Andy Stuart now CEO NCL

[SuiteCruiser]

This is from NCL's leadership information prior to the change. I don't see where Mr. Del Rio was CEO of NCL, but President and CEO of Norwegian Cruise Line Holding Ltd. and Mr. Stuart was President and COO of Norwegian Cruise Line and now he is President and CEO.

 

 

Frank J. Del Rio

President and Chief Executive Officer, Norwegian Cruise Line Holdings Ltd.

Frank J. Del Rio is the president and chief executive officer of Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH), comprised of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. These brands operate a combined 21 ships with approximately 40,000 lower berths visiting more than 430 destinations worldwide.

 

Andrew Stuart

President & Chief Operating Officer

Andy Stuart is President and Chief Operating Officer for Norwegian Cruise Line, appointed to this position in March 2015. A 27-year company veteran, Stuart has been instrumental in building the Norwegian brand and strengthening relationships with travel partners. In this role, he is responsible for ensuring that Norwegian excels in every facet and that the company continues to produce industry leading financial results, while bringing new ideas and ways of doing business that improve guest satisfaction and team member involvement.

 

 

And according to the article posted, Mr. Del Rio's title remains the same: One of Norwegian’s main strengths is the strong and deep bench of talent across our executive team,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings.

 

Interesting, though how they've operated with no CEO is very odd.

 

“We are also capitalising on the talents and contributions of two key executives, Andy Stuart and Jason Montague, with their expanded roles as chief executives within their respective brands.”

 

I wonder what their expanded roles are if everything is staying the same (which I don't believe it is) ?

[cssc123]

This is from NCL's leadership information prior to the change. I don't see where Mr. Del Rio was CEO of NCL, but President and CEO of Norwegian Cruise Line Holding Ltd. and Mr. Stuart was President and COO of Norwegian Cruise Line and now he is President and CEO.

 

 

Frank J. Del Rio

President and Chief Executive Officer, Norwegian Cruise Line Holdings Ltd.

Frank J. Del Rio is the president and chief executive officer of Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH), comprised of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. These brands operate a combined 21 ships with approximately 40,000 lower berths visiting more than 430 destinations worldwide.

 

Andrew Stuart

President & Chief Operating Officer

Andy Stuart is President and Chief Operating Officer for Norwegian Cruise Line, appointed to this position in March 2015. A 27-year company veteran, Stuart has been instrumental in building the Norwegian brand and strengthening relationships with travel partners. In this role, he is responsible for ensuring that Norwegian excels in every facet and that the company continues to produce industry leading financial results, while bringing new ideas and ways of doing business that improve guest satisfaction and team member involvement.

 

 

And according to the article posted, Mr. Del Rio's title remains the same: One of Norwegian’s main strengths is the strong and deep bench of talent across our executive team,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings.

 

 

See the funny thing is the titles and there is no "standard" for positions from corporation or even subsidiary to another. We aren't talking about the military here. There is a certain order of rank, however that does not mean that all ranks are filled, nor does it mean a change in rank equals more or less responsibility.

 

Now origionally Stuart was the COO and president. This means it was following a standard practice. Stuart as COO and president over saw the day to day operations of NCL and reported to Del Rio as the CEO of NCLH the parent compnay. Now it is rumored or assumed that Del Rio has held a very active role in each of the companies - how true this is no one excepts those in that level of power will actually know.

 

Having a COO/president of a subsidiary and no CEO (at that level) would be the more "standard" practice for a make up like NCLH and its multiple lines.

 

This is why making them each CEOs of their respective lines actually eyebrow raising.

 

By tradition, the COO/President of the subsidiary (NCL) would oversee the day to day operations as the direction of the holding company (NCLH) and then the CEO of the holding company would report to the board of directors, and the board of directors report to the owner (stock holders). By making subsidiary level CEOs it gives the impression that there is change to come - either big or small, superficial or real no one really knows. It could just be a shell game to help the stock price (when there is change at any level stock prices move). It could be to separate Del Rio from the day to day operations even further - by having them all now be CEOs, traditionally they would be another stop between day to day and Del Rio. Under the old model Del Rio was the direct report to day to day operations. No one outside of that board room really knows what the motivation was in this case.

 

Again I re-iterate. This COULD mean change is in the works...or it COULD mean its just change on paper only in hopes of making stocks move. Only true way to tell is time.

[chisoxfan]

All I know is if profits and revenues increase it because of the brilliant leadership and forward thinking /planning of the executive management team. If they lag it is because of (pick one)

 

1)soft economy and reduced discretionary spending

2)decreased travel due to terrorism concerns

3)increased fuel prices

4) increased food prices

5)increased labor costs

6)increased competition in the marketplace

[swedish weave]

I would think that Sruart and the other two should keep their backs to the wall because this may be a move to make them sacrificial goats and to insulate Del Rio from further declines in the companies' values.

