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. Can you kind of help us understand why that's different now? Vietnamese I have full confidence in the management team and their ability to take this company on to its next chapter. Hey, good morning, everybody. I said last quarter, we need to do a better job of leveraging our scale. CruiseNext deposits applied to a reservation cancelled under our Peace of Mind policy will not be reissued. As we have stated previously, the second quarter will complete our occupancy ramp-up. At that time, the receiving guest will be able to apply the coupon to the desired reservation. Click here to reload the page in order to enable certain features. OK, great. So, you know, what am I missing there, Mark? And then, maybe also kind of give us a look at '24. let one of our experts help you with this procedure to ensure the right amount is transferred. And so, was the change since last reported, was it just sort of a decision to say, "Hey, we're happy with the pricing that we're getting." 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%. We've all experienced, whether it's traveling for business or consumers traveling, flight prices are elevated. 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. [Operator instructions] As a reminder to all participants, this conference is being recorded. Mark Kempa -- Executive Vice President, Chief Financial Officer. Of course, Caribbean doesn't matter all that much for us in Q2 and beyond as we shift our deployment to Europe and Alaska. 04/02/2018. Vince Ciepiel -- Cleveland Research Company -- Analyst. 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. Photo packages. Your original Future Cruise Credit can be applied to Pre-paid service charges, Beverage or dining gratuities (if part of the Free At Sea promotion selection), Air purchased through Norwegian Cruise Line, Hotel purchased through, Norwegian Cruise Line, Cruise tours purchased through Norwegian Cruise Line, Pre-booked and pre-paid shore excursions, Transfers, Essentials, Booksafe Standard or Platinum Travel Protection insurance (if purchased on the original suspended reservation). The original, full value FCC can be applied and used for the following: The FCC cannot be applied or used for the following: Final Payment and cancellation schedule for all voyages embarking May 1, 2022 forward will remain at our standard policy. 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? In order to transfer an FCC, and in an effort for us to best assist you quickly, please follow the instructions below: POM or Suspended Sailing reservation number that generated the FCC being transferred: This website uses cookies. We're on that journey. This was primarily to finance improvements and modifications to newbuilds currently on order across our three brands. Beverage or dining gratuities (if part of the Free At Sea promotion selection) Our next question is from Conor Cunningham with Melius Research. If you have any questions, our friendly team of Future Cruise Credit Experts are equipped and ready to help with your Future Cruise Credit. Conor Cunningham -- Melius Research -- Analyst. Harry Sommer -- President and Chief Executive Officer, Norwegian Cruise Line. Cruise departure date 13 - 17 March 2020: And with those tools, we think bundling actually provides us in this uncertain future environment a competitive advantage. Europe: I.C.E Europe Ltd. Company Number: 03793955. As we look to the remainder of the year, our substantial book position, coupled with the continued healthy demand metrics we are experiencing, gives us confidence in achieving our 2023 net per diem and net yield guidance, which Mark will touch on in more detail momentarily. So, I won't give too much color on that, but other than we're exactly in the position we need -- where we need to be. Your Future Cruise Credit may be used towards the base cruise fare of a future cruise booked within its expiration date. Norwegian Cruise Line ; Transfer cruise credits Please . Future Cruise Credits acquired because of suspended sailings are brand-specific and can only be redeemed on the brand where the cancellation occurred. OK, thank you. Mesmerising beach & city stays in over 200,000 hotel & resort properties worldwide. The only exception is if the current owner is requesting to transfer back to the original owner that the FCC was issued to. And I think the tail end of your question was whether or not we're booked there currently. Air purchased through Norwegian Cruise Line Demand in pricing continues to be strong, not only for 2023, but also as we look further out the sailings in 2024 and beyond. Thank you. The full amount of your FCC can be applied to the base cruise fare on a new booking, but only if the passenger whose name it is under is the one who is booking. It can then be applied to any new or existing reservation or group booking. Can I use my Future Cruise Credit to book cruise extras and add-ons such as shore excursions stays tours or drink packages onboard? CruiseNext deposits applied to a suspended reservation will be returned to the guests profile. So, in order to preserve cash for the long term and given the very efficient rates, we simply decided to finance more. IMPORTANT: To learn more about how to prepare your clients for sailing please visit the pre-cruise requirements page at www.ncl.com/prepare-for-your-cruise/2021 for all required documents and protocols. So, I'm going to kind of ask Dan's question maybe a little bit differently. If a refund is approved, all FCCs (including Bonus FCCs) will be deactivated, and a refund will be issued back to the original form of payment, within 90 days from the request submission date. The current FCC holder is not the original FCC recipient. So, my first question is on the cost side. And so, we're going to -- occupancy may not be coming in exactly what we thought, but it makes more sense to hold price for those or just trying to think about because I think the itineraries themselves didn't change since last reported. 