Don't Shoot the Messengers About NCL's/O's Cost-cutting Measures: A Fact of Life Today

[MEFIowa]

It is weird the slings and arrows that emanate in discussions about O's obvious cost-cutting moves. BUT, people need to understand that NCL's (including O's) DEBT rose dramatically the past few years. From just $6.1 billion in 2019 to a peak of $12.6 billion in 2022 that has come down to $12.3 billion in 2023. So, we are seeing a plethora of cost-cutting measures & revenue enhancements, many decently disguised, but still intended to either cut costs or raise revenues. SM was a generalized price increase disguised as a benefit enhancement. We're seeing all sorts of cost-cutting measures, some subtle and some not so much.

 

Norwegian Cruise Line Holdings Long Term Debt 2011-2024 | NCLH | MacroTrends

 

Norwegian Cruise Line Looks to Cut Costs and Debt—‘No Sacred Cows’  - WSJ

Edited June 23 by MEFIowa

[basenji56]

Compare the stock prices of NCL, Carnival and Royal. All three stocks sunk after covid. But Royal stock is through the roof while Carnival and NCL stock is still in the dumpster.  I'm sure some of our financial experts can explain why.  

[MEFIowa]

From May 1st, 1st quarter results:

 

"The cruise company's Q1 earnings report beat expectations, but only slightly, said Patrick Scholes, a securities analyst with Truist Securities. He added that Royal Caribbean Group has "set a very high bar with several massive beat and raises this year." While there is "certainly nothing wrong" with NCLH's performance, Scholes said, it was probably "not good enough to jump-start the shares, at least today." 

 

Norwegian Cruise Line Holdings touts cost-cutting measures during Q1 call: Travel Weekly

[DrHemlock]

At least we get a $100 dividend on our 100 shares of NCLH stock every time we cruise on O.  With the stock price rarely rising above the teens, it's almost paid for itself by now.

Edited June 23 by DrHemlock

[Yesimapirate]

Sorry,  I'm shooting the messenger because there is no message.  

 

I don't understand why you felt the need to start this thread.   The linked article is nearly a month old.   The quarterly report even older.   We know they're cutting costs.  They litterally said it.   There's absolutely nothing different or new here.

Edited June 23 by Yesimapirate

[mauibabes]

I would have to agree about the debt load and remember, the three lines have several new luxurious ships on order as they prepare to jettison the Oceania R Class ships when they age out in a few years and undoubtedly some of the old NCL ships. 
While I am sure there are cost cutting moves being implemented to boost profits, when we see this happening en mass across the cruise industry, we are not seeing anything new or unique to Oceania.  We are not down to plated beans and franks being served in the Grand Dining Room or anywhere else for that matter. 
All I can say is we still really enjoy our O cruises, the last two on Vista were awesome and  looking forward to Riviera and Marina cruises later this year to see their changes since their remodel. Also looking forward to more time in Japan on Riviera and her Alaska season and then of course the Inaugural Allura sailings. 
 

We just had a bunch of friends get off a Princess sailing, OMG and never, never, never, never again was the common response. O is making a lot of changes, food and drink and elsewhere but as long as the O product stays above that of their competitors like Viking and others, we will continue to sail with our Oceania family. JMHO and maybe $00.03 as inflation has had an impact on my 2 cents worth 😇🤞

Mahalo,

Mauibabes

[Vallesan]

All businesses are there to make a profit.

 

If the way they handle their business, making profits via cost cutting, is not to your liking then the best thing is not to patronise them? Simple really!

[clo]

40 minutes ago, Vallesan said:

All businesses are there to make a profit.

 

If the way they handle their business, making profits via cost cutting, is not to your liking then the best thing is not to patronise them? Simple really!

Very simple. So why do people complain and complain but don't change brands?

[MEFIowa]

2 hours ago, Yesimapirate said:

... I'm shooting the messenger because there is no message.  I don't understand why you felt the need to start this thread....

