Norwegian issues either a full refund or future cruise credit for passengers denied boarding at embarkation due to a positive COVID-19 test at the pier, provided they have a valid pre-arrival. Those ships, along with some of our other recent additions, translate to a nearly 20% growth in capacity when compared to 2019. Or is it spread out over a number of deliveries between now and then? Get advice from Norwegian Cruise Line Future Cruise Credit experts & extra bonuses. And congratulations to Frank and Harry, to both of you, with the changes. So, the remainder of it, we are carrying through. 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. Have comfort in knowing that we are Future Cruise Credit Experts and our specialised team will assist you along the whole way, You will have a full selection of sailings available from all major cruise lines alongside beautiful destinations to explore, Proud to be globally recognised and accredited agent. It can then be applied to any new or existing reservation or group booking. Once the transfer takes place, the receiving guest is now the owner and the previous owner cannot request a transfer back. We're pleased with the results so far, but we're not stopping there. During the quarter, gross onboard revenue per passenger cruise day was nearly 30% higher than the comparable 2019 period. Thank you. * Peace of mind is only applicable to bookings that have payment applied as per terms and conditions. I remember reading there was a form that my kids could fill out to transfer their cruise credits to me, does anyone have a link to that form? Sorry, the Future Cruise Credit cannot be used to satisfy the deposit of your cruise booking. But I'll turn it over to Mark to talk about financial ramifications. Mark, over the past year, you've given some longer-term net debt-to-EBITDA target ratios for various years. So, now I'll turn the call over to Harry, who will be tasked with delivering on the significant potential upside we see ahead, to provide an update on the current environment and the key catalyst we have in the horizon. And as we look out over the next five years, this increases to approximately 50% growth versus 2019. 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. Yeah. 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. Reservation must be within the final payment period. So, just any more detail there between maybe the gross in the net. NCL, once you have a reservation, allows you to buy onboard credit up to $1000 per sailing. And then, changing gears a little bit, can you just remind us of how much of your new ship spend is already financed and locked in as we think about rates? We're also hard at work at our ongoing margin enhancement initiative and are continuing to identify new and innovative ways to get more efficient while also delivering best-in-class product and service offerings for our guests. Absolutely, once the Future Cruise Credit is added to your profile, it can then be applied to any existing booking or newly created bookings. Here at myFCC, we're committed to helping you make the most of your Future Cruise Credit. I hope you take up some golf now. Demand in pricing continues to be strong, not only for 2023, but also as we look further out the sailings in 2024 and beyond. Cancellation penalties will be withdrawn from the FCC amount if applicable and remaining balance will be attached to guest's profile. With that, I will now turn the call over to Mark for his commentary on our financial position and outlook. You can redeem any FCC by calling us! Upon submission of the online request, an email will be sent to the email address entered on the form with a response and case number. Before I dive into the financial results and outlook, I want to also thank Frank for all that he has done to propel this company forward, as well as his outstanding leadership. As we anticipate high volumes of inquiries, we kindly ask for your patience and allow up to 30 days for the review process to be completed. Any existing 10% Future Cruise Discounts will remain active and available for use on future bookings. Dining/beverage packages that are not part of the Free At Sea programme Sure, Jessica, happy to, and that's a great question. Regardless of the original Future Cruise Credit's expiration date, the new Future Cruise Credit is valid through December 31, 2021, at which time all unused funds will expire. To cancel under our Peace of Mind policy, the following terms and conditions had to be met: Any ancillary items sold by Norwegian Cruise Line will be refunded to the cardholder who made the original purchase and will not be included in the FCC. 