NCL cuts, may affect excursions

http://www.travelpulse.com/news/impacting-travel/norwegian-cruise-line-holdings-cutting-workforce.html

"Del Rio has made it clear there would be some streamlining that will result in savings of about $25 million this year alone. The savings would come through consolidating office operations, insurance costs, port fees and shore excursion concessioner contracts, he said in a conference call in February."

Standard post-acquisition consolidation leveraging economies of scale.

http://www.travelpulse.com/news/impacting-travel/norwegian-cruise-line-holdings-cutting-workforce.html

 

"Del Rio has made it clear there would be some streamlining that will result in savings of about $25 million this year alone. The savings would come through consolidating office operations, insurance costs, port fees and shore excursion concessioner contracts, he said in a conference call in February."

 

Standard post-acquisition consolidation leveraging economies of scale.

I would doubt a Regent customer would want to take the same excursion offered to NCL customers. Yes they can save money by consolidating excursion contractors, but where does the differentiation between brands start and stop??

Indeed, good question. Time will tell in the long run. Limiting excursion providers could water down the quality of Regent excursions if there is additional corporate pressure to reduce costs.

Home office shore operations can't get any worse than they are today; they need to fire FDR Junior and get someone in there that knows what they are doing.

Marc

Actually, combining excursion contractors could help Regent considerably. In some ports (think Caribbean and Mediterranean), luxury cruise lines are competing with mainstream cruise lines for tour operators. A tour operator would much rather contract with a company that will enable them to provide excursions for 2,000+ passengers rather than 700 passengers. I read a few years ago that it was difficult to find tour operators in the Caribbean for this reason. A contract with NCL/Oceania/Regent could make more and better excursions available.

Hi Marq -- good to see you on the board. While I agree that FDR Jr. has had major challenges with excursions on Regent (apparently not so much on Oceania), IMO, a lot of this has to do with "included" excursions -- trying to accommodate up to 700 passengers on 1 or more excursions in every port. Could anyone really manage that program effectively? While Regent included excursions aren't as bad as they were 3 years ago, the "cattle calls" still exist -- multiple buses arriving at restroom stops still happen -- having to have a wine tasting at 9:30 a.m. due to the need for small establishments to accommodate 3-4 busloads of passengers during the day hasn't changed. Changing the V.P. in this area would not help (IMO) - the program needs to be revamped.

Sunprince -- IMO, the differentiation comes with the level of excursions offered. Major tour operators tailor their excursions to the needs of their customers. Regent excursions, for example, may offer lunch, snacks, wine tastings, etc., while Oceania may not (no clue what NCL would be offered). The price point would be set differently for the different cruise lines. I would assume that something along these lines is done with Holland America and Seabourn -- both sharing the same offices, etc.

In terms of cutting workforce, it seemed that the moment Regent was acquired, their former CEO started firing people. We were thinking "so much for keeping things the same as they were". Many of us (not all) were thrilled when FDR was appointed CEO. It seems to me that FDR has done what he has wanted to do with Regent and Oceania and now the focus in on Norwegian. It will be interesting to see what happens.

In terms of the article, FDR made similar statements after Regent was purchased by Prestige Cruise Holdings. It sounds like he will be doing the same things with NCL as he did with Regent and Oceania (and he has been very successful doing it). Hopefully Regent passengers won't see this as Regent becoming like NCL ----- there is no benefit in ruining their luxury and premium plus cruise lines.

Jackie, I have no issue with included excursions; that is a Regent business decision. HOWEVER, if they are going to implement such a policy, they have to provide the customer service that we have come to expect over the last 13 years. My wife is so irritated with Regent excursions back office that they are in danger of losing a dedicated platinum cruiser with almost 300 nights over $80; not a good way to run a company.

Marc

My understanding from one of the Destination managers is that Regent and Oceania excursions were pretty much identical (same supplier, same excursion) at least for the "free" or "included" ones

There is very little that is truly special or distinctive remaining. In fact, I was encouraged to switch to O by a former Regent senior staffer as that is likely where I would find a "luxury" experience

...

