Norwegian CEO shares his plan for a cruising comeback — and it isn’t what you think

[Love my butler]

13 hours ago, CruisingNole said:

https://thepointsguy.com/news/norwegian-cruise-ceo-frank-del-rio-future-of-cruising/

 

I literally laughed out loud when I read this part.

 

"Waiting for crazy discounts from Norwegian’s brands? Don’t count on it.

Even if demand is down, Del Rio said the line would stick to its time-tested strategy of holding price, even if that means ships sail less full.

“Our strategy has always been not to be the deepest discounter,” he said. “We believe in our product. We believe in the value proposition of cruising, the value proposition that our three brands offer and our customers obviously believe in it because we have [had] the highest yields.”

The problem is that is a 2019 mindset when cruising was very popular.  We are entering a 2010 redux when cruising isn't so popular and people don't have the money or the will to cruise, unless it is dirt cheap.

[sverigecruiser]

46 minutes ago, Love my butler said:

The problem is that is a 2019 mindset when cruising was very popular.  We are entering a 2010 redux when cruising isn't so popular and people don't have the money or the will to cruise, unless it is dirt cheap.

 

But lots of people have as much money now as before. Many have lost their jobs but most people hasn't. 

 

Cruising will probably be less popular so full prices may help with social distancing on the ship. They sell the cruises at full price with lower capacity.

 

That is what I hope for until everything is back to normal.

[BillDz]

13 hours ago, blcruising said:

He's been deep discounting last minute cruises for years

 

In CEO speak, that's "aspirational." You can say that your "strategy" is not to be the deepest discounter, but if that's not actually the result . . . oh, well!

 

I was tempted by those $399 transatlantics.  But that was at peak hysteria, so I held off. And I think they got cancelled anyway, but I'm not sure.

[BirdTravels]

17 hours ago, seaman11 said:

a new ceo is needed , one that understands without the customer you have nothing .  inflating prices and not refunding or giving the proper fcc in a timely manner is a bad move imo. 

FDR has saved the cruise line by closing deals on financing over the past week. Bookings in 2021 are at levels equal to pre-virus 2020. 50% of the people took the FCC and 30% of those have already rebooked,
 

FDR isn’t going anywhere. They will probably give him a pay raise. 
 

Despite all of the armchair analysts and haters, He knows what it takes to run a company in distress and it is working. 

Edited May 9, 2020 by BirdTravels

[BirdTravels]

Dupe

Edited May 9, 2020 by BirdTravels

[luv2kroooz]

14 hours ago, NutsAboutGolf said:

It's possible Del Rio isn't fully aware of the sailaway discount percentage yet because the interviewer didn't bring this to his attention, who knows. 

This is true. You would think he would delegate pricing to someone else.

 

It's funny, though, as I rewatched the CNBC interview, he comes across to me as a "micro-manager"...he must be a joy to work for, not work with. If you listen carefully.....

 

......my ships are pristine...

....I am a neat freak....

.....I called my VP of operations and told him to let them eat lunch, open the bars, and then begin disembarkation because we are not sailing today...

 

Does he empower any one else to make decisions? Could shed some insight into Andy's departure.

 

I might be reading into it, but seems pretty self-centered, all about FDR. That's also the impression I get from NCL customer service, too. Screw the customer, it's all about FDR.

[spanishguy1970]

19 hours ago, seaman11 said:

a new ceo is needed , one that understands without the customer you have nothing .  inflating prices and not refunding or giving the proper fcc in a timely manner is a bad move imo. 

hear hear, this Del Rio person is completely delusional and out of touch...

[complawyer]

specifically to michael (who responded to me). of course you are correct, not all people sailing have access to the haven or a suite. while i am not wallowing in dollars, a few years back with the promos ncl was offering for free, it cost wasnt much higher than a mini suite so we booked a penthouse suite on the getaway, first off, we absolutely loved that ship, and 2nd in's hard to downshift once youve been in a suite with theextra goodies. it's even worse once youve booked a haven

 

now, my wife (the sweet and lovely diva that she is) wont even discuss sailing unless i book a suite. (although i must admit im slightly the diva now myself). 

[HuliHuli]

2 hours ago, blcruising said:

.....I called my VP of operations and told him to let them eat lunch, open the bars, and then begin disembarkation because we are not sailing today...

