelling cultural attractions into sharper focus for today’s responsible traveller,” Metropolitan Touring CEO Paulina Burbano de Lara said.

Hurtigruten Expeditions, the world’s largest expedition cruise company and part of Hurtigruten Group, is offering year-round expedition cruises, in close cooperation with Metropolitan Touring, visiting the fabled archipelago’s most spectacular sites on board the 90-guest Santa Cruz II.

 

CDC Scraps Cruise Ship COVID Warning After 2 Years

Norwegian Jade photo credit Spacejunkie2

The U.S. Centers for Disease Control and Prevention (CDC) on Wednesday removed its COVID-19 notice against cruise travel, around two years after introducing a warning scale showing the level of coronavirus transmission risk on cruise ships.

The move offers a shot of hope to major U.S. cruise operators such as Carnival Corp, Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd that have struggled to bring in revenue since the pandemic started.

Cruise operators had also said the health agency was discriminating against the industry when hotels and airlines could operate with limited or no restrictions.

“While cruising will always pose some risk of COVID-19 transmission, travellers will make their own risk assessment when choosing to travel on a cruise ship, much like they do in all other travel settings,” the CDC said in a statement. 

The guidelines for travelling on cruise ships on the health agency’s page no longer shows a scale for its warning. Instead, it now only says guests should make sure they are up to date with their COVID-19 vaccines before boarding the ships.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath)

Carnival: 3.8 Percent of Capacity Was Set to Call in Russia

Carnival: 3.8 Percent of Capacity Was Set to Call in Russia

Carnival Corporation had 3.8 per cent of its 2022 cruise capacity calling on Russian ports before Russia's invasion of Ukraine, leading the company to cancel and replace calls to Russian ports.

"We have decided to totally withdraw from Russia and have found attractive alternatives," said President and CEO Arnold Donald, speaking on the company's first-quarter earnings call.

"That said, Saint Petersburg was a marquee port for us. And while there have been times where we were unable to offer certain itineraries, in this instance, the close end nature of the deployment change does lead to some regional disruption in recent booking patterns."

Donald admitted the war had added some volatility to Carnival's business and had impacted consumer confidence.

"With 50 years under our belt, we have successfully managed through a plethora of headwinds like spikes in fuel prices, the Gulf War, Arab Spring, September 11, Ebola, Zika, SARS, MERS and more," Donald said. "And once again, the mobility of ships continues to be an asset. Time and time again, we have seen guests travel through challenges. In fact, Carnival Cruise Line turned 50 this month and recently enjoyed its three best weeks of bookings since resuming operations."

MSC Cruises will base MSC Grandiosa in Southampton next year

MSC Cruises will base MSC Grandiosa in Southampton next year with a spring/summer deployment comprising 23 departures.

The Meraviglia Plus-class vessel is a sister to MSC Virtuosa, which sailed from the UK in summer 2021 and is due to return in April.

 

Grandiosa’s 2023 season will comprise a variety of itineraries including mini cruises to Rotterdam and Brugse, as well as longer voyages in the Mediterranean and to the Canary Islands.

 

Antonio Paradiso, MSC’s the UK and Ireland managing director, said the line “have been delighted” with the response from the British and Irish market to Virtuosa and looked forward to “bringing another of our largest and most-loved ships” to Southampton.

 

“We have seen strong demand for the itineraries for this year with a particular interest in the two 14-night sailings to the Mediterranean taking place in the school summer holidays and as a result have replicated many of these itineraries ready for the 2023 season,” said Paradiso.

 

He urged guests and agents to book early and “take advantage of the great rates” during the programme’s early booking window.

 

"Cruise has always been unique when it comes to early booking, our guests will happily book a number of different cruises several years in advance to secure their holiday, and we are thrilled to be able, once again, to provide them with the opportunity to book early,” Paradiso added.

PITCH ROYAL CARIBBEAN AND LEVI ROOTS TO EARN £200K SHARE

Independence of the Seas in Southampton photo credit Spacejunkie

Agents can earn a share of £200,000 and pitch their business idea to Dragons’ Den success story Levi Roots as part of a new trade competition launched by Royal Caribbean International.

The Royal Pitch sees agents tasked with presenting “forward-thinking concepts” to help grow their Royal Caribbean sales in order to secure a slice of the price pot.

