1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:07,880 --> 00:00:10,200 Speaker 2: I want to talk a little bit about cruise lines. 3 00:00:10,280 --> 00:00:13,240 Speaker 2: Right now. Norwegian is embarking on its largest new build 4 00:00:13,400 --> 00:00:16,680 Speaker 2: order in company history as it looks to surpass the competition. 5 00:00:17,280 --> 00:00:20,160 Speaker 2: Over the past five years, the company's stock has lagged 6 00:00:20,160 --> 00:00:24,319 Speaker 2: behind competitors Royal Caribbean and Carnival. The industry as a 7 00:00:24,320 --> 00:00:27,480 Speaker 2: whole has seen demand rebound while costs continue to climb. 8 00:00:27,520 --> 00:00:30,760 Speaker 2: Joining us now is Harry Summer, Norwegian Cruise Lines President 9 00:00:30,880 --> 00:00:34,400 Speaker 2: and CEO. And Harry, we've been talking about cruises for 10 00:00:34,440 --> 00:00:37,080 Speaker 2: the entire morning now because Carnival came out with better 11 00:00:37,120 --> 00:00:40,760 Speaker 2: numbers and expected and yet it's stock also traded down. 12 00:00:41,120 --> 00:00:42,879 Speaker 2: What do you think the problem is? Why isn't the 13 00:00:42,920 --> 00:00:48,280 Speaker 2: market embracing you know, better numbers and newer product. 14 00:00:49,280 --> 00:00:51,640 Speaker 1: Well, you know, I'm not, first off, nice to be 15 00:00:51,680 --> 00:00:54,240 Speaker 1: here this morning. Thank you for having me. I'll see, 16 00:00:54,240 --> 00:00:57,120 Speaker 1: I'm not really here to discuss Carnival's earnings. I think 17 00:00:57,160 --> 00:01:00,280 Speaker 1: overall the cruise lines have had a tremendous up and 18 00:01:00,320 --> 00:01:02,720 Speaker 1: stock us included. I think over the last three months 19 00:01:02,840 --> 00:01:04,960 Speaker 1: of stock is up the most in the industry and 20 00:01:05,000 --> 00:01:08,920 Speaker 1: we're very, very proud of that consumer demand is robust, 21 00:01:09,200 --> 00:01:12,360 Speaker 1: the guests love the guests experience. It reflects a tremendous 22 00:01:12,440 --> 00:01:15,280 Speaker 1: value and a much better experience than hotels and resorts. 23 00:01:15,520 --> 00:01:17,600 Speaker 1: And our stock price has seen a run up in 24 00:01:17,600 --> 00:01:19,200 Speaker 1: the last few months as a result of that. 25 00:01:19,440 --> 00:01:22,200 Speaker 2: Well, I mean, the reason I ask about better results 26 00:01:22,240 --> 00:01:23,760 Speaker 2: is I was just reading in a story that you 27 00:01:24,400 --> 00:01:27,640 Speaker 2: make more money at Norwegian than any of your competitors 28 00:01:27,680 --> 00:01:31,600 Speaker 2: in terms of the amount passengers spend on board, right, 29 00:01:31,680 --> 00:01:34,280 Speaker 2: And that seems to be what investors want. That's what 30 00:01:34,319 --> 00:01:38,240 Speaker 2: analysts are after. Plus you have higher end, newer ships 31 00:01:38,240 --> 00:01:41,280 Speaker 2: coming out to court the luxury consumer. That also is 32 00:01:41,319 --> 00:01:43,880 Speaker 2: what we read that people want. And yet your stock, 33 00:01:43,920 --> 00:01:46,520 Speaker 2: even though you've had a great three months, has really 34 00:01:46,600 --> 00:01:51,000 Speaker 2: underperformed over the longer term. So why aren't investors seeing 35 00:01:51,320 --> 00:01:55,000 Speaker 2: these products and these results and rewarding you for them. 36 00:01:55,560 --> 00:01:59,560 Speaker 1: Listen, we are super passionate about delivering a fantastic onboard 37 00:01:59,560 --> 00:02:02,280 Speaker 1: guests ex experience, and I think the spending results you've 38 00:02:02,280 --> 00:02:05,680 Speaker 1: talked about in terms of onboard revenue are reflection of 39 00:02:05,720 --> 00:02:08,240 Speaker 1: the great experience our guests get on board the ship, 40 00:02:08,440 --> 00:02:10,160 Speaker 1: that we give them things that they value and are 41 00:02:10,160 --> 00:02:13,360 Speaker 1: willing to pay for, and we're very super excited about that. Listen, 42 00:02:13,520 --> 00:02:15,359 Speaker 1: I can't talk about you know, I can't really talk 43 00:02:15,400 --> 00:02:17,600 Speaker 1: to what happened six months ago or a year ago. 44 00:02:17,880 --> 00:02:20,840 Speaker 1: I'm very happy with what our stocks performed the last 45 00:02:20,880 --> 00:02:23,520 Speaker 1: three four or five months now again out performing all 46 00:02:23,560 --> 00:02:26,520 Speaker 1: the other stocks in the industry. And our goal is 47 00:02:26,560 --> 00:02:29,840 Speaker 1: to continue this run by delivering great experiences to our 48 00:02:29,840 --> 00:02:32,560 Speaker 1: guests and great financial results of the investment community. 