That sounds like leadership to me.

[luv2kroooz]

25 minutes ago, HuliHuli said:

That sounds like leadership to me.

No doubt. As I said, I could be reading too much into it. It was a reaction, not suggesting it is truth.

 

Had he said something softer like, our ships are pristine because our hard working crew makes them that way. After consulting with my VP, we collectively decided to open the bars....that sounds I lot different than me, me, me, I, I, I. 

Edited May 9, 2020 by blcruising

[NLH Arizona]

13 hours ago, cruiser4801 said:

DelRio is the worst thing that ever happened to NCL.  He wasn't supposed to get the job after NCL's Oceania acquisition but former CEO Kevin Sheehan had a problem (I know what it was) that caused him to step down.  The Oceania people then took over NCL.  NCL's customer disservice has to be the worst in the industry.

 

NCL has lost a lot of formerly loyal customers as a result of the 90-day refund debacle they have instituted.  I will never cruise on  NCL again and they can keep my platinum level status.  

 

Bye, bye, NCL.  I will not miss you.

I'm sure NCL has lost some customers including yourself, but they have probably gained the same amount or more and I base this on the fact that all my cruises have been full.  I've also notice that a lot of posters who said they would never cruise on NCL have come back and are posting they are cruising with NCL like nothing ever happened.

 

There are always going to be those that like a cruise line and those that hate a cruise line, but in the end it all seems to balance out.

 

Kevin Sheehan also made some decision that were not customer friendly; i.e., getting rid of lobster in the MDR, so it wasn't all roses with him either.

 

 

[deliver42]

I thought it was an honest perception on FDR's part. However, wearing a mask on a cruise is a deal breaker for me. No way will I cruise with any line with that in store.

[jingle5616]

The only reason I ever cruise with the current NCL is because of the deep discounting that goes on all the time.  If I'm going to pay for a high dollar ticket is sure isn't going to be on NCL.   I think Frank speaks out of both sides of his mouth.  As far as bookings being robust, I just have to shake my head.  Common sense tells me no way.

[NLH Arizona]

1 hour ago, deliver42 said:

I thought it was an honest perception on FDR's part. However, wearing a mask on a cruise is a deal breaker for me. No way will I cruise with any line with that in store.

I'm with you, no mask for me on a cruise.  I'll wait till all this calms down before I cruise again.

[mking8288]

22 minutes ago, jingle5616 said:

... As far as bookings being robust, I just have to shake my head.  Common sense tells me no way.

 

Me ... I wonder if NCL is still providing "free" / reduced air package and honoring them on these rebooked sailings ?  Flights are available on key routes and gateway/hub airports ... good luck from small / little towns served by regional carriers only.  Perhaps, NCL is going to be offering (state) residents-only specials to bump the bookings.  

 

Even if we're to sail out of a southern port this winter/next Spring - spending 2 days on the road going & coming, whether it's driving or being driven ... ain't going to happen, period.  I haven't checked Amtrak lately to see what their new operational plans are going to be onboard those long distance bedliners.  

 

Cruiseline stocks are mostly held by Wall Street with vested financial interests in fund performance with a tiny fractions held by corporate executives & senior managers - hence, FDR sees zero value to communicate directly with the customer base; and, aim to sell the scheme to travel partners instead. No surprises there, not at all. 

[BlerkOne]

Looks like NCL will be ready to cruise in the 3rd quater.

[Diver2014]

16 hours ago, cruiser4801 said:

DelRio is the worst thing that ever happened to NCL.  He wasn't supposed to get the job after NCL's Oceania acquisition but former CEO Kevin Sheehan had a problem (I know what it was) that caused him to step down.  The Oceania people then took over NCL.  NCL's customer disservice has to be the worst in the industry.

 

NCL has lost a lot of formerly loyal customers as a result of the 90-day refund debacle they have instituted.  I will never cruise on  NCL again and they can keep my platinum level status.  

 

Bye, bye, NCL.  I will not miss you.

 

NCL won't miss you either.

[csopi]

I will not say that I will never cruise with NCL again but the last two years every time I made an over all cost analysis for similar perks itinerary, both Princess and Celebrity came out ahead of NCL and I have been booking with Princess.
I don’t have loyalty to any, all 3 are excellent cruise lines and have gorgeous ships and good service.
Better over all price wins.


