With what he referred to as a comparatively small sized fleet of 29 ships, Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings, defined he was assured the corporate can soak up its incoming capability development.
That features 5 extra Prima class ships for Norwegian Cruise Line, one newbuild for Regent Seven Seas Cruises and two new vessels for Oceania Cruises.
“Not solely do we’ve got many unserved and underserved markets world wide, however we additionally proceed to imagine that the cruise trade at massive is vastly underpenetrated, particularly when measured in opposition to different land-based trip options,” Del Rio stated, talking on the corporate’s third quarter earnings name.
“Simply within the U.S., there are cities within the U.S. which can be traditionally very robust supply markets that we do not have a vessel, both seasonally or year-round. And we predict that with new vessels coming on-line, we’ll be capable of try this,” he defined, noting itineraries have been the primary driver of yields.
“Alaska, the place we have made large investments in land-based infrastructures and ports, continues to be underpenetrated. The Norwegian model, for instance, solely has 4 vessels there. Oceania and Regent solely have one every. Our opponents have multiples of that. And the rationale for that’s, is that we must be in different places.
“So we see Alaska and we see Europe as development markets. We imagine South America is turning into very, very fascinating, as there’s larger demand for South American ports,” he continued. “Asia has taken a backseat over the past couple of years due to the COVID state of affairs there. However I obtained to let you know, Japan is pink sizzling for us. Australia is pink sizzling. And so I am enthusiastic about the potential of going to new locations with new ships and persevering with to only feed the beast of high-yielding itineraries.”