49 00:02:32,720 --> 00:02:35,400 Speaker 3: Hey, there's certainly a lot more people going on cruises 50 00:02:35,400 --> 00:02:37,320 Speaker 3: that maybe didn't in the past. I say, my parents 51 00:02:37,320 --> 00:02:39,160 Speaker 3: are among them. They went on one of your luxury 52 00:02:39,160 --> 00:02:42,800 Speaker 3: competitors who shall not be named on this program. Even so, 53 00:02:42,919 --> 00:02:45,200 Speaker 3: this question is for them because they looked around and said, hey, 54 00:02:45,240 --> 00:02:48,120 Speaker 3: everyone is our age or older. Everyone's in their sixties 55 00:02:48,320 --> 00:02:51,720 Speaker 3: and older. And that's something you hear about cruise operators. 56 00:02:52,080 --> 00:02:54,560 Speaker 3: What do you do to attract the younger generations? And 57 00:02:54,639 --> 00:02:57,040 Speaker 3: if you can't, is it a problem down the line 58 00:02:57,080 --> 00:02:57,840 Speaker 3: for this industry? 59 00:02:58,639 --> 00:03:00,600 Speaker 1: You know, I think if you look at the industry, 60 00:03:00,600 --> 00:03:03,359 Speaker 1: there's really a bifurcation. There are a series of luxury lines, 61 00:03:03,520 --> 00:03:05,600 Speaker 1: perhaps like the ones that your parents went on. We 62 00:03:05,639 --> 00:03:08,680 Speaker 1: have two luxury lines in our fleet, Oceanna Cruises, which 63 00:03:08,720 --> 00:03:11,840 Speaker 1: is our entry luxury level product, and Region seven Seat Cruises, 64 00:03:11,880 --> 00:03:14,960 Speaker 1: which is our ultra luxury product. It's true in that 65 00:03:15,080 --> 00:03:18,040 Speaker 1: demographic these cruises are a little bit more expensive. We 66 00:03:18,080 --> 00:03:20,720 Speaker 1: do tend to attract an oiler clientele, but we also 67 00:03:20,760 --> 00:03:24,000 Speaker 1: have our contemporary brand, Norwegian Cruise Line, where a large 68 00:03:24,000 --> 00:03:27,520 Speaker 1: percentage of our guests are forty and younger. We continue 69 00:03:27,680 --> 00:03:31,880 Speaker 1: to develop amenities, entertainment activities on board the ship that 70 00:03:31,960 --> 00:03:35,120 Speaker 1: are relevant to those people, and they're absolutely responding that. 71 00:03:35,160 --> 00:03:38,440 Speaker 1: The demographic between thirty five and say forty five is 72 00:03:38,480 --> 00:03:41,720 Speaker 1: our fastest growing demographic for that brand right now, and 73 00:03:41,760 --> 00:03:43,520 Speaker 1: we continue to focus on that so that we can 74 00:03:43,600 --> 00:03:46,080 Speaker 1: have a generation, a new generation of people that will 75 00:03:46,120 --> 00:03:49,040 Speaker 1: cruise over and over and over again. The repeat rate 76 00:03:49,080 --> 00:03:51,480 Speaker 1: of these guests are at all time highs. On any 77 00:03:51,480 --> 00:03:54,200 Speaker 1: given ship, about forty five percent of our guests our 78 00:03:54,240 --> 00:03:56,720 Speaker 1: repeat customers, which is one of the reasons we announced 79 00:03:56,720 --> 00:03:59,600 Speaker 1: our Loyalty Match program this morning so people can go 80 00:03:59,640 --> 00:04:03,120 Speaker 1: between lines and have a great experience, the experience that 81 00:04:03,160 --> 00:04:03,680 Speaker 1: they deserve. 82 00:04:04,120 --> 00:04:07,880 Speaker 2: You have the Oceania, that's the luxury brand that you 83 00:04:08,240 --> 00:04:11,120 Speaker 2: that you operate a Lura. It's a new boat coming 84 00:04:11,160 --> 00:04:15,040 Speaker 2: back from its maiden voyage. I think tomorrow. Yes, tell 85 00:04:15,120 --> 00:04:20,000 Speaker 2: us what's different, what's new? What are you offering consumers 86 00:04:20,120 --> 00:04:25,400 Speaker 2: that differentiates this boat from you know, other sort of luxury, 87 00:04:25,440 --> 00:04:26,680 Speaker 2: high end big cruise lines. 