Thursday, December 23, 2010

Norwegian Cruise Line chief goes 'undercover' on ships

Norwegian Cruise Line chief goes 'undercover' on ships

Ever wonder what it's like to work on a cruise ship?

Norwegian Cruise Line's CEO Kevin Sheehan did, and he gained a deeper appreciation for NCL's 15,000 crewmembers after enduring "backbreaking" work to star in an episode of the CBS reality TV series, Undercover Boss.
Each week on Undercover Boss, an executive works alongside his or her employees to examine the inner workings of those companies.

During the NCL episode, Sheehan carries heavy trays through a packed dining room, cleans cabins and toilets, guides climbers on a rappelling wall, and works alongside a deck repairman.
The CEO was tight-lipped about what happens on the show, but said he donned a disguise making him unrecognizable over two weeks he spent on the Norwegian Epic and Pride of America in late September and early October.

He would say, "It was a lot of hard work."

"I was running around like a maniac and half the time I was bringing the wrong things," Sheehan said of waiting tables in the Norwegian Epic's Manhattan Room. "It was very, very hard work. My back was broken by the time I finished each and every job I did on the ship. It's much better being in the corner office."
Sheehan gave up his usual accommodations in the ship's top suites to stay in the crew quarters, where he shared an inside cabin and a small bathroom.

He recalled losing his patience at times, which surprised the other crewmembers.

"The amazing thing is given all the stuff they that they are doing, to always have the ability to smile and make the guests feel special," he said. "It's hard."

As good as Sheehan's disguise was, at one point, it was blown when a waitress recognized him, the first time an "undercover boss" was discovered during the show.

Sheehan said they beefed up his disguise after that. But he couldn't hide his lack of skill, and at one point was berated for his poor performance.

"I made a fool of myself the entire time," Sheehan said. "I would say that in every task I did, I would have given myself an F grade."

The episode airs Sunday, Jan. 2, at 9 p.m. EST, on the CBS Television Network.

Click here for the trailer.

Wednesday, December 15, 2010

Royal Caribbean Downgraded

Royal Caribbean Downgraded

We recently downgraded our rating on Miami-based Royal Caribbean Cruises Ltd. (RCL - Analyst Report) from Outperform to Neutral. The second largest cruise company operating 38 ships in the cruise vacation industry was downgraded on a host of factors including concern over cruise activity in Spain, sluggish on-board revenue for the remainder of the year as well as rising food costs.

Management remains less hopeful on cruise activity in Spain as recession in that country is showing no sign of a near-term turnaround. However, management in Spain has been proactive in finding ways to minimize the recessionary impact. In fact, Royal’s closest peer Carnival Corporation (CCL - Analyst Report) also remains apprehensive about lower Caribbean pricing in the first quarter of 2011, due to the significant supply increases in that market.

The company does not expect a huge uptick in onboard revenue for the remainder of the year. Food and other costs are also heading up although management expects these to be manageable in 2011.

While the company’s new ships Oasis and Allure of the Seas continue to perform well, going forward we expect them to cannibalize existing fleet sales resulting in pricing pressure as well as net yields.

However, the holiday season is likely to act as a key driver of the stock in its ongoing fourth quarter. With a gradual economic resurgence, the company is also witnessing encouraging booking and pricing momentum.

In our opinion, however, much of the positive news in Royal Caribbean stock has been reflected in the current level and we wait for a better entry point.

The company is scheduled to release its fourth quarter 2010 earnings on January 26, 2011, while Carnival Corporation will declare its financial results for the same quarter on December 21, 2010.

Royal Caribbean currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.

Norwegian Cruise Line unveils big expansion in Europe

Norwegian Cruise Line unveils big expansion in Europe
By Gene Sloan, USA TODAY

Norwegian Cruise Line today announced plans for a big expansion in Europe in 2012, with four ships operating in the region -- two of them year-round.

The line says the 2,018-passenger Norwegian Spirit will join the 2,402-passenger Norwegian Jade in sailing year-round in the Mediterranean in April 2012, offering 12-night Mediterranean voyages in the summer and fall from Venice and Barcelona, along with nine-night Canary Islands voyages in the winter and spring from Barcelona.

Also heading to Europe in 2012 will be the 4,100-passenger Norwegian Epic and Norwegian Sun, which will cruise seasonally from Barcelona and Copenhagen, respectively, as they are scheduled to do in 2011.

"Europe is one of the world's fastest growing cruise markets," Norwegian CEO Kevin Sheehan says in a statement. "We felt it was the right time to deploy four ships."

Sheehan notes it's the company's largest European deployment ever. In recent years the line has deployed three ships in Europe, with just one -- the Norwegian Jade -- in the region year-round.

The Norwegian Spirit's new 12-night itineraries from Venice and Barcelona will run from April 28, 2012 to Oct. 25, 2012 and and include calls on Provence (Toulon), France; Florence/Pisa (Livorno), Rome (Civitavecchia) and Naples, Italy; Mykonos and Athens (Piraeus), Greece; and Istanbul and Ephesus (Izmir), Turkey.