There is very little that is truly special or distinctive remaining. In fact, I was encouraged to switch to O by a former Regent senior staffer as that is likely where I would find a "luxury" experience

Wow, that's kind of sad, don't you think? Are you going to try Oceania finally, Tina?

Tina - do not think you will find a "luxury" experience on Oceania. Yes -- the new ships are gorgeous (well, the public areas are) and the larger suites are amazing. Based on our one cruise together, there are many things that I do not think you would like about Oceania...... but that is a topic for another thread.

In terms of excursions, expect to pay two to three times what you would pay for the excursions on Regent. On the other hand, due to the high cost of excursions, a lot of passengers get together on Roll Call and form their own small groups to book private excursions.

Wow, that's kind of sad, don't you think? Are you going to try Oceania finally, Tina?

Wendy-

The current pricing structure, Canadian dollar woes and Regent offers to UK and Australia passengers at significantly lower cruise only fares have soured me on cruising for a bit

Jackie- I know you were trying to discourage me from trying O. Have you changed your mind?

Wendy-

The current pricing structure, Canadian dollar woes and Regent offers to UK and Australia passengers at significantly lower cruise only fares have soured me on cruising for a bit

 

Jackie- I know you were trying to discourage me from trying O. Have you changed your mind?

Actually, prior to this thread, I was trying to encourage you to try Oceania (especially with your mum). On this thread, however, discussing a "luxury" experience and excursions, I do not think it would meet your expectations.

Wendy - from what I've read on the boards, there have been some "specials" for Canadians on Regent - you may want to check it out.

My understanding from one of the Destination managers is that Regent and Oceania excursions were pretty much identical (same supplier, same excursion) at least for the "free" or "included" ones

 

There is very little that is truly special or distinctive remaining. In fact, I was encouraged to switch to O by a former Regent senior staffer as that is likely where I would find a "luxury" experience

I find Oceania a better option for us. A Penthouse or even a Concierge cabin gives me quite a comparable cruise to the old Radisson -Pre PCH experience. I don't want their excursions and even the wines I prefer to order my own choice.

In terms of whether or not Regent and Oceania offer identical excursions, this will be easy to check soon. Regent's Mariner and Oceania's Nautica both leave on the same itinerary on November 24th. We will be on Regent and will book excursions next week. Oceania excursions are not yet listed (or were not two days ago). It will be interesting to learn if the excursions offered are the same. Choices may be limited in Africa so it is very possible they will be the same but obviously not the price.

I suppose whether one has a "luxury" experience anywhere depends on what one's definition of "luxury" is - mine is superb food and service. And I think Oceania wins hands down on that one no matter which suite or cabin you are in. There is a "team" feeling to the way their staff work that simply doesn't exist on Regent.

As for saving money on excursions - the more tours a company buys and the more passengers it puts on those tours the better the deal from the tour operator. So joint purchasing via NCL for both Oceania and Regent is bound to save money for the parent company. It is pretty easy to differentiate the tours as well. Fewer pax in the buses, better qualified tour guides etc. Maybe even better lunch stops if lunches are included. And so on. It really isn't rocket science...

Wendy-

The current pricing structure, Canadian dollar woes and Regent offers to UK and Australia passengers at significantly lower cruise only fares have soured me on cruising for a bit

 

Jackie- I know you were trying to discourage me from trying O. Have you changed your mind?

Tina, PG Cruises, the Paul Gauguin, have a 10% discount right now for Canadians, very tempting. We're thinking of booking again for next year. Still a wonderful experience after all these years (Our first PG cruise was almost 15 years ago.)

In terms of whether or not Regent and Oceania offer identical excursions, this will be easy to check soon. Regent's Mariner and Oceania's Nautica both leave on the same itinerary on November 24th. We will be on Regent and will book excursions next week. Oceania excursions are not yet listed (or were not two days ago). It will be interesting to learn if the excursions offered are the same. Choices may be limited in Africa so it is very possible they will be the same but obviously not the price.