[SteveH2508]

I would think that Sruart and the other two should keep their backs to the wall because this may be a move to make them sacrificial goats and to insulate Del Rio from further declines in the companies' values.

 

Or else they are giving the CEOs more autonomy and thinking about saving the reported $31 million on 'he who cannot be named'. Just a thought.

[swedish weave]

Or else they are giving the CEOs more autonomy and thinking about saving the reported $31 million on 'he who cannot be named'. Just a thought.

 

Right !!!! It would be nice to be a fly on the wall of the boardroom !! Could go either way...

[Gershep]

Time will tell if these changes mean anything.

[Jane Don]

I would think that Sruart and the other two should keep their backs to the wall because this may be a move to make them sacrificial goats and to insulate Del Rio from further declines in the companies' values.

 

I see where you are coming from. Here is my take:

 

Shareholders are getting increasingly anxious. Something needs to be done to appease them. This is phase one and seems almost meaningless. Interestingly, FDR is distancing himself from the individual brands. He will give this several months with each of the CEOs having slightly more autonomy than they did before. But it is like an episode of the weakest link and the brand with the worst performance will be sold. It will be NCL and it will be Carnival. FDR will then take over the reigns at Carnival Corp.

 

I think of him as a con man. He has no regard for the brand, the line or the shareholders. His smooth tongue and old boys camaraderie keep him afloat. Del Rio cares about one thing, and that is amassing personal wealth. I wouldn't hire him to manage a laundromat.

 

Sure, it is fun to speculate. But I have no doubt that eventually FDR will play his investors for chumps. I really wish they would fire him so I could buy some stock. #pipedream

[txagfan]

Some of you are very naive about what a CEO actually does. Few are worth their comp, but Del Rio and Stuart aren't involved in every decision.

 

 

Sent from my iPhone using Tapatalk

[LrgPizza]

Some of you are very naive about what a CEO actually does. Few are worth their comp, but Del Rio and Stuart aren't involved in every decision.

 

 

Sent from my iPhone using Tapatalk

 

Exactly. Del Rio was CEO of the holding company. The person who has been running NCL is Andy Stuart. I'd be willing to bet that 90% of the changes that have people's panties in a wad did not come from Del Rio. That's not what he did/does.

[AtlantaCruiser72]

All I know is if profits and revenues increase it because of the brilliant leadership and forward thinking /planning of the executive management team. If they lag it is because of (pick one)

 

1)soft economy and reduced discretionary spending

2)decreased travel due to terrorism concerns

3)increased fuel prices

4) increased food prices

5)increased labor costs

6)increased competition in the marketplace

 

You left out reason #7 - "loss of revenue from decreased occupancy due to dissatisfied customers taking their business elsewhere" and reason #8 "extreme discounting due to reason #7"

 

Both of these are happening right now at NCL. While Carnival and Royal are sailing close to full, or completely sold out, with higher average prices on most sailings, NCL cannot fill their ships even with deep discounting and promotions. I have lost MULTIPLE sales due to the complexity, and back door add-ons, in NCL's pricing model.

 

"You want the free beverage package promo? Well I'm sorry to inform you that it is not combineable with the $499pp rate, but it is combineable with a $699 rate BUT you will will have to pay $99 additional per person for the tips on the value of the package, and taxes are $135 per person on this sailing ...... so instead of the booking being $1268 with tax as you expected it will now be $1866 with tax and a "free" drinks package. Would you like to book that?" SILENCE - CLICK

 

Now obviously I'm not snarky like that when explaining things but I think it's a pretty good snapshot of how the overall conversation goes. Nothing offputs a customer more than feeling like they are been "swindled" and that's what NCL's currently pricing model has the perception of doing.

 

 

Ultimately I hope the elevation of Andy Stuart to CEO of NCL means that the BOD has given him more autonomy and is reining in DelRio's involvement of the day to day operation. This can only benefit NCL in the long run. They have the potential to give everyone else in the business a real run for their money, especially with the hefty investment in the older ships to bring them up to the standard of the Aways/Escape. Once that is done they will have great hardware, combined with a very strong onboard product/service. However, they have a consumer image problem that needs fixing, and fixing fast, as all the ship renovations won't be enough to attract business and save them!