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. Learn More, Norwegian Cruise Line(NCLH 8.91%)Q12023 Earnings CallMay 01, 2023, 10:00 a.m. Please allow up to 7 business days for the transfer request to be completed. inside cabins. To find out more, please. So, I wouldn't skew too much that the premium itineraries are going to be a big driver of cost. A Future Cruise Credit (FCC) is simply a voucher for future cruise travel. 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. This will be incredibly convenient for guests who had a cruise booked in 2020 but have so far been unable or unwilling to use their future cruise credit as it was set to expire on January 31. Harry? 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. 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? I'll take that one, too. In the first quarter, CruiseNext achieved its highest quarterly results in the program's history, surpassing the previous record. Charters are excluded. Great, thanks. With that, I will now turn the call over to Mark for his commentary on our financial position and outlook. So, I think what you have to think about is looking at our newbuild deliveries that we're taking this year as well. But we're happy with both occupancy and price, especially for the key summer period. Is SoFi Stock a Buy Now? ESG Reporting & Downloads. All guests who complete an online submission request (requesting to convert active FCCs to a monetary refund) agree that they are authorized to do so on behalf of all persons on the reservation as we are unable to issue partial refunds. Register your Future Cruise Credit, find your favourite sailing, then speak to an expert for a personal consultation on planning and booking, and let us make your cruise dreams a reality, completely stress free! My Future Cruise Credit is provided and supported globally by International Cruise & Excursion Gallery, Inc., I.C.E Europe Ltd., I.C.E Vacations Asia Pacific PTY LTD, and ICE Vacation Center India Private Limited. What Is Future Cruise Credit and How Can I Use It? Since we last spoke, we also signed agreements to increase our ECA-backed commitments by approximately 1.7 billion euro. And in our last earnings release, we had called out that we had increased our contractual commitments by 1.2 billion euro. Our next question is from Patrick Scholes with Truist Securities. Sure, Vince. So, that does somewhat elevate your unit cost, although we do receive benefit on both the top and bottom lines from that. Just on the second half net per diem, you know, it's implied a decent step-up in the second half. Partial value transfers or transfers of remaining FCC balance are not permitted. Scam or Deal: Will That Cruise Sale Really Save You Money? Complete the on-board survey. Guests can then participate in a new bid once invited to bid for the newly selected sailing. Norwegian Cruise Lines Future Cruise Credit applied for cancelled sailings will have a value between 125% and 150% depending on the departure date and the sailing. IATA Accredited. And our consumers are booking very far out in advance, which is a good thing. Voyage Fare Before turning the call over to Q&A, I'd like to leave you with some key takeaways which you can find on Slide 18. and reflecting lower than expected costs in the first quarter. I know the 1.2 billion are for those ships that are a couple of years out, is the additional 500 million euros, is that for 2023 specifically? Sign up and register your NCL Future Cruise Credit here, then browse the unlimited availability of exciting NCL sailings, cabin categories and destinations available with my future cruise credit and contact one of our expert agents for personalised help with planning and booking. Hi, everyone. Take note of the fine print, and when in doubt, call your cruise line to clarify important things like expiration date or any blackout dates. You can redeem any FCC by calling us! Copyright 19952023 The Independent Traveler, Inc. Amazing, Funny & Totally Awesome Cruise Photos. You may include multiple requests on one case so long as the request is complete and proper consent from current coupon owner is included (either in an attached email or by the current owner being the one to submit the case), Original Peace of Mind or Suspended Sailing reservation number that generated the FCC being transferred, Client ID and name of Current FCC Owner who is authorizing the transfer, Client ID and name of Guest Receiving the FCC. That said, we have not stopped, and we continue to look at opportunities to improve our cost structure. I am booked on a Sixthman full ship chartered cruise, which sails on Norwegian. Once the transfer is completed, a confirmation email will be sent to the email provided at time of case submission. We are implementing solutions for efficiency today; innovating for future solutions, including with our investment to modify two of our future newbuilds to create methanol-ready configurations; and are committed to collaborating with our stakeholders and partners along the way. It has a monetary