Kevin Sheehan Resigns

[hondorner]

...I'm trying to be positive about the future of NCL, but I'm another one of those cruisers who don't want NCL to become "upscale." I'm not looking for piss-elegance; just a comfortable cruise vacation, same as I've always received on NCL.

 

The ironic thing is this is the exact same reaction, only in the opposite direction, that was found on the Oceania and Regent forums after the NCL takeover announcement. The Oceania folks were most concerned that NCL would drag Oceania and Regent down to their level!

 

Rest assured that neither will happen. Each cruise line has it's own niche and demographic; no CEO would want to change that. The purpose of the purchase was to diversify, not homogenize. When the NCL purchase was announced, Frank Del Rio stated, "I think it's a perfect fit." He will not want to make it less perfect.

 

By the way, I agree that Mr. Sheehan was personable and approachable...but you ain't met Mr. Del Rio, yet! :D:D

 

 

 

 

Platinum on NCL and 159 days on Oceania.

[CruisinMaterial]

I look forward to meeting Mr. del Rio on one of the NCL ships! I’m sure he’ll probably be on Norwegian Escape’s trans-Atlantic but maybe not since the ex-Darden CEO might be tasked with that.

 

I agree that each cruise line will remain distinctive with their own brand image much like Carnival has done with several of their brands they’ve acquired over the years. My hope is that the cheapening that happened under the last watch will be corrected and NCL will come more in line with a RCCL level and stop trying to compete with Carnival Cruise Line brand (especially with these sprawling kid’s areas which seem to be chewing up so much of the deck space both inside and topside on the newer ships). RCCL is active, yet classy mass market… Carnival is not.

[hondorner]

I look forward to meeting Mr. del Rio on one of the NCL ships! I’m sure he’ll probably be on Norwegian Escape’s trans-Atlantic but maybe not since the ex-Darden CEO might be tasked with that...

From past experience, he may be on the first leg or two, but unlikely to be on the full transAtlantic voyage. His schedule generally does not permit that much time. He was on the first two legs of Oceania Mairina's maiden voyage, and that was his personal "baby".

[CruisinMaterial]

From past experience, he may be on the first leg or two, but unlikely to be on the full transAtlantic voyage. His schedule generally does not permit that much time. He was on the first two legs of Oceania Mairina's maiden voyage, and that was his personal "baby".

 

Sheehan was on the full Trans-Atlantic crossing of the Norwegian Breakaway and I think that was because it was his “baby.” The Breakaway Plus (Escape) will be the first proto-type of the new class so who knows who will be there.

 

It seems like NCL is really pushing the Norwegian Escape. The travel agents have been offered in several cities an evening with meal and booze to get the ship sold. I’m hoping del Rio expands the itinerary base beyond the Caribbean which NCL really relies heavily on. Unfortunately the deployments have already been revealed through early 2017 so it appears there’s no change coming. This is one thing I think the new CEO should bring to the table is further deployment of ships. I know it’ll be more expensive to enter new markets and as a result the prices may be higher but loyal cruisers will pay it to have the product go somewhere new.

 

I would LOVE to see the Norwegian Spirit in Asia. It would be a return home for her and perfect ship for the destination based on décor.

[hondorner]

Sheehan was on the full Trans-Atlantic crossing of the Norwegian Breakaway and I think that was because it was his “baby.” The Breakaway Plus (Escape) will be the first proto-type of the new class so who knows who will be there.

 

It seems like NCL is really pushing the Norwegian Escape. The travel agents have been offered in several cities an evening with meal and booze to get the ship sold. I’m hoping del Rio expands the itinerary base beyond the Caribbean which NCL really relies heavily on. Unfortunately the deployments have already been revealed through early 2017 so it appears there’s no change coming. This is one thing I think the new CEO should bring to the table is further deployment of ships. I know it’ll be more expensive to enter new markets and as a result the prices may be higher but loyal cruisers will pay it to have the product go somewhere new.

 

I would LOVE to see the Norwegian Spirit in Asia. It would be a return home for her and perfect ship for the destination based on décor.

There's a huge difference in philosophy between Oceania and NCL whjen it comes to itineraries. NCL depends on doing the same cruises over and over. at least for a season and sometimes year round. Want to sail a particular ship? You better like that itinerary. Want to sail it again? You better really like that itinerary.

 

Oceania, on the other hand, sends all their ships all over the world, rarely repeating a cruise back-to-back and often visiting ports only once a year. Want to sail a specific ship on a specific itinerary? Wait until that itinerary comes up (if it isn't changed from year to year).

 

 

Which is better? Depends on the audience. NCL attracts younger guests with limited vacation time, who appreciate if they can't get vacation time in June, they can try in July or August -- all the same trip, which may be their first. Oceania tends to attract an older demographic, mostly retired, with flexible schedules, and most are well traveled -- been there and done that.

