Norwegian Cruise Boss Zeroes In on Higher Prices

[tomservo]

42 minutes ago, newmexicoNita said:

Where are you reading this and give us examples. The prices rising, yet but the quality has not gone down. I think it is interesting you have never sailed the line, are about to try it for the first time and you are assuming, based on something you have read the product is deteriorating. I certainly do not think NCL is perfect and yes, some cuts have hurt the line, but for every down side there is an up side. We have sailed every mass marketed line except MSC. I know a lot of people are praising MSC. I think one of the reasons we have not is,, of those we know personally who have sailed them, they have been a bit disappointed. I do think every line has pros and cons. We do not care for Princess while others wouldn't even consider another line. We do like Celebrity and HAL> RCI ,to us is nothing special. I could go on and on.  

I don't have any specific examples right now, and I wasn't saying the quality was definitively declining, just seems to be the sentiment among some on here. If you look at CollinIllinois's post above they seem to be seeing the same thing on this board as well, and as I said in response I will take it with a grain of salt and decide for myself.

[RedwingHockeyFan]

1 minute ago, tomservo said:

I don't have any specific examples right now, and I wasn't saying the quality was definitively declining, just seems to be the sentiment among some on here. If you look at CollinIllinois's post above they seem to be seeing the same thing on this board as well, and as I said in response I will take it with a grain of salt and decide for myself.

 

That is the best thing to do.  I have been on 9 cruises, not all NCL, and I have never had a bad one.  I look for the good, not the bad.  And I try to have a good time.

[EllieinNJ]

I am a big NCL fan, just completed my last  cruise on the Sun, making it seven different ships that I have been on.  I felt this last cruise was not up to par with any of my other cruises, foodwise, servicewise and entertainmentwise.  I know all these are subjective but the food was mediocre and cold, service in main DR very slow and entertainment boring and repetitive.  It was a 14 day South America cruise.

 

I now have a Princess British Isles cruise booked.  The balcony was over $1000 pp less than NCL.  And I have 3 cruise next certificates left.  Unless they improve in all areas and prices, I might have to sell them on e-bay. 

[tomservo]

1 hour ago, newmexicoNita said:

Where are you reading this and give us examples.

Right here on this thread! 

 

But in all seriousness, I think everyone who cruises frequently will have some fantastic experiences and some not so good ones. The key is whether or not it seems to be consistently trending in direction or another. 

[DaCruiseBug]

2 hours ago, newmexicoNita said:

This has been my argument for years: everything goes up and hopefully so do wages We just checked our COX internet statement this morning. It has gone up twice since the beginning of the year: once in Jan and now again. Ok, only a few $$s but still an increase. Hubby checked with 2 other companies, they were even more expensive. How about hotel prices? It wasn't long ago when we could get a basic room at a mid priced hotel like Hampton Inn for about $125 to $150 depending on where we were staying. Sometimes even cheaper. Now we try to stay under $200. 

 

$125 to $150 for Hampton Inn? Jeez...where are you booking your rooms? We just stayed at a JW Marriott for $115 per night, our last pre-cruise hotel was a Westin on the beach and we paid $175 for that (more then we usually pay).

 

 

[david_sobe]

NCL wont pump the breaks on pricing until demand slows down.  Cruising is an odd business.  When the economic crisis happened 10 years ago, hotels and resorts including Disney felt the pinch. Cruising was immune and did fairly well during those times.  The hunt is for new cruisers and year after year new cruisers are found to book and sail these new mega ships.  I thought NCL would tap out years ago when they doubled the price of the Haven. Wrong.   So I do think there will be a crash and march backwards someday.  Cruising used to have great value especially for families.  Cruising in just a balcony these days including onboard spending can be almost 4k. IMHO its the rate of increases that surprises me the most.  We used to get DSC increases once ever few years. Now NCL raises rates a few times a year and always finding ways to increase revenue, whether it be adding a gratuity on a cover charge or up-charging the UBP.  At the same time of many increases, perks get cut back constantly.  I used to cruise twice a year with NCL.  Then it was once per year.  Now its once every 4 years LOL.  However, I am not the customer they are pursuing anymore.

