Frank Del Rio announces retirement

[graphicguy]

While I'm not an FDR fan, I think his deft navigation through the whole COVID shutdown, and just as importantly, the COVID restart, with firm and unequivocal policies, got NCL going again.

 

All the rest of the mainstream cruise lines were a jumbled mess in the way they handled it in comparison.

[ColeThornton]

I wonder if he'll get the Upgraded Free at Sea package as a retirement perk.    😉

[LloydJr]

27 minutes ago, ColeThornton said:

I wonder if he'll get the Upgraded Free at Sea package as a retirement perk.    😉

Only if he pays the gratuities.

[aubreyc1988]

1 hour ago, graphicguy said:

While I'm not an FDR fan, I think his deft navigation through the whole COVID shutdown, and just as importantly, the COVID restart, with firm and unequivocal policies, got NCL going again.

 

All the rest of the mainstream cruise lines were a jumbled mess in the way they handled it in comparison.

1000% agree with this. 

[Zippeedee]

Too soon to break out the cheap sparkling “champagne “ ?

[Karaboudjan]

2 hours ago, laudergayle said:

Previously I was thinking FDR was driving the demise of the NCLH brands.  After reading the release, combined with my career insights of corporate management, I actually believe it is Sommer and Herrera who have been driving down the brands. And, the NCHL Board are loving the revenue that those two are generating.  I feel as though the Board are forcing the FDR “retirement”.  
 

Go back and read the release with a new perspective.  FDR is applauded for: 

 

“He has delivered superior financial results, expanded our fleet with luxurious and innovative ships, strengthened our global footprint and delivered unparalleled experiences for our guests.”

 

Then read the About Sommers and Herrera.  Their experience is revenue, sales and operations—which clearly the Board is loving.

 

 

 

 

NCLH is a public company and the leadership's responsibility is to provide return the shareholders. I'm not sure exactly what you mean by 'driving the demise of the NCLH brands' but if FDR is in fact delivering superior financial results then he is doing exactly what he is paid to do.  

 

Customer satisfaction is usually a means to financial success, but it's hard to please everyone.  I think that most of the reaction on these boards is because NCL and cruising in general is changing and some people either don't roll with the changes as well as others and/or don't understand that the landscape has changed and the lines need to adapt.

 

[vswan]

I find it interesting how closely many follow the management (and staff) of cruise lines. For me, if I wasn't on CC I would have no idea who is in charge of which cruise line, what any staff person's name is, etc. All I'm concerned with is having a good vacation/cruise and could care less who is running what company.

 

Having said that, if the person running the company makes my vacation less than what I find acceptable, I am not happy. I would probably just book with someone else or change my vacation plans, not bother to figure out who was in charge. And, I do realize that coming back from covid has not been easy for the cruise lines, so will cut them some slack right now.

[laudergayle]

2 minutes ago, Karaboudjan said:

 

NCLH is a public company and the leadership's responsibility is to provide return the shareholders. I'm not sure exactly what you mean by 'driving the demise of the NCLH brands' but if FDR is in fact delivering superior financial results then he is doing exactly what he is paid to do.  

 

Customer satisfaction is usually a means to financial success, but it's hard to please everyone.  I think that most of the reaction on these boards is because NCL and cruising in general is changing and some people either don't roll with the changes as well as others and/or don't understand that the landscape has changed and the lines need to adapt.

 

Specifically addressing “demise of NCHL brands:

 

A “brand” and a “company” are two different things. Here is one definition of a brand:  

A brand is a product, service or concept that is publicly distinguished from other products, services or concepts so that it can be easily communicated and usually marketed. Branding is the process of creating and disseminating the brand name, its qualities and personality. 

 

A company can be defined as: 

In simple terms, the purpose of a company is to have a meaningful vision and then to be profitable in achieving it. 
 

NCL brand perception is declining and it is no longer differentiating itself from other cruise lines. Yes, COVID was the lynchpin for the need to reduce costs and increase revenue for all cruise companies.

 

My point is that I believe FDR did a good job building the NCHL brands and he understands their importance in driving company profits and shareholder returns. 
 

My other point is that neither Sommers or Herrera have any branding experience…mostly revenue experience.  For now, they may be exactly what the doctor ordered to right side the company…but the customer experience will suffer as a result.

 

As you said, customer satisfaction typically translates into financial success.

 

just a different perspective.

 

[luv2kroooz]

I don't even think NCL will be around in a few years. They are a prime candidate to be bought out by competition. I could see the cash cow MSC scooping them up quickly.

[graphicguy]

I don't know about NCLH being bought out.  Anything can happen, of course.

 

They have a sizable chunk of the total cruise business, and their ships are all in good shape.

 

MSC hasn't quite got the hang of the American Market, which is a huge part of that business.  Just my experiences with both lines, the two operationally are pretty different.  That would be a tough marriage.  IT would also probably be susceptible to some scrutiny here, as NCL is based in the U.S.

