Go-to-Market Bundling Paying Off for Norwegian

Free air promotions for Norwegian Cruise Line sailings in 2019 are part of the company’s extension of its go-to-market bundling strategy, according to Frank del Rio, president and CEO of Norwegian Cruise Line Holdings.

Del Rio said it was an extension of the brand’s Free at Sea offering, which allows guests to bundle in various offerings, from internet access to food and beverage and shore excursion packages.

“The advantages of this next evolution of our unique bundling strategy are many. First, it overcomes a major hurdle of what high yielding long-haul customers need and want, easy to book in affordable air transportation,” Del Rio said, on the company’s third-quarter earnings call. “The success of Free at Sea has demonstrated that there is overwhelming demand for an inclusive contemporary cruise product. Free Air is the natural extension of that strategy.”

He said that travel agents are further incentivized to sell Norwegian products, earning an additional commission on air-inclusive packages.

“The offerings strategically focus on capturing more long haul, fly-cruise guests, reinforcing our strategy of sourcing the highest quality guests as long-haul guests tend to be higher paying consumers both in ticket purchase and in onboard,” Del Rio added.

Andy Stuart, president and CEO of Norwegian Cruise Line, explained that the free air promotion for Norwegian Joy’s 2019 Alaska sailings drove bookings, and moved pricing up.

“Because what you get is you get some people who booked inclusive product and some people who buy cruise only,” Stuart said. “And the result of that mix is that you end up with a higher overall pricing outcome. So we’re very happy with it. We are in the early days of the initiative. It’s a 100per cent strategic initiative. Our goal here is to evolve the bundling strategy that has been so successful for us.”

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Hull Art Revealed for Norwegian Encore

Norwegian Encore

Hull art for Norwegian Encore (photo courtesy Norwegian Cruise Line)

Norwegian Cruise Line has revealed the hull artwork for Norwegian Encore. Award-winning Spanish artist Eduardo Arranz-Bravo has created the design for the ship, which debuts in Miami in November 2019.The artwork will feature colours inspired by the artist’s life by the sea in Barcelona.

“Norwegian Cruise Line is a dynamic, pioneering company known for its innovative experiences and breathtaking collection of beautifully designed ships,” said Arranz-Bravo. “I am honoured to not only bring that vibrancy to life even more on Norwegian Encore but also showcase my love for the ocean and my hometown of Barcelona.”

The president and chief executive officer of Norwegian Cruise Line Holdings, Frank Del Rio, has long admired the work of Arranz-Bravo.

“We are well-known for our iconic hull designs and know that Arranz-Bravo’s lively design will complement the colourful destinations in the Caribbean that Norwegian Encore will visit when she debuts next year,” said Del Rio.

Norwegian Cruise Line president and chief executive officer, Andy Stuart, similarly welcomed the artist’s contribution to the ship.

Norwegian Encore art rendering

Hull art for Norwegian Encore (photo courtesy Norwegian Cruise Line)

“Eduardo’s design will be a perfect complement to the collection of hull artwork within our fleet and is a testament to the dynamic experience our guests will have on board,” said Stuart. “We are proud to welcome him to our Norwegian Cruise Line family.”

The 4,000-passenger Norwegian Encore will complete the Breakaway-Plus class, the most successful class in the line’s history. The ship is under construction at Meyer Werft, in Papenburg, Germany. The ship will begin operations on November 17, 2019, cruising out of Miami to the Eastern Caribbean.

Norwegian Cruise Line Holdings confirms two more Leonardo-class ships

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Norwegian Cruise Line Holdings has confirmed options to build fifth and sixth Project Leonardo-class ships for Norwegian Cruise Line with Fincantieri.

Frank del Rio, NCLH’s president and chief executive officer, said the decision to build two more 3,300 passenger-capacity ships, due for delivery in 2026 and 2027, showed “strong growth trajectory”.

He said: “Our six-ship Leonardo Class fleet will allow us to broaden our deployment into strong performing and mature unserved and underserved markets and offer new experiences to our guests.”

In a statement, the company said the focus of the new ships’ design was energy efficiency and building a size of vessel that would encourage broad deployment opportunities.

Andy Stuart, NCL’s president and chief executive officer, said: “The highly-anticipated Leonardo Class will fuel future growth with exciting and innovative offerings that will meaningfully drive demand from new and loyal returning guests alike.”

With Thursday’s announcement, NCLH has seven ships on order for Norwegian Cruise Line and one for Regent Seven Seas Cruises for delivery through 2027.

The company will take delivery of its newest ship, Norwegian Encore, in autumn 2019.