***SOAP BOX TIME***
This thread is simply commenting on what NCL executives have commented on.  We are allowed and supposed to comment on it.  If you don't like it or don't want to comment then don't open the thread.  There are a few snowflakes that don't want discussion and whine and complain that others are complaining.  Its like the people who make threads longer and update them to simply say "there is another thread on this topic."  Its wrong to try to stop discussion on what NCL executives are discussing.

****OFF SOAP BOX***

Edited February 22, 2019 by david_sobe

[luv2kroooz]

11 hours ago, shof515 said:

Higher pricing for bookings and maybe things on board will be more expensive. interesting article: https://skift.com/2019/02/21/norwegian-cruise-boss-zeroes-in-on-higher-prices/?fbclid=IwAR1qDX24zyIZYRmjcPfLyHZeW3nFtYGQur4mNuOpLpmmy7rM3f1rs8kkBgw 

 

Did Frank say they were pushing prices higher everywhere? Really? Maybe a little more attention to details and less blah, blah,. blah. Looks to me like NCL may have more last minute unsold inventory fleetwide than the entire industry combined. Management must have flunked out of Economics 101 - as prices increase, demand decreases.

 

Breakaway, 7-day March 3, $649 minisuite sailaway

Breakaway, 7-day March 3, $549, balcony sailaway

Getaway, 7-day, March 3, $2,299 Haven

Getaway, 7-day, March 24, $799 minisuite sailaway

Escape, 7-day, March 3, $549 interior sailaway

Sun, 16 day, March 16, $749 oceanview sailaway

Jade, 10 day, March 22, $699, interior sailaway

Dawn, 7day, March 10, $479 interior sailaway

Jade, 11day, March 11, $549 interior sailaway

Star, 14-day, March 30, $749, interior sailaway

Jewel, 7-day, March 29, $499 interior sailaway

Dawn, 7-day, March 3, $429 interior sailaway

Jewel, 12-day, March 4, $899, oceanview sailaway

Star, 7 -day, March 16 and March 23, $499 interior sailaway

Spirit, 11-day, Feb 24, $599 interior sailaway

 

 

 

Edited February 23, 2019 by blcruising

[erdoran]

Jade April 28 $599 interior sail away 14 day

Edited February 23, 2019 by erdoran

[DaCruiseBug]

1 hour ago, blcruising said:

 

Did Frank say they were pushing prices higher everywhere? Really? Maybe a little more attention to details and less blah, blah,. blah. Looks to me like NCL may have more last minute unsold inventory fleetwide than the entire industry combined. Management must have flunked out of Economics 101 - as prices increase, demand decreases.

 

Breakaway, 7-day March 3, $649 minisuite sailaway

Breakaway, 7-day March 3, $549, balcony sailaway

Getaway, 7-day, March 3, $2,299 Haven

Getaway, 7-day, March 24, $799 minisuite sailaway

Escape, 7-day, March 3, $549 interior sailaway

Sun, 16 day, March 16, $749 oceanview sailaway

Jade, 10 day, March 22, $699, interior sailaway

Dawn, 7day, March 10, $479 interior sailaway

Jade, 11day, March 11, $549 interior sailaway

Star, 14-day, March 30, $749, interior sailaway

Jewel, 7-day, March 29, $499 interior sailaway

Dawn, 7-day, March 3, $429 interior sailaway

Jewel, 12-day, March 4, $899, oceanview sailaway

Star, 7 -day, March 16 and March 23, $499 interior sailaway

Spirit, 11-day, Feb 24, $599 interior sailaway

 

 

 

 

 

There's actually plenty of sailings on various cruise lines for those prices and even cheaper...

 

 

[Cafedumonde]

We're out.  See ya, Del Rio. 

[mianmike]

3 hours ago, blcruising said:

 

Did Frank say they were pushing prices higher everywhere? Really? Maybe a little more attention to details and less blah, blah,. blah. Looks to me like NCL may have more last minute unsold inventory fleetwide than the entire industry combined. Management must have flunked out of Economics 101 - as prices increase, demand decreases.

