NCL's Del Rio “We are not going to Chase Short Term Load and Damage the Brand for the Long Term."

Parent company of NCL, Oceania and Regent Seven Seas intends to maintain pricing integrity.

During a first-quarter earnings call yesterday, Norwegian Cruise Line Holdings CEO Frank Del Rio made it clear that his company has no plans to abandon its successful pricing structure based on value and not discounting.


Del Rio told investors and media, "We have stood firm on our go-to-market strategy of marketing to fill and maintaining price integrity by emphasizing value over price. Our go-to-market strategy of marketing to fill, versus discounting to fill and emphasizing value over price is paying off in droves, with pricing meaningfully higher for all future periods when compared to the comparable pre-pandemic periods."


Chief Financial Officer Mark Kempa added that maintaining pricing in the first quarter led to slightly lower load factors. Kempa added. "However, pricing remained robust in the quarter, and onboard spend per person per day continues to be up meaningfully versus record 2019 levels."

In a press release about first-quarter earnings, spoke again about pricing and the return of all the ships to service.


"Last week, we reached the biggest milestone yet in our Great Cruise Comeback as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests onboard in Papeete, Tahiti. The herculean effort to restart our fleet would not have been possible without the incredible fortitude of the entire Norwegian team and the unwavering support of our key partners and stakeholders around the world," said Frank Del Rio, president, and chief executive officer of Norwegian Cruise Line Holdings Ltd.


"Looking ahead, our strategy is to ramp up occupancy in a disciplined manner with the goal of exceeding historical Net Yield1 levels for the full year 2023 while maintaining the high guest satisfaction scores and strong onboard revenue generation we are currently experiencing.


We are encouraged that consumer 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. Pricing remains very strong for all future periods, and our value-add bundling strategy is working better than ever."


 

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