NEWS FACE TO FACE
FRANK DEL RIO
Norwegian Cruise Line Holdings
Alaska, Hawaii, Bermuda, Canada and the Caribbean have all performed well, he says. He claims warnings from the US state department about travel to Europe haven’t helped the situation. “It takes a toll on demand. We stepped up marketing to awaken the marketplace but sometimes you have to turn to discounting as a last resort.”
‘Humbled’ by agents
As Regent Seven Seas Cruises launches Seven Seas Explorer, Hollie-Rae Merrick spoke to Norwegian Cruise Line Holdings boss Frank Del Rio
S
even Seas Explorer has been pitched as the most luxurious ship in the world, and its launch this
week marks the start of a new era for Regent Seven Seas Cruises.
The upmarket vessel has not
only had $450 million invested in it but is also the brand’s first new-build: its three older sister ships were acquisitions. Frank Del Rio, president and
chief executive of Norwegian Cruise Line Holdings (NCLH), the parent of Norwegian, Oceania Cruises and Regent, says strong performance across the three brands has led to organic growth and new ships for each: Norwegian Escape for NCL, Sirena for Oceania and Explorer for Regent.
New markets
Del Rio says demand for Explorer has been particularly strong – evidence, he adds, to rebut a recent comment by Azamara Club
Del Rio is a big supporter of the trade and says he doesn’t see a time when agents won’t be the main sales channel for cruise. “I’m humbled by the fact agents
want to do business with us,” he says. “I’ve been hearing for the last 20 years how tech will take control and displace agents immediately. “But travel agents who survive
Cruises boss Larry Pimentel that too many new ships were coming into the luxury cruise sector. Speaking at the Clia Conference
in May, Pimentel said new capacity was arriving “too much, too quick and too fast” and would “drive down prices”. But Del Rio believes that new
markets will continue to open up new opportunities across the entire cruise industry. He cites China as having huge potential for luxury cruise operators. He said: “Azamara doesn’t have
any new ships and probably never will, so I can see why Larry takes that view. This industry is one that works for the saying ‘build and they will come’. It’s a truism. “This is a competitive industry
and everyone is raising the bar regardless of which space they operate within (mainstream, premium or luxury). “Jaws will drop when people see
Explorer. The demand shows that the luxury sector will continue to grow, so while I understand Larry’s reasoning, I don’t agree.” Del Rio has his own gripe with the industry. “There is too much copycatting in this industry,” he says. “You can’t protect or preserve
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travelweekly.co.uk 7 July 2016
innovation because everyone copies your success. “Innovation is rarely, if ever
patentable. We believe we are an innovator, so people often copy us.”
Europe sales hit
Del Rio says his lines have performed well this year, adding that the company had reported a “record year for top-line revenues”. In May’s financial report, NCLH
reported bookings for the first half of 2017 as being strong and at higher prices than this year. Total revenues rose by 14.9% to $1.1 billion. But Del Rio admits there
had been a “difficult trading environment”, with European cruise bookings affected by a spate of terrorist attacks. “There have been multiple
events that have continued to put pressure on people looking to travel,” he said. “Unfortunately, the events that have happened and the broad threat of terrorism is having a toll much greater than we have seen in the past when these things have occurred more sporadically. “Europe is a weak market but
other areas are picking up from the reluctance to travel there.”
and are in business are stronger than ever before and more important than ever before – the value they offer is unmatched. “There may be fewer of them these days but I can’t conceive of a world where agents aren’t the main distribution channel for cruise, especially as we enter emerging markets such as China.”
WITH FRANK DEL RIO
1. What was the first record you bought? Frank Sinatra’s That’s Life 2. What is your favourite holiday destination (apart from a cruise)? Skiing in Bachelor Gulch, Colorado 3. If you were stuck on a desert island, what three things could you not live without? My family – my wife, my kids and my grandkids. 4. If you could have dinner with anyone (dead or alive) who would you pick? Fidel Castro 5. What is the best thing about your job? It’s that it never feels like a job. I love what I do, and it’s a bonus that I get paid to do it.
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