amount associated with it, and it is provided instead of a refund. What is a Future Cruise Credit? Following up on the strategic shift to longer, more immersive itineraries, should we be thinking about any other financial ramifications of this shift other than the occupancy? But I'll turn it over to Mark to talk about financial ramifications. How long will it take to receive the refunded portion (if any) of the cancelled booking? Registered Seller of Travel. When does My Future Cruise Credit expire? No, you will have to apply your Future Cruise Credit to a future cruise onboard Norwegian Cruise Line. We are focused on better leveraging our scale as we embark on this period of transformational growth and translating this capacity growth into outside benefits to both the top and bottom line. Any unused portion of the credit will be forfeited after the expiration date. And, hopefully, over the next few quarters, we can continue to prove that and further build confidence that we're leveraging our scale to the best of our ability. What happens if the cruise I booked using my Future Cruise Credit is cancelled? Can guests use their FCC to pay for more than one cruise in the future? At that time, the receiving guest will be able to apply the coupon to the desired reservation. What is not included in the future cruise credit (FCC) are; Travel Protection. Partial value transfers or transfers of remaining FCC balance are not permitted. We continue to expect modest sequential improvement each quarter in 2023 as occupancy increases and as a result of initiatives which have already been identified and implemented. The following is applied to the Future Cruise Credit when calculated: Cruise fare and taxes. 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. Some FCCs are combinable. ATAS Travel Accreditation No: A11156. Look, our book position, Harry touched on it earlier, we're exactly where we need to be to hit our goals and our guidance. Taking a closer look at the components of the full year outlook, net per diem growth of approximately 9% to 10.5% as compared to 2019 and net yield growth guidance of approximately 5% to 6.5% are unchanged versus our prior guidance. Water and/or soda packages Yes. Your Future Cruise Credit will, most likely, only be redeemable towards a new cruise fare and is issued in lieu of a refund, however, some Cruise Lines have given customers the option to receive an onboard spend credit in lieu of a refund. Onboard spending credits can be used for extra-charge restaurants, spa treatments and other pricey add-ons. Beverage or dining gratuities (if part of the Free at Sea promotion selection), Flexible air purchased through Norwegian Cruise Line, Hotel purchased through Norwegian Cruise Line, Cruise tours purchased through Norwegian Cruise Line, Essentials, Booksafe Standard or Platinum Travel Protection insurance, Dining/beverage packages that are not part of the Free at Sea program, Internet packages that are not part of the Free at Sea program, Onboard amenities such as: Bottles of wine, bon voyage gifts, celebration or photo packages. Future Cruise Credit will be credited to you via your Latitudes number and communication will be sent to you once the credit is added to your account. And, you know, number one, that's on the back of very strong just good old-fashioned core growth. Include the following information in the comments field: Completed FCC transfer request information as listed below. And I think that's why when you look at our capital commitments on our newbuilds for the next three years, it's actually decreased overall in terms of cash out of the system. In fact, we were encouraged to see that even with the banking sector-driven financial market volatility in March, we did not experience any unusual booking or cancellation activity across any of our brands. So, something that -- absolutely, it impacts us. 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. Book and get $500 Savings Credits bonus to use on you future cruises, hotels, resorts and more with iCruise Rewards. A good example of this is a recent announcement regarding the rollout of the Starlink low-latency broadband internet system in a phased manner across our fleet. Another strong indicator that our product continues to resonate with our guests is the performance of NCL's CruiseNext program, an onboard program in which we sell nonrefundable future cruise certificates. The value will be included in the POM-NRD credit that was issued. Our record book position also gives us high visibility into the back half of the year and beyond. FCCs are now valid through December 31, 2022, Norwegian Cruise Line Holdings Is First to Opt-In to Voluntary CDC Guidelines, Coast Guard Rescues 4 Passengers from 3 Cruise Ships in 24 Hours, Holland America Opens Alaska Season With Special 150th Events, Viking Vessel Launches Toronto 2023 Cruise Season, MSC Cruises Announces First-Ever Winter Season in Japan. 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. The sail-by date had always been December 31, 2022, so it is only the effective date when guests must apply their credit that has been extended. Despite Its Falling 92%, Cathie Wood Is Buying More of This Growth Stock. Future cruise credit (FCC) is a bit like store credit from a cruise line. 