 

NCL's capacity is rising as is it's booking rate, and is mapping to forecasts and they're generating positive cash flow.  Margins are going up

 

I think NCLH is in for the long haul, as that's what the investors are banking on.

 

It would be a tough buy for MSC (or any other cruise line, for that matter), even if the share holders were to be in the mood to sell.  

 

But, I've been surprised by mergers before.  

 

Carnival would probably be the easier target for MSC if they were so inclined.

[BoundForSea]

6 hours ago, ColeThornton said:

I wonder if he'll get the Upgraded Free at Sea package as a retirement perk.    😉

Previously known as what you got normally with “Free at Sea” in 2017?

[BoundForSea]

You all are going to miss FDR. I’ve been told by reputable people Somner is going to have everyone wishing he was back again. NCL still IMHO has maintained a consistent quality and product through the years. ALL of cruising has taken a down turn for the customer’s dollar. ALL. I believe that is a trend that will continue partly due to economics in the world and party due to some pretty drastic generational changes. that said NCL charges a bit more but when you walk off the ship you got a solid NCL experience. IMHO it exceeds RCI and many times Celebrity and Princess, and ALL the time by a landslide  CCL and MSC (esp MSC lately- good lord!) There is a definite culture and distinct vibe to NCL. NCL has put safety first way way more than Carnival Corporation. They invest in safety. Their safety cultural is palpable. That is something you don’t see.  
 

Kevin Sheehan, while turning out to be an HR nightmare, was a CEO that realized that revenue will follow when you set up a great consistent product with a definable brand and culture to it. He designed Breakaway with those concepts in mind. He knew how to put himself in the passenger’s seat and see the experience from our perspective. He put Customer Service first and believed that the revenue would follow. It did. Much of FDR’s success for the years all the way to Encore was built by Sheehan and FDR capitalized on the profitability of the brand. FDR also made ALOT of money personally from this cruise line, more than any other CEO before, during, and after Covid. An obscene amount of money, but more power to him. His story as an Cuban immigrant is pretty amazing. FDR put a new approach in place post Encore. The Indulge Food Hall on Prima and Viva are great examples. Entertainment changes and Virtual Reality and Go Carts, all 100% FDR. The food hall is the future. The buffet will be a thing of the past and much sooner than later. 
 

I really hope they don’t lose their way and hope Somner doesn’t turn this into a plain lifeless money making widget. 
 

 

 

[david_sobe]

Everyone tries and makes their company profitable.  I dont fault anyone for that.  But I do agree what a few others have posted about a sense of arrogance from him.  I remember an interview he did with someone about a year after he took over NCL.  He wanted to get more money from customers and there is nothing wrong with that.  But the interviewer asked about guest experiences or enhancements and making the customer happy.   Dead silence.  He had no care or concern.  He did not even bother to give a political answer.  It was so odd.   If you remember the first things FDR did was start dismantling guest experience from removing fireworks from the Getaway and Breakaway to specialty dining.  However part of me admires what he did because I would never expect NCL guests to accept so much of what he has done.  I always thought there would be push back and regret.  I was wrong on that point so while I think its good he is gone, he was justified in what he did because he had success in that regard.   Doubling Haven prices is outrageous but the Haven is still sold out 😉

[laudergayle]

32 minutes ago, BoundForSea said:

You all are going to miss FDR. I’ve been told by reputable people Somner is going to have everyone wishing he was back again. NCL still IMHO has maintained a consistent quality and product through the years. ALL of cruising has taken a down turn for the customer’s dollar. ALL. I believe that is a trend that will continue partly due to economics in the world and party due to some pretty drastic generational changes. that said NCL charges a bit more but when you walk off the ship you got a solid NCL experience. IMHO it exceeds RCI and many times Celebrity and Princess, and ALL the time by a landslide  CCL and MSC (esp MSC lately- good lord!) There is a definite culture and distinct vibe to NCL. NCL has put safety first way way more than Carnival Corporation. They invest in safety. Their safety cultural is palpable. That is something you don’t see.  
 

Kevin Sheehan, while turning out to be an HR nightmare, was a CEO that realized that revenue will follow when you set up a great consistent product with a definable brand and culture to it. He designed Breakaway with those concepts in mind. He knew how to put himself in the passenger’s seat and see the experience from our perspective. He put Customer Service first and believed that the revenue would follow. It did. Much of FDR’s success for the years all the way to Encore was built by Sheehan and FDR capitalized on the profitability of the brand. FDR also made ALOT of money personally from this cruise line, more than any other CEO before, during, and after Covid. An obscene amount of money, but more power to him. His story as an Cuban immigrant is pretty amazing. FDR put a new approach in place post Encore. The Indulge Food Hall on Prima and Viva are great examples. Entertainment changes and Virtual Reality and Go Carts, all 100% FDR. The food hall is the future. The buffet will be a thing of the past and much sooner than later. 
 