 

 

There is crossover. I've cruised with Oceania 13 times and was scheduled on their first 180 Day World Cruise, that was supposed to start last Saturday but was postponed because of the tragic engine fire on Insignia. We're rebooked for the same 6 month cruise in 2016. At the same time, I'm Platinum with NCL and enjoy it for what it is, especially if sailing in a suite. I'm booked on Jade this coming October for a 21 day Venice to Houston cruise, in a 2-bedroom family suite. But, I'm frustrated because I love the SJ family suite on Star (and Dawn, but I haven't tried it), but they keep doing the same itinerary which I don't want to do.

 

Doubtful I will ever cruise the newer, bigger ships at NCL -- at 75 years of age, I'm not into most of the things they offer.

[barnacle_boy]

I agree that each cruise line will remain distinctive with their own brand image much like Carnival has done with several of their brands they’ve acquired over the years.

 

Carnival has done a fair amount of homogenization and recycling between their brands. HAL, P&O, Cunard, and Costa all have similar Vista Class ships. P&O's new Britannia is a modified version of Royal Princess. Costa's new Diadema is a modified version of Carnival Dream. Even the interiors are startling similar. Farcus used to design Carnival interiors and now he does work for Costa. Anderson designs interiors for P&O, Princess, and Cunard.

 

In terms of management, things aren't that much better. Most brands do not operate independently of each other. Costa operates AIDA. HAL operates Seabourn. P&O Princess operates Cunard. As a result, crew and management flow easily and frequently between different brands. This homogenization saves costs, but it also chips away at brand identity.

 

RCI is slowly moving down this path as well. Quantum is surprisingly similar to Celebrity Reflection. The line is definitely starting to blur there as well, although it's not as bad yet.

 

I have doubts that NCLH will be able to overcome the attraction of reducing costs by homogenizing. If they pull that off, they'd be the first. Ultimately, it's just easier to save on R&D by reusing similar hull designs and working with familiar designers and contractors. That's what happened with Carnival and RCI, so I can't see why it wouldn't happen with NCLH.

[hondorner]

Everyone expected that Prestige would use the same general design of Marina and Riviera when they constructd a new ship for Regent. But, Regent Explorer, now under construcion, is a totally new design.

 

I will go so far as to say there will never be any homogenization of ships between NCL and Oceania or Regent, because the largest ships they have are 1250 passengers, and many Oceania guests think they're too big. Regent guests will likely never sail on any ship with more than 700 passengers.

 

Now FDR gets to play in the mega-ship sandbox with NCL, but that will never transfer to Oceania or Regent.

 

There will be synergy in back office operations - ordering supplies, bookkeeping, etc. They are already happening. There may even be rotation of staff; that's happening between Oceania and Regent now, to the benefit of both. But I do NOT think passenger experience will change much, and if it does, it will likely be to the better. Each has things to learn from the other.

[Evangaline]

I can't help but envision Kevin Sheehan and Del Rio at a NCLH Board Room meeting. hummm... KS comes up with some off-the-wall concept, which, when it was NCL, would be greeted with an exuberant brainstorming session on how to make it work. Now, though, Del Rio sits back and huffs, content with his hoity toidy Regent/Oceania stuff and is quite superior about it all. KS thinks, geez; I'm a multi-millionaire. This is not fun anymore. Why should I do this?

 

Don't know. Maybe this is not it at all, but I am very curious to see whether we ever get to see the snow room in the spa or will it just be the same old ho-hum wallet-robbing part of the ship that spas usually are. It will be interesting to see.

 

IMO, I can't imagine Del Rio coming up with any new innovative concepts, so I'm thinking the outside-the-box stuff will now be the exclusive purview of Royal Caribbean with their Bionic Bars, Vistorama complete with robo-screens etc.. And this is sort of sad as it seems NCL and RCCL were playing interesting ideas off of one another.

[barnacle_boy]

There may even be rotation of staff; that's happening between Oceania and Regent now, to the benefit of both. But I do NOT think passenger experience will change much, and if it does, it will likely be to the better. Each has things to learn from the other.

 

 

One of my favorite things about sailing a particular line is being able to build relationships with the crew, staff, and officers that have been with the company for years. I used to love sailing with Cunard, but after it went under P&O Princess management, almost everyone at Cunard was slowly replaced with P&O folks. People and relationships build brand loyalty, not products.

 

I stopped sailing with Cunard because the Carnival philosophy is that people don't really matter any more. It's just a position. If I start seeing the people I've developed relationships with NCL leave because of similar rotations, I might have to reevaluate my preference for the brand.

