Norwegian lays out plan for relaunch
Cruise line CEO: Safety key to ‘peace of mind’
Norwegian Cruise Line expects its entire fleet will be able to resume full operations in five to six months.
The cruise brand shared the news in its earnings report for the first quarter of 2020, which ended on March 31.
Frank Del Rio, CEO of Norwegian Cruise Line Holdings Ltd., said that Norwegian is planning a phased relaunch. He expects it will take up to six months to resume fleetwide operations across Norwegian Cruise Line Holdings’ 28 ships, which are spread across its three brands: flagship Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
“Nothing will be more critical to resuming sustained and profitable long term operations than making cruising the safest option in (the) travel and leisure space and providing cruisers with peace of mind,” Del Rio said on Thursday’s earnings call.
All Norwegian Cruise Line cruises were suspended after the Centers for Disease Control and Prevention imposed a 100-day no-sail order following outbreaks on ships belonging to multiple cruise lines. Both passengers and crew were infected and some vessels were-turned away from ports in several nations. Passengers on three Norwegian ships had symptoms or tested positive after their sailings, the CDC said.
The no-sail order – which was imposed April 15 – required cruise lines to cancel sailings through July 24.
Passengers who had made a reservation on one of Norwegian Cruise Line’s canceled sailings will receive a 125% or 150% future cruise credit, depending on the date of their trip. They can either use that credit through the end of 2022 or opt for a full refund, according to its website.
Cruisers who opt to rebook by Friday will receive an additional 20% discount on cruises scheduled between Oct. 1 and Dec. 31, 2022.
According to the earnings report, as of May 11, just over half of the customers whose voyages were canceled had requested refunds.
While Norwegian cruises are suspended through June 30, Del Rio said last week he wasn’t ready to say when they will sail again even if the CDC’s no-sail order is allowed to expire.
Norwegian is consulting Scott Gottlieb, a former Food and Drug Administration commissioner, to develop its next level of health and safety standards before cruising resumes, according to the earnings report.
In an interview with USA TODAY last week, Del Rio detailed that cruise ship passengers may have to don masks, see fewer tables in the dining room and – fewer fellow guests aboard – when they eventually return to sea.
Despite the extra precautions, Del Rio says guests will have a great time once they return. “All the basic elements cruising will always be there: the great value, the multiple destinations, the great dining,” Del Rio said.
According to the earnings report, cruisers are still booking vacations with Norwegian, especially starting in the fourth quarter and through 2021.
The company is still taking reservations and deposits for future sailings scheduled in 2020, 2021 and 2022. Overall, the company’s booked pricing and position for 2021 is “within historical ranges,” the report said.