 

Breakaway, 7-day March 3, $649 minisuite sailaway

Breakaway, 7-day March 3, $549, balcony sailaway

Getaway, 7-day, March 3, $2,299 Haven

Getaway, 7-day, March 24, $799 minisuite sailaway

Escape, 7-day, March 3, $549 interior sailaway

Sun, 16 day, March 16, $749 oceanview sailaway

Jade, 10 day, March 22, $699, interior sailaway

Dawn, 7day, March 10, $479 interior sailaway

Jade, 11day, March 11, $549 interior sailaway

Star, 14-day, March 30, $749, interior sailaway

Jewel, 7-day, March 29, $499 interior sailaway

Dawn, 7-day, March 3, $429 interior sailaway

Jewel, 12-day, March 4, $899, oceanview sailaway

Star, 7 -day, March 16 and March 23, $499 interior sailaway

Spirit, 11-day, Feb 24, $599 interior sailaway

 

 

 

I somehow don't think NCL management flunked out of Economics 101.  They've been masterful at convincing people to book at higher prices thinking they are getting the perks for free.  But most importantly is the way they stealthy nickel and dime the passenger.  NCL's onboard spend has been a real moneymaker for NCL. 

 

From the 3rd Quarter investor conference call:  "The Norwegian Cruise Line brand, Free at Sea offering has been an incredible success with both consumers and travel agents and is the primary driver behind why NCLH, both the highest ticket and highest onboard revenue yield of the three public cruise companies and by a wide margin."    . . . "our adjusted earnings per share of $2.27 exceeded expectations by $0.07, primarily driven by $0.02 of revenue outperformance from strong well-priced close in bookings and exceptionally strong onboard revenue." . . . 

"We want to get more of the consumer's wallet upfront prior to stepping onboard the ship.

So and onboard, as I said in my prepared remarks, it's looking good in Q3. We're seeing good signs and Q4, it is strong, that's the canary in the coal mine. So we're seeing strength there. But we're continually continuously making investments to try enough and grabbed that wallet earlier."  . . . "

So across the Board, I don't see a shift from one type of consumer to another. Other than that we've – we're consciously going after that high quality, high caliber, international customer to compliment, the North American consumer. because they're the ones who generate the highest ticket and the highest onboard.

And again, I will point you to all the AQs that are out there of what the net onboard yields are for the Norwegian brand nearly $78 a day over the last 12 months. That is a somewhere between 50% and 75% higher than others. It's a huge competitive advantage and one that we focused on very much so which is why we've got such a leadership position in that space."

[mugtech]

Being a nondrinker and casino avoider and platinum plus, I still wound up sailing RCI 4 of the last 5.  This is based on itinerary, ship and price.  I know I am helping pay for all the freebies I do not use, so when planning far in advance NCL usually loses.  This fall and winter I will be able to do the last minute booking out of NYC, expecting to be on NCL for at least one cruise.

[linbobky]

8 hours ago, blcruising said:

 

Did Frank say they were pushing prices higher everywhere? Really? Maybe a little more attention to details and less blah, blah,. blah. Looks to me like NCL may have more last minute unsold inventory fleetwide than the entire industry combined. Management must have flunked out of Economics 101 - as prices increase, demand decreases.

 

Breakaway, 7-day March 3, $649 minisuite sailaway

Breakaway, 7-day March 3, $549, balcony sailaway

Getaway, 7-day, March 3, $2,299 Haven

Getaway, 7-day, March 24, $799 minisuite sailaway

Escape, 7-day, March 3, $549 interior sailaway

Sun, 16 day, March 16, $749 oceanview sailaway

Jade, 10 day, March 22, $699, interior sailaway

Dawn, 7day, March 10, $479 interior sailaway

Jade, 11day, March 11, $549 interior sailaway

Star, 14-day, March 30, $749, interior sailaway

Jewel, 7-day, March 29, $499 interior sailaway

Dawn, 7-day, March 3, $429 interior sailaway

Jewel, 12-day, March 4, $899, oceanview sailaway

Star, 7 -day, March 16 and March 23, $499 interior sailaway

Spirit, 11-day, Feb 24, $599 interior sailaway

 

 

 

we booked the breakaway 2 days ago for mar. 3rd. it was $299 for the interior room. so there are some good points about them raising fares. it is great for the people who can go last minute.

