ROUGHLY half of Norwegian Cruise Line Holdings (NCLH) customers whose voyages have been cancelled due to the COVID-19 shutdown have taken up future cruise credit offers, according to a business update from the company overnight. The company said prior to the outbreak, Norwegian Cruise Line, Oceania Cruises and Regent Seven...
ROUGHLY half of Norwegian Cruise Line Holdings (NCLH) customers whose voyages have been cancelled due to the COVID-19 shutdown have taken up future cruise credit offers, according to a business update from the company overnight.
The company said prior to the outbreak, Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises had all entered the year with record levels of bookings, and for the first two months of 2020, “ships sailed full at prices that were higher than the prior year, despite healthy capacity growth of approximately 7%”.
However COVID-19 has resulted in “meaningful softness in near-term demand and elevated cancellations,” the update noted.
Positively, booking trends continue to indicate demand for cruise vacations in the medium and longer term, NCLH added, with the company still taking future bookings for 2020, 2021 and 2022.
A COVID-19 action plan has seen the company undertake several proactive measures, including reducing cruise operating expenses, putting ships into “cold layup”, deferring marketing expenditure, reducing work hours and travel cutbacks for shoreside staff.
The company is holding US$1.4 billion in cash, and is “evaluating several additional strategies to enhance its liquidity position” including share issues and secured debt facilities.
Pictured: Norwegian Spirit.