The Spirit's nine-night Canary Islands cruises from Barcelona will sail from Nov. 6, 2012 to April 8, 2013 and call on Funchal, Madeira; Santa Cruz de Tenerife; and Arrecife, Lanzarote, Canary Islands; and Granada (Málaga), Spain.

The Spirit also will sail an 11-day Mediterranean cruise from Barcelona to Venice on July 9, 2012 and a 13-day Mediterranean voyage from Venice to Barcelona on July 20, 2012.

Click HERE for a full list of the newly announced 2012 Europe itineraries for all four ships the line is sending to the region.

The newly announced voyages go on sale to Norwegian's top travel partners and Latitudes members (past guests) today and to the general public on Thursday.

Deal watch: Norwegian Cruise Line launches 'free upgrade' promotion

Deal watch: Norwegian Cruise Line launches 'free upgrade' promotion

Norwegian Cruise Line is one of the first of the big ship lines to unveil a promotion for "Wave" season, the busy booking period between January and March.

The 11-ship operator says it is offering free cabin upgrades for new reservations booked now through March 27, 2011 on select sailings.

In addition to an upgrade of up to four cabin categories, the line says it is throwing in e-coupons for on-board savings of up to $400, and it also plans bi-weekly Wave season promotions beginning Jan. 3, 2011 that will feature additional special offers on select ships and destinations.

Tuesday, December 14, 2010

Norwegian Cruise Line positions new ships in Alaska and Bermuda

Norwegian Cruise Line positions new ships in Alaska and Bermuda

Norwegian Cruise Line this week announced its 2012/2013 deployment and itineraries for Alaska, Bermuda, Hawai`i and short cruises to the Bahamas. For the first time, the 2.376-passenger Norwegian Jewel will sail Alaska’s Inside Passage joining Norwegian Pearl which is sailing to Glacier Bay from Seattle. In Bermuda, the 2.348-passenger Norwegian Star will sail to Bermuda for the first time from her new homeport in New York City.

“The 2012/2013 season is filled with new and exciting Freestyle Cruising choices. Whether it’s our ships cruising different destinations, disembarking from new homeports or sailing new itineraries, we offer the most freedom and flexibility when it comes to cruise travel,” said Kevin Sheehan, Norwegian Cruise Line’s chief executive officer. “We are pleased to bring Norwegian Jewel to Alaska and Norwegian Star to Bermuda, along with continuing our popular Hawai`i inter-island cruises and short cruises to the Bahamas through early 2013.”

In Alaska, Norwegian Jewel will replace Norwegian Star and cruise from Seattle for the first time on a seven-night Sawyer Glacier itinerary. Norwegian Jewel’s weekly Sawyer Glacier cruises will depart on Saturdays from May 26, 2012 to September 8, 2012 sailing through Alaska’s Inside Passage with ports of call including: Ketchikan, Juneau and Skagway (Alaska) and Victoria (British Columbia). Norwegian Jewel will also sail a seven-night Sawyer Glacier cruise from Vancouver to Seattle on May 19, 2012 and a seven-night Sawyer Glacier from Seattle to Vancouver on September 15, 2012

Norwegian Pearl will return to Seattle sailing her weekly seven-night Glacier Bay cruises departing on Sundays from May 13, 2012 to September 9, 2012 and will sail through Alaska’s Inside Passage with ports of call including: Juneau, Skagway and Ketchikan (Alaska) and Victoria (British Columbia). Norwegian Pearl will also sail a seven-night Glacier Bay cruise from Vancouver to Seattle on May 6, 2012 and a Seattle to Vancouver cruise on September 16, 2012.

Norwegian Cruise Line will continue its commitment to Bermuda, sailing two ships from the US East Coast to Bermuda weekly from April through October calling on King’s Wharf. Norwegian Star will sail from New York on Sundays to Bermuda, staying for three full days. The 2.224-passenger Norwegian Dawn will sail her Bermuda itinerary departing on Fridays from Boston with three days in Bermuda.

Pride of America will continue as the only US-flagged vessel sailing among all four of Hawai`i’s main islands. Pride of America’s seven-night Hawai`i inter-island cruises departing from Honolulu are now available through April 7, 2013. Ports of call include: an overnight in Kahului (Maui), Hilo (Hawai’i); an evening sail by the Kilauea Volcano (weather permitting); Kona (Hawai`i); an overnight in Nawiliwili, Kauai; and an afternoon cruise of the breathtaking Na Pali Coast.

Norwegian Sky will continue sailing three- and four-night cruises to the Bahamas year-round from Miami through April 15, 2013. The three-night Bahamas cruise departs on Fridays and includes stops in Nassau (Bahamas) and Great Stirrup Cay, NCL’s private island in the Bahamas. On Mondays, the ship departs Miami on a four-night Bahamas cruise with stops in Grand Bahama Island, Great Stirrup Cay and Nassau.