It also cannot be used to pay the initial deposit. FCCs from either suspended sailings or Peace of Mind cant be converted into another currency. The voucher can be used per person, with or. And we simply executed some of those initiatives quicker than we had anticipated. Given their very efficient financing structures made possible to the unique nature of the industry's interconnected financing ecosystem, new ships are able to contribute immediately and are expected to be meaningful drivers of the company's future earnings growth and margin expansion. Unfortunately, at the time of cancellation, all promotional offers, amenities, and value add-ons are removed and will not carry-over to future reservations. It's also on the back of bringing on some of our premium brand vessels. Harry, congrats on the new role. To make the world smarter, happier, and richer. This is driven in part by our focus on attracting the best guests and enhancing our market-leading bundled offering. And just any color on how you're expecting on board trends in the second half would be helpful. Our next question is from Vince Ciepiel with Cleveland Research Company. Over the next few months, I will be speaking with travel partners, team members, destination representatives, the investment community, and a whole host of constituents, while working closely with our executive team to fine tune our planning vision for the future, and I look forward to sharing details with you. But also, in Q4, where we expect quite a substantial amount of our pricing power, we are actually in the Alaska season longer this year, as well as in the European season longer this year. Listen, I think there's still a little rebuilding that can be done in Q1. What if I booked my cruise with a travel agent and received a Future Cruise Credit? Can a guest make a new booking before they receive the FCC for their cancelled booking? Yes, with Norwegian Cruise Line, you can use your Future Crusie Credit to pay for more than one cruise in the future. In fact, we were encouraged to see that even with the banking sector-driven financial market volatility in March, we did not experience any unusual booking or cancellation activity across any of our brands. Don't forget, we've partnered with NCL specifically, in order to give you the best service and tell you all you need to know. It's definitely favorable terms. Norwegian Cruise Line Security Guide. Please allow up to 7 business days for the transfer request to be completed. So, I wouldn't skew too much that the premium itineraries are going to be a big driver of cost. Just trying to get comfortable with how you get there. Well, Steve, first of all, you know, I appreciate the adjective you used of destroying our guidance, but I would like to say we healthily beat our guidance. Thank you. I look forward to continuing to partner with Harry in his new role as we work to capitalize on the momentum we are experiencing in order to maximize value for all of our stakeholders. Instructions and guidelines on Norwegian Cruise Line's safety and security policies. All three of our brands are well poised to properly absorb this elevated capacity growth, given our relative size and under-penetration in many markets around the world. This will be incredibly convenient for guests who had a cruise booked in 2020. We continue to expect modest sequential improvement each quarter in 2023 as occupancy increases and as a result of initiatives which have already been identified and implemented. I won a bid on the Norwegian Upgrade Advantage. Unless otherwise noted, my commentary on net per diem, net yield, and adjusted net cruise cost, excluding fuel per capacity day metrics, is on a constant currency basis. Millions of travelers rely on Cruise Hive in the United States, Europe, Australia, and around the world. Please proceed with your question. And we hope to deliver on that, and we're feeling good with what the outlook looks like today. How can I see my Future Cruise Credit balance. The value will be included in the POM-NRD credit that was issued. Or is that spread out over different years? Now if you happen to have more Amex NCL $150 back offers on a number of cards (or other offers like 15,000 Membership Rewards points) when you spend $500 you could load in one of these to your cruise account. At that time, the receiving guest will be able to apply the coupon to the desired reservation. Before I turn the call over, I'd like to provide an update on our decarbonization efforts as part of our global sustainability program, Sail & Sustain, something that I am very passionate about and committed to advancing. So, I think, you know, the best indicator for us is our advanced passenger ticket sale revenue. To what reservations does the Peace of Mind policy apply? And, Frank, congrats on a storied career and wish you all the best luck in your future endeavors. Great. Use the cruise search filters on NCL.COM to find the perfect cruise. So, we feel good about our positioning over the next year, and we're going to do everything in our power to deliver on all our goals. You can redeem any FCC by calling