[luv2kroooz]

Very interesting discussion here. I wonder if there is a longer term plan for when consumers realize that they could just hold out and book 30 days out since they rarely sell out their ships far in advance, resulting in cabin dumping at cheap, cheap prices one month prior to sailing. If I paid $899 three months ago for something that is selling for $429 today, I'd say, next time, I will just wait to book my cruise, which has been my practice for the last year.

 

I don't know, in my opinion, their current operating model is not sustainable. It lacks a long term vision. They are pretty much maxed out on cruise pricing. And their onboard pricing has reached a ceiling, evidenced by the recent outcry on the beverage prices. Do you think they'll try to raise beverage prices anytime soon? I don't.

 

With more ships coming online  every year, I think they'd be better served at distinguishing themselves now with high levels of onboard service, quality, and value etc, so that people want to come back and sail again. Currently, they distinguish themselves with high prices.

 

And just because someone is wealthy and affluent, doesn't necessarily mean they don't care about how they spend their money. Heck, I know a lot of wealthy people that watch every dollar they spend.....it is probably how they became wealthy!

 

 

 

 

[newmexicoNita]

10 hours ago, blcruising said:

 

Did Frank say they were pushing prices higher everywhere? Really? Maybe a little more attention to details and less blah, blah,. blah. Looks to me like NCL may have more last minute unsold inventory fleetwide than the entire industry combined. Management must have flunked out of Economics 101 - as prices increase, demand decreases.

 

Breakaway, 7-day March 3, $649 minisuite sailaway

Breakaway, 7-day March 3, $549, balcony sailaway

Getaway, 7-day, March 3, $2,299 Haven

Getaway, 7-day, March 24, $799 minisuite sailaway

Escape, 7-day, March 3, $549 interior sailaway

Sun, 16 day, March 16, $749 oceanview sailaway

Jade, 10 day, March 22, $699, interior sailaway

Dawn, 7day, March 10, $479 interior sailaway

Jade, 11day, March 11, $549 interior sailaway

Star, 14-day, March 30, $749, interior sailaway

Jewel, 7-day, March 29, $499 interior sailaway

Dawn, 7-day, March 3, $429 interior sailaway

Jewel, 12-day, March 4, $899, oceanview sailaway

Star, 7 -day, March 16 and March 23, $499 interior sailaway

Spirit, 11-day, Feb 24, $599 interior sailaway

 

 

 

Remember these are sale away rates and I do think, though I don't know this for sure many more people are booking "free at sea" i do know our last 3 cruises have been sold out. In fact the one we got off of last Sunday had been sold out for at least 2 months; the same with our sailing to Bermuda last May.  

[ray98]

12 hours ago, blcruising said:

 

Did Frank say they were pushing prices higher everywhere? Really? Maybe a little more attention to details and less blah, blah,. blah. Looks to me like NCL may have more last minute unsold inventory fleetwide than the entire industry combined. Management must have flunked out of Economics 101 - as prices increase, demand decreases.

 

Breakaway, 7-day March 3, $649 minisuite sailaway

Breakaway, 7-day March 3, $549, balcony sailaway

Getaway, 7-day, March 3, $2,299 Haven

Getaway, 7-day, March 24, $799 minisuite sailaway

Escape, 7-day, March 3, $549 interior sailaway

Sun, 16 day, March 16, $749 oceanview sailaway

Jade, 10 day, March 22, $699, interior sailaway

Dawn, 7day, March 10, $479 interior sailaway

Jade, 11day, March 11, $549 interior sailaway

Star, 14-day, March 30, $749, interior sailaway

Jewel, 7-day, March 29, $499 interior sailaway

Dawn, 7-day, March 3, $429 interior sailaway

Jewel, 12-day, March 4, $899, oceanview sailaway

Star, 7 -day, March 16 and March 23, $499 interior sailaway

Spirit, 11-day, Feb 24, $599 interior sailaway

 

 

 

 

Those prices are pretty consistent with the rest of the industry for late winter.

