During an earnings conference call, Norwegian Cruise Line Holdings Ltd. expressed optimism for the future of cruising annd outlined its planned steps for recovery.
“Our goal is to preserve the traditional elements of the cruise experience: the great value, the multiple destinations visited, the wide array of dining and entertainment offerings — modified if necessary,” said Frank Del Rio, president and CEO of Norwegian.
Right now, the entire corporate fleet of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises is laid up, but the hope is that the vessels will set sail with guests again as soon as July.
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Despite the mainstream media’s concerns regarding the company’s threat of going bankrupt, Norwegian is now able to financially survive 18 months’ worth of sailing suspensions — though the company stresses how unlikely such a scenario would be.
Job No. 1, according to Del Rio, is appeasing the Centers for Disease Control and Prevention to lift its no-sail order, which is currently in effect until mid-July. In fact, the first step outlined by Norwegian is developing enhanced safety protocols to gain CDC and government approval to ultimately reestablish consumer confidence to cruise.
The next goal is to assess global port availability to determine which itineraries can first resume. Norwegian has the benefit of its mobile assets, which can be redeployed as necessary.
We do know from history that the excitement factor and value proposition that cruising provides will be — when the time is right — a compelling driver of reviving consumer demand.
Step three is activating sales and marketing, as well as stimulating overall demand with a market-to-fill versus discount-to-fill strategy. Naturally, travel advisors will play a vital role then and throughout.
Lastly, the fourth goal is to gradually phase back ships into service. For the Norwegian, Oceania and Regent fleets to fully mobilize all 28 ships, the corporation anticipates a period of five to six months.
Among those vessels is Regent’s new Seven Seas Splendor, which TravelAge West was scheduled to experience. The preview was postponed due to the industry’s voluntary shutdown, but we intend to cover it as soon as we can.
Looking ahead, Del Rio anticipates a new era of cruising for the company’s three brands.
“We do know from history that the excitement factor and value proposition that cruising provides will be — when the time is right — a compelling driver of reviving consumer demand,” he said.
The Details
Norwegian Cruise Line
www.ncl.com
Oceania Cruises
www.oceaniacruises.com
Regent Seven Seas Cruises
www.rssc.com
