NCL has big revenue dreams - Bloomberg

[WildcatRock]

This article explains the NCL higher cruise prices.

 

http://www.bloomberg.com/news/articles/2015-11-03/norwegian-has-big-revenue-dreams-but-first-is-that-ship-a-little-ugly-

 

Hi David - thanks for posting this link. I appreciate reading these articles to stay informed on Del Rio's plans for the new NCL. We've been cruising on NCL since 2009 and the product is definitely changing. However, we plan on continuing to cruise on NCL regardless.

[jmele999]

According to the story, NCL plans to "put eight Norwegian ships into dry dock next year and a half dozen more in 2017". Does NCL really have 14 ships that will be going into dry dock?

[NLH Arizona]

 

I totally agree. I loved NCL, and then for reasons I'm going to get into, cruised on Allure of the Seas 2 weeks ago. Ever since Del Rio arrived, my opinion of NCL has decreased. I was prepared to Love Royal Carribean and make the switch-I had very open eyes when I boarded Allure.....We disliked it so much-said we would never cruise with RCCL again. So, now I'm back reading NCLs threads and I don't like what I'm seeing. I think maybe we will try Princess -friends of ours love their line. But I'm really sad, bc my sentimental heart has very found memories with NCL.

What didn't you like on Royal Caribbean and how did it compare with NCL. I haven't been on Royal Caribbean since my first ever cruise, so I would be interested in how they compare.

[MrJoeBlack]

“At the end of the day, the consumer is not stupid,” Del Rio said...It's part of Norwegian’s goal of charging higher fares for its cruises, boosting cruisers’ onboard spending, and driving revenue to $5 billion annually and earnings to $5 per share in 2017.

 

I am sure he thinks that I am stupid. If he thinks that cleanliness, plates, knives and forks are enough to make up for higher fares, higher fees and decreased benefits he is wrong. At least in my case. Every time he opens his yap I like NCL less. And to me that is sad, because I used to love it. I miss Kevin.

 

The revenues have increased, but whether those increases are sustainable with more cabins to fill and less value for the consumer remains to be seen. I know I am not the only loyal customer looking elsewhere.

 

 

If you ask posters like maywell you and I are the only people looking else where, I do not see this current business model holding steady for NCL, it has got new people in the door now but time will tell how many repeat the Experience. I too was a Sheehan Sheep, by that I mean I would follow his direction of the line faithfully without question, because he had a transparency about him that made you feel valued, not just a piggybank to squeeze. This article has repeated my very own thoughts on next quarter glad to see I'm not crazy, even if I was branded a complainer here by some. Happy cruising all no matter what boat you're on.

[remharri]

What didn't you like on Royal Caribbean and how did it compare with NCL. I haven't been on Royal Caribbean since my first ever cruise, so I would be interested in how they compare.

 

I've only done 1 NCL cruise and do have another one booked. I've cruised a lot on Carnival and 3 times on RCCL just as recent as last year. I'm not sure what isn't to love about RCCL, their ships are BEAUTIFUL. The Allure IMO is 10x more better than the Epic (my only NCL cruise). The food in the specialty restaurants are similar to the specialty restaurants on NCL, again, my opinion. I enjoyed the buffet more on RCCL vs. NCL and I can't compare the dining room as I never ate in the dining room on NCL.

 

I will say, I don't feel as nickle and dimed on RCCL. I really want to check out the Escape but may be making the switch to the Anthem just because I'm not liking this new dining stuff on NCL. I'm going to wait until some feedback though until I make my decision.

[NLH Arizona]

I've only done 1 NCL cruise and do have another one booked. I've cruised a lot on Carnival and 3 times on RCCL just as recent as last year. I'm not sure what isn't to love about RCCL, their ships are BEAUTIFUL. The Allure IMO is 10x more better than the Epic (my only NCL cruise). The food in the specialty restaurants are similar to the specialty restaurants on NCL, again, my opinion. I enjoyed the buffet more on RCCL vs. NCL and I can't compare the dining room as I never ate in the dining room on NCL.

 

I will say, I don't feel as nickle and dimed on RCCL. I really want to check out the Escape but may be making the switch to the Anthem just because I'm not liking this new dining stuff on NCL. I'm going to wait until some feedback though until I make my decision.

I don't know what's not to like about Royal Caribbean, that is why I ask the poster to tell me. You might love Royal Caribbean, but others might have a different experience, just as those on NCL have good experiences and bad experiences; everyone has different expectations.

[fshagan]

 

I totally agree. I loved NCL, and then for reasons I'm going to get into, cruised on Allure of the Seas 2 weeks ago. Ever since Del Rio arrived, my opinion of NCL has decreased. I was prepared to Love Royal Carribean and make the switch-I had very open eyes when I boarded Allure.....We disliked it so much-said we would never cruise with RCCL again. So, now I'm back reading NCLs threads and I don't like what I'm seeing. I think maybe we will try Princess -friends of ours love their line. But I'm really sad, bc my sentimental heart has very found memories with NCL.