88 00:04:27,320 --> 00:04:30,440 Speaker 1: So at Oceana Cruizes, we're super passionate about delivering a 89 00:04:30,440 --> 00:04:34,440 Speaker 1: fantastic guest experience in terms of luxury amenities on board 90 00:04:34,440 --> 00:04:38,840 Speaker 1: the ship, large cabins and suites, fantastic staff on board, 91 00:04:38,880 --> 00:04:41,680 Speaker 1: and a large staff to guest ratio, so guests feel 92 00:04:41,720 --> 00:04:44,240 Speaker 1: like they're being pampered at every single moment. Of course, 93 00:04:44,279 --> 00:04:47,080 Speaker 1: the bedrock of Oceanna Cruises is the finest cuisine at sea. 94 00:04:47,320 --> 00:04:50,080 Speaker 1: We win every culinary award out there, and for this 95 00:04:50,160 --> 00:04:52,799 Speaker 1: new ship, the Alura, we have uped the game even further. 96 00:04:52,880 --> 00:04:56,680 Speaker 1: We've reintroduced a French restaurant concept, Jock, which is extremely 97 00:04:56,760 --> 00:04:59,479 Speaker 1: popular with our guests. We have a new crapery which 98 00:04:59,520 --> 00:05:03,200 Speaker 1: has f fantastic suites, freshly made all day long crapes, 99 00:05:03,240 --> 00:05:05,520 Speaker 1: ice cream and things like that, and pastries, but I 100 00:05:05,560 --> 00:05:08,039 Speaker 1: mean super high and not the normal fair you would 101 00:05:08,040 --> 00:05:10,600 Speaker 1: get on a contemporary cruise line, and our guests are 102 00:05:10,760 --> 00:05:13,599 Speaker 1: enthusiastic about it. We have new shopping on board. We 103 00:05:13,640 --> 00:05:15,840 Speaker 1: have all different We have new experiences in the theater, 104 00:05:16,200 --> 00:05:18,039 Speaker 1: all the things that our guests value. 105 00:05:18,279 --> 00:05:20,039 Speaker 3: And Harry goes back to what Matt was saying that 106 00:05:20,120 --> 00:05:22,360 Speaker 3: you have this great capture rate of getting guests to 107 00:05:22,400 --> 00:05:25,200 Speaker 3: spend on the boat itself. But you're talking about some 108 00:05:25,320 --> 00:05:28,600 Speaker 3: serious luxury offerings, as we were saying, things that are 109 00:05:28,640 --> 00:05:31,960 Speaker 3: expensive that not everyday people can necessarily afford. You also 110 00:05:32,040 --> 00:05:35,599 Speaker 3: have more mass premium type offerings too. How does the 111 00:05:35,640 --> 00:05:38,960 Speaker 3: behavior differ between the more luxury offering and those more 112 00:05:39,000 --> 00:05:40,279 Speaker 3: mass offerings that you're giving. 113 00:05:41,080 --> 00:05:43,719 Speaker 1: You know, Traditionally, on the higher end brand that we 114 00:05:43,760 --> 00:05:46,320 Speaker 1: have reach It, which is our ultra luxury, it is 115 00:05:46,400 --> 00:05:49,560 Speaker 1: all inclusive by nature, so guests are getting you know, 116 00:05:49,720 --> 00:05:54,159 Speaker 1: freeshore excursions, lots of free things, gratuities are included you know, 117 00:05:54,320 --> 00:05:57,120 Speaker 1: on board, so they're not really paying that much extra 118 00:05:57,240 --> 00:05:59,760 Speaker 1: on that brand. Norwegian is a little bit different. We 119 00:05:59,800 --> 00:06:03,000 Speaker 1: do have some fantastic bundles that guests can buy into, 120 00:06:03,320 --> 00:06:06,120 Speaker 1: like seventy percent off drinks packages that we're running right now, 121 00:06:06,279 --> 00:06:09,480 Speaker 1: seventy percent off specially designing and things along those lines, 122 00:06:09,640 --> 00:06:12,799 Speaker 1: so that guests can get a deal and enjoy luxury 123 00:06:12,800 --> 00:06:15,800 Speaker 1: amenities on board our contemporary ship, but it tends to 124 00:06:15,839 --> 00:06:18,000 Speaker 1: be a little bit more on the on board spin 125 00:06:18,120 --> 00:06:20,679 Speaker 1: side than the ticket price on our contemporary brand. 126 00:06:20,960 --> 00:06:22,800 Speaker 3: Hey Harry, this has been great. Thank you so much 127 00:06:22,800 --> 00:06:25,840 Speaker 3: for joining us. Please come back again soon, Harry Summer 128 00:06:25,880 --> 00:06:29,400 Speaker 3: of Norwegian Cruise Lines ahead of their maiden voyage of 129 00:06:29,440 --> 00:06:32,080 Speaker 3: the Alora coming back to the US shores.