Oceania and regent offer identical excursions. A friend of our went on a Baltic cruise with oceania that was the exact same itinerary as our regent Baltic cruise. We compared excursions. Identical list to choose from, identical excursions (we took some of the same ones). Only difference was they were included on regent vs. paying extra on oceania. Numbers on the bus were comparable. Included stuff (meals,etc) the same.

Also noted on our only cruise with oceania--Caribbean. We had been on a similar cruise with regent a few years prior. Exact same excursions.

Oceania and regent offer identical excursions. A friend of our went on a Baltic cruise with oceania that was the exact same itinerary as our regent Baltic cruise. We compared excursions. Identical list to choose from, identical excursions (we took some of the same ones). Only difference was they were included on regent vs. paying extra on oceania. Numbers on the bus were comparable. Included stuff (meals,etc) the same.

 

Also noted on our only cruise with oceania--Caribbean. We had been on a similar cruise with regent a few years prior. Exact same excursions.

Thank you for the information. I'm actually very interested in the prices Oceania will charge for the one day safari's as Regent is charging quite a bit of $$$.

In terms of whether or not Regent and Oceania offer identical excursions, this will be easy to check soon. Regent's Mariner and Oceania's Nautica both leave on the same itinerary on November 24th. We will be on Regent and will book excursions next week. Oceania excursions are not yet listed (or were not two days ago). It will be interesting to learn if the excursions offered are the same. Choices may be limited in Africa so it is very possible they will be the same but obviously not the price.

You obviously cannot compare Regent excursion prices to Oceania. Regent adds at least $150 PP for each port for the "included excursions" and looking at the extra cost Regent excursions there is supposed to be approx a $150 discount of the full price to account for the included excursions that are not separately delineated but, the money is certainly their in what one pays for the cruise on Regent but, not on Oceania.

It would have made no sense for R and O to use separate excursions suppliers for the same ports due to economy of scale and the same applies to combining NCL with R and O.

You obviously cannot compare Regent excursion prices to Oceania. Regent adds at least $150 PP for each port for the "included excursions" and looking at the extra cost Regent excursions there is supposed to be approx a $150 discount of the full price to account for the included excursions that are not separately delineated but, the money is certainly their in what one pays for the cruise on Regent but, not on Oceania.

 

It would have made no sense for R and O to use separate excursions suppliers for the same ports due to economy of scale and the same applies to combining NCL with R and O.

Sorry, you are entitled to your opinion, however I can and will compare Regent excursion prices to Oceania. Not sure where you came up with Regent adding "at least $150 PP for each port......." but it does not add up when comparing Regent excursions to Oceania's. Not going to argue but will provide actual prices if the Oceania website shows the prices of their November excursions.

In terms of Regent and Oceania using the same excursion suppliers, no one is arguing that point. As I said in my first post on this thread, "combining excursion providers could help Regent considerably.........". Having NCL, Regent and Oceania with the same contracts is, IMO, a good thing.

can share all of the busses!!!

can share all of the busses!!!

Heh.

In my experience, and I have cruised both lines, the excursions that Oceania charges less than about $150 for are included on regent.

can share all of the busses!!!

IF that were going to happen, it would happen on our Cape Town to Cape Town cruise. As noted, I will be posting more regarding Oceania and Regent's identical cruises.

Note: There is a lot of availability on Oceania while Regent has been full for months (with occasional cancellations). We looked at the price of a top suite on Oceania vs. a Seven Seas suite on Regent. There is a significant difference. Then we added in the alcohol package, internet package and gratuities and the difference narrowed. The only thing left to determine is the cost of excursions. Note: There is one Regent excursion that will cost us $549/person. It will be interesting to learn if Oceania offers this excursion...... and at what cost.

It is my understanding that Norwegian was generally overstaffed. Perhaps the cuts in the staff and the quality of the staff (per FDR) are all the cuts that are necessary. Let's not blow this out of the water with "what ifs".

Agree somewhat Caroldoll. It's standard and expected to see cuts after an acquisition, that is after all part of the motivation -- economies of scale. Especially in the back office and in trimming the roster of suppliers. Looking forward it's reasonable to expect consolidation of suppliers and it is in this way effects may be seen aboard Regent and Oceania.