NCLH reports “robust” pax demand

NORWEGIAN Cruise Line Holdings (NCLH) overnight released its results for the three months to 31 Mar, with CEO Frank Del Rio (pictured) saying “we are encouraged that customer demand remains robust, with net booking volumes not only back to pre-Omicron levels but now approaching historical levels, despite a temporary retreat due to the Russia-Ukraine conflict”.

The group’s overall loss for the quarter was US$1 billion, an improvement on the US$1.4 billion for the previous corresponding period, while major achievements included the full return to service of the entire Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises fleet (CW 09 May).

Del Rio said NCLH’s strategy was now to “ramp up occupancy in a disciplined manner,” with the goal of exceeding historical net yield figures for the full year 2023 “while maintaining the high guest satisfaction scores and strong onboard revenue generation we are currently experiencing”.

“Pricing remains very strong for future periods, and our valueadd bundling strategy is working better than ever”.

Due to the temporary setbacks related to Omicron and the European conflict, the company’s current booking levels are lower than for the same period in 2019, but “at meaningfully higher pricing even when including the dilutive impact of future cruise credits,” the NCLH CEO said.

Del Rio added that barring another “black swan” event, 2023 was likely to be an extremely strong year for the group, with four new ships to be introduced across the brands over the next 18 months.

They include Norwegian Cruise Line’s Norwegian Prima and Norwegian Viva, Oceania’s Vista

and Regent Seven Seas Cruises’ Seven Seas Grandeur.

Del Rio told analysts that new vessels are a “meaningful driver of net yield growth and overall profitability, attracting new customers and reigniting loyal past guests to return for new and elevated experiences”.