us! Better Buy in 2023: Norwegian Cruise Line vs. Carnival Stock NCLH earnings call for the period ending March 31, 2023. Future Cruise Credits (FCC) are credits issued by a cruise line to use as payments towards another cruise vacation in the future. Please proceed with your question. But, overall, we believe that our air strategy is the right thing to do, given our strategic itinerary deployment. But rather, that we will be even more strategic and data-driven when making these decisions to ensure we are investing where we see the highest returns and most impact. Delivering $4.4 billion in revenue in the first fiscal quarter of 2023 (ended Feb. 28), Carnival ( CCL 3.48%) ( CUK 3.87%) exceeded 2022's Q1 revenue result by 173% and came within 95% of 2019's . And with those tools, we think bundling actually provides us in this uncertain future environment a competitive advantage. It can then be applied to any new or existing reservation or group booking. Still have questions? It's a little less close in demand there as we are booked further in advance. We've all experienced, whether it's traveling for business or consumers traveling, flight prices are elevated. Can guests choose to carry promotional amenities or value adds from their cancelled reservation to their future booking? Our next question is from Stephen Grambling with Morgan Stanley. Cruise Credits vs. They either make their own air arrangements or they make air arrangements through us. When is the best time to go on an Alaska cruise? The consumer is still strong, the consumer is buying cruise tickets, the consumer is spending more on board, the consumer is pre-buying more before they got on board. You can redeem any FCC by calling us! Do you see yourself still on track to hit those targets? And then, my other question is just on the 1.7 billion in additional ECA financing. And as we look out over the next five years, this increases to approximately 50% growth versus 2019. But I guess what I'm just getting at here is, you know, if your customer base stays pretty much status quo from here, you know, it would seem to us that it would be tough not to get to the high end of your full year guidance and maybe even exceed the top end of your guidance. Thank you, Paul, and good morning, everyone. This article is a transcript of this conference call produced for The Motley Fool. Yes. As we look to the remainder of the year, our substantial book position, coupled with the continued healthy demand metrics we are experiencing, gives us confidence in achieving our 2023 net per diem and net yield guidance, which Mark will touch on in more detail momentarily. New hardware introductions generate excitement from those new to cruise and new to brand, as well as with our loyal past guests. Yeah, so, regarding our second half NPDs, you know, I think we labeled that on our slide. Peace of Mind is the company's new temporary policy that allows new and existing individual and group bookings in non-chartered sailings embarking from May 15, 2020 through and including December 31, 2020 to cancel their booking up until 48 hours from the start of their holiday date and receive a 100% future cruise credit (FCC) for the payments that are already received by Norwegian Cruise Line. Our Peace of Mind policy applied to all sailings through and including May 31, 2022, guests were free to cancel up to and including January 31, 2022. A credit card dispute was filed for the charges. Does Norwegian's Peace of Mind apply to me? Right now, many people are receiving Future Cruise Credits because the cruise they were supposed to sail on was cancelled due to unprecedented circumstances. Once the transfer takes place, the receiving guest is now the owner and the previous owner cannot request a transfer back. And the differential simply is that, as I said in my prepared remarks, we've now included certain things, financing for owner supply, and other related items that are required as part of the ship delivery. Your Future Cruise Credit will, most likely, only be redeemable towards a new cruise fare and is issued in lieu of a refund, however, some Cruise Lines have given customers the option to receive an onboard spend credit in lieu of a refund. Yes. Can I use my Future Cruise Credit to book cruise extras and add-ons such as shore excursions stays tours or drink packages onboard? Proceed with your question. If I booked a fly cruise does my Future Cruise Credit cover the cost of the flight? Ancillary items include Bon Voyage gifts and celebration packages, pre-purchased dining, or beverage packages (those not part of FAS promotion), water packages, purchased on board credits, pre-purchased internet, or photo packages. Mesmerising beach & city stays in over 200,000 hotel & resort properties worldwide. Sure, Jessica, happy to, and that's a great question. Another way to receive a Future Cruise Credit is whilst onboard, some Cruise Lines offer future cruise certificates or credits as an exclusive offer only available onboard, either to compensate a negative or disruptive experience or simply as a personal gift/incentive to secure your next