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 I'm just trying to -- and obviously, if we try and back into what's implied for the full year, you know, it would seem like it's very modest improvement, almost flattish from a pretty high level. And congratulations to both Frank and Harry. What happens if the cruise I am looking to book has a greater value than my Future Cruise Credit? Personally, I couldn't have asked for a more fulfilling and more successful career in this incredible industry, and everyone here contributed to that. Taking all of this into account, adjusted EBITDA for the second quarter is expected to be approximately 485 million, which is roughly the same level as EBITDA in the same quarter of 2019, another stepping stone to closing the gap versus pre-pandemic levels. So, it does not represent a further half-a-billion increase in the overall ship cost, it is simply a different mechanism for financing some of the existing costs that were already expected. Later, we will conduct a question-and-answer session, and instructions for the session will follow at that time. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Over the next few months, I will be speaking with travel partners, team members, destination representatives, the investment community, and a whole host of constituents, while working closely with our executive team to fine tune our planning vision for the future, and I look forward to sharing details with you. I mean, is there any net cruise costs changes or net yield changes that we should be thinking through? 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. This article is a transcript of this conference call produced for The Motley Fool. You can redeem any FCC by calling us! On March 29, Norwegian Jewel will return to operations from Civitavecchia near Rome, in Italy. We've covered a lot today, so I'll conclude our commentary here and open up the call for your questions. This should result in a lower run rate cost level exiting 2023 than our full year reported results. Here at myFCC, we're committed to helping you make the most of your Future Cruise Credit. You can redeem any FCC by calling us! For additional information, please visit www.ncl.com/travel-requirements-by-country. 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. And that's going to come on the back of, again, strong pricing and yield growth, which we've talked about, as well as rightsizing our cost base and leveraging our scale. The last catalyst to highlight is our industry-leading newbuild pipeline shown on Slide 9, which Frank already touched on briefly. I have a sneaking suspicion you were a contributor to the stellar booking and pricing on the around-the-world sailing. Once the transfer takes place, the receiving guest is now the owner and the previous owner cannot request a transfer back. a new quarantine requirement upon return from travel (but not a travel ban), then an FCC would be offered. Thank you. Attachment of email from current FCC owner authorizing transfer. What can the Peace of Mind FCC be used for? Harry, Mark, and Jessica, and the team will be available to answer any questions you may have once this call is over. As Harry noted, we continue to evaluate all opportunities to accelerate revenue and improve operating efficiencies and are taking deliberate actions to improve our margins, while maintaining the exceptional guest experience and superior service levels our brands are known for. So, we are taking deliveries of ships, obviously, now in the second quarter. Listen, we have about 20% increase in capacity for 2023 versus 2019. As government regulations evolve, our health and safety protocols will evolve as needed to ensure compliance. We work in partnership with all the major cruise & travel associations. We also revamped our climate action strategy, which is now centered on three key pillars: efficiency, innovation, and collaboration. What if I booked my cruise with a travel agent and received a Future Cruise Credit? Now, that's not a necessarily easy task, but that's one of the things we're marching to as a management team and, of course, with our board of directors. I'm joined today by Frank del Rio, president and chief executive officer of Norwegian Cruise Line Holdings; Harry Sommer, president and CEO-elect of Norwegian Cruise Line Holdings; and Mark Kempa, executive vice president and chief financial officer. Internet packages that are not part of the Free At Sea programme As we execute on this plan, we expect to see a dual benefit of not only emission reductions, but also cost savings from reduced fuel consumption. That's $1,500 in extra value -- a 37.5% return on the original payment of $4,000 -- just for letting the cruise company hold onto the original payment for another year or two. Norwegians Enhanced Peace of Mind Policy was available from December 30, 2021 through January 31, 2022. If the cruise you booked with future cruise credit is canceled, the full amount may again be refunded in the form of an FCC, and the expiration dates will likely be adjusted accordingly. We covered our leadership transition already, which could not have gone smoother, so I will skip ahead to what continues to be a healthy demand environment. 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. Also, I guess that would relate to the first quarter, but just trying to zoom in a little bit on the first quarter versus second quarter and the change there. 