Frank Del Rio: " . . . the emphasis will continue to be push prices up . . .

[janpo]

From the very simple fact that if the MAJORITY didn't want the changes, they wouldn't happen. Cruise line execs don't just sit around thinking up what they can change. Changes like dress codes are the result of comments, surveys and focus groups. Dress codes are changing everywhere; the is a vocal but tiny minority who don't like it. They may be happier oiling their buggy whips.

 

 

Thats a load of BS and putting it in capital letters DOESN'T make it true.

Edited November 18, 2015 by janpo

[SuiteCruiser]

From the very simple fact that if the MAJORITY didn't want the changes, they wouldn't happen. Cruise line execs don't just sit around thinking up what they can change. Changes like dress codes are the result of comments, surveys and focus groups. Dress codes are changing everywhere; the is a vocal but tiny minority who don't like it. They may be happier oiling their buggy whips.

 

I've had a survey following each of my cruises. I took 7 in the last 12 months. None of them have asked if I would like any of these changes. The last one I received that asked about things that they ended up trying out were the "all inclusive" package a few years ago and the UBP an UDP a couple of years ago. Nothing has been surveyed since the new CEO took over, or at least not where it's actually getting data from their best clients.

[NLH Arizona]

From the very simple fact that if the MAJORITY didn't want the changes, they wouldn't happen. Cruise line execs don't just sit around thinking up what they can change. Changes like dress codes are the result of comments, surveys and focus groups. Dress codes are changing everywhere; the is a vocal but tiny minority who don't like it. They may be happier oiling their buggy whips.

Celebrity and Crystal changed their dress codes to improve their passengers' cruise experience, just as NCL has done by adding upscale items on the MDR menu (many return from the Escape have raved about the new items). It is all about improving the product, but some will like the new improved product and some won't....NCL can't make everyone happy and last I looked, NCL was not forcing anyone to purchase the upscale items on the MDR menu, eat in the specialty restaurants, order a drink, order room service or even pay their DSC....it is all about choices. Edited November 18, 2015 by NLH Arizona

[mianmike]

The principal problem I have with Frank Del Rio is how he goes about increasing NCLH corporate profits. I’m perfectly fine with a natural price increase due to increased demand. If FDR were to improve the cruising experience such that there was a significant increase in demand, I would expect a price increase and logically accept it.

 

But as a substitute for organic growth he has implemented a series of new and increased fees without improving the experience commensurate with the extra fees.

 

He has promised investors he would double profits by 2017 and in that vein he has implemented a marketing gimmick of “free” drinks, UDP etc. to fill rooms. Of course it’s a gimmick as the cost of drinks is incorporated into the cruise fare and service charges. I don’t want gimmicks that give the illusion of value. I’m okay with upgrading the ship’s structures and the experience and I’m willing to pay extra for the improved ships and I’ve never once heard someone say the problem with NCL is the tired napkins and silverware.

Edited November 18, 2015 by mianmike

[Johnny Bananas]

many return from the Escape have raved about the new items.

 

Could you link these reviews for me or quote these many posters? I've only seen one report so far about the up charge lobster who said it was ok and mushy...

[strand]

Could you link these reviews for me or quote these many posters? I've only seen one report so far about the up charge lobster who said it was ok and mushy...

 

I have read a number of great reviews from Food Republic (I believe Suite Cruiser also chimed in and provided her positive feedback). The varied selection of beer from the District Brew House and same goes for the Pincho Tapas Bar.

[Johnny Bananas]

I have read a number of great reviews from Food Republic (I believe Suite Cruiser also chimed in and provided her positive feedback). The varied selection of beer from the District Brew House and same goes for the Pincho Tapas Bar.

 

Thats's not what he was referring to or what I was asking about- it's the 3 new up-charge items in the MDR

[insidecabin]

Yes, most cruise lines do make changes from time to time but NCL is not just making a minor change here, they are trying to move themselves up on the cruise line hierarchy by becoming more upscale and trying to attract a more affluent clientele. It's not the adding improved items that is a deterrent it's the increase in fares, at least for me.

 

RCI have been the worst for running revenue cruises with building sites during the recent renovation/conversion for the suite improvements.

 

Venues closed area boarded up to carry construction materials and significant works like welding(on transatlantic cruises).

 

Both RCI and celebrity were playing catchup with suite amenities.

 

Food is the easy one to improve quality just a few $ a day can make a massive difference not checked latest results but the food cost went down with the merger

Up the food budget to $14-$15 pppd would go a long way and the a la carte/SDP can recover most of the cost.

 

I believe better food can lead to lower waste and consumption, but they need to iron out the issues with the new menus.

