An NCLH line might soon be sailing to Antarctica
‘The money’s with the over-55s, not millennial market’
Del Rio hints at intention to enter the expedition sector
Norwegian Cruise Line Holdings’ boss has strongly hinted that either Regent Seven Seas Cruises or Oceania Cruises could become the latest line to enter the expedition sector.
Frank Del Rio said he was unconcerned about overcapacity in the market, despite 28 expedition vessels due to launch by 2022, or of too many ships entering the wider cruise industry, with more than 110 on order. Rival luxury line Seabourn turned heads in July when it
“If we do it, it will likely be with Oceania or Regent rather than Norwegian”
announced plans to enter the sector by placing an order for two new expedition ships with an Italian shipyard. Del Rio said he preferred to
invest in NCLH’s three brands, but did not dismiss the notion of buying another line if a “suitable” deal was possible.
Del Rio said: “Unless there is an opportunistic situation, I would rather invest in our own brands. [Currently] I have only got 26 ships. “There is nothing to stop us getting into the expedition business – we will. “If we do it, it will likely be with
the more upscale brands – Oceania or Regent, rather than Norwegian.” Del Rio, president and chief
Frank Del Rio
executive of NCLH, said to enter the expedition sector, the operator would need to build new vessels
rather than convert existing ships. “We would have to build special
ships for that,” he said. New cruise entrant Virgin
Voyages last week revealed it had ordered a fourth ship, after signing a contract with shipyard Fincantieri. The first of three vessels will enter Virgin’s fleet in 2020, 2021 and 2022 respectively. Del Rio said he was unconcerned about Virgin or Ritz-Carlton, which is set to become the first hotelier to enter the cruise industry next year. He added existing brands with a long history of success were able to breach barriers that previously put off new market entrants. “Virgin or Ritz-Carlton – nothing concerns me,” he said. “It is all about branding. The
cruise lines being developed today are pre-branded. “You can’t start a cruise line with a couple of pounds. And then you have the long lead times, which is why shipyards are already at maximum capacity with the mega-ships, but there is always room for the smaller ships.”
8 November 2018
travelweekly.co.uk 17
The cruise industry should not focus too much on attracting millennials as “most of the money” still lies with the over-55s market, two leading NCL figures have said. Both Andy Stuart and Frank Del Rio stressed the value of other generations at the round-table discussion that debated the millennial market. Millennials, who make up nearly 25% of NCL passengers, are the fastest-growing customer segment thanks to the line’s all-inclusive offering, Stuart said. However, he warned: “There is a huge ageing population. All the money sits within that group. If you look at statistics for people over 55, we have to be careful not to get ‘too millennial’ because the ageing population is growing at an incredible rate.” Stuart said NCL had
“stumbled upon the most attractive proposition” for millennials when it introduced its Premium All Inclusive fare. “Thinking about it now, we designed a proposition that is on their own terms,” he added. Del Rio said ships were full
year-round because of other generations. “Baby boomers have the time and the money to go on a cruise,” he said. “Then there is the generation between the millennials and the baby boomers – they exist too.”
Norwegian Epic
PICTURES: SHUTTERSTOCK; CPG PHOTOGRAPHY/CASEY GUTTERIDGE; LENTHE/
TOURISTIK-FOTO.DE; SUSAN SEUBERT
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