Norwegian CEO: $300M Savings Won’t Compromise Guests

Norwegian Cruise Line Holdings is on track to save over $200 million by the end of the year, with a strong expectation of surpassing $300 million in cost reductions by 2026, according to CEO Harry Sommer.

Speaking during the company’s second-quarter earnings call, Sommer emphasized that these savings are being achieved through smarter purchasing, increased scale, and operational efficiencies—without negatively affecting the guest experience.

“But I want to be clear, the cost savings come off initiatives focused on better purchasing, economies of scale and more efficiencies, all with an eye to always be improving the guest experience,” Sommer stated. He further noted that the savings have enabled the company to reinvest in onboard experiences, particularly by upgrading culinary offerings across all 34 ships in the fleet.

CFO Mark Kempa reinforced the message, highlighting that guest satisfaction remains high. “All of our guest satisfaction scores continue to be up,” he said, noting the company’s strategic and disciplined approach to cost control. He added that although the initiative was initially designed as a three-year plan, cost-efficiency efforts would continue beyond 2026.

Sommer also addressed any public perception that the company might be cutting corners. “It is the furthest thing from the truth,” he said. “We look at every single expense if we believe it will even modestly decline the guest experience, we just simply won’t do it.”