Posted Yesterday, 03:47 PM
Haha, yeah, I kind of feel like that. And "filled ships" and selling out cruises is not a direct indicator of a strong business. It speaks nothing to their retention, profitability, etc. You can fill as many ships as you want if you invest tons in marketing, but that's the difference between profitability and margins. Going back to what you pointed out before, retention is extremely important. I think someone got confused about customer acquisition costs. From my understanding, it is sometimes cheaper to acquire a new customer compared to bringing back a customer who has stopped using your service or who has a negative opinion of your service. That's not to be confused though with customer retention. Retaining customers (ones who have generally enjoyed your service) is significantly cheaper than acquiring new ones, from everything I know. Retaining vs bringing back customers who have moved on is not the same thing, and I think the person before might have confused the two. I'm guessing, by many of the posts in this forum, NCL has a retention problem and that's going a long way to sinking their valuation.
Very interesting. Seems to make sense - after 2015 now or any time recently seems like a bad time to buy. It wouldn't be surprising if the stock took another dive I think. Also interesting about other cruise lines. You're definitely correct. RCL just seems to be a much stronger, high growth stock. I guess their customer-centric approach is working... I wonder what their retention looks like compared to NCL.
They are taking my dollars away from ncl in 2019 this I will tell you
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