 

Well, we just got off the Gem a few weeks ago, and didn't notice any difference at all in our cruise experience when compared to prior NCL cruises. We still loved it. It was one of our best cruises for a number of reasons, but to be honest the NCL product a few weeks ago was virtually indistinguishable from our prior cruises.

 

I think the key in your statement is the same thing I had trouble with, "... reading NCL threads and I don't like what I'm seeing." I had fears that NCL had changed with all the negativity expressed here. So keep an open mind and see what your next NCL cruise is like, and then report back to us. If you're like us, you will still love the cruise and won't find the many changes to impact your time very much at all.

[fshagan]

According to the story, NCL plans to "put eight Norwegian ships into dry dock next year and a half dozen more in 2017". Does NCL really have 14 ships that will be going into dry dock?

 

The article later mentions ships from Oceania and Regent as well. So I think the total number that del Rio was talking about was all of NCLH ships, not just the NCL ships.

[TraJon9]

I liked the part where it said 'the consumer has choices'.

 

Very true. I was absolutely disappointed on my Breakaway cruise & the Haven experience. I felt I paid for for an experience I didn't receive. (yes -before anyone asks, I did complain. Nothing changed. Let's leave it at that please)

 

Now I'm looking into all inclusive resorts & the RCI Anthem of the seas.

 

This consumer is looking into choices other than NCL.

 

Thank you OP for posting the article -I didn't see this one before.

 

I have been reading up on the Anthem because it is so close to me but so far it us getting horrible reviews.. I am going to wait to see how the reviews go once in the states..

[MrJoeBlack]

The article later mentions ships from Oceania and Regent as well. So I think the total number that del Rio was talking about was all of NCLH ships, not just the NCL ships.

 

 

Doesn't it say excluding?

Edited November 4, 2015 by MrJoeBlack

[Hendricks Clan]

Without commenting on all the segments of these string of comments, I will say, based on what you are saying, you should not stay with NCL.

The puzzle for me is the posters that comment on how much better some of the other lines are, or the fact that they are now a better value, why not take them for a couple of cruises and then let us know how much better it really is. Without trotting out the old tired cliches about going to another line. How about some of the many that for the last 10 months or so continually comment that they are leaving or are cancelling, I really wish a few would actually do it and then report after taking a couple of cruises. I really would like to know if the grass is really greener on the other side! As a curiosity, I just did a mock booking on Carnival for a suite during the same week as my current NCL cruise. It is about $1K more expensive than NCL and there suite life does not even come close. MSC was over $2K more expensive. I'm not sure what the answer is. But I'd love to hear from a few that actually go to the other lines.

 

My experience has been the exact opposite. CCL has been much cheaper, as is MSC. My upcoming cruise on MSC Divina in the MSC Yacht Club was several hundred per person cheaper than a standard balcony on NCL.

[mianmike]

According to the story, NCL plans to "put eight Norwegian ships into dry dock next year and a half dozen more in 2017". Does NCL really have 14 ships that will be going into dry dock?

 

Here's what Jack Del Rio said at the conference call:

 

Frank J. Del Rio - President & Chief Executive Officer

 

"I think you need to look at it over a two-year program. We dry-docked Epic and Gem, and those were extensive dry-docks in Q3, Q4 this year. As Wendy mentioned, we have eight dry-docks next year, two with the Regent brand, one at the Oceania brand, five at the Norwegian brand. And I think – I know that it will – that kind of dry-dock heavy schedule will now continue into 2017. I believe that by 2017 every one of Norwegian's ships except the brand new ones will have been dry-docked except for one vessel. So that gives us a very unique opportunity to upgrade the fleet over a short, concentrated time so that the whole brand gets elevated in terms of product delivery and allows us to continue to raise prices more so than if you hadn't done these things."

[perditax]

I guess "continue to raise prices more" is pretty much the key phrase.

[luvtheships]

Thanks for posting this. I read here that some did not believe the USA article because of the miss date of the Gem drydock. I would think Bloomberg has more credibility. It's great they are investing in the ships however the article just talks about cruise prices. As we all know there have also been a increase in fees ect. I also believe this a la cart dinning that's comming is to make more money. FDR says consumers are not stupid, well bringing the ships up to standards is expected. I do not go on a trip and expect to be on a dirty, run down ship. I expect to be on a clean, modern, well maintained ship. My question to FDR is if I am paying more in fares, more fees, more items that are now not included, what's in it for me? Why should I stay with NCL?