cruise. Thank you. Can you kind of help us understand why that's different now? A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and presentation. What Charges Does Future Cruise Credit Not Cover? And there's always going to be some variable variability in there, but nothing that overly concerns us. Future Cruise Credits issued in, for example, June 2020 would have expired in July of 2021; for that reason, Norwegian Cruise Line had already extended the booked by date to January 31. I would now like to turn the conference over to your host, Jessica John, vice president of investor relations, ESG, and corporate communications. We are targeting a 10% reduction in GHG intensity by 2026 and 25% by 2030. Our pre-sold revenue on a per-passenger day basis for the first quarter of 2023 is approximately double the level in 2019, an important contributor to our onboard revenue strength, as guests who make pre-cruise purchases tend to spend significantly more than guests who do not pre-book onboard activities. TAANZ No: 9838. The full amount of your FCC can be applied to the base cruise fare on a new booking, but only if the passenger whose name it is under is the one who is booking. IMPORTANT: To learn more about how to prepare your clients for sailing please visit the pre-cruise requirements page at www.ncl.com/prepare-for-your-cruise/2021 for all required documents and protocols. India: ICE Vacation Center India (ICE). Norwegian Cruise Line sends out a letter about its Future Cruise Credits being extended to December 31, 2022, to provide a further chance to rebook. FCCs have a set monetary value that can be applied towards the purchase of a new cruise vacation. Can guests use their FCC to pay for more than one cruise in the future? With each cruise line's form of credit comes its own stipulations on when and how to use it. And how much is your guidance reflecting some conservatism there? And then, secondly, I think the other piece to look at is when you do the comparison versus a very strong second quarter 2019, we're comping over some difficult comps with Cuba that we had back in 2019, as well as the full benefit of Baltic itineraries. Never EVER Book an NCL Norwegian Cruise Until you check ALL These Conor Cunningham -- Melius Research -- Analyst. At 1,200 guests, Vista is the first of two Allura class ship for the line, with the second ship named Allura expected in 2025. This makes for an attractive entry point for investors as the newbuild pipeline adds significant potential future earnings power compared to today's levels. While we originally planned to fund this with our organic cash flow generation when the ships were originally ordered, given the very efficient and supportive financing we received from export credit agencies and the continued uncertainty in the macro and financial markets, we felt financing this was a prudent action to minimize cash outflows for the next few years. And lastly, we're going to continue to capitalize on the robust consumer demand we're experiencing, which is translating into our record book position and strong pricing, including very robust onboard revenue generation. So, Robin, is Harry, I'll take the first half, and I'll let Mark discuss the financing. Good luck in retirement. So, just any more detail there between maybe the gross in the net. Can I make a new booking before I receive the future cruise credit for a cancelled booking? Sure, I'll take that one. So, I think Q2 to Q4 basically represents what we're going to see in future periods as well. Depending on the cruise line, an FCC will likely not cover future charges such as: 19952023, The Independent Traveler, Inc. .css-18jw8gc{-webkit-appearance:none;-moz-appearance:none;-ms-appearance:none;appearance:none;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:center;-ms-flex-pack:center;-webkit-justify-content:center;justify-content:center;-webkit-user-select:none;-moz-user-select:none;-ms-user-select:none;user-select:none;position:relative;white-space:nowrap;vertical-align:middle;outline:2px solid transparent;outline-offset:2px;line-height:1.2;border-radius:var(--chakra-radii-md);transition-property:var(--chakra-transition-property-common);transition-duration:var(--chakra-transition-duration-normal);height:auto;min-width:var(--chakra-sizes-10);font-size:var(--chakra-fontSizes-md);background:none;border:0;color:black;display:inline;margin:0px;padding:0!important;font-family:var(--chakra-fonts-Roboto);font-weight:500;padding-top:0.625rem;padding-bottom:0.625rem;-webkit-padding-start:1rem;padding-inline-start:1rem;-webkit-padding-end:1rem;padding-inline-end:1rem;}.css-18jw8gc:focus-visible,.css-18jw8gc[data-focus-visible]{box-shadow:var(--chakra-shadows-outline);}.css-18jw8gc:disabled,.css-18jw8gc[disabled],.css-18jw8gc[aria-disabled=true],.css-18jw8gc[data-disabled]{opacity:0.4;cursor:not-allowed;box-shadow:var(--chakra-shadows-none);}.css-18jw8gc:active,.css-18jw8gc[data-active]{border:var(--chakra-borders-none);background:none;}.css-18jw8gc:hover,.css-18jw8gc[data-hover]{border:var(--chakra-borders-none);background:none;}.css-18jw8gc:focus,.css-18jw8gc[data-focus]{border:var(--chakra-borders-none);outline:2px