Norwegian Cruise Line reported its booking numbers as they closed the 2020 financial year, and the numbers as they stand so far are below the company’s historical numbers.
Norwegian Cruise Line Holdings operates three separate cruise lines, Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas. Until May 31, 2020, all voyages have been canceled while uncertainty remains on what will happen after that.
Is 2021 A Lost Year?
The question that many investors will start asking is whether 2021 can already be considered to be a lost year. While the waiting game continues, all eyes are towards the CDC and the technical directives the organization is to deliver.
The CDC’s uncertainty, the developing situation around the pandemic, the rollout of the vaccine, which is delayed in many countries, and a general unwillingness to commit from consumers means bookings are well below historical numbers compared to previous years.
Of course, lower sales come from many different factors, ships not sailing full, and very little marketing effort by the cruise lines certainly contribute. Does this mean that there is no hope at all for Norwegian Cruise Line Holdings? Certainly not; if we look further in the future, it seems there is a light at the end of the tunnel.
Is 2022 The Year Everything Will Return to Normal?
While consumers seem to be unwilling to commit to any cruises this year, at least not in the numbers previously experienced by the cruise lines, the story is entirely different for the years following 2021.
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Although it is still very early into the booking stage for cruises, numbers for 2022 seem to be full of consumer confidence. While many believe 2021 will be a year full of challenges that will need to be addressed, the expectations seem to be that 2022 is the year that cruising will be back as usual.
Norwegian reports it sees intense future demands across all brands, with booking across all brands for the first half of 2022 to be ahead of the record-breaking year 2019.
Even when the cruise company takes out the future cruise credits that it has had to issue due to the pandemic, the overall picture remains positive.
Ship Building Continues
There is something to be said about the bookings looking strong for the future as the company is looking to release several new vessels in the upcoming years.
In 2022 and 2023, Norwegian Cruise Line will be taking delivery of two $850 million, 140,000 gross tons, and 3,300 passenger vessels. The Leonardo class ships will be built for Norwegian by Italian shipbuilder Fincantieri. Norwegian Cruise Line has, in fact, seven ships on order until 2027.
Regent Seven Seas will also be taking delivery of a new vessel, a $545 million, 54,000 gross ton, 750 passenger ship. The $1 million per 1,000 gross ton vessel will be the sister ship to Seven Seas Explorer, famous for starring on the UK tv show ‘The Most Expensive Cruise Ship.’
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