Then you're not understanding the DENIAL of the cost-cutting and revenue enhancement efforts underway. Going from Jacques to Ember is cost cutting. Same for pizza station. SM is revenue enhancement. The list of cost-cutting efforts is seen in menus, cabin service reductions, and more. What is fascinating is how the Vista Cheerleader types, for example, can't understand that The Emperor Has No Clothes, the cost cutting measures. I hope that doesn't include the reported CABIN NOISE issues on Vista.

 

And the WHY is simple: They are drowning in debt and need to repay it.

[MEFIowa]

2 minutes ago, clo said:

Very simple. So why do people complain and complain....

Too funny, from someone who didn't realize that Ember is a "specialty restaurant"! Which is a cost-cutting measure by eliminating Jacques. So O had you fooled into even appreciating what Ember is and why it's there now.

[MEFIowa]

45 minutes ago, Vallesan said:

All businesses are there to make a profit....

This is about massive debt as a Sword of Damocles over their heads requiring significant and immediate measures to get it under control and start paying it off. Which means PEOPLE, passengers, need to understand what is (1) a cost-cutting measure (Ember, pizza station, etc.) and (2) a revenue enhancement measure (e.g., the entire SM program). It is weird how so many can't seemingly understand these issues and they buy into the marketing hype on the changes (a form of polite deception).

[Vallesan]

26 minutes ago, MEFIowa said:

This is about massive debt as a Sword of Damocles over their heads requiring significant and immediate measures to get it under control and start paying it off. Which means PEOPLE, passengers, need to understand what is (1) a cost-cutting measure (Ember, pizza station, etc.) and (2) a revenue enhancement measure (e.g., the entire SM program). It is weird how so many can't seemingly understand these issues and they buy into the marketing hype on the changes (a form of polite deception).

I understand. I still choose to sail Oceania despite all and everything. If you find the fact that companies need to make a profit to stay in business so abhorrent don’t sail with Oceania.

[Vallesan]

40 minutes ago, clo said:

Very simple. So why do people complain and complain but don't change brands?

No idea!! 
Maybe that would be too simple and then there would be no reason to complain!

[MEFIowa]

11 minutes ago, Vallesan said:

I understand. I still choose to sail Oceania despite all and everything. If you find the fact that companies need to make a profit to stay in business so abhorrent don’t sail with Oceania.

 

6 minutes ago, Vallesan said:

... Maybe that would be too simple and then there would be no reason to complain!

Again and again, you miss the POINT. Which is customer misperceptions of corporate cost-cutting and revenue enhancement efforts to pay down their mountain of debt. People wrongly think they are getting some enhancement or benefit, blindly accepting ad hype and marketing efforts. Sometimes the Emperor has no clothes. Simple as that.

 

And since I've got 22 more nights on Sirena booked and paid for starting August 28, 2024, I will be sailing with O. But I keep in mind how I can adjust to their actions and minimize my costs. As an informed passenger.

 

Study EACH NEW PROGRAM and CHANGE. Then ask yourself, Is this actually really benefitting O or me? SM added $600-800 per PP per cruise and gave back pennies on the dollar. The perfect revenue enhancing scheme, where you "think" you're getting far more than you actually are. See all the issues and complaints about O excursions tied to the SM Excursion Credits, that can only be used on excursions.

[Kay S]

I haven't done my first O cruise yet (this fall) but I'm not under the illusion that everything they do for me is altruistic.  If they change to a new food venue, I'm going to assume they do it for the business of making more money.  I don't think I have ever "blindly accept[ed] ad hype and marketing efforts."  I think most people are like me and recognize that O is in the business of making money and not the business of serving me.

[Vallesan]

15 minutes ago, MEFIowa said:

 

Again and again, you miss the POINT. Which is customer misperceptions of corporate cost-cutting and revenue enhancement efforts to pay down their mountain of debt. People wrongly think they are getting some enhancement or benefit, blindly accepting ad hype and marketing efforts. Sometimes the Emperor has no clothes. Simple as that.

