NCLH Won’t Use Low Pricing to Drive Demand

Norwegian Sky

Norwegian Cruise Line Holdings (NCLH) President and CEO Frank Del Rio said he expects to see competitive pressure and pricing deterioration in the short term in the cruise industry due to the coronavirus outbreak having an impact on cruise bookings.

One thing he won’t do, however, is to compete for cruise bookings on price alone.

“I will tell you that we’re not going to allow what we believe is a temporary situation to derail us from our long-term proven go-to-market strategy of focusing on value to consumers over using low price as a lever to stimulate demand,” said Del Rio, speaking on the company’s year-end and fourth quarter earnings call.

NCLH oversees the Norwegian, Oceania and Regent brands.

“Having said that, given what we’re seeing in Q2 primarily, and what our competitors – how our competitors are reacting you’re going to see pricing action across the spectrum, we need to stay competitive,” Del Rio continued. “But we will not do it in a way in which we believe will hurt the long-term brand equity and our long-term desires to increase pricing year-over-year.”

Del Rio said the company would respond, but will operate in a way where price is not the main driver.

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