I really hope they don’t lose their way and hope Somner doesn’t turn this into a plain lifeless money making widget. 
 

 

 

I concur. Thank you for sharing my opinion in different words so others may better understand what I was hoping to communicate. 

[BoundForSea]

32 minutes ago, david_sobe said:

 If you remember the first things FDR did was start dismantling guest experience from removing fireworks from the Getaway and Breakaway to specialty dining.  However part of me admires what he did because I would never expect NCL guests to accept so much of what he has done.  I always thought there would be push back and regret.  I was wrong on that point so while I think its good he is gone, he was justified in what he did because he had success in that regard.   Doubling Haven prices is outrageous but the Haven is still sold out 😉

Well said sir! As I said in my post, Kevin was more of the people person, the guy that could see it from our perspective, he was the father of Freestyle Cruising and the BA class was truly a breakthrough in design in 2013. FDR was a money guy, he took free square footage and space like Spice H20, Free Ropes Courses, and alot of top side sun deck space and monetized it- A lot more Vibe space and less free deck space, VR, Race Cars, etc on Encore. The changes from Bliss to Encore were all him. The Haven was a great concept and an industry leading concept. While Sheehan made it profitable, FDR executed on its popularity and created ALOT of demand through quality and put his Oceania experience to work and bam- The price of Haven from 2015 to now has doubled and more. Like you said David, the client base really didn’t flinch. You still get outstanding food quality clean, modern, and well maintained ships and a great experience, that’s why nobody flinched. Good on him. I wish I can go back to 2015 on BA out of NY here, I can’t so I just have to embrace the “change”. 

[BirdTravels]

10 hours ago, jerseyfresh72 said:

Ill never understand how they justify these massive CEO transition and consultancy fees with all the cuts being instituted. 

It is called a non-compete, if you understand the concept. 

[BirdTravels]

10 hours ago, talkorpi said:

Good riddance!  FDR took what was my #1 cruise line I always wanted to try and made it my #1 cruise line to avoid.  A shame.  Hopefully NCL can improve under his successor.

FDR was not the CEO of NCL. Harry (who replaces FDR as CEO of the holding company) was the CEO of NCL. 

[voyager1964]

I think he has invented the bidding for upgrade process that many cruiselines unfortunately copied

[PTC DAWG]

10 hours ago, graphicguy said:

While I'm not an FDR fan, I think his deft navigation through the whole COVID shutdown, and just as importantly, the COVID restart, with firm and unequivocal policies, got NCL going again.

 

All the rest of the mainstream cruise lines were a jumbled mess in the way they handled it in comparison.

No doubt..

[wcook]

9 hours ago, Zippeedee said:

Too soon to break out the cheap sparkling “champagne “ ?

 
we break that stuff out only if there is an art auction going on. 

[zzdoug]

8 hours ago, luv2kroooz said:

I don't even think NCL will be around in a few years. They are a prime candidate to be bought out by competition. I could see the cash cow MSC scooping them up quickly.

The share price is historically low but whoever buys it will have to figure out how to deal with $12 billion in debt. Not saying it won't happen.

[phissy]

10 hours ago, luv2kroooz said:

I don't even think NCL will be around in a few years. They are a prime candidate to be bought out by competition. I could see the cash cow MSC scooping them up quickly.

It was reported,that NCL asked MSC if they were interested in acquiring NCL. Answer from MSC was No Thanks.

[david_sobe]

Another genius move that I despise from the FDR era is the "free at sea" and all the 50% off cruises nonsense.  From a marketing strategy it works with luring new cruisers.  That is who they are targeting.  But for us seasoned cruisers its frustrating because we know none of this stuff is free.  When this all started, a top NCL executive had a Freudian slip while discussing the program and said "it was so good because the customer thinks they are getting all this stuff for free."  Once she said it she tried to back track but its ok to admit the truth. I just miss the old days of not having to navigate through all these add ons.   During this era, NCL definitely marketed towards kids and families but so does Carnival.   There are more kid activities than ever with go carts, laser tag, virtual reality, etc.

I wonder what the new era will bring?

Edited March 21, 2023 by david_sobe

[dexddd]

Well, if Harry worse, so be it and that will be telling.

 

How many millions is it to leave your lover, for your convenience, of course, and get yourself FREE.

[graphicguy]

Going strictly from memory, Kevin Sheehan's predecessor (Veetch-sp?) sued Sheehan while he was in charge.  This was in response to some negative things Sheehan had published about Vetch previously.   It came down to a ***** contest as Sheehan fought back at Veetch.  Optics are never good when Execs and former execs start fighting and suing each other.  BOD I'm sure were not in the mood for it and let Sheehan go.

 

But, Sheehan did indeed foster some of the innovations that is widely copied by all cruise lines, today.  He was guest focused and a credit to NCL.

 

Last I heard he was on the Board of Directors for Dave and Busters.