solid transparent;outline-offset:2px;box-shadow:var(--chakra-shadows-none);}Cookie Consent, Mega-Chart: Compare Hurricane Sandy Cruise Line Compensation. This allowed cruise lines to retain cash -- at 25% interest -- at a time when ships weren't bringing in revenue. The full cancellation and final payment schedule can be viewed here. Thank you, Mark. Beverage or dining gratuities (if part of the Free At Sea promotion selection) www.ncl.com/travel-requirements-by-country. The current FCC holder is not the original FCC recipient. What happens if the cancelled booking had a previous FCC applied? We're pleased with the results so far, but we're not stopping there. The results of this initiative are ready to getting to bear fruit as demonstrated by our first quarter adjusted net cruise cost excluding fuel per capacity day, which was not only 14% below the run rate in the second half of 2022, but also outperformed our guidance by $4, as certain savings were realized earlier than anticipated. This call includes forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from such statements. Korea What happens to CruiseNext certificates that were used on a cancelled reservation? Reports, policies and documents related to our sustainability program, Sail & Sustain. Mark Kempa -- Executive Vice President, Chief Financial Officer. Harry, welcome. The credit is typically broken down by each individual guest on the reservation, and their charges. Air purchased through Norwegian Cruise Line I have worked with Harry in various capacities over the course of three decades, and I can assure you that he is a strategic and innovative leader, who has the right talent, skill set, and energy to lead the company at this pivotal time in its history. Frank? Harry, do you want to take that one? So, you're spot-on there. Applicability to convert an existing FCC to a monetary refund request may be submitted for one of the following reasons: Any guest affected by one of the above, wishing to request a monetary refund (of their original cruise fare paid and in lieu of their active FCC, including bonus amounts) must submit a refund request via the Guest Relations Case Submission page at https://www.ncl.com/case-submission. I'm incredibly proud of you. Our next question is from Patrick Scholes with Truist Securities. You might receive a Future Cruise Credit if a . Of course, Caribbean doesn't matter all that much for us in Q2 and beyond as we shift our deployment to Europe and Alaska. Instead of getting the amount refunded to your credit card, you may be issued a certificate you can use towards your next Norwegian Cruise Line sailing. So, we have very efficient fixed rate financing for all of our newbuilds that are on scheduled to delivery through 2028 at an average rate of anywhere from 2% to 2.5 %. United States. Good morning, Dan. Partial value transfers or transfers of remaining FCC balance are not permitted. The Motley Fool has no position in any of the stocks mentioned. As government regulations evolve, our health and safety protocols will evolve as needed to ensure compliance. So, look, I think bottom line, we continue to sequentially improve our cost structure. Norwegian Cruise Line | Future Cruise Credit - CruisesOnly Our target consumer remains resilient with a persistent desire for travel and experiences. Paul, I think we have time for one more question. Can you use your Future Cruise Credit to pay for more than one cruise in the future? Sun will return on May 5, sailing from Seattle to Alaska, and Norwegian Spirit will sail on May 7, from Papeete, Tahiti. Norwegian Cruise Line said the following in a letter to travel advisors: As we continue to focus on ways to support the guest experience, we have decided to extend Future Cruise Credits (FCCs) to ensure your guests have the opportunity to enjoy the best vacation possible when they sail. The top-voted question we received this quarter was, what are the three main action points the company will take to ensure growth in the year ahead? Vince Ciepiel -- Cleveland Research Company -- Analyst. In Q2, a quarter ago, you talked about it, returning to historic occupancy levels. Japanese Pre-booked and pre-paid shore excursions After that, its a short wait until March 2, when Norwegian Sky will return to service, also sailing the Caribean from Miami. Taking all of this into account, adjusted EBITDA for the second quarter is expected to be approximately 485 million, which is roughly the same level as EBITDA in the same quarter of 2019, another stepping stone to closing the gap versus pre-pandemic levels. Frequently Asked Questions - Norwegian Cruise Line As I've said, you know, internally, our target is to turn 2023 with a very high-five handle on a pro forma run rate leverage basis. And I think it's somewhere in the neighborhood of -- we have 3% more deployment in Q4 of Alaska and I believe 7% deployment -- more deployment in Europe for Q4. Or is it spread out over a number of deliveries between now and then? Another strong indicator that our product continues to resonate with our guests is