Norwegian Cruise Line Holdings said its booked position for the first half of 2027 remains behind last year, but the company expects a new base loading strategy to start paying off in the back half of the year.
“2027 is a tale of two halves,” said John Chidsey, CEO of Norwegian Cruise Line Holdings, on the company’s third quarter earnings call on Oct. 29.
For the first half, bookings trail the same point last year, although at higher pricing. The company does not expect its marketing and revenue management initiatives to meaningfully help that period, given the natural shape of the booking curve.
For the second half, the booked position is in line with last year, also at higher pricing.
Chidsey said the company was ahead on pricing in every quarter of 2027. Norwegian Cruise Line Holdings expects full-year 2027 net yield growth of 1 to 2 percent, with a meaningful acceleration in the second half.
The company has rolled out a new revenue management system and a base loading strategy across the majority of Norwegian Cruise Line’s second-half 2027 sailings and all 2028 sailings.
Chidsey explained that the strategy could not reach the first half of 2027 because much of that inventory was already booked. He said the approach brings Norwegian more in line with the rest of the industry and is applied itinerary by itinerary.
Analysts questioned why the second half was only in line with last year if base loading was working.
“It’s early days, but given that we’re ahead on pricing and we’re where we were last year, that’s a great sign,” Chidsey said.
Mark Kempa, executive vice president and CFO, noted that the strategy had been in place for only 60 to 90 days.
“That’s not going to turn into instant mashed potatoes,” Kempa said.
The goal is to give guests confidence in the price they pay up front, which should bring in some incremental demand while pulling other bookings earlier.
Kempa said earlier bookings should also produce stickier customers, reducing churn ahead of final payment and lowering acquisition costs and promotional spending.