[insidecabin]

The principal problem I have with Frank Del Rio is how he goes about increasing NCLH corporate profits. I’m perfectly fine with a natural price increase due to increased demand. If FDR were to improve the cruising experience such that there was a significant increase in demand, I would expect a price increase and logically accept it.

 

But as a substitute for organic growth he has implemented a series of new and increased fees without improving the experience commensurate with the extra fees.

 

He has promised investors he would double profits by 2017 and in that vein he has implemented a marketing gimmick of “free” drinks, UDP etc. to fill rooms. Of course it’s a gimmick as the cost of drinks is incorporated into the cruise fare and service charges. I don’t want gimmicks that give the illusion of value. I’m okay with upgrading the ship’s structures and the experience and I’m willing to pay extra for the improved ships and I’ve never once heard someone say the problem with NCL is the tired napkins and silverware.

 

Does it really matter that there have been a series of adjustments in how you get to the total spend for a cruise other than having to work them out?

 

You get the price and it is what you want to pay or not, it's just a different list of numbers to add up for your total.

 

 

 

What is changing for the customer is the product new menus refurbished ships

As these take hold the booking numbers will reflect if they are working.

 

Don't forget forward booking revenue on the books doubled since December 2014 when choice started and the new cruise next/ultimate is designed to keep forward bookings.

 

If the US is anything like the UK the critical market is new cruisers which account for 35% of bookings you have to get a share of those to keep numbers up

[insidecabin]

Celebrity dress code is just aligning with practice, people were smart/chic on formal nights anyway not everyone dressed TUX even jacket policy was variable even on the same night/ship.

[NLH Arizona]

Celebrity dress code is just aligning with practice, people were smart/chic on formal nights anyway not everyone dressed TUX even jacket policy was variable even on the same night/ship.

I know that and you know that, but if you listen to some of those that have cruise Celebrity for years insist that there is more formal attire than not and are quite upset with the change. I wore gowns on my cruise last year and felt very overdressed, so this January, I'll certainly dress more evening chic.

[hondorner]

Thats a load of BS and putting it in capital letters DOESN'T make it true.

 

Well, excuse me! You asked, I gave you an answer, you can disagree, but you have no basis or right to declare it BS. That's not only super rude, it's what's wrong with this danged NCL foum.

[hondorner]

I've had a survey following each of my cruises. I took 7 in the last 12 months. None of them have asked if I would like any of these changes. The last one I received that asked about things that they ended up trying out were the "all inclusive" package a few years ago and the UBP an UDP a couple of years ago. Nothing has been surveyed since the new CEO took over, or at least not where it's actually getting data from their best clients.

 

You and janpo shoul re-read the original context. NLHArizona referred to Celebrity and Crystal ehen he/she stated that guests liked the changes. Janpo asked how they knew, and I responded -- regarding Celebrity and Crystal. NCL was not part of that discussion. Whether or not you received a survey is immaterial unless you were on those cruise lines.

[sparks1093]

Cruise line execs don't just sit around thinking up what they can change.

 

Right, then who was it that decided to raise soda prices by .20 onboard because the passengers are a captive audience and if they are going to buy a soda they will buy a soda? It was Del Rio that mentioned that very fact in an investor's call and if that change didn't originate in the board room where did it originate for the CEO to even know about it?

[NLH Arizona]

Right, then who was it that decided to raise soda prices by .20 onboard because the passengers are a captive audience and if they are going to buy a soda they will buy a soda? It was Del Rio that mentioned that very fact in an investor's call and if that change didn't originate in the board room where did it originate for the CEO to even know about it?

If the cruise line works like any other company. I would guess that Mr. Del Rio gave Mr. Stuart a dollar figure and then he gave each department a dollar figure increase they want to see in their department. It would then be the department heads, plus his or her staff, who would go over their onboard revenue and decide where they think they can raise prices. I seriously doubt that Mr. Del Rio or Mr. Stuart sit around and decide all the minutiae, they just look at the big picture. Edited November 18, 2015 by NLH Arizona

[sparks1093]

If the cruise line works like any other company. I would guess that Mr. Del Rio and Mr. Stuart gave each department a dollar figure increase they want to see in their department. It would then be the department heads, plus his or her staff, who would go over their onboard revenue and decide where they think they can raise prices. I seriously doubt that Mr. Del Rio or Mr. Stuart sit around and decide all the minutiae, they just look at the big picture.

 

I know that is the way that it should work, but I thought Del Rio's comments spoke volumes about his management style. The guy that personally picks the art for the ships is not likely to sit back and let others do it;).