 

Sent from my SM-T320 using Forums mobile app

 

 

It wasn't the missed date that bothered me with the USA article....as we all know that gem is currently in dry dock now.....

 

It was the poor journalism and lack of editing on the part of USA today

 

How difficult would it have been for them to say will emerge in November rather than has already emerged?

 

It just shows me news articles can be and are incorrect at times....but this should surprise no one anyway

 

As for the actual dry dock yes I'm skeptical as to the improvements especially on gem....just how will they be able to overhaul the garish atrium? Please please get rid of the purple and red velour couches. Lol

 

Guess I'll see in January

 

Hoping for the best but expecting to see the minimum.

[luvtheships]

Without commenting on all the segments of these string of comments, I will say, based on what you are saying, you should not stay with NCL.

 

The puzzle for me is the posters that comment on how much better some of the other lines are, or the fact that they are now a better value, why not take them for a couple of cruises and then let us know how much better it really is. Without trotting out the old tired cliches about going to another line. How about some of the many that for the last 10 months or so continually comment that they are leaving or are cancelling, I really wish a few would actually do it and then report after taking a couple of cruises. I really would like to know if the grass is really greener on the other side! As a curiosity, I just did a mock booking on Carnival for a suite during the same week as my current NCL cruise. It is about $1K more expensive than NCL and there suite life does not even come close. MSC was over $2K more expensive. I'm not sure what the answer is. But I'd love to hear from a few that actually go to the other lines.

 

 

Actually a mock booking today on ccl at today's rates can't really compare with the actual rate you booked your Ncl cruise at....most likely months ago I would think

 

For the numbers to clearly reflect what you want to compare you would need the ccl rate in effect at the time you booked your Ncl cruise

[Golfin55]

Best quote from the article: "“At the end of the day, the consumer is not stupid,” Del Rio said on Tuesday during a quarterly call with analysts. “The consumer has choices. And we think the [return] on these kinds of investments outpaces the [return] and the payback of new vessels.”"

 

I wonder it that will placate many posters that say Del Rio doesn't "get it"?

 

 

For some strange reason FDR has been arrested, tried and convicted by many of those on this board. In his short history with NCL, he has undone many of the rookie mistakes his predecessor KS made in his years with NCL.

 

FDR, has the same mind set the Arison's had when they reinvented the cruise industry in the 70's. Mr. Sheehan lacked the vision needed to run the company past his legacy of the new builds.

 

FDR however, seems to be a seasoned leader who knows and understands the value of not just building bigger and better, but looking back and re investing in the existing fleet. A complete 180 from KS.

[sparks1093]

I guess "continue to raise prices more" is pretty much the key phrase.

 

I agree, that was the phrase that jumped off the page. But it does stand to reason that prices will continue to rise since Del Rio's end vision for NCL is to make it a gateway line for Oceania.

[sparks1093]

For some strange reason FDR has been arrested, tried and convicted by many of those on this board. In his short history with NCL, he has undone many of the rookie mistakes his predecessor KS made in his years with NCL.

 

FDR, has the same mind set the Arison's had when they reinvented the cruise industry in the 70's. Mr. Sheehan lacked the vision needed to run the company past his legacy of the new builds.

 

FDR however, seems to be a seasoned leader who knows and understands the value of not just building bigger and better, but looking back and re investing in the existing fleet. A complete 180 from KS.

 

Del Rio is taking a cruise line that many have loved and transforming it into a completely different animal. It is what it is (in other words business is business), but for me it reduces my realistic choice of cruise lines to choose from. I will miss the old NCL.

[legion3]

Actually a mock booking today on ccl at today's rates can't really compare with the actual rate you booked your Ncl cruise at....most likely months ago I would think

 

For the numbers to clearly reflect what you want to compare you would need the ccl rate in effect at the time you booked your Ncl cruise

 

Currently an inside on the Escape is more than a spa balcony cabin on CCL Magic (the comparable ships in the same general market FL-Caribbean)

 

It was not when we booked, the CCL Spa Cabin was more, way way more, it was comparable in price to an M6 mini-suite in cost.

 

I cannot say every NCL cruise has I know has gone up in price, and I know many things can impact this, but the only factor important to me is these are cruise we might do, the others not at all.

 

So when I see a minisuite is now $1800 more than we paid, I know we will not book at this rate.

Edited November 4, 2015 by legion3

[newmexicoNita]

I am not upset, I enjoyed my past cruises on NCL, I just don't look forward to all the changes. I hope you have a great cruise.

