By: Virginia López Valiente – General Director of CruisesNews Media Group.
Interview. Kevin Bubolz – Managing, Director Continental Europe, Israel, Middle East & Africa for Norwegian Cruise Line
How many changes has NCL made since the pandemic? Has there been a readjustment of the business and product strategy?
Of course, since emerging from the pandemic, we've reviewed everything. First, we've brought back everything that was previously successful, such as the freedom and flexibility on all our ships, the freestyle experience. We've continued with our goal of elevating the quality of the onboard product, investing in it, especially the new Prima-class ships, which have more space per passenger than ever before. It's about having more space per passenger and a higher quality of space. As you know, we had ships for 2,000 and 4,000 passengers, and instead of building a ship class for 6,000 passengers, we decided to build one for 3,000 passengers. Our goal is to be the best in our segment in terms of quality and experience.
We also regularly review our menus, itineraries, and even the onboard experience for those who stay on the ship during a port call. We've also extended our cruises, making them a bit longer in response to demand and to differentiate ourselves from the more mainstream cruise market.
The NCL Epic, which will be in Barcelona as every season, will have a 9-night itinerary instead of 7.
And how is the Spanish market reacting to this change in duration?
Overall, the global reaction has been very positive. We've started the year with very high numbers, including in Europe. In Spain, it's taking a little longer because the market was accustomed to booking a lot of 7-night cruises from Barcelona, and that remains the case, but there's also another market of people who want longer cruises and a more in-depth experience.
I'm actually quite surprised at how quickly bookings have come in this year in the Spanish market, with reservations being made further in advance than usual. We're also trying to boost our long-haul business and are seeing good numbers for some of our longer itineraries in Alaska, the Panama Canal, and the Caribbean, for example. So we're very happy at the moment.
Which itinerary would you say is the star itinerary for the European and Spanish market apart from the Epic?
I think the star of this season so far is the Greek islands cruise. Not just for the Spanish market, but for many other markets that really like this itinerary, which includes seven-night cruises with a wide variety of options that you can do consecutively.
Tell us about those long-range cruises
The target group we're aiming for has a slightly higher spending intention within the same segment and chooses slightly longer cruises. Of course, there's still more work to be done to raise awareness of our offerings beyond the 7-night option. Our fleet of 18 ships currently calls at around 400 ports, and we'll soon have 19. It's an ongoing effort to educate the market about our available options.
For example, from South Africa, Cape Town to Barcelona along the west coast of Africa, which is an unusual itinerary not offered by many cruises, including Gambia, São Tomé and Príncipe, and Ivory Coast. It's a truly special 21-day trip. So I'm sure it will do well in the Spanish market. There are some really interesting options, but we still need to make an effort to promote them. I think travel agents need to pay close attention to these longer trips because, ultimately, they're the ones who make the sales.
Another advantage that's very relevant for the Spanish market is that flights can be included. We're offering everything we sell with flights as an option. People feel more secure booking the complete package. If something changes with the flights, then NCL is responsible for tracking it down and making sure everything still fits together. And if they book their own flights, they would have to do it themselves. So we're seeing a significant increase in cruise bookings with flights from the Spanish market as well.
Spain is our second largest market in terms of cruises with flights after Germany.
Let's talk about the new ships. Prima was a success last year, and this year Viva arrives.
Viva is an identical sister ship to Prima. So everything you've seen in Prima you'll also see in Viva, perhaps with slight tweaks here and there and some color changes. But these first two ships of a new class are usually similar, and then, starting with the third ship, we make some changes based on the experience we've gained. Just like with Breakaway and Getaway, then came the Plus class.
With the Prima class, NCL wanted to sell a more premium product. Do you think customers have perceived that aspiration?
I believe so, because guests are on a smaller ship, gaining in comfort without sacrificing the product and all the options NCL is known for, like a Broadway show and the kind of things we know guests love. We're seeing significant growth in customers who didn't cruise before, who want a high-quality experience and are looking for a product like this because they're seeking something closer to a good land-based resort. Something that isn't too small and isn't boring, and we fit that perfectly. Going back to your question, yes, there is work to be done with existing customers to explain, of course, what to expect on each ship.
Returning to bookings, you mentioned that people have booked early this year, but what about bookings for 2024 from the Spanish market? Is there a positive trend that suggests we've changed as a market?
I think the speed of bookings at the beginning of the year is related to flights, as there was a booking boom and price increases, and perhaps people needed to secure their desired destinations and guarantee a seat. 2024 isn't quite as strong yet, even though bookings have started earlier. There are more bookings than usual, but there are still many seats to be sold. Ideally, and it would benefit everyone, the market would book between 6 and 9 months in advance; that would be a good average booking window, although for more exotic destinations, you need to book even further ahead.
There are some, like those in the Pacific Ocean, passing through Tahiti, and those types of cruises, or some special cruises where there is actually a high demand; those need to be booked well in advance.