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. I would now like to turn the conference over to your host, Jessica John, vice president of investor relations, ESG, and corporate communications. So, there's always going to be some puts and takes until when you actually purchase the flight where you may have some variability in there. Bookings cancelled inside final payment that are not paid in full will default to the standard refund process with penalties applied. And, Steve, thank you for the kind words at the initial start of your question. Norwegian Star will sail from Barcelona, Spain, and Pride of America from her traditional homeport of Honolulu, Hawaii. Therefore, we focus on total net per diem and net yield as a better holistic representation of our pricing power. Unfortunately not, however, if the new cruise fare is lower than the Future Cruise Credits value, a new Future Cruise Credit will be issued for the remaining balance. What if I booked my cruise with a travel agent and received a Future Cruise Credit? An email from the current FCC owner requesting the transfer to be made must be included when submitting the transfer request via, Insurance FCCs and 10% bonus FCCs are not transferrable. On the other hand, a future cruise program is a way to secure a future cruise booking whilst onboard taking advantage of a great deal. That's right -- theythink these 10stocks are even better buys. Yeah, you know, Brandt, I think you've hit it right. We expect this metric to continue to show modest sequential improvement each quarter for the remainder of 2023 as seen on Slide 8. Turning to Slide 11, after a very strong wave season, our cumulative book position for the balance of 2023 remains ahead of 2019's record performance and at higher prices. Can guests choose to carry promotional amenities or value adds from their cancelled reservation to their future booking? 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. We can do better than that going forward when we have the more advanced lead time we need to book some of our exotic itineraries and also have the fully -- the overhang of the difficult years that we've talked about beforehand. It cannot be used to pay: Taxes Port fees This represents a 15% decrease as compared to the average of $187 in the second half of 2022. Look, our book position, Harry touched on it earlier, we're exactly where we need to be to hit our goals and our guidance. We are targeting a 10% reduction in GHG intensity by 2026 and 25% by 2030. Dan Politzer -- Wells Fargo Securities -- Analyst. *Terms & Conditions Package not available on sailings less than 5 days or charter sailings. I tried searching on the NCL site and cannot find it. As I said, those are fixed, so we have very efficient financing going forward. Each submission request will be individually handled and responded to. Any bonus FCC amount is applied only to the voyage fare. So, I'm going to kind of ask Dan's question maybe a little bit differently. Some FCCs are combinable. Only the entire and full original value of Peace of Mind and suspended sailing FCCs worth 100% of the fare paid, as well as the bonus 25% or 50% FCCs, are eligible for transfer. And we'll continue to leave no stone unturned. Slide 13 highlights our first quarter results, in which we are pleased to report that we met or exceeded guidance for all key metrics. Anyone choosing to cancel received a full refund in the form of a future cruise credit (FCC) to be used for sailings that embark through June 30, 2023. And if you don't want to give exact numbers, you know, I understand that, but maybe some qualitative commentary would be would be helpful there. Upon submission of the online request, an email will be sent to the email address entered on the form with a response and case number. Now, shifting our focus to our outlook for the full year 2023. Only new government or agency mandates would be considered. In either case, you can register your Future Cruise Credit online on our My Future Cruise Credit website, then browse all the sailing available and call an expert for the best personal planning and booking consultation. Vietnamese Norwegian Cruise Line Security Guide. Should your credits be applied to an active reservation, the refund amount will be subject to Norwegian's cancellation fee policy communicated to our guests at the time of booking and may be found on our website, An active and existing FCC is attached to a profile of a guest who has passed away. Below are instructions and frequently asked questions for redeeming and using your Future Cruise Credits. Yeah, so, regarding our second half NPDs, you know, I think we labeled that on our slide. Of course, as you -- as your occupancy ramps up, you do see a little bit less of pricing power on your lower meter, i.e. 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. So, that's expected to provide a meaningful boost to our current and future earnings power. I'm just curious, if flight prices broadly is acting as a headwind and if you think about your book or your strategy this year for the summer, is it -- is flight prices being bundled in for the consumer? An Future Cruise Credit is almost always a compensation due to a cancelled, interrupted or rebooked cruise. We will continually evaluate options to accelerate our recovery while maintaining adequate financial flexibility to adapt to different macroeconomic backdrops. 