Posts Tagged ‘Norwegian Epic’

Will Royal Caribbean’s earnings be an Oasis?

Royal Caribbean Cruises Ltd. (NYSE: RCL) is scheduled to release the company's fourth quarter financial results this week on Thursday, January 27, 2011.  This provides us an opportunity to compare "mega" ships current pricing (per person, inside cabin).

In the graph below one can see the average inside cabin asking price (during August to December 2010) for various sailing departure dates.  The Allure and Oasis have mirrored each other fairly closely, topping out at just over $1,400 per person.  Other than Allure's inaugural sailings, you will pay roughly the same for either Royal Caribbean ship.

Interestingly, Norwegian's Epic has maintained higher pricing than Carnival's Dream.  The premium paid to sail Royal Caribbean mega ships diminishes during September to November 2011 (particularly compared the Epic) only to increase again in the later part of the year.  Albeit, one can currently book a cruise aboard the Allure or Oasis during January to March 2012 for about 11% less than January to March 2011.  The bottom line, Royal Caribbean managed to unleash two of cruising's greatest buzz-worthy ships when it went super-sized.  If RCL can to continue to retain higher asking prices, larger margins and economies of scale from those investments will reward investors.

Royal Caribbean's earnings call will be available on-line at the company's investor relations web site, www.rclinvestor.com.

Our proprietary database tracks daily ticket prices and passenger sailings to port destinations from nearly 8,000 annual cruises.  With an exclusive window into virtually every sailing, every day, world wide (including Carnival Cruise Lines (CCL), Royal Caribbean Cruises Lines (RCL) and Norwegian Cruise Lines (NCL)) our subscribers can view cruise revenue and passenger trends in near real time.

 

Norwegian Cruise Line ad account under review

Ad Age is reporting Norwegian Cruise Line (NCL) is putting its current creative advertising account up for review.  The account, valued at $50 million, has been handled by the Austin based Idea City for the last five years.

Headquarters of Norwegian Cruise Line
Image via Wikipedia

The Idea City ad campaigns have focused on driving home the message NCL is different in a “freestyling” way.  The TV spots showed, tongue in cheek, what it might feel like to dine on a competitor’s cruise ship – one featuring traditional fixed dining times and formal attire.

Speculation is NCL is making the change as part of its planned stock IPO (initial public offering).  Increased visibility could help the pricing of an initial offering of its stock. NCL has not shied away from publicity, being featured on CNBC's Cruise, Inc. "Big Money on the High Seas" and more recently in "Undercover Boss," a reality show where CEO, Kevin Sheehan worked alongside NCL onboard staff.

NCL, with it's 50% owner Star Cruises, together control a 7.7% share of the 2011 worldwide cruise market.

According to Ad Age, a pitch has already been delivered by Pile & Co. of Boston.  Idea City is expected to defend the account and NCL is shopping other agencies.  Regardless of what agency takes over, look for a new ad campaign to be hitting print and broadcast media in approximately six months.