 

Agents are encouraged to pitch anything from creative social marketing campaigns to introducing new technologies, with shortlisted companies pitching in-person at a series of live events.

 

The year-long process, open to agents who are members of a consortium, kicks off on 1 April with entrants needing to submit a video via the Club Royal website detailing their business proposal and requested investment in under five minutes.

 

The first day of in-person pitching will take place on 8 June at Royal Caribbean’s Weybridge office, followed by further judging rounds and a live final event during which the panel of judges determines which ideas win a share of the total prize fund.

 

Roots, who rose to fame with his Reggae Reggae Sauce on Dragons’ Den in 2007, will be joined by Royal Caribbean’s vice-president EMEA, Ben Bouldin, and director of sales of UK, Ireland and Spain, Stuart Byron. 

 

"The Royal Pitch is designed to give consortia members another avenue to help grow their business with a big idea they’re passionate about – as well as test out their pitching skills! We’re excited to meet some of the entrants and hear their forward-thinking and ingenious ideas,” said Byron.

 

Roots added: “I know the difference that investment can make to a business; I went from running a successful market stall in Notting Hill Carnival to a multimillion-pound business. I’m excited to take part in Royal Caribbean’s The Royal Pitch to help support consortia members grow their businesses and boost sales.”

P&O Cruises fleet will return to full service

P&O Britannia in the Caribbean, photo credit Spacejunkie

Arcadia will depart on a Canary Islands sailing on Sunday (27 March), restoring the line to its six-ship fleet - with seventh vessel Arvia joining P&O’s ranks in December.

 

The LNG-powered ship will sail its maiden voyage to the Canaries followed by a winter season in the Caribbean out of Barbados.

 

P&O Cruises president Paul Ludlow said the return of Arcadia marked “an important milestone” for the company “one certainly cause for celebration”. 

 

“Britannia and Azura have had a very successful season in the Caribbean from Barbados and Iona has spent her maiden winter months in the Canary Islands and northern Europe and will soon head up to the spectacular Norwegian fjords for the summer of scenic cruising and thrilling adventures,” said Ludlow.

 

“It is evident that our guests are reassured by the steps we have taken to protect their health and wellbeing and that they are delighted to be back on board reigniting their passion for travel.”

Carnival Corporation Provides Business Update, Q1 Earnings

Carnival Corporation Provides Business Update, Q1 Earnings

Carnival Corporation has provided its first-quarter 2022 business update.

Highlights: 

• U.S. GAAP net loss of $1.9 billion and an adjusted net loss of $1.9 billion for the first quarter of 2022.
• First-quarter 2022 ended with $7.2 billion of liquidity, including cash, short-term investments and borrowings available under the company's revolving credit facility.
• For the cruise segments, revenue per passenger cruise day ("PCD") for the first quarter of 2022 increased approximately 7.5% compared to a strong 2019. This increase was driven by exceptionally strong onboard and other revenue.
• As of March 22, 2022, 75% of the company's capacity had resumed guest cruise operations.
• The company expects to have each brand's full fleet back in guest cruise operations for its respective summer season where it historically generates the largest share of its operating income.
• The company believes monthly adjusted EBITDA will turn positive at the beginning of its summer season.
• Since the middle of January, the company has seen an improving trend in weekly booking volumes for future sailings. Recent weekly booking volumes have been higher than at any point since the restart of guest cruise operations.
• The company announced that three additional ships are expected to leave the fleet in 2022 in connection with its ongoing fleet optimization strategy. In total, this represents the planned removal of 22 smaller-less efficient ships since the beginning of the pause in guest cruise operations.
• Building on the company's strong governance framework and its continued commitment to sustainability, the Board of Directors appointed the company's President and Chief Executive Officer Arnold Donald to the role of Chief Climate Officer.

First Quarter 2022 Results and Statistical Information

• For the cruise segments, revenue per PCD for the first quarter of 2022 increased approximately 7.5% compared to a strong 2019. This increase was driven by exceptionally strong onboard and other revenue.
• During the first quarter of 2022, as a result of the Omicron variant, the company experienced an impact on bookings for its near-term sailings, including higher cancellations resulting from an increase in pre-travel positive test results, challenges in the availability of timely pre-travel tests and the disruption Omicron caused on society overall during this time. Therefore, occupancy in the first quarter of 2022 was 54%, a 20% increase in guests carried over the prior quarter.
• Available lower berth days ("ALBD") for the first quarter of 2022 were 13 million, which represents 60% of total fleet capacity, increasing from 47% in the fourth quarter of 2021.

