Norwegian Cruise Line Raises Onboard Prices and Posts Strong Onboard Revenue Numbers
Aug 10, 2022
Onboard revenue is seen as a real-time now indicator of how guests are feeling about their financial situation right now and while onboard company ships, according to Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings.
"Onboard revenue generation has continued to be impressive, even as we continue to ramp up occupancy carrying more guests across all ships and cabin classes. In the second quarter, onboard revenue per passenger cruise day was approximately 30 percent higher than during the comparable 2019 period," he said, on the company's second quarter earnings call.
Mark Kempa, CFO, added that the company had raised prices for "all of our offerings" onboard the ships.
"We've gotten smarter in the pre-marketing of our products, creating that sense of urgency before the consumer steps onboard," he said. "Those consumers who have a stronger propensity for presales, they also spend more, about 30% or 40% more once they're on board. So, it's a combination of all those. But the numbers are strong. We're seeing a strong consumer today, spending today's dollars. And we feel that bodes well for ourselves and the industry."
Del Rio said that pre-cruise revenue was up 50 percent compared to 2019 levels.
"We continue to focus on enhancing our market-leading bundled offerings and increasing quality touch points with our guests starting from the time of booking to capture even more revenue pre-cruise, allowing guests to arrive on board with an ever fresher wallet, which ultimately results in higher overall spend. In fact, our pre-cruise revenue on a per passenger day basis for second quarter '22 is up over 50% versus 2019 levels. At a high level, guests who make pre-cruise purchases tend to spend approximately double that of guests who do not pre-book onboard activities," he said.