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. There will need to be new deposit money paid towards the booking to satisfy the amount of the deposit and then the Future Cruise Credit will be applied towards the balance of the cruise fare costs. What is excluded in the future cruise credit (FCC) or refund? You can redeem any FCC by calling us! Am I guaranteed the same category on the new booking? Absolutely. I was just wondering if that 500 million was for 2023, or is that for the later deliveries that the 1.2 billion applies to? And any, you know, color just on the cadence of bookings that you've seen year to date, maybe relative to pre-COVID levels. Okay, gotcha. You might receive a Future Cruise Credit if a . Future Cruise Credits will be credited to you via your Latitudes number within seven working days. [Operator instructions]. It's definitely favorable terms. and reflecting lower than expected costs in the first quarter. Our next question is from Stephen Grambling with Morgan Stanley. 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. The best way to ensure a smooth transfer of future credits collected is to fill out the survey provided on the last day of the sailing. Paul, I think we have time for one more question. And there's two choices. If I booked a fly cruise does my Future Cruise Credit cover the cost of the flight? But if, you know, Mark, if we look at Slide 13, I mean, look, you basically destroyed every guidance target that you laid out back in February for the first quarter. We are heading over to Europe this week where Vista will be christened in Malta by her godmother, Emmy Award-winning food personality, Giada de Laurentiis. This is driven in part by our focus on attracting the best guests and enhancing our market-leading bundled offering. We'll send you a weekly newsletter to your inbox. Why Norwegian Cruise Line Stock Jumped Monday, 4 Reasons to be Bullish on Norwegian Cruise Line Stock, 1 Growth Stock Down 80% You'll Regret Not Buying on the Dip. If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. It also cannot be used to pay the initial deposit. Mark Kempa -- Executive Vice President, Chief Financial Officer. Onboard credit 10/31/2017. So. Frank? Proceed with your question. And, Frank, best wishes in retirement. What Charges Does Future Cruise Credit Not Cover? 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 . The Future Cruise Credit may be used for sailings that embark on or before December 31, 2022. Can I make a new booking before I receive my Future Cruise Credit and will this be applied after I booked. Yeah, sure. Passengers struggle to use cruise credits before they expire - The Now, there are times when fate meets circumstances, and this happens to be one of those times, as my departure coincides not only with the 20th anniversary of the founding of Oceania Cruises, but also the delivery of the seventh ship in the Oceania fleet, the incomparable Vista, which you can see details about on Slide 6. All future cruise credits must be redeemed within one year from issue date and can be used for sailings departing on or before December 31, 2022. As a result, growth is in line with our expectations, with net per diem increasing approximately 5.5% to 6.25%, and net yield expected to increase approximately 2.5% to 3.25%. And how much is your guidance reflecting some conservatism there? 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. Is my Future Cruise Credit transferable and can I gift My Future Cruise Credit? Great. When cruises are greatly affected or canceled, or if passengers are given compensation for any reason, a nonrefundable future cruise credit is a common form of payment. And, Harry, welcome to the hot seat, as they say. that's something that you'll see us out in the marketplace in the latter part of this year. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. You've come to the right place. 4 reasons you shouldn't take a voucher if your cruise is canceled Any unused portion of the credit will be forfeited after the expiration date. Hindi So, Robin, is Harry, I'll take the first half, and I'll let Mark discuss the financing. Turning to our next catalyst, we continue to take strategic actions across our business to improve operating efficiencies and rightsize our cost base to rebuild and enhance margins. Future reservations are subject to prevailing fares and offer in-market at the time of booking. There is no opportunity for the export credit agencies to change those rates. 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. Turning our attention to the balance sheet, Slide 15 provides our debt maturity profile, which includes approximately 800 million of scheduled debt service for the remainder of the year, the vast majority of which is related to our export credit agency-backed ship financing. Future Cruise Credit FAQs You know, we're trying with our new premium, you know, itineraries to be booked a little further in advance so that close in bookings does not represent such as large a percentage of our overall business as it used to. To give you an example, bookings for Regent's 2026 World Cruise were nearly 70% higher than its 2022 World Cruise, which was the last world cruise launched pre-pandemic, at an average price point of over $230,000 per suite. And we've absolutely seen or exceeded those levels during Q1 booking period compared to Q1 of 2019. I have full confidence in the management team and their ability to take this company on to its next chapter. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. We want to deliver and hopefully beat, we'll continue down that path. Norwegians Enhanced Peace of Mind Policy was available from December 30, 2021 through January 31, 2022. You know, pretty much close to that, absent the Q1 commentary I gave you already. India: ICE Vacation Center India (ICE). Turning to liquidity, our overall liquidity position remains strong at approximately 1.9 billion as outlined on Slide 17. A future cruise credit is typically delivered via email within a few weeks' time, depending on how long it takes the cruise line to process it. Thank you. Internet packages 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. The 1 thing savvy cruisers do to save more on their next cruise As we have stated previously, the second quarter will complete our occupancy ramp-up. No. You know, I think that range applies to the end of wave as well that we like to be between 60% to 65% booked for the following 12 months at the end of wave. By proceeding, you agree to Cruise Critics. After that, its a short wait until March 2, when Norwegian Sky will return to service, also sailing the Caribean from Miami. Turning to costs, adjusted net cruise costs, excluding fuel per capacity day, averaged $161.25, better than expected and approximately 14% lower than the run rate in the second half of 2022. New Zealand. And whether or not we refinance that on a more holistic approach or we do another amend and extend, obviously, we'll look at what the markets are doing, what the environment looks like, but we'll do the most, obviously, the most economically feasible option out there. And then, my other question is just on the 1.7 billion in additional ECA financing. 7/27/2022. Flights are considered an add-on to the main cruise fare so, your Future Cruise Credit would not cover the cost of the flight, however, here at my Future Cruise Credit, we can help you use your Future Cruise Credit towards a cruise inclusive of the promotional add-ons you had with your original cruise. Pricing for the same itinerary, similar dates, and Getaway instead of Escape are. What is even more exciting is that this is just the first of three newbuilds that we have in the pipeline this year, with Norwegian Viva and Regent Seven Seas' Grandeur joining the fleet later this year. Sun will return on May 5, sailing from Seattle to Alaska, and Norwegian Spirit will sail on May 7, from Papeete, Tahiti. a new quarantine requirement upon return from travel (but not a travel ban), then an FCC would be offered. Listen, I think there's still a little rebuilding that can be done in Q1. Shifting our discussion now to our booking demand and pricing trends, you can see on Slide 10, we reached low factors of 101.5% in the first quarter, exceeding our guidance and breaking triple-digit levels for the first time in three years, with some voyages exceeding occupancy of 115%. If the new cruise fare is lower than the Future Cruise Credit value, a new Future Cruise Credit will be issued for the remaining balance. A guest has been affected by one or more suspensions, Guest elected to cancel via our Peace of Mind (POM) policy, A guest is unable to meet any vaccination requirements. ABTA numbers Y1932 and L6366. Can I use My Future Cruise Credit towards the deposit of a cruise? Good morning, Dan. Is that still the intention? What can I use the Future Cruise Credit towards in the future? Can I use part of my Future Cruise Credit and then get a refund for the remaining amount? First question, on the second quarter, the yields, I mean, I think they were a little bit -- a little bit lower than we were expecting. Both the conference call and presentation will be available for replay for 30 days following today's call. We are committed to identifying and evaluating incremental opportunities across every area of the business to help accelerate our margin recovery. Thanks for that, Mark. In the first quarter, CruiseNext achieved its highest quarterly results in the program's history, surpassing the previous record. Well, ladies and gentlemen, once again, I want to thank everyone on this call, whether you're a travel partner, a vendor, a lender, or an analyst, you've supported us. For example, if several ports on an itinerary are skipped, a full or partial credit might be given. Despite Its Falling 92%, Cathie Wood Is Buying More of This Growth Stock. Adjusted net cruise cost, excluding fuel per capacity day, is expected to be approximately $159 in the second quarter, a further improvement versus the prior quarter as additional savings initiatives are realized. I want to reiterate our commitment and relentless focus on delivering value for all of our key stakeholders. You know, we use all types of tools in terms of automation, even AI to predict when the best time to book a flight is. You've challenged us. So, all of our newbuild orders, I'll remind everybody that we do not execute any newbuild orders without committed financing. This is one example of our focus on finding the right balance, which is critical to keeping our brand's value propositions intact, maintain our incredibly loyal past guest days, and continually