Carnival Corporation & plc President, Chief Executive Officer and Chief Climate Officer Arnold Donald noted: "Despite the impact of Omicron, guests carried grew by nearly 20 per cent in the first quarter compared to the prior quarter, while simultaneously increasing revenue per passenger cruise day and driving an improvement in adjusted EBITDA. We expect monthly adjusted EBITDA to turn positive by the beginning of our summer season as we build occupancy and return more ships to service."

Donald added: "We believe we have positioned the company well to withstand volatility on our path to profitability and have been working hard to resume operations as a stronger and more sustainable operating company, to maximize cash generation and to deliver double-digit returns on invested capital over time."

Despite the impact resulting from the Omicron variant during the first quarter, the company's adjusted EBITDA (see non-GAAP Financial Measures) improved due to its ongoing resumption of guest cruise operations. The company believes that adjusted EBITDA will continue to improve with the ongoing resumption of guest cruise operations and continues to expect improvement in occupancy throughout 2022 until it returns to historical levels in 2023. The company believes monthly adjusted EBITDA will turn positive at the beginning of its summer season.

The company ended the first quarter of 2022 with $7.2 billion of liquidity, including cash, short-term investments and borrowings available under the revolving credit facility. The company invested $400 million in capital expenditures (net of export credit facilities) during the first quarter of 2022, which included the delivery of three of the four larger-more efficient ships expected to be delivered in 2022. In addition, the Company repaid $500 million of debt principal and incurred $400 million of interest expense, net during the quarter.

Carnival Corporation & plc Chief Financial Officer David Bernstein noted, "We ended the first quarter of 2022 with $7.2 billion of liquidity. Looking forward, we believe we remain well-positioned given our liquidity and the continued improvement expected in adjusted EBITDA, along with the expected build in customer deposits, as we progress toward resuming full fleet operations."

Resumption of Guest Cruise Operations

Donald said: "Since resuming guest cruise operations, we delivered more than 2.2 million exceptional vacations while achieving historically high guest satisfaction scores. With 75 per cent of our capacity having resumed guest cruise operations, we are well on our way back to full cruise operations and we are planning to return the balance of the fleet by our summer seasons. Achieving these operational milestones while facing headwinds including Delta and Omicron variants and changing regulations and protocols —particularly at our scale— makes the efforts of our team, ship and shore, all the more impressive."

Donald continued, "In addition, we furthered our fleet optimization efforts by taking delivery of three larger-more efficient ships during the quarter, Costa Toscana and AIDAcosma, the company's fifth and sixth ships powered by LNG and Discovery Princess. We also announced the removal of another three smaller-less efficient ships, bringing the total to 22 ships, significantly reducing our rate of capacity growth. Upon returning to full operations, nearly 25 per cent of our capacity will consist of newly delivered ships, which we believe will expedite our return to profitability and improve our return on invested capital."

As of March 22, 2022, 75% of the company's capacity had resumed guest cruise operations as part of its ongoing return to service. The company's enhanced COVID-19 protocols have helped it become among the safest forms of socializing and travel, with far lower incidence rates than on land. The company expects to have each brand's full fleet back in guest cruise operations for its respective summer season where it historically generates the largest share of its operating income.

Upon returning to full cruise operations, the company's ongoing fleet optimization strategy combined with its LNG efforts and other innovative initiatives to drive energy efficiency is forecasted to deliver a 10% reduction in fuel consumption per ALBD and a 9% reduction in carbon emissions per ALBD on an annualized basis compared to 2019.

While the company will benefit from the removal of smaller-less efficient ships and the delivery of larger-more efficient ships, the company expects adjusted cruise costs excluding fuel per ALBD (see Non-GAAP Financial Measures) for the full year 2022, to be significantly higher than 2019. This is driven by a portion of its fleet being in pause status for part of the year, restart related expenses, an increase in the number of dry-dock days, the cost of maintaining enhanced health and safety protocols and inflation. The company anticipates that many of these costs and expenses will end in 2022 and will not reoccur in 2023. Additionally, the company expects to see a significant improvement in adjusted cruise costs excluding fuel per ALBD from the first half of 2022 to the second half of 2022 with a low double-digit increase for the full year 2022 compared to 2019.