 

And since I've got 22 more nights on Sirena booked and paid for starting August 28, 2024, I will be sailing with O. But I keep in mind how I can adjust to their actions and minimize my costs. As an informed passenger.

 

Study EACH NEW PROGRAM and CHANGE. Then ask yourself, Is this actually really benefitting O or me? SM added $600-800 per PP per cruise and gave back pennies on the dollar. The perfect revenue enhancing scheme, where you "think" you're getting far more than you actually are. See all the issues and complaints about O excursions tied to the SM Excursion Credits, that can only be used on excursions.

Why do you think only you understand the ‘POINT’ of should I say ‘your’ point! 
 

I enjoy sailing with Oceania. I couldn’t give a stuff about their mountain of debt or their cost cutting. 
 

What you don’t seem to understand is that there are lots of us who enjoy cruising with Oceania, we like their product, we  are prepared to pay the ‘asking price’ if it’s within our budget. We don’t look to drain every half cents worth out of every trip. We know what we can expect, we are happy to pay for it and we ‘go and enjoy’ without all this ‘nitpicking’.

 

I just hope you enjoy your forthcoming 22 days without having to apply a cost analysis to every meal and every aspect of your trip.

[iowananny]

We're also taking a Scandinavian tour this summer.  It's paid for, enough said.  Every cruise company out there needs to make money for the years they went without income.  It's just a fact.  

I don't care if he does do a cost analysis, just don't share it with us.  I know O makes money with me as far as food goes.  I got old and I can't eat like I used to.  I eat very little and what I do eat is what I like, not just what is the most expensive.  If I feel like a pizza, I'll have pizza, if I feel like lobster, I'll eat lobster.  I'm on a cruise to have fun and not get the most for my money and stick it to the man.  Having fun is the best way to go.

[Hlitner]

2 hours ago, clo said:

Very simple. So why do people complain and complain but don't change brands?

Some of us do...and have done it!  We actually tried our first cruise on O (Vista in March-April) because we have moved away from some other cruise lines.   In fact, on O I do think you will find a lot of folks who previously cruised primarily with HAL.  

 

At this time, being equal opportunity cruisers (soon to go on our 18th cruise line), we have not found any line that ticks all of our boxes.  But we did enjoy the Vista and will keep the Vista and Allura on our "watch list."  We have no interest in the R ships for various reasons (including the substandard cabin bathrooms).  

 

But we do think your post has a lot of merit.  We constantly meet complainers/whiners on our cruises who, in their next breath, tell us they are "loyal" to the line about which they complain.  At the current time we look at Princess, Seabourn, O, Explora Journeys, Viking, and Silversea when searching for future cruises.  But, we also glance at other lines since it is a very dynamic industry with constant changes.  MSC (Yacht Club) and NCL (Haven Suites) as well as Virgin are also future possibilities,  In fact, we really do like the MSC Yacht Club, but are not impressed with their future itineraries.

 

Hank

[Thought2go]

20 minutes ago, Hlitner said:

At the current time we look at Princess, Seabourn, O, Explora Journeys, Viking, and Silversea when searching for future cruises.  But, we also glance at other lines since it is a very dynamic industry with constant changes.  MSC (Yacht Club) and NCL (Haven Suites) as well as Virgin are also future possibilities,  In fact, we really do like the MSC Yacht Club, but are not impressed with their future itineraries

Looking forward to your reviews as you set sail. Most balanced reporting I have read. They may even help me cut through the mustard on selecting other lines.

Thank you Hank!!

[Hlitner]

I should have added, to my last post, our biggest complaint about O (from the point of view of an O newbie and a cruise veteran).  I do not like the "forced down your throat" program called SM!  When given a choice, we would seldom to never book O (or any cruise line's) excursions!  It is one reason that keeps driving us back to Seabourn and Explora Journeys.

 

Hank

[Hlitner]

3 minutes ago, Thought2go said:

Looking forward to your reviews as you set sail. Most balanced reporting I have read. They may even help me cut through the mustard on selecting other lines.