[maywell]

Right, then who was it that decided to raise soda prices by .20 onboard because the passengers are a captive audience and if they are going to buy a soda they will buy a soda? It was Del Rio that mentioned that very fact in an investor's call and if that change didn't originate in the board room where did it originate for the CEO to even know about it?

Isn't soda before like about $3, anyway and still under that amount? Plus, NCL doesn't restrict people bringing as much soda/juice/water as they like - the port, one is embarking does; but not NCL; they let put luggage tags on the cases of beverage. Heck, one can bring as much wine as they like, provide the pay the $15 for 750ml /$30 for a magnum each - can open it anywhere without fear, even on the sundeck. The only thing they honest restrict / don't allow to bring onboard during embark is liquor.

 

Still have options to either buy it onboard and be "captive". Or bring your own liquid poison of choice and enjoy it anywhere, without having to pay a cent to NCL (unless it wine).[emoji14]

 

 

 

Sent from my SM-N910T3 using Tapatalk

[swedish weave]

If the cruise line works like any other company. I would guess that Mr. Del Rio gave Mr. Stuart a dollar figure and then he gave each department a dollar figure increase they want to see in their department. It would then be the department heads, plus his or her staff, who would go over their onboard revenue and decide where they think they can raise prices. I seriously doubt that Mr. Del Rio or Mr. Stuart sit around and decide all the minutiae, they just look at the big picture.

 

Has Stuart changed that much since he appeared in the NCL documentary a few years ago?

 

He stated then that he knew exactly what sales had to be made in order to make the cruise profitable.

 

I suppose the key word in the quoted post is GUESS ??

[janpo]

I know that is the way that it should work, but I thought Del Rio's comments spoke volumes about his management style. The guy that personally picks the art for the ships is not likely to sit back and let others do it;).

 

 

And wasn't it FDR himself after seeing dishes in a hallway ban food to be taken out of the dining venues? That doesn't sound to me like he's not involved in the day to day things as others are saying. It does speak volumes.

[swedish weave]

And wasn't it FDR himself after seeing dishes in a hallway ban food to be taken out of the dining venues? That doesn't sound to me like he's not involved in the day to day things as others are saying. It does speak volumes.

 

One would think that with the cash flow problems NCL has that Del Rio would be using his expertise as a CPA to correct that problem instead of worrying about dishes in the hallways and the art on the walls.

 

After all the fare increases, surcharges, and service charges, this is still not getting the job done.

 

CASH FLOW FROM OPERATIONS: [FAIL]

 

A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. NCLH's free cash flow of $-1.96 per share fails this test. (end of quote)

Edited November 18, 2015 by swedish weave

[SuiteCruiser]

I have read a number of great reviews from Food Republic (I believe Suite Cruiser also chimed in and provided her positive feedback). The varied selection of beer from the District Brew House and same goes for the Pincho Tapas Bar.

 

Yes, I loved Food Republic :) I haven't seen anyone say anything about loving the MDR upcharge items though

[SailBreakaway]

Ok great great thread, perhaps a silly question, where can I access the audio from the investor conference calls? Forgive me again if that's an ignorant question.

 

 

Sent from my iPhone using Tapatalk

[maywell]

Ok great great thread, perhaps a silly question, where can I access the audio from the investor conference calls? Forgive me again if that's an ignorant question.

 

 

Sent from my iPhone using Tapatalk

 

Its up for at least 30 days:

http://www.nclhltdinvestor.com/events.cfm

 

 

All the financial reports from them directly:

http://www.nclhltdinvestor.com/releases.cfm?Year=

[SailBreakaway]

Its up for at least 30 days:

 

http://www.nclhltdinvestor.com/events.cfm

 

 

 

 

 

All the financial reports from them directly:

 

http://www.nclhltdinvestor.com/releases.cfm?Year=

 

 

Thanks very much!

 

 

Sent from my iPhone using Tapatalk

Edited November 19, 2015 by SailBreakaway

[Architect]

So you're never sure what the perfect balance of bookings are, but we'll finish the year, as I said earlier, occupancy in the mid-50s for next year.

 

Forgive my ignorance but what is Mr Del Rio referring to here? Certainly not mid-50s in percentage of capacity, right? I've never been on a cruise which was less than 85% or so (and I do enquire!) but I've also never sailed on NCL before.

 

Or is he talking about advance-purchase percentage, at the end of the year for next year? That makes more sense. I'm also sort of intrigued by lines which charge 200% for solo travellers but give free rides (or major discounts) to third and even fourth pax in a given stateroom. Obviously this has to do with how the cruise line actually makes its money, but it still sort of amazes me.