Norwegian Cruise Line Holdings: Onboard Revenue Up 30%

Norwegian Dawn

“During the quarter, gross onboard revenue per Passenger Cruise Day was approximately 30 percent higher than the comparable 2019 period,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, speaking on the company’s second quarter earnings call.

Sommer said that onboard revenue was the company’s best real-time indicator of how consumers are feeling financially.

“In fact, presold revenue on a per passenger day basis for the second quarter of 2023 was over 75 percent higher than in 2019. An important contributor to our onboard revenue strength as these guests tend to spend more overall throughout their journey than guests who do not pre-book onboard activities,” Sommer said.

Is it a trend? Sommer said that every month continues to be good.

“We’re not seeing any weakness,” he said.

Mark Kempa, CFO, said that the company had more touch points with the consumer prior to the consumer getting on the ship.

“So we’re getting more share of the wallet from the consumer ahead of that. And I think one of our stats that we talked about, our prebooked revenue was up by almost 70 percent versus 2019. So again, it’s a longer elongated sales cycle that just helps build that overall onboard revenue product. We are not seeing any signs of any consumer deterioration. In fact, we continue to see strength on that and we’re very happy with that.”

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