NCLH Won’t Use Low Pricing to Drive Demand

[Falckon]

This article was in the "Cruise Industry News" today. Apparently, Mr. Del Rio does not intend to lower prices because of the coronavirus outbreak, but still intends to be competitive, whatever that means. https://www.cruiseindustrynews.com/cruise-news/22486-nclh-won-t-use-low-pricing-to-drive-demand.html 

Norwegian Cruise Line Holdings (NCLH) President and CEO Frank Del Rio said he expects to see competitive pressure and pricing deterioration in the short term in the cruise industry due to the coronavirus outbreak having an impact on cruise bookings.

One thing he won’t do, however, is to compete for cruise bookings on price alone.

“I will tell you that we’re not going to allow what we believe is a temporary situation to derail us from our long-term proven go-to-market strategy of focusing on value to consumers over using low price as a lever to stimulate demand,” said Del Rio, speaking on the company’s year-end and fourth quarter earnings call.

NCLH oversees the Norwegian, Oceania and Regent brands.

“Having said that, given what we’re seeing in Q2 primarily, and what our competitors – how our competitors are reacting you’re going to see pricing action across the spectrum, we need to stay competitive,” Del Rio continued. “But we will not do it in a way in which we believe will hurt the long-term brand equity and our long-term desires to increase pricing year-over-year.”

Del Rio said the company would respond, but will operate in a way where price is not the main driver.

[SeaShark]

Not surprising at all given that NCL moved from a "price to fill" to a "market to fill" model 5 years ago.

[tallnthensome]

That font is horrible .....

[brilliantseas]

...has anyone priced NCL Pearl 3/8 sailing today? Take a look and tell me they aren't pricing to fill in the short term. I've seen two drops this week on that sailing. 

 

The bottom has fallen out on March sailings for certain cruise lines, especially NCL and to a lesser extent Carnival. Surprisingly, I have not seen any significant drop from Princess, which has been extensively featured in the media. 

[mking8288]

Stock prices, horrible this month.  Isn't this supposed to be the wave season ?? 

 

Sure, let's see how NCLH is going compete upstream, besides pricing alone.  Certainly, not with coalfish, fried chicken, hotdog and more upcharge.  Crude oil prices & demand are down, global markets bracing for ... the worst is yet to come, according to some Wall Street folks.  

[marktwothousand]

Yup, the bottom must have fallen out bc tons of good sailings in March are already on a fire sale the likes I’ve not seen before this far in advance. My cruise dropped in price by about half and my flight also did too:

- studio plus drinks, i paid 2100...now down to 800+ for a sail away inside.

- flight, started at 950, I paid 750...And now its down to 350 

 

I’m trying Not to be resentful and it’s a challenge.

[dd likes to cruise]

39 minutes ago, brilliantseas said:

Surprisingly, I have not seen any significant drop from Princess, which has been extensively featured in the media. 

 

Their present sale is set to end right near end of February. Wondering if we see something then. 

[jskinsd]

There are a lot of great deals out there if you can book last minute.  You just have to like to go to the place that NCL cruises to to have the reduced costs.  Sorry for the planners if it is not when and where you want to go.✌️

[luv2kroooz]

Mr Del Rio can and does say whatever he thinks people want to hear....remember about the Jade....guest safety is our primary concern. Laughable.

 

The reality of the situation is that NCLs behavior regarding pricing totally contradicts his words. Lots of 7 day April cruises available for under $400. 14 and 15 Transatlantic voyages for under $500. Call it what you may, they want bodies on the ship and will not hesitate to offer deep discounts to accomplish this.

[Comi.uy]

3 hours ago, marktwothousand said:

Yup, the bottom must have fallen out bc tons of good sailings in March are already on a fire sale the likes I’ve not seen before this far in advance. My cruise dropped in price by about half and my flight also did too:

- studio plus drinks, i paid 2100...now down to 800+ for a sail away inside.

- flight, started at 950, I paid 750...And now its down to 350 

 

I’m trying Not to be resentful and it’s a challenge.

You can contact a ncl rep and have them give you obc or other perks

[PortFees45]

As usual ole' FDR is full of it. Prices crashed in recent weeks. You could have gotten on the Bliss this weekend for $399 solo inside with no supplement. 

[Da-Painter]

Del Rios famous last words: about the same thing the new CEO of J.C. Pennys said. That didn't work out very well either.....

[Cafedumonde]

Del rio is an awful ceo

[Whiskey Tango Foxtrot]

21 hours ago, marktwothousand said:

Yup, the bottom must have fallen out bc tons of good sailings in March are already on a fire sale the likes I’ve not seen before this far in advance. My cruise dropped in price by about half and my flight also did too:

- studio plus drinks, i paid 2100...now down to 800+ for a sail away inside.

- flight, started at 950, I paid 750...And now its down to 350 

 

I’m trying Not to be resentful and it’s a challenge.

Mark2000 - We are just off the NCL Encore Feb 9 -16.  Just getting home today - spent another week in sunny Florida.  The Encore was nice.  Crew was great!  Spoke with the Captain a few times.  The Haven was very nice.  I miss Christian the bartender in the Haven already.  They went through our passports with  a fine tooth comb - Looking at all the stamps making sure we were not in China.  I saw your posting regarding the Corona virus.  The Encore is a nice ship!  I hope the passenger that was dropped off in the Bahamas is alright.  Did not sound good.  Hope you have a great cruise in March.  I wish we were going again.  Hope you have a fun, safe trip!  -W T F 

[PelicanBill]

If the ship has more than a few dozen cabins left when the final payment date passes you can bet there will be price reductions.  That has been NCL's strategy for a long time.  Market prices before then no matter what the "sale" says.  Other sales are rate.  But the past cruiser VIP special last fall was a rare good deal ahead of time and we rebooked our cruise on that and saved $800.