the performance of NCL's CruiseNext program, an onboard program in which we sell nonrefundable future cruise certificates. Future Cruise Credit Expiration Dates: Do I Need to Worry? The new policy applies to both individual and group bookings*. As a reminder, this conference call is being simultaneously webcast on the company's investor relations website at www.nclhltd.com/investors. Operator? And as I said in my prepared remarks, the second half of 2023 is expected and we continue to expect very strong pricing and yield growth. Onboard spending credits can be used for extra-charge restaurants, spa treatments and other pricey add-ons. You know, we've stated before that our goal is to be between 60% and 65% booked at year-end for the following 12 months. I think that, you know, there was kind of the wave of pent up demand following some change in COVID restrictions at the mid to late part of last year. 2023 Norwegian Cruise Line Holdings Ltd. 11-Reasons to Cruise to Alaska this Summer | NCL Travel Blog, 14-Day Authentic Alaska - Northbound Cruisetour | Norwegian Cruise Line, 14-Day Authentic Alaska - Southbound Cruisetour | Deck Plans | Norwegian Cruise Line, 20-Day Transpacific from Tokyo (Yokohama) & Alaska | Norwegian Cruise Line, 11 Reasons to Cruise to Alaska this Summer | NCL Travel Blog. Taking a closer look at the components of the full year outlook, net per diem growth of approximately 9% to 10.5% as compared to 2019 and net yield growth guidance of approximately 5% to 6.5% are unchanged versus our prior guidance. It has a monetary amount associated with it, and it is provided instead of a refund. It's really spread out over the course of the next three to five -- it's spread out, you know, I don't want to say radically, but relatively radically across all of the remaining newbuilds, excluding Norwegian Viva and Vista, which we just took delivery of, of course. In order to transfer an FCC, and in an effort for us to best assist you quickly, please follow the instructions below: POM or Suspended Sailing reservation number that generated the FCC being transferred: At time of cancellation, all promotional offers, amenities, and value adds will be removed from the booking and will not carry-over to future reservations. Growing up to immigrant working class parents in the Bronx, I could never have dreamed to be at the helm of such a storied brand. Include the following information in the comments field: Completed FCC transfer request information as listed below. Harry, congrats on the new role and look forward to getting to know you better. Norwegian Cruise Line | Future Cruise Credit - BJ's Travel How to Transfer Cruise Ship Credits | USA Today Focusing on the top line, total revenue per passenger cruise day in the quarter was up approximately 18% versus 2019. Company Number: U63030DL2017FTC324871. Sure, Vince. Obviously, while there is a slight impact to load factor, the whole reason we're going to more longer premium itinerary intensive destinations is, number one, to get a better guest, to get higher pricing, and to maximize the value that we're getting out of each of our assets. Okay, gotcha. By continuing to browse the site you agree to our use of cookies. Policies for Sixthman full-ship charters may differ. A FCC may be used towards the deposit and/or base cruise fare of any future cruise. Norwegian Cruise Line ; Transfer cruise credits Please . Great, thanks. Good morning, and welcome to the Norwegian Cruise Line Holdings first quarter 2023 earnings conference call. We thank you for your continued loyalty to Norwegian Cruise Line. I want to stress that we recognize and acknowledge while this is a great start, we still have more work to do. And we'll continue to leave no stone unturned. Click here to reload the page in order to enable certain features. And congratulations to both Frank and Harry. But more importantly, when you look at the comparisons in the back half of 2019, we're rolling over much easier comparisons, the inverse of what's happening in the first half versus 2019. When will I receive My Future Cruise Credit? In the first quarter, CruiseNext achieved its highest quarterly results in the program's history, surpassing the previous record. And any, you know, color just on the cadence of bookings that you've seen year to date, maybe relative to pre-COVID levels. Hi, Steve. We have been working together along with our board of directors and the rest of the senior management team for some time now to ensure a seamless transition, and I am confident that NCLH will not skip a beat as we continue to push forward and capitalize on the momentum we are experiencing today. We are focused on better leveraging our scale as we embark on this period of transformational growth and translating this capacity growth into outside benefits to both the top and bottom line. And, Frank, best wishes in retirement. And then, the 1.4 billion of term loan and revolver. You know, we touched on this already in our prepared remarks, but we are laser focused on delivering our '23 guidance and financial goals.
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