 

 

Sent from my iPhone using Forums mobile app

[bragstarr]

Found out about Mr. Sheehan's resignation from a CC friend onboard who had been checking on CC and found out about it. We were all pretty surprised and joked that the signs in the Pub would be changed by the next day. Nothing was changed and nothing was said publicly (understandably) about the situation. Anyone I mentioned it to had no clue.

 

Our cruise on Breakaway was great. I will say that compared to Blue Lagoon being almost an afterthought, O'Sheehan's was huge and acted as a central gathering spot on the ship especially when NFL games were broadcast and for people to watch down below in the Atrium when events were going on. I think the pub idea was a great concept and hope it doesn't change.

 

It Will be interesting to see what comes on NCL. Breakaway is a great ship and although I saw a few things I would change for the most part things were well thought out. Also saw a lot less hard sell and a lot more things to do than on my last NCL cruise. I think things changed for the better and hope that continues.

[Jancruz]

I can't help but envision Kevin Sheehan and Del Rio at a NCLH Board Room meeting. hummm... KS comes up with some off-the-wall concept, which, when it was NCL, would be greeted with an exuberant brainstorming session on how to make it work. Now, though, Del Rio sits back and huffs, content with his hoity toidy Regent/Oceania stuff and is quite superior about it all. KS thinks, geez; I'm a multi-millionaire. This is not fun anymore. Why should I do this?

 

Don't know. Maybe this is not it at all, but I am very curious to see whether we ever get to see the snow room in the spa or will it just be the same old ho-hum wallet-robbing part of the ship that spas usually are. It will be interesting to see.

 

IMO, I can't imagine Del Rio coming up with any new innovative concepts, so I'm thinking the outside-the-box stuff will now be the exclusive purview of Royal Caribbean with their Bionic Bars, Vistorama complete with robo-screens etc.. And this is sort of sad as it seems NCL and RCCL were playing interesting ideas off of one another.

 

All I can say is you are very wrong!!

Jancruz1

[DaisyGoldberg]

I can't help but envision Kevin Sheehan and Del Rio at a NCLH Board Room meeting. hummm... KS comes up with some off-the-wall concept, which, when it was NCL, would be greeted with an exuberant brainstorming session on how to make it work. Now, though, Del Rio sits back and huffs, content with his hoity toidy Regent/Oceania stuff and is quite superior about it all. KS thinks, geez; I'm a multi-millionaire. This is not fun anymore. Why should I do this?

 

Sheehan may be a friendly, accessible, approachable guy, but you don't get his resume if you're the kind of guy who's going to turn tail and run because of a little corporate friction.

[Evangaline]

Sheehan may be a friendly, accessible, approachable guy, but you don't get his resume if you're the kind of guy who's going to turn and run because of a little corporate friction.

 

Ah maybe so, but they do seem to be very different personalities. In seriousness, I wonder if he will resurface somewhere in the cruise industry. His background before NCL was not in cruising which allowed him to have a fresh take on things. Maybe he will now go into a different field. Somehow I don't see him just retiring. He seems to have too much energy.

[LHT28]

Ah maybe so, but they do seem to be very different personalities.

 

They are probably more alike than you think ;)

[Uniall]

The word "shakeup" was not used in the press release, which can be found here:

 

http://www.nclhltdinvestor.com/releasedetail.cfm?ReleaseID=890535

 

It was used as the lead in the Miami Herald newspaper:

 

In a shakeup at Miami-based Norwegian Cruise Line Holdings, president and CEO Kevin Sheehan has abruptly resigned.

 

http://www.miamiherald.com/news/business/tourism-cruises/article5681874.html

[njhorseman]

It was used as the lead in the Miami Herald newspaper:

 

In a shakeup at Miami-based Norwegian Cruise Line Holdings, president and CEO Kevin Sheehan has abruptly resigned.

 

http://www.miamiherald.com/news/business/tourism-cruises/article5681874.html

 

A Miami Herald article is not a press release from NCLH. When the poster misidentified it as a press release they then drew the conclusion that something terrible must have happened for a press release to have contained the word "shakeup". They said "something is awry" .

Edited January 19, 2015 by njhorseman

[Uniall]

A Miami Herald article is not a press release from NCLH. When the poster misidentified it as a press release they then drew the conclusion that something terrible must have happened for a press release to have contained the word "shakeup". They said "something is awry" .

 

Please don't put words in my mouth.

I never claimed the wording came from an NCL press release.

In the interest of good fellowship and mutual respect, I was informing you that HappySailsToYou had correctly reported the quotation but incorrectly reported the source.

 

John

[hondorner]

The Miami Herald is out to sell newspapers. The use of the word "shakeup" is just an editor's way of attracting attention, and is most likely not an açcurate description of the situation.

