Norwegian Cruise Line Wins Key Juneau Property Bid

Norwegian Bliss

According to media reports in Alaska, Norwegian Cruise Line Holdings was the winning bidder for the “Subport” property in Juneau Alaska, located on Egan Drive on the waterfront.

Norwegian was said to be the highest bidder, offering $20 million over Royal Caribbean’s $13 million. Other bids included Godspeed Inc. at $12,8 million, Survey Point Holdings Inc. at $5.255 million and the City of Juneau at $4.25 million.

“I think it’s fair to say that that’s a fairly shocking bid,” said Juneau City Manager Rorie Watt, via KTOO Media. “I don’t know that I’ve ever seen a property sell for six times the appraised value.”

The piece of property is 2.9 acres and will allow its owner to help expand Juneau’s tourism area and take pressures off the downtown on busy cruise days.

According to KINY Radio, the property is not zoned for a cruise ship dock.

Norwegian has a 15-day window to submit a deposit and complete the purchase agreement.

Of note, Norwegian increased its Alaska capacity some 15 per cent in 2018 with the new Norwegian Bliss, while ticket pricing increased 25 per cent. This summer capacity is up again as the Joy has moved into the market and has been a strong performer.

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Norwegian Joy’s Onboard Revenue More Than Doubles in Alaska

Norwegian Joy’s Onboard Revenue More Than Doubles in Alaska

Norwegian Joy in Seattle

The decision to move the Norwegian Joy from China to the North American market has been successful for Norwegian Cruise Line.

“The redeployment of Norwegian Joy to Alaska resulted to a profound improvement to her profitability, especially in the top line driven by more than doubling of her onboard revenue generation,” said Frank Del Rio, president and CEO, on the Norwegian Cruise Line Holdings’ second-quarter earnings call.

The decision to pull the ship from China came in 2018, as part of the company’s strategic itinerary optimization initiative which also included its entry into new European homeports.

The North American launch of Norwegian Joy generated over $2.5 billion media impressions and further elevated Norwegian Cruise Line’s already the preeminent position in the all-important growing and high-yielding Alaska market, Del Rio said.

“We are extremely pleased to not only see her garnering the high pricing she rightfully deserves but also to see her deliver a customer experience that ranks her first in guest satisfaction for the Norwegian brand, driven by the high-tech and industry-first innovation onboard.”

Next year is shaping up to be even stronger for Joy in North America.

“And I may add that we won’t have the challenges of selling Joy, a very large ship, in a very abbreviated eight-, or nine-month booking cycle like we did this year when we announced her departure from China,” Del Rio explained.”We have a regular (18- to 24-month) booking cycle in front of us.”

According to Andy Stuart, president and CEO of Norwegian Cruise Line, Joy is ahead in the pricing of the vessel she replaced in the Alaska market.

Bullish on Alaska, the growth will grow with the Norwegian Sun joining the market in 2020, sailing seven- to 15-day cruises from Seattle.

“We believe the Norwegian Sun Alaska deployment will generate yield that will approach, if not be equal to what she was commanding in her Cuba deployment led by strong onboard spending,” Del Rio said.

Norwegian Cruise Line Enhances Award-Winning Entertainment Program With SIX: The Musical

SIX with Norwegian Cruise Line
See the British pop musical SIX on the Norwegian Bliss, Norwegian Breakaway or Norwegian Getaway. (photo via Norwegian Cruise Line)