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. What happens to CruiseNext certificates that were used on a cancelled reservation? Patrick Scholes -- Truist Securities -- Analyst. I know I speak on behalf of the entire NCLH team when I say thank you, Frank, for your countless contributions, not only to our company, but also to the broader cruise industry. The first ship to return to service will be Norwegian Pearl, sailing from the stunning new cruise terminal in PortMiami, from February 7. No, guests will receive the full value of their winning bid within the FCC and can apply that towards the sailing and category of their choice. You can redeem any FCC by calling us! I want to stress that we recognize and acknowledge while this is a great start, we still have more work to do. We make sure cruisers are fully prepared for their cruise vacation with tips on ships and ports. And as I had communicated when we communicated on our last call, we were steadfastly going into a lot of our onboard -- our margin enhancement initiatives. Any ancillary items sold by Norwegian Cruise Line will be refunded to the cardholder who made the original purchase (refunded to the original form of payment) and will not be included in the Future Cruise Credit. Pricing for the same itinerary, similar dates, and Getaway instead of Escape are. www.ncl.com/travel-requirements-by-country. Again, we had to rapidly exit Cuba in, I believe, June or July of 2019. A Future Cruise Credit (FCC) is essentially a voucher for future travel. Thank you. But more importantly, when you look at the comparisons in the back half of 2019, we're rolling over much easier comparisons, the inverse of what's happening in the first half versus 2019. Please proceed with your question. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. If the new mandate is a significant inconvenience to the guest, i.e. Please proceed with your question. The Future Cruise Credit goes to the individual guest on the reservation. Effective May 18, 2020, FCCs from either our 2020 Suspended Sailings or Peace of Mind FCC are transferable. Exclusions may apply, but are not limited to, one of the following: An FCC has been fully or partially transferred. Depending on the cruise line, an FCC will likely not cover future charges such as: 19952023, The Independent Traveler, Inc. .css-18jw8gc{-webkit-appearance:none;-moz-appearance:none;-ms-appearance:none;appearance:none;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:center;-ms-flex-pack:center;-webkit-justify-content:center;justify-content:center;-webkit-user-select:none;-moz-user-select:none;-ms-user-select:none;user-select:none;position:relative;white-space:nowrap;vertical-align:middle;outline:2px solid transparent;outline-offset:2px;line-height:1.2;border-radius:var(--chakra-radii-md);transition-property:var(--chakra-transition-property-common);transition-duration:var(--chakra-transition-duration-normal);height:auto;min-width:var(--chakra-sizes-10);font-size:var(--chakra-fontSizes-md);background:none;border:0;color:black;display:inline;margin:0px;padding:0!important;font-family:var(--chakra-fonts-Roboto);font-weight:500;padding-top:0.625rem;padding-bottom:0.625rem;-webkit-padding-start:1rem;padding-inline-start:1rem;-webkit-padding-end:1rem;padding-inline-end:1rem;}.css-18jw8gc:focus-visible,.css-18jw8gc[data-focus-visible]{box-shadow:var(--chakra-shadows-outline);}.css-18jw8gc:disabled,.css-18jw8gc[disabled],.css-18jw8gc[aria-disabled=true],.css-18jw8gc[data-disabled]{opacity:0.4;cursor:not-allowed;box-shadow:var(--chakra-shadows-none);}.css-18jw8gc:active,.css-18jw8gc[data-active]{border:var(--chakra-borders-none);background:none;}.css-18jw8gc:hover,.css-18jw8gc[data-hover]{border:var(--chakra-borders-none);background:none;}.css-18jw8gc:focus,.css-18jw8gc[data-focus]{border:var(--chakra-borders-none);outline:2px solid transparent;outline-offset:2px;box-shadow:var(--chakra-shadows-none);}Cookie Consent, Mega-Chart: Compare Hurricane Sandy Cruise Line Compensation. For guests to use their FCC, they will need to choose a cruise they like. 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. Whether you booked directly with NCL or via a Travel Agent the Future Cruise Credit you receive is linked to NCL only and can be redeemed towards a future NCL cruise. And we had to sell those voyages close in for, you know, very efficient pricing. disneylover89, May 3, 2022 in Norwegian Cruise Line. Future Cruise Credits are issued by the Cruise Lines for various reasons. The Motley Fool has no position in any of the stocks mentioned. 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. Use your FCCs as payment first. What happens to CruiseNext certificates that were used on a cancelled reservation? India: ICE Vacation Center India (ICE). We are targeting a 10% reduction in GHG intensity by 2026 and 25% by 2030. If a Future Cruise Credit was leveraged to pay for a reservation now impacted by the global sailing suspension, we are making it easy by combining all funds into one voucher. The results of this initiative are ready to getting to bear fruit as demonstrated by our first quarter adjusted net cruise cost excluding fuel per capacity day, which was not only 14% below the run rate in the second half of 2022, but also outperformed our guidance by $4, as certain savings were realized earlier than anticipated. Dining/beverage packages that are not part of the Free At Sea programme These guests will now be able to take their time to decide when to take their next cruise. For guests who are no longer able to travel as a result of an official announcement by a government or agency that takes place within 14 days of sailing (when Peace of Mind is no longer available), and the mandate states guests are NOT allowed to travel, then a refund would be available. how cold is too cold for a husky puppy,
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