[Nola26]

20 hours ago, tomservo said:

Shouldn’t you improve your product before you raise prices? I’m going on my first NCL cruise in a few months, but from what I’ve read on here the quality of the overall product keeps declining while prices keep going up. 

NCL provides really great cruise experiences. I have sailed new, old, weekend and weekly. We travel as 3 generations and NCL suits us all. Qe sail on the Bliss thus afternoon and are so excited to be back on NCL. 

[NYcruzzer]

3 hours ago, blcruising said:

Very interesting discussion here. I wonder if there is a longer term plan for when consumers realize that they could just hold out and book 30 days out since they rarely sell out their ships far in advance, resulting in cabin dumping at cheap, cheap prices one month prior to sailing. If I paid $899 three months ago for something that is selling for $429 today, I'd say, next time, I will just wait to book my cruise, which has been my practice for the last year.

 

I don't know, in my opinion, their current operating model is not sustainable. It lacks a long term vision. They are pretty much maxed out on cruise pricing. And their onboard pricing has reached a ceiling, evidenced by the recent outcry on the beverage prices. Do you think they'll try to raise beverage prices anytime soon? I don't.

 

With more ships coming online  every year, I think they'd be better served at distinguishing themselves now with high levels of onboard service, quality, and value etc, so that people want to come back and sail again. Currently, they distinguish themselves with high prices.

 

And just because someone is wealthy and affluent, doesn't necessarily mean they don't care about how they spend their money. Heck, I know a lot of wealthy people that watch every dollar they spend.....it is probably how they became wealthy!

 

 

 

 

My only issue with those tasty last minute "Sail away" rates is you cannot pick your cabin. I am not willing to get a cabin all the way forward , aft, or under a busy area such as the pool or DR. Due to the spike in fares my upcoming cruises are inside with 1 Perk. Has anyone had success booking a Sail away early on with the ability to select a cabin ?

[bigfun]

I have been loyal to NCL for quite a few years, and to date it has been the only line i've been on... but pricing yourself our of the very market that got you to where you are? In my opinion not a good business decision. But it has prompted me to start looking elsewhere, and i am glad that i did.... SOOOOOOOO many great deals to be had!

 

Goodbye NCL... and good luck!  I think you will need it.

[Georgie562]

Now is the time to start shopping around. Forget your loyalty to NCL they are not being loyal to you. If NCL no longer makes you happy, look elsewhere I’m sure another cruise line will. I always follow the cheaper vacation for the itinerary I want so NCL is not cutting it for me

[Run14]

Just my 2 cents - 

This thread is hilarious. They've made their business decisions, and so far they are paying off quite well.  If the economy turns south, they might not.  I could posit that while someone accurately indicated that NCLH came through the '08 crisis in fairly good shape, part of what has made the company so resilient is that they've attracted new demographics of clientele,  and those might very well behave differently.  FDR doesn't think so, but who knows.  

My DW and I, which happened to get married in Cozumel during an NCL cruise, are both Platinum and enjoy the Haven quite a bit.  It's perfect for our primary goals of big ship amenities (entertainment, options, etc) but we have the intimacy and service level of a smaller ship. We've traditionally hesitated to look too much at some of the "luxury" lines because we're in our 30s and while we are economically successful, we don't want to be on a ship that closes down at 9pm or where the average age is over 70.  We leave for a cruise in a week so after enjoying mardi gras  we will enjoy the Haven.  It was notably more expensive this time than last, but it was worth it for us this time around.  Next time we will be looking at MSC (We've heard too many good things about YC not to) and a few others.   Unrewarded loyalty is a waste of good money.  If NCL doesn't take care of those of us who have taken care of them, we won't return.  If they do and the circumstances are right, I'll happily return.  There is really no reason to get emotional about it.  

