Norwegian Cruise Line Holdings (NCLH) generated a record $2.5 billion in total revenue during the third quarter of 2023, driven by an uptick in consumer demand and higher prices.
According to a recent trading update covering the three months to 30 September 2023, NCLH, which owns Norwegian Cruise Line (NCL), Oceania Cruises and Regent Seven Seas Cruises, saw total revenue jump 33% year-on-year.
The company said this was driven by “healthy” consumer demand with bookings for the fourth quarter of 2023 ahead of 2019 levels at higher prices.
Onboard revenue generation remains robust for the brand and its advance ticket sales was $3.1 billion, approximately 59% higher than the third quarter of 2019.
NCLH recovering from ‘operational headwinds’
During the third quarter and into the fourth quarter, NCLH said it experienced operational impacts from global events including the wildfires in Maui and the escalating conflict in Israel.
As a result, the organisation has cancelled and redirected all calls to Israel and certain calls to the surrounding region for the remainder of 2023.
The company is also in the process of cancelling all calls to Israel in 2024 as well, and will continue to closely monitor and evaluate future sailings and adjust as needed. Prior to the conflict, approximately 7% of capacity in the fourth quarter of 2023 and 4% of capacity for the full year 2024 visited the Middle East.
Occupancy averaged 106.1% for the third quarter of 2023, reflective of NCLH’s strategic shift to longer, more immersive itineraries. Full year 2023 occupancy is expected to average 102.6%, which is slightly lower than prior guidance due to temporary disruptions impacting the fourth quarter.
‘We remain encouraged by strong forward bookings’, says NCLH boss
“We achieved strong third quarter results, meeting or beating guidance on all key metrics, driven not only by healthy demand from our target upmarket consumer, but also as our ongoing margin enhancement initiative, including relentless efforts to rightsize our cost base, continues to bear fruit,” said NCLH president and CEO Harry Sommer.
“Looking ahead, while we are prudently moderating short term expectations and keeping a close eye on rapidly evolving global macroeconomic and geopolitical events, we remain encouraged by our strong forward booked position and robust pricing and are focused on sustaining this momentum as we close out 2023.”
It comes after NCL last month announced plans to introduce more than 1,000 dedicated solo staterooms across its 19-ship fleet.