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Home / Business

Norwegian Cruise Line boss on the future of the industry

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
24 Mar, 2022 03:00 AM7 mins to read

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Norwegian Prima cruise ship is floated out at an Italian shipyard. Video / Norwegian Cruise Line

In the depths of a pandemic, Norwegian Cruise Lines (NCL) sold out its newest ship's early voyages faster than any in its history.

They were for the Norwegian Prima which will debut in August, a new class of ship that NCL hopes will lead an industry which is recovering quickly in many parts of the world.

When tickets went on sale for the Norwegian Prima in May last year, the company enjoyed its biggest booking day since it was founded 55 years earlier.

At 142,000 gross tonnes, the Norwegian Prima is a big ship but the company resisted the mega-trend — its latest class of ships is smaller than the previous generation. But with significantly fewer passengers, they will offer far more outdoor space than the industry average.

NCL is one of the world's biggest cruise lines and chief executive Harry Sommer says it got the timing of its Prima-class ship programme just right.

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He spoke to the Herald from Miami after some whirlwind travel to Venice to check on the Prima's progress and then on to Las Vegas to meet Katy Perry and take in her show, just before she was named as ship godmother.

There was a bit of luck involved in the ship build schedule.

Ships take up to three years to build, and the Norwegian Encore, NCL's last vessel, launched in late 2019.

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"To some extent we got a little bit lucky in that we didn't have any ships deliver at all during the pandemic," says Sommer. "I remember in 2019 thinking that maybe that was a mistake but in retrospect we got we got lucky."

The six-vessel Prima-class programme was last year put at $US5.5 billion ($7.9b), with the ships to be delivered each year to 2027.

The cruise industry was stopped for more than a year by the pandemic, but Sommer says his company was always looking beyond the massive blow dealt by Covid.

"It's a very forward looking business," says Sommer, who argues that it has tapped only a fraction of the travel market.

Pre-Covid, he says, about 1.5 billion people took an overnight vacation every year, with 30 million of them taking a cruise.

"So my competition is not the cruise industry. I believe the upside for cruising is virtually unlimited when we're only tapping 2 per cent of the overall vacation market."

Cruise Market Watch says there are 323 cruise ships in the world this year — 23 fewer than pre-Covid.

"I think the industry would have to double or triple the number of ships that it had before we would run into any foreseeable headwind, and perhaps not even at that level. I'll take a new ship every year — forever."

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NCL had about 75 per cent of its capacity operating by the end of 2021 and hopes to get all 17 existing ships in service by mid-year as it recovers from heavy fourth-quarter losses.

While Prima-class ships aren't scheduled for Australasia yet, NCL is this summer returning to this region with the Norwegian Spirit, which has undergone a $145m refit. Australia has reopened to cruises and NCL is confident New Zealand will too by the end of the year.

What's prime about Prima?

Just as he is enthusiastic about the future of cruising, Sommer is passionate about Prima. He's just been to the Fincantieri shipyard in Venice where the ship is about 80 per cent complete, with three months' work left.

The design team was given a blank canvas which has allowed the company to build something special, he says.

"We've used a lot of new designers for the ship to really get a residential, upscale hotel feel — I think people will be surprised."

The ship's Ocean Boulevard allows passengers to walk around deck eight, where there are infinity pools and a sculpture garden displaying some 4000 artworks curated by 350 artists and worth about US$6 million ($8.6m).

"It really allows guests to see the outdoors, which I think is why you go on a cruise ship. You don't go on a cruise to spend time indoors, you go because you like the ocean."

The Haven is Prima's exclusive "residences within a ship" concept on eight decks on the rear third of the vessel, where there are rooms of up to 195sqm. Reflecting a big appetite for luxury leisure travel, this area has enjoyed strong sales.

Norwegian Prima godmother Katy Perry with NCL president and CEO Harry Sommer. Photo / Supplied
Norwegian Prima godmother Katy Perry with NCL president and CEO Harry Sommer. Photo / Supplied

The positioning of the engines in the middle of the ship had allowed more scope for developing the area at its stern, which flares out to provide extra space.

There is also a 420m long race cart track over three decks, where you can hit 50km/h, and what's billed as the world's first free-fall dry slide to be offered by a cruise line, a 10-deck plunge slide that takes passengers rushing down the side of the ship.

The Norwegian Prima has more than 30 lounge and dining venues and Sommer says a change to its main restaurant food concept meant "guests are going to get our A-game" every time.

"I think we will have more complimentary food options on this ship than any cruise ship in the world."

Sommer says signing up superstar Perry as the ship's godmother was a sign NCL was going to go "all out" with the Norwegian Prima, the first in a new class of vessel for the company for a decade.

As godmother, Perry will not only fulfil the longstanding maritime tradition of blessing and officially naming Norwegian Prima, but will also perform during the christening ceremony before it sets sail on its inaugural voyages from Reykjavík, Iceland in August,

Covid's silver lining

Last April NCL pushed for mandatory vaccination of crew and passengers on board its ships — even taking the Florida state government on in court to make sure it could do it - and Sommer said there had been other positive spin-offs from the pandemic.

"I think there's some things that we did perhaps because of Covid that are going to turn out to be a silver lining."

The first and by far the most important was the idea of speeding up check-in.

"The 'day zero' experience in the past, it was a little clunky and there were all types of lines everywhere."

The infinity pool in The Haven aboard the Norwegian Prima. Image / Supplied
The infinity pool in The Haven aboard the Norwegian Prima. Image / Supplied

In ports where testing is not required on the pier (now most places) if passengers are vaccinated or tested at home, the company has committed to making the check-in no longer than 15 minutes.

"And that's just a sea change from where we were in late 2019, where sometimes it could take an hour or longer."

It is digitising more guest services with a programme called Ease, where all guest information is located on one screen.

NCL had also partnered with AtmosAir to install equipment on ships to infuse the air with ions, which bind with harmful elements such as viruses to minimise them, improving air quality.

Sommer says there was "certainly a time" when the industry didn't have the best reputation for safety and Covid's early days didn't help.

"But I think what we've done as an as an industry and with NCL as a leader in requiring 100 per cent vaccinations - when that was unheard of - set us apart. I think enhanced guest safety is something that's going to be a lasting, positive impact of these last few years."

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