NCLH Says Robust Pricing Drove Strong 2015 Results

Open Jaw

Norwegian Cruise Line Holdings (NCLH) has reported a strong 2015, posting net income of $427.1 million on revenues of $4.3 billion, compared to net income of $338.4 million on revenues of $3.1 billion in 2014.

The revenue growth was driven by the addition of Prestige Cruises (Oceania and Regent Seven Seas) acquired by NCLH acquired in late 2014.

“By all accounts, 2015 was a truly successful year for Norwegian - a year which included strong net yield growth driven primarily by the go-to-market strategies aimed at driving demand that were introduced earlier in the year and the successful launch of the largest ship in our fleet, Norwegian Escape,” said Frank Del Rio, NCLH President & CEO.

Looking ahead, Del Rio is more than optimistic, saying the NCLH brands are booked for 2016 at record levels and higher prices than any previous year. He said in an earnings call that 2017 is already 30% booked, again at higher prices.

For 2016, Del Rio said strength in the Caribbean, Alaska, Bermuda, Hawaii and Canada/New England markets is more than offsetting weakness in the Mediterranean.

Del Rio said NCLH’s future growth will come from initiatives including a disciplined new-build program, cost reductions and yield improvements. He also talked about route diversification, more specifically “weaning the Norwegian brand away from the 7 day Caribbean milk-run.”

In the meantime, however, the Caribbean remains a safe haven from Med woes. That’s why Norwegian Epic is being pulled off its year-round Med program for winter 2016-2017 and deployed on 3, 4 and 7 day Caribbean cruises.

For 2016, NCLH highlights will include 2 new ships - Sirena will join Oceania Cruises in the 2nd quarter and the new Seven Seas Explorer will join Regent Seven Seas Cruises in Q3. Norwegian Cruise Line will be busy with ship enhancements through ‘The Norwegian Edge’ program. The line also recently announced a new global brand campaign with the slogan ‘Feel Free.’


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