NCLH Prioritizes Pricing Amid Q3 Booking Volatility

Norwegian Cruise Line Holdings (NCLH) is experiencing some fluctuations in bookings for its remaining third-quarter sailings, leading to challenges in achieving expected occupancy levels, according to President and CEO Harry Sommer during the company’s first-quarter earnings call.

Sommer emphasized that the company will maintain a focus on pricing over filling every cabin, pointing to broader economic uncertainty as a key factor behind the softer demand.

“We believe there is potential for upside if conditions improve. By protecting price, it allows us to garner higher yields on the remaining inventory,” Sommer stated.

He noted that the majority of the booking inconsistencies are tied to European cruises planned for the third quarter.

Despite these booking concerns, Sommer stressed that the company’s ongoing cost-reduction strategies would help offset any pressure on revenue.

The company has already identified over $300 million in cost-saving opportunities and is expediting certain efficiency measures.

“We remain focused on disciplined pricing, and cost control, and delivering an exceptional guest experience, all while managing the business for the long term,” he added.