Thank you Hank!!

When we were on the Vista (Mar-Apr) we did post a "live" review of our first O cruise.  Most of what we experienced on the Vista was very good, although we do agree with some others that the design of their main theater is terrible.    We have also mentioned, in the past, that O does not have the best cuisine at sea (not even close to the best).  At the moment, we would give that prize to Explora Journeys.

 

Hank

[Waltershipman]

51 minutes ago, Hlitner said:

When we were on the Vista (Mar-Apr) we did post a "live" review of our first O cruise.  Most of what we experienced on the Vista was very good, although we do agree with some others that the design of their main theater is terrible.    We have also mentioned, in the past, that O does not have the best cuisine at sea (not even close to the best).  At the moment, we would give that prize to Explora Journeys.

 

Hank

AGREED Hank yes Explora Journeys in our experiences is for now The absolute best food at sea

[sunlover12]

3 hours ago, MEFIowa said:

Then you're not understanding the DENIAL of the cost-cutting and revenue enhancement efforts underway. Going from Jacques to Ember is cost cutting. Same for pizza station. SM is revenue enhancement. The list of cost-cutting efforts is seen in menus, cabin service reductions, and more. What is fascinating is how the Vista Cheerleader types, for example, can't understand that The Emperor Has No Clothes, the cost cutting measures. I hope that doesn't include the reported CABIN NOISE issues on Vista.

 

And the WHY is simple: They are drowning in debt and need to repay it.

I haven't been on Vista yet but I do not see eliminating Jacques and adding Ember as a form of cost-cutting.  I see it as appealing to a different demographic. Casual and younger. I'll be on Vista for the first time next year and look forward to dining in Ember. The menu looks good. 

 

 

[Huib]

6 hours ago, MEFIowa said:

 

Again and again, you miss the POINT. Which is customer misperceptions of corporate cost-cutting and revenue enhancement efforts to pay down their mountain of debt. People wrongly think they are getting some enhancement or benefit, blindly accepting ad hype and marketing efforts. Sometimes the Emperor has no clothes. Simple as that.

 

And since I've got 22 more nights on Sirena booked and paid for starting August 28, 2024, I will be sailing with O. But I keep in mind how I can adjust to their actions and minimize my costs. As an informed passenger.

 

Study EACH NEW PROGRAM and CHANGE. Then ask yourself, Is this actually really benefitting O or me? SM added $600-800 per PP per cruise and gave back pennies on the dollar. The perfect revenue enhancing scheme, where you "think" you're getting far more than you actually are. See all the issues and complaints about O excursions tied to the SM Excursion Credits, that can only be used on excursions.

I see where you are coming from. The average cost of a meal at Ember is probably lower than in Jaques. The cost of a pizza at waves is much lower for Oceania than a meal at the GDR. But that is OK. You don’t have to eat the pizza and you still have other speciality restaurants to choose from. I am not going every day to the High Tea because I paid for it. When in a speciality restaurant I am not thinking about the potential costs for Oceania. I just come to have a good time. If I want a Pizza I can. If I want to eat a little more healthy at Aquamar I can. It is all about the options that are available. 

[pinotlover]

12 hours ago, Huib said:

I see where you are coming from. The average cost of a meal at Ember is probably lower than in Jaques. The cost of a pizza at waves is much lower for Oceania than a meal at the GDR. But that is OK. You don’t have to eat the pizza and you still have other speciality restaurants to choose from. I am not going every day to the High Tea because I paid for it. When in a speciality restaurant I am not thinking about the potential costs for Oceania. I just come to have a good time. If I want a Pizza I can. If I want to eat a little more healthy at Aquamar I can. It is all about the options that are available. 

Let me add to this that if I want to eat ashore, I do. I don’t worry about that provided meal back aboard ship. I have the option of scampering back for it if I choose. Likewise, we take the shore tours we want and don’t worry about SM credits. Just like those lunches, the credits are there if it suits me, not something I fill at all obliged to use.