 

How can they fix the consumer/brand image problem? First and foremost drop the "service fee" on the value of the Beverage and dining packages. Second, reduce the actual purchase price of the Beverage package to be more in line with competitors and make it truly inclusive by adding bottled water and specialty coffees, as well as dropping the requirement for all guests in the cabin to purchase a package if only one wants it. Third, get rid of the "Sailaway" rates and instead do targeted discounts that can apply to all categories based on residency/senior/military/etc like Royal/Celebrity does and makes those non-combineable with the freestyle choice promos like Celebrity's policy related to goBig/Better/Best. I think these 3 major shifts in policy would help the sales to increase and restore faith in the brand. The hard part would be the unraveling of the Beverage/Dining package Service charge. One solution would be to no longer apply it to sailings after a certain date and if anyone is booked that date or after it is removed from their booking plain and simple.

[mianmike]

Exactly. Del Rio was CEO of the holding company. The person who has been running NCL is Andy Stuart. I'd be willing to bet that 90% of the changes that have people's panties in a wad did not come from Del Rio. That's not what he did/does.

 

As one who has never been a cruise line CEO, count me in as one who is naïve as to exactly what an NCLH CEO does.

 

What I do find interesting is if Andy Stuart did make 90% of the unpopular changes, why would Del Rio tell investors Del Rio himself made the decisions. :confused:

[dexddd]

All I know is if profits and revenues increase it because of the brilliant leadership and forward thinking /planning of the executive management team. If they lag it is because of (pick one)

 

1)soft economy and reduced discretionary spending

2)decreased travel due to terrorism concerns

3)increased fuel prices

4) increased food prices

5)increased labor costs

6)increased competition in the marketplace

 

A couple more - Zika, Brexit (which was mentioned for the last quarter).

[sparks1093]

Exactly. Del Rio was CEO of the holding company. The person who has been running NCL is Andy Stuart. I'd be willing to bet that 90% of the changes that have people's panties in a wad did not come from Del Rio. That's not what he did/does.

 

As one who has never been a cruise line CEO, count me in as one who is naïve as to exactly what an NCLH CEO does.

 

What I do find interesting is if Andy Stuart did make 90% of the unpopular changes, why would Del Rio tell investors Del Rio himself made the decisions. :confused:

 

Exactly, Del Rio is a reported micromanager and even personally picks out the art work that will be displayed onboard the ships. I've said it before and I'll say it again- Stuart might be conducting the band but he's following a score written by Del Rio.

[sparks1093]

You left out reason #7 - "loss of revenue from decreased occupancy due to dissatisfied customers taking their business elsewhere" and reason #8 "extreme discounting due to reason #7"

 

 

You'll never hear 7 or 8 from the current regime because it would be an admission that Del Rio's vision isn't working for NCL.

[Seanote]

You left out reason #7 - "loss of revenue from decreased occupancy due to dissatisfied customers taking their business elsewhere" and reason #8 "extreme discounting due to reason #7"

 

Both of these are happening right now at NCL. While Carnival and Royal are sailing close to full, or completely sold out, with higher average prices on most sailings, NCL cannot fill their ships even with deep discounting and promotions. I have lost MULTIPLE sales due to the complexity, and back door add-ons, in NCL's pricing model.

 

"You want the free beverage package promo? Well I'm sorry to inform you that it is not combineable with the $499pp rate, but it is combineable with a $699 rate BUT you will will have to pay $99 additional per person for the tips on the value of the package, and taxes are $135 per person on this sailing ...... so instead of the booking being $1268 with tax as you expected it will now be $1866 with tax and a "free" drinks package. Would you like to book that?" SILENCE - CLICK

 

Now obviously I'm not snarky like that when explaining things but I think it's a pretty good snapshot of how the overall conversation goes. Nothing offputs a customer more than feeling like they are been "swindled" and that's what NCL's currently pricing model has the perception of doing.

 

 

Ultimately I hope the elevation of Andy Stuart to CEO of NCL means that the BOD has given him more autonomy and is reining in DelRio's involvement of the day to day operation. This can only benefit NCL in the long run. They have the potential to give everyone else in the business a real run for their money, especially with the hefty investment in the older ships to bring them up to the standard of the Aways/Escape. Once that is done they will have great hardware, combined with a very strong onboard product/service. However, they have a consumer image problem that needs fixing, and fixing fast, as all the ship renovations won't be enough to attract business and save them!

 

How can they fix the consumer/brand image problem? First and foremost drop the "service fee" on the value of the Beverage and dining packages. Second, reduce the actual purchase price of the Beverage package to be more in line with competitors and make it truly inclusive by adding bottled water and specialty coffees, as well as dropping the requirement for all guests in the cabin to purchase a package if only one wants it. Third, get rid of the "Sailaway" rates and instead do targeted discounts that can apply to all categories based on residency/senior/military/etc like Royal/Celebrity does and makes those non-combineable with the freestyle choice promos like Celebrity's policy related to goBig/Better/Best. I think these 3 major shifts in policy would help the sales to increase and restore faith in the brand. The hard part would be the unraveling of the Beverage/Dining package Service charge. One solution would be to no longer apply it to sailings after a certain date and if anyone is booked that date or after it is removed from their booking plain and simple.