[Uniall]

The Miami Herald is out to sell newspapers. The use of the word "shakeup" is just an editor's way of attracting attention, and is most likely not an açcurate description of the situation.

 

You're absolutely correct. The Miami Herald is out to sell newpapers.

 

And, if there was a palace coupe between Thanksgiving and New Years that led to the replacement of Kevin Sheehan by Frank DelRio, NCL wouldn't want dirty linen aired in public.

 

And, Kevin Sheehan wouldn't want to make waves so he would not have a problem collecting the $1.6 + million he's owed in back salary and bonuses.

 

And, Frank DelRio wouldn't want to take over the reins amid a firestorm of negative publicity.

 

The moral of the story is that EVERYONE has their own agenda that colors the way the facts are reported and/or distorted. That's human nature.

[Uniall]

A Miami Herald article is not a press release from NCLH. When the poster misidentified it as a press release they then drew the conclusion that something terrible must have happened for a press release to have contained the word "shakeup". They said "something is awry" .

 

The Miami Herald is out to sell newspapers. The use of the word "shakeup" is just an editor's way of attracting attention, and is most likely not an açcurate description of the situation.

 

NJ & Don

 

All of my training, experience and instincts honed over 40 years as a trial attorney helped me formulate my opinion that there was a palace coup between Thanksgiving and New Years Day which took advantage of Kevin Sheehan's absence while he was away on a well deserved vacation.

 

Nothing negative should be inferred about the efficacy of such a secret plot. It would simply be a fact of corporate life.

 

If anyone disagrees with my opinion, they are entitled to their own adverse opinion.

 

 

John

Edited January 19, 2015 by Uniall

[sjbdtz]

It was used as the lead in the Miami Herald newspaper:

 

In a shakeup at Miami-based Norwegian Cruise Line Holdings, president and CEO Kevin Sheehan has abruptly resigned.

 

http://www.miamiherald.com/news/business/tourism-cruises/article5681874.html

 

 

 

DelRio says "on the Norwegian side, there’s the promise and prospect that that product will improve tremendously to new levels.”

 

I'm quite happy with the product as-is, which is why I'm not an Oceania customer.

 

 

It also suggests for the first time that I've seen, that it might not have been an amicable split.

 

Wouldn't it be unusual for KS to get "a separation payment of $3.25 million" if the separation were his own idea....

 

 

 

.

[Uniall]

DelRio says "on the Norwegian side, there’s the promise and prospect that that product will improve tremendously to new levels.”

 

I'm quite happy with the product as-is, which is why I'm not an Oceania customer.

 

 

It also suggests for the first time that I've seen, that it might not have been an amicable split.

 

Wouldn't it be unusual for KS to get "a separation payment of $3.25 million" if the separation were his own idea....

 

 

 

.

 

Sounds about right and on target to me .............

[cliffd64]

DelRio says "on the Norwegian side, there’s the promise and prospect that that product will improve tremendously to new levels.”

 

I'm quite happy with the product as-is, which is why I'm not an Oceania customer.

 

 

It also suggests for the first time that I've seen, that it might not have been an amicable split.

 

Wouldn't it be unusual for KS to get "a separation payment of $3.25 million" if the separation were his own idea....

 

 

 

.

 

Doesn't seem unusual to me as those sort of things are negotiated into CEO contracts when they are hired. Most executive compensation has pre-negotiated exit terms.

 

Sometimes, CEO's are hired with the intention that they are there to achieve a certain task. Once they have achieved that task, they tend to move on to another company who needs the same task done. Some CEO's are merger and acquisition specialists. Some are cost management speciaists...

[njhorseman]

DelRio says "on the Norwegian side, there’s the promise and prospect that that product will improve tremendously to new levels.”

 

I'm quite happy with the product as-is, which is why I'm not an Oceania customer.

 

 

It also suggests for the first time that I've seen, that it might not have been an amicable split.

 

Wouldn't it be unusual for KS to get "a separation payment of $3.25 million" if the separation were his own idea....

 

 

 

.

 

It's not at all unusual that a CEO would have a separation payment as part of his employment contract.

 

The Miami Herald article also cites the same Wells Fargo analyst who had spoken to Del Rio and the CFO and concluded Sheehan's departure was due to personal circumstances. In my opinion I don't see anything in the Miami Herald article that would change that.

[Uniall]

It's not at all unusual that a CEO would have a separation payment as part of his employment contract.

 

The Miami Herald article also cites the same Wells Fargo analyst who had spoken to Del Rio and the CFO and concluded Sheehan's departure was due to personal circumstances. In my opinion I don't see anything in the Miami Herald article that would change that.

 

Lawyers who draft Separation Agreements usually and customarily include a "keep your mouth shut" clause that prevents the former employee from disclosing the reasons for leaving.

Edited January 19, 2015 by Uniall