Is there anything the Peace of Mind FCC cannot be used for? Are any costs refunded instead of being included in the FCC? So we did overachieve in Q1. Since the start, it's been our aim to provide the latest cruise news covering all the major cruise lines. New Zealand. Listen, in Q2 and in all future quarters, our focus now is on having our cabins as close to 100% full as possible. Demand in pricing continues to be strong, not only for 2023, but also as we look further out the sailings in 2024 and beyond. And our consumers are booking very far out in advance, which is a good thing. An email from the current FCC owner requesting the transfer to be made must be included when submitting the transfer request via, Insurance FCCs and 10% bonus FCCs are not transferrable. My FCC is equal to or greater than the sailing I want to book, so why do I still owe money? Fourth quarter is also expected to benefit from our strategic shift to premium deployments with extended Alaska and European seasons this year, as well as a mixed shift with more capacity operating for our Regent and Oceania brands. Yeah, Brandt, good morning. For example, if several ports on an itinerary are skipped, a full or partial credit might be given. which gives us confidence that we can achieve this sequential improvement in year over-year-growth. Future Cruise Credits often have expiration dates, and they may also have specific guidelines for how they can be used. A Future Cruise Credit (FCC) is essentially a voucher for future travel. Charters are excluded. So, that does somewhat elevate your unit cost, although we do receive benefit on both the top and bottom lines from that. 5 Things You Didn't Know About Booking a Costco Cruise, Hidden in the Fine Print: 16 Things You Need to Know About Your Cruise Contract, Club Orange, Holland America's Priority Program, 10 Things You Should Never Do on a Cruise Line Private Island. Announcing Our 2023 Cruisers' Choice Award Winners! Any unused portion of the credit will be forfeited after the expiration date. But, you know, Q1 finished up at 101.5. Adjusted EBITDA was nearly $40 million higher than our guidance at approximately $234 million in the quarter. These are given to customers as a form of compensation for inconveniences caused by cancelled cruises or service issues on a previous cruise. Learn More, Norwegian Cruise Line(NCLH 8.91%)Q12023 Earnings CallMay 01, 2023, 10:00 a.m. I guess to what extent should we expect that to continue to step down throughout the year. We combined with our ongoing efforts to maximize profitability on our existing fleet, including by delivering consistent year-over-year moderate yield growth. It's really spread out over the course of the next three to five -- it's spread out, you know, I don't want to say radically, but relatively radically across all of the remaining newbuilds, excluding Norwegian Viva and Vista, which we just took delivery of, of course. 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. Norwegian Cruise Line ; Transfer cruise credits Please . As a reminder, this conference call is being simultaneously webcast on the company's investor relations website at www.nclhltd.com/investors. And how much is your guidance reflecting some conservatism there? Norwegian's Future Cruise Credit (FCC) is credit that you can use for your next Norwegian cruise. Listen, we have about 20% increase in capacity for 2023 versus 2019. Any existing 10% Future Cruise Discounts will remain active and available for use on future bookings. 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. Scam or Deal: Will That Cruise Sale Really Save You Money? 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. So, you know, we think about that beat and the fact that you didn't really follow that through -- that full beat through, you know, to your full year EBITDA guidance, and look, you know, I understand there's a fuel headwind there. Book and get $500 Savings Credits bonus to use on you future cruises, hotels, resorts and more with iCruise Rewards. And whether or not we refinance that on a more holistic approach or we do another amend and extend, obviously, we'll look at what the markets are doing, what the environment looks like, but we'll do the most, obviously, the most economically feasible option out there. Cruise Hive was established back in 2008 and among the earliest blogs in the industry. The value will be included in the POM-NRD credit that was issued. 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). All I can tell you is that we are laser-focused on that, and I think we will continue to have sequential improvement quarter over quarter. 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. What happens to CruiseNext certificates that were used on a cancelled reservation? At 1,200 guests, Vista is the first of two Allura class ship for the line, with the second ship named Allura expected in 2025. that's something that you'll see us out in the marketplace in the latter part of this year. French 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. 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. You can redeem any FCC by calling us! Create your very own My Future Cruise Credit account for free, in only a few simple steps, Browse among thousands of sailings worldwide and get expert advice along the way, Claim an additional credit back to use to PAY LESS on any hotel, tour, resort, cruise or even wine of your choice, Learn how to redeem your future cruise credit & get a bonus with 4 simple steps. Those ships, along with some of our other recent additions, translate to a nearly 20% growth in capacity when compared to 2019. And, of course, with our bundling strategy that we've embarked on, you know, over the last few years, and that's really taking full throttle in 2023, that does have some headwinds to our overall net yield. So, we're very happy with that strategy? Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Invest better with The Motley Fool. First question, on the second quarter, the yields, I mean, I think they were a little bit -- a little bit lower than we were expecting. To cancel under our Peace of Mind policy, the following terms and conditions had to be met: Any ancillary items sold by Norwegian Cruise Line will be refunded to the cardholder who made the original purchase and will not be included in the FCC. 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. I mean, is there any net cruise costs changes or net yield changes that we should be thinking through? As government regulations evolve, our health and safety protocols will evolve as needed to ensure compliance. And I see no risk around that because there's just simply not an opportunity for the institutions to do that. This initiative is very much ongoing and will continue to be a top priority under my leadership. 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. How is My Future Cruise Credit Calculated? Congrats, Frank and Harry. let one of our experts help you with this procedure to ensure the right amount is transferred. 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. But I'll turn it over to Mark to talk about financial ramifications. One day later, Norwegian Jade will return to service from a homeport that is not used too often, Panama City, from where she will offer Panama Canal cruises. Can I make a new booking before I receive my Future Cruise Credit and will this be applied after I booked. In either case, you can register your Future Cruise Credit online on our My Future Cruise Credit website, then browse all the sailing available and call an expert for the best personal planning and booking consultation. Malaysia In addition, adjusted EPS loss of $0.30 also beat our guidance. Yeah, so, regarding our second half NPDs, you know, I think we labeled that on our slide. Mark? To find out more, please. Mark Kempa -- Executive Vice President, Chief Financial Officer. A Future Cruise Credit (FCC) is simply a voucher for future cruise travel. My name is Paul, and I will be your operator. What happens if the cruise I booked using my Future Cruise Credit is cancelled? But if, you know, Mark, if we look at Slide 13, I mean, look, you basically destroyed every guidance target that you laid out back in February for the first quarter. I look forward to building on this remarkable legacy, and I am committed to doing everything I can to best position this company for continued success. Of course, as you -- as your occupancy ramps up, you do see a little