[NowHeather]

I think there's a little bit of "puffing" going on here. They certainly aren't comparing apples to apples as deposit amounts have decreased significantly. The article says, "The company entered 2019 with more future business on the books than ever before at record prices. "  It's my opinion that they have more future business on the books because they have been offering $1 and $50 deposits for almost the last year. I don't know about you guys but I have certainly booked a bunch of cruises (different lengths and different cabin types) around the time I want to sail so I can watch prices and availability. Once I get close to final payment I choose the sailing that has the best availability knowing that after final payment the price will drop. I didn't do this when deposits were not so inexpensive as it was cost prohibitive. Some of this "future business on the books" has got to be duplicate bookings just because of the convenience. I have to imagine I am not the only one doing this. This is a pretty good business strategy to show investors as it gives an illusion of growth when it may or may not actually be there.

[travelerpair]

On 2/22/2019 at 9:47 AM, tomservo said:

Shouldn’t you improve your product before you raise prices? I’m going on my first NCL cruise in a few months, but from what I’ve read on here the quality of the overall product keeps declining while prices keep going up. 

NCL has priced the NCL Haven product right up there with their RSSC and Oceania lines. RSSC is all inclusive and worth it, the Haven is wonderful but you are not getting an all inclusive product. Food alone can make the difference in value. NCL has made small changes in RSSC with serving staff and you an really tell the difference. Do not expect top quality from NCL and you will not be disappointed. Also expect to pay extra for too many things.

 

[thetaro]

I booked 

2 adults + 2 yr old baby

NCL Epic Mediterranian Balcony 7nt $3400

NCL Sun Cuba Interior 7 nt $2800

 

Canceled both of them and rebooked pretty much the same room and the same week on MSC.

MSC Divina Mediterranian Balcony 7nt $2400

MSC Armonia Cuba Interior 7nt $1400

MSC PREZIOSA Northern Europe Interior 7nt $1200 . 

 

Free baby fare makes a big difference. NCL has to remember that there is no loyalty when you keep increasing your price, not to mention all the nickel and diming. I wish them all the luck with selling all the rooms at the price they want, but I am saving my  CruiseNext voucher and plan to use it for last minute cruise that they can't sell.

Edited February 27, 2019 by thetaro

[littlelulu01]

The perks can really rub some the wrong way. Charge someone industry high prices and say it is “free” this and that but then step onboard and find out it doesn’t include this and it’s an up charge for that? When spending those prices you expect impeccable service, excellent food.... not just a great butler and a nice room. Overall I’ve never had an ncl cruise I didn’t enjoy but there’s definitely a few irritating aspects and cutbacks definitely noticed.  

 

Who thinks it’s a great idea to charge top suites for a water at the table but byob from your stateroom if owners suite or better and it’s on the house? At the very least they should rethink their inclusion of soda and water on all Haven suites vs just os or better.  

 

I would rather just pay a la carte and have an excellent meal with a choice of lobster... vs a free sdp. It sounds a bit silly to tell the world you’re going after a customer willing to spend more on a cruise.  Anyone willing to spend Haven prices on a cruise doesn’t want to be hustled for an extra nickel every time they turn around. They pay extra for a premium experience. 

 

charge whatever customers will pay for  the Haven but don’t cheap out on those customers once they’re onboard. Give them what you’re advertising so they will come back. I suspect this new roll out on the beverage pkg will not be a smash success for Haven passengers.  “Here’s your free ubp perk for $20/pp pd. It’s something special. we only give pick all 6 to suites...except we give it to everyone else now for an unlimited limited time.  If you want the drinkable wine it’s an up charge but for the low low price and today only, a mere $34/ pp extra per day will get you that glass of wine you want.”  I guess the test market was lined up for the deal. Time will tell.  

 

Our next Haven was more than I wanted to pay but verged on reason for a two week sailing.  We prefer the Jewel class and the great itineraries that ncl provides for Europe. Going forward we’ll likely skip the Haven or choose another line. We were very content on the Bliss Alaska in a non Haven. We did the last minute sail away and got a crazy inexpensive deal last year. Made the extras for the spa, excursions, racetrack and specialty dining painless. Had I paid the initial prices I’d have been pretty upset with all the up charges onboard. 

Edited February 27, 2019 by littlelulu01