 

I would say I agree with you and I do in some ways, but I also, after cruising the Jewel a few weeks ago realize most of these changes have not really affected people to the degree they are unhappy and like, all the changes the airlines have made, we all adjust. Look back, over the years, remember how people felt about cruise changes, and then look how it really ddn't affect anyone all the much. As for the ships going into dry dock: on our Jewel cruise our last day we had a meeting with some of the top officers; it was very informative. We learned all ships are required to go into dry dock at least every five years. I wonder how of those scheduled for dry dock are actually due for it?

 

 

thiswillbefunnj: you were disappointed in the Haven experience? wow I don't think I have heard many, if anyone say that. I wonder what disappointed you?

Edited November 4, 2015 by newmexicoNita

[perditax]

Re: Haven ... I've seen so many negative reviews/posts of Haven on Breakaway in the last few weeks there is zero chance I'll be trying it anytime soon.

[david_sobe]

I am only a few points away from platinum with NCL. I would love to book a cruise but the prices are out of this world. Cruising with NCL was extremely great value. But with the current prices, I just don't see the value. NCL got lots of business from cruisers who would not pay RCCL's high prices for their mega ships Allure and Oasis. Now many NCL cruises are higher than RCCL. In 2016 the Sky's prices have went up 50%. When I mock book a balcony cabin on Escape and add in what I normally spend on board the value is not there anymore. I could book an oceanfront resort on St John including airfare for the same price.

I predict one year from now the prices will come down. My NCL PCC told me the Sky all inclusive may change back. Its a test market. I am betting consumers shop around and discover all these "free" promos are not really free. I also predict cruising consumers will not like to see upcharge on MDR menus for items that were standards on all cruise lines. NCL may get lots of scorn from veteran cruisers. However, I could be totally wrong. In January 2017 Del Rio could be telling everyone "I told you so" and NCL bookings are strong and revenue increases are through the roof.

Edited November 4, 2015 by david_sobe

[sparks1093]

I am only a few points away from platinum with NCL. I would love to book a cruise but the prices are out of this world. Cruising with NCL was extremely great value. But with the current prices, I just don't see the value. NCL got lots of business from cruisers who would not pay RCCL's high prices for their mega ships Allure and Oasis. Now many NCL cruises are higher than RCCL. In 2016 the Sky's prices have went up 50%. When I mock book a balcony cabin on Escape and add in what I normally spend on board the value is not there anymore. I could book an oceanfront resort on St John including airfare for the same price.

I predict one year from now the prices will come down. My NCL PCC told me the Sky all inclusive may change back. Its a test market. I am betting consumers shop around and discover all these "free" promos are not really free. I also predict cruising consumers will not like to see upcharge on MDR menus for items that were standards on all cruise lines. NCL may get lots of scorn from veteran cruisers. However, I could be totally wrong. In January 2017 Del Rio could be telling everyone "I told you so" and NCL bookings are strong and revenue increases are through the roof.

 

If Del Rio's vision is successful then my guess is that it will be with a new demographic. (And from what I saw on NCL's site the other day it looks like the Sky test has been made permanent, or at least that is what the wording suggested anyway.)

[newmexicoNita]

I am only a few points away from platinum with NCL. I would love to book a cruise but the prices are out of this world. Cruising with NCL was extremely great value. But with the current prices, I just don't see the value. NCL got lots of business from cruisers who would not pay RCCL's high prices for their mega ships Allure and Oasis. Now many NCL cruises are higher than RCCL. In 2016 the Sky's prices have went up 50%. When I mock book a balcony cabin on Escape and add in what I normally spend on board the value is not there anymore. I could book an oceanfront resort on St John including airfare for the same price.

I predict one year from now the prices will come down. My NCL PCC told me the Sky all inclusive may change back. Its a test market. I am betting consumers shop around and discover all these "free" promos are not really free. I also predict cruising consumers will not like to see upcharge on MDR menus for items that were standards on all cruise lines. However, I could be totally wrong. In January 2017 Del Rio could be telling everyone "I told you so" and NCL bookings are strong and revenue increases are through the roof.

 

I think it is still a wait and see game: as for prices: I have done 2 mock bookings on RCI recently just to try and compare: they have been a similar class to what we are sailing on NCL and a similar itinerary and dates: we have found the prices almost identical or NCL being slightly less, with better promos. I can't agree with your saying NCL is out of line or over the top on pricing. As for the Sky, regardless of their prices they are still a good deal for those who want a short get away. I can believe the AI might go back. Short time cruisies are notorious for being party cruises and open up the bars for unlimited drinks: OMG

[newmexicoNita]

Re: Haven ... I've seen so many negative reviews/posts of Haven on Breakaway in the last few weeks there is zero chance I'll be trying it anytime soon.

 

I can't afford the Havens but we do have 2 friends, that have stayed in them, plus our daughter and granddaughter, not on the Breakaway, all have done nothing but priase the experience. You can't take one ship and generalize the experience will be the same on all the other ones.