attract new cruisers to sail on our world-class fleet for what we believe is the best vacation experience in the world. *Average returns of all recommendations since inception. Include the following information in the comments field: Completed FCC transfer request information as listed below. When is the best time to go on an Alaska cruise? Thank you for joining us for our first quarter 2023 earnings and business update call. I have a sneaking suspicion you were a contributor to the stellar booking and pricing on the around-the-world sailing. What happens if the cruise I want to use my Future Cruise Credit against is cheaper than the value of my Future Cruise Credit? Tagalog, Australia For additional information, please visit www.ncl.com/travel-requirements-by-country. I booked and paid for 2 cabins, we received future cruise credits to be used within 1 year and the credit was issued to each of the cruisers. With this significant achievement, we have also nearly closed the occupancy gap versus 2019 levels. Indonesia Guests who elect to request their FCC for a monetary refund will receive the original cruise fare paid back to their original form of payment and forfeit any bonus FCCs attached to their Latitudes profile. I have to thank our partners at Fincantieri once again for bringing our vision to life and delivering a truly magnificent ship. www.ncl.com/travel-requirements-by-country. Hotel purchased through Norwegian Cruise Line Japanese Peace of Mind allows you to defer decisions to a later date and therefore the cancelled cruise may not be re-booked using the FCC. We look forward to continuing to demonstrate this improvement over the coming quarters. I also want to express my sincere appreciation to our loyal guests, valued travel partners, lenders, shipyards, investors, analysts, and all of our stakeholders for your continued support and partnership over the years. Cruise tours purchased through Norwegian Cruise Line At Holland America, the credits must be used by Dec. 31, 2022. By The current FCC holder is not the original FCC recipient. As a reminder, this conference call is being simultaneously webcast on the company's investor relations website at www.nclhltd.com/investors. How long will the Peace of Mind policy be in effect? Anything in place already since April 2021 would not allow the guest to cancel and receive the above. The value of the original Future Cruise Credit will now be added to the new Future Cruise Credit at 100% of its original value, plus 125% of any amount paid by the guest on the cancelled sailing. Thank you. 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. The financing also covers older supplies associated with preparing certain newbuilds to enter service, as well as related financing premiums. These are given to customers as a form of compensation for inconveniences caused by cancelled cruises or service issues on a previous cruise. Currently, eight out of the seventeen ships sailing for Norwegian Cruise Line eight ships are not operational. Reservations cancelled outside of final payment received a full refund back to the method of payment used to book. Social Security Cuts May Be Coming. And have you seen any impact to export credit rates given the broader credit crunch? Give specific details . (Those are often reimbursed to the original form of payment, like a credit card.). To what reservations does the Peace of Mind policy apply? This does not include the separate 300 million undrawn backstop commitment, which enhances our future liquidity but is not currently available to draw. Thank you. 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. If you don't know your Log In name or password, call the number above and we'll help you with your credentials. COVID-19 canceled your cruise. Here's how you can use that money for a Vince Ciepiel -- Cleveland Research Company -- Analyst. Steve Wieczynski -- Stifel Financial Corp. -- Analyst. Bottles of wine The value will be included in the POM-NRD credit that was issued. Overall, we feel optimistic about the direction of our business, and we believe we are taking the right steps today create a more nimble and resilient organization for the future. Beginning May 15, 2020, guests who have a voyage through December 31, 2020, may cancel up to 48 hours from embarkation and receive a 100% future cruise credit to be used for sailings that embark through 31st December 2022. OK, thank you. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Harry, do you want to take that one? #1. Since then, not all those guests have rebooked for a new voyage. With great pride, we took delivery of this amazing ship just last week, bringing NCLH's total fleet to 30 vessels with over 60,000 berths. Our booking window, which is our best forward-looking indicator, remains strong. Norwegian Cruise Line Document Downloads What do I do if I am ready to book my next cruise with My Future Cruise Credit? I'm incredibly proud of you. Can guests choose to carry promotional amenities or value adds from their cancelled reservation to their future booking? Norwegian Cruise Line Extends Future Cruise Credits to End of Year
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