 

Thanks for the industry viewpoint. This sounds like it is right on target. NCL has been playing a shell game with their pricing matrix to make it seem like you are getting more for less. When The smoke clears however, pax are realizing that is not the case--at least when you compare it to other lines pricing models. Now that NCL is in a hole, I hope Andy will stop the digging.

[sandpiper35]

You'll never hear 7 or 8 from the current regime because it would be an admission that Del Rio's vision isn't working for NCL.

 

What? They won't see the elephant in the room???

 

Cheers.

[sandpiper35]

You know, maybe we should thank NCL Management for their marketing faux pas. Their forced price corrections has allow us to pick some low hanging delicious fruit now available in NCL.

 

Cheers.

[sparks1093]

What? They won't see the elephant in the room???

 

Cheers.

 

If you read Del Rio's remarks following the previous quarter's results he pointed at everything but his own policy changes, so I'm not optimistic;).

[sandpiper35]

If you read Del Rio's remarks following the previous quarter's results he pointed at everything but his own policy changes, so I'm not optimistic;).

 

You don't expect the man to bring his own rope to the hanging, do yah??

[sparks1093]

You don't expect the man to bring his own rope to the hanging, do yah??

 

Nope and I don't expect his management team to throw him under the bus, either. The next CEO will gladly do it though should it become necessary (which of course is not atypical of corporate America).

[richstowe]

In the end , it just doesn't matter ! Whether it is Andy Stuart or Del Rio or Joe Blow who controls the operations at NCL, so what . Management will make their decisions and we will decide if we wish to buy tickets . That doesn't mean that good or bad decisions can't be made only that it doesn't matter who is perceived to have made these decisions . If it helps I'm guessing all important choices are collectively decided upon with the NCL ownership group's input . Upper management are employees with employment contracts .

[SuiteCruiser]

In the end , it just doesn't matter ! Whether it is Andy Stuart or Del Rio or Joe Blow who controls the operations at NCL, so what . Management will make their decisions and we will decide if we wish to buy tickets . That doesn't mean that good or bad decisions can't be made only that it doesn't matter who is perceived to have made these decisions . If it helps I'm guessing all important choices are collectively decided upon with the NCL ownership group's input . Upper management are employees with employment contracts .

 

Actually I disagree. It does matter. The way that the communication from above for all of their lengthy list of changes was done has really, really annoyed a lot of people. Andy Stuart worked with Kevin Sheehan and changes were handled differently back in those days. For the countless number of loyal NCL cruisers who have left, it made a huge difference.

Edited September 21, 2016 by SuiteCruiser

[cssc123]

The more I think about this situation; the more I want to know - WHO made the descion (or suggestion) to move Stuart and the like to CEO roles and out of COO roles.

 

That is where the motives lie.

 

IF and that is a big IF FDR suggested/mandated/whatever that stuart and the like be moved to a CEO position AND he is as big of a micro-manager as believed. That would mean he is trying to create a buffer between his actions and his career. He is aligning up the proverbial chickens for slaughter. "They are the CEOs of the line, they are not performing, our stock is dropping they need to be cut" would be the line - not saying this is the case, but it is plausible.

 

IF and again that is a big IF, it was the board who mandated they become CEOs then its a power move. Again the old model FDR as CEO of holding and multiple COOs of each line was the traditional model for a hierarchy in the corportate world. This could be seen as a shot over the bow to Del Rio - We do not like what is happening to our stock prices, you've made changes and don't let the COOs run their lines step back.

 

Lastly I again reiterate - it could be a business as usual and just a shell game with the titles and positions to give the impression that things are changing for the positive. Just reassign some roles to give a specific impression (change is coming) to tied over the storm and eventually we will replace the unhappy people and gain the rich fat ones who could care less.

[NLH Arizona]

Lastly I again reiterate - it could be a business as usual and just a shell game with the titles and positions to give the impression that things are changing for the positive. Just reassign some roles to give a specific impression (change is coming) to tied over the storm and eventually we will replace the unhappy people and gain the rich fat ones who could care less.

I agree with the above, just a shell game.

 

For all we know, Mr. Stuart has been running NCL and making these policy changes that folks haven't liked. Everyone blames Mr. Del Rio, but no one really knows; like most companies the President of the company makes the decision and only goes to their superior if it is a real major change, which none of these have been. As soon as Mr. Sheehan left, the communication (which was dismal under his realm) got worse and that actually could be the way Mr. Stuart rolls. Just because Mr. Stuart worked under Mr. Sheehan doesn't mean that he was 100% behind the way he did things; we usually only see the differences when one takes over for the other.

Edited September 21, 2016 by NLH Arizona