The ongoing resumption of the company's guest cruise operations and the increased uncertainty given the current invasion of Ukraine, including its effect on the price of fuel, are collectively having a material impact on its business, including the company's liquidity, financial position and results of operations. The company continues to expect a net loss for the second quarter of 2022 on both a U.S. GAAP and adjusted basis. However, the company expects a profit for the third quarter of 2022. For the full year of 2022, the company expects a net loss.

Update on Bookings

Donald added: "Given the recent strengthening in booking volumes coupled with the closer-in booking patterns, we expect an extended wave season. In fact, we gained occupancy even in the month of March with fleetwide occupancy nearing 70 per cent and several sailings already exceeding 100 per cent."

Since the middle of January, the company has seen an improving trend in weekly booking volumes for future sailings. Recent weekly booking volumes have been higher than at any point since the restart of guest cruise operations. 

During the first quarter, the company increased its booked occupancy position for the second half of 2022, albeit not at the same pace as a typical wave season due to the Omicron variant. As a result, cumulative advance bookings for the second half of 2022 are at the lower end of the historical range. However, the company believes it is well situated with its current second half 2022 booked position given the recent improvements in booking volumes and its continued expectation that occupancy will build throughout 2022 and return to historical levels in 2023. Normalized for bundled packages, prices on bookings for the second half of 2022 continue to be higher, with or without future cruise credits ("FCCs"), as compared to 2019 sailings. 

Cumulative advanced bookings for the first half of 2023 continues to be both at the higher end of the historical range and at higher prices, with or without FCCs, normalized for bundled packages, as compared to 2019 sailings. (Due to the ongoing resumption of guest cruise operations, the company's current booking trends will be compared to booking trends for 2019 sailings.)

Total customer deposits increased to $3.7 billion as of February 28, 2022, from $3.5 billion as of November 30, 2021.

Katy Perry as godmother of new-ship Norwegian Prima

As godmother, Perry will not only fulfil the maritime tradition of blessing and officially naming the vessel, but she will perform during the christening ceremony in August before the vessel embarks on its inaugural voyage from Reykjavik.
 

Harry Sommer, president and chief executive of NCL, said the brand was "excited" to welcome the "one-of-a-kind artist" as godmother of Prima.

 

"We are so incredibly proud that she will be part of the Norwegian Cruise Line family and look forward to launching our beautiful, innovative ship with her in August," he added.

Perry said her favourite form of a holiday with her family was on the water. "Every morning that you wake up, you get to experience an incredible new view," she added.

 

"I love that I get to christen her with my good vibrations, and I’m so excited for this new, beautiful, high-end, high-tech ship to take the seas, and provide once-in-a-lifetime vacations for so many families."

 

Prima will offer inaugural voyages to Northern Europe from Southampton, Amsterdam and Reykjavik from 12 August, sailings to Bermuda from New York from 6 October and Caribbean itineraries from Texas and Miami beginning 27 October. 

NCL Cruise Ship Pulled Free After Grounding

A Norwegian Cruise Line Holdings Ltd. luxury liner carrying thousands of passengers that ran aground while trying to leave a port in the Dominican Republic on Monday has managed to free itself after hours of being stranded.

The Norwegian Escape hit the channel bed as it was departing Puerto Plata on Monday afternoon, according to a company spokesperson. Tugs had been employed to free it most of the afternoon and evening, according to social media posts. Passengers posted the cruise ship, one of Norwegian Cruise Line’s biggest liners at 1,069 feet, was refloated after midnight, local time. 

Guests and crew were safe, and the ship wasn’t damaged, according to the spokesperson. Operations and services onboard also continued as scheduled.

Passengers on the ship, which originally departed out of Orlando, Florida, said the crew had been trying to extricate the vessel unsuccessfully for several hours into the night. 

Norwegian operates a seven-day Caribbean cruise that departs Florida on Saturdays and stops in Puerto Plata, or Silver Port, for passengers to take a cable-car ride to the peak of Mount Isabel de Torres before setting off for St. Thomas in the U.S. Virgin Islands.

Built-in 2015, the Norwegian Escape carries a maximum of 4,266 passengers and 1,733 crew. According to local media reports, it’s currently carrying 3,223 guests and 1,618 crew.(Updates with ship freeing itself in the first paragraph.)

Oanh Ha and Tim Smith , With assistance from Michael Sin. © 2022 Bloomberg L.P.