Skift Take
Norwegian Cruise Line's story is essentially "everything is great and we're being careful to keep it that way for as long as possible."
Norwegian Cruise Line is witnessing resilient demand from vacationers across all markets and among both mass-market and luxury travelers — defying concerns about potential softness in leisure travel spending.
"We are on track to end 2024 on an exceptionally strong note, marking our best year as a company since we returned to operations [after the pandemic]," said CEO Harry Sommer during an earnings call on Thursday.
"It's hard to see any cracks," Sommer said.
The company's key metrics are essentially (1) how much it can charge for the rooms, (2) how full the ships are, and (3) how much extra stuff people buy onboard. Norwegian Cruise Line is doing well on all three.
Pricing PowerThe cruise operator reports strength worldwide for advance bookings extending into 2025 across all its brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas.
In the third quarter, pricing was up 7% year-over-year – a big change from the start of the year when executives forecast that pricing would be flat.
For the fourth qu