Sent from my iPad using Forums

[manorf]

So, if guests on NCL are required to wear face masks except when dining - I guess we'll only need them for sleeping!!!

[EleventyBangBang]

I'd be okay with being on a less-than-full sailing...  I think I would be very much okay with that.

 

 

 

 

 

[NLH Arizona]

35 minutes ago, EleventyBangBang said:

I'd be okay with being on a less-than-full sailing...  I think I would be very much okay with that.

One of my first cruises on Crystal, the ship was only half full and it was totally awesome. 

[brovol]

This is not a new concept for NCL.  NCL doesn't generally fire sale it cruises.  Instead, it offers very reasonable prices, at least as competitive as the competition, and hasn't had an issue filling ships that way.  I think the CEO's statements are consistent with the NCL strategy , and that doesn't bother me at all.  

 

When I book a cruise (which I have done at least annually for 25 years), I am open to all cruise lines.  I look to sail date, price/value, and ship.  I do my research first, then call my TA with 2-4 or so cruises to check on, and go with what seems best at the time.  Although we have been on at least five cruises with four different cruise lines, NCL has been winning out more often than not over the last six years.  Why? Because it has had the best pricing.  Not usually by a ton, but it has been the best value on seven day cruises out of the Caribbean, which is what we do.  I doubt that will change in the post-covid era. 

 

I also think that cruise lines are not necessarily trying to FILL their ships.  They may be OK sailing at 2/3 capacity; and indeed , they may be REQUIRED to sail at a lot less than full capacity for several months.  My guess is that demand will be plenty enough to get ships to 2/3 capacity without extreme discounts, so why fire sale anything.  FCC cruisers alone will take up a good portion of the ships that will be sailing the first 6-12 months.  Get those credit sailors over and done with, then get back to making money.

 

Makes sense to me.

[luv2kroooz]

30 minutes ago, brovol said:

This is not a new concept for NCL.  NCL doesn't generally fire sale it cruises. 

Sorry, your analysis is not accurate.

 

I've cruised 4-5 times per year for the last three or four years. They regularly price real high in advance and then cabin dump anywhere from 14 days until sailing. They rarely sell out there ships prior to 14 days from departure.  I only sail NCL when they dump cabins and have had no issues with getting last minute cabins at decent locations to a variety of destinations. There are other CC members that have the same experience. You have to carefully understand NCL's pricing models and use them to your advantage to get the last minute deals. 11 day cruises at $499. 7 day cruises at $299, 15 day cruises for $499. The list could go on and on. The pricing method you described above is not the model I use.

 

I only sail NCL because it is the only line that dumps cabins. They have made cruising extremely affordable for last minute cruisers. They can't be beat for last minute pricing, (at lease based on history).  For early bookers, not so affordable.

Edited May 10, 2020 by blcruising

[complawyer]

2 hours ago, blcruising said:

Sorry, your analysis is not accurate.

 

I've cruised 4-5 times per year for the last three or four years. They regularly price real high in advance and then cabin dump anywhere from 14 days until sailing. They rarely sell out there ships prior to 14 days from departure.  I only sail NCL when they dump cabins and have had no issues with getting last minute cabins at decent locations to a variety of destinations. There are other CC members that have the same experience. You have to carefully understand NCL's pricing models and use them to your advantage to get the last minute deals. 11 day cruises at $499. 7 day cruises at $299, 15 day cruises for $499. The list could go on and on. The pricing method you described above is not the model I use.

 

I only sail NCL because it is the only line that dumps cabins. They have made cruising extremely affordable for last minute cruisers. They can't be beat for last minute pricing, (at lease based on history).  For early bookers, not so affordable.

well, if you wait until the last few weeks, arent you limiting  yourself to the choice of cabins and locations?  im not a snob, but even if  the cost for an indoor cabin was $100 i wouldnt book it, its like spending a week in an walk in closet. obviously some people dont mind but id rather book early and get what i want 

[fstuff1]

2 hours ago, brovol said:

This is not a new concept for NCL.  NCL doesn't generally fire sale it cruises.

 

Wha? you're not looking hard enough. heck, you're not looking period!

 

for the past 5 years, they have had fire sales of $50/day or less SOLO!

look at my sig.

every cruise i've booked thru ncl.com has been $50/day or less solo.

(im platinum Plus)