The second quarter of 2024 saw continued strength in onboard revenue for Norwegian Cruise Line Holdings, according to CEO Harry Sommer, speaking on the company’s second quarter earnings call.
“During the second quarter, we observed continued strength in onboard revenue as well, which was driven by our guests’ continued enjoyment of our shore excursion and onboard amenities, including specialty restaurants and communication services, which had been bolstered by the continued implementation of Starlink across the fleet,” Sommer said.
He also pointed to pre-booked onboard revenue, which is made up of guests making pre-cruise purchases. Sommer said pre-booked onboard revenue was up 15 percent for the quarter.
“And as we’ve seen from prior experience, higher pre-cruise spend typically results in higher overall spend throughout a guest’s cruise journey.”
And despite talk of potential headwinds in the leisure space, Sommer said there was no decrease in onboard spend.
“So the short answer is no. We are seeing no absolutely decrease in onboard spend,” he said.
“And also the fact that because our bookings pattern is so much further in advance, we have lots of opportunities to engage with our consumer and discuss with them all the value of being on our ship …. so overall, the short answer is no cracks, no deterioration. If anything, it continues to be strong and more long-term, I think there are fundamental things that work in our favor that make our business quite a bit more resilient than the hotel on the ancillary/onboard spend category.”