All signs continue to point to a robust demand environment continuing into 2019 and beyond for Norwegian Cruise Line Holdings, according to Frank del Rio, president and CEO.
The company saw net income of $470 million in the third quarter of 2018, up from $401 million in the third quarter of 2017.
Net income per passenger day was $85.62, up from $79.01 a year prior.
He said that guests sailing aboard the company’s ships were generating levels of onboard revenue that are the highest ever seen, underscoring a confident consumer.
Also key is the company’s future onboard cruise sales program, in which guests buy their next cruise while onboard. Business is up 36 percent year-over-year.
“We were pleasantly surprised by the further acceleration of demand from North Americans wanting to cruise on Europe itineraries across our three brands. At the same time, the Norwegian brands innovative, premium, all inclusive products allowed us to attract a higher caliber European consumer at higher prices. That result is a second consecutive year of double-digit pricing growth for the all important Europe season,” del Rio said, on the company’s third quarter earnings call.
“The performance of our two upscale brands, Oceania Cruises and Regent Seven Seas Cruises is equally impressive. On our last call, you’ll recall we’ve mentioned that the two brands that already broached the 50 percent load factor mark for 2019.
“And while that strong booking trend continues to fill next year’s sailings at an unprecedented pace, it also led to record revenue and yield for the two brands in the third quarter, along with a record number of past guests traveling onboard through 10-ship fleet,” he added.
Del Rio said the booking window continues to hold at a historic curve, and the company expects to enter 2019 in a record booked position at higher prices.
Booking volumes and prices continue to accelerate, he said.
“Overall, our 2019 books position remains well ahead of this year’s record levels in occupancy and pricing across all three brands with advanced ticket sales up 24 percent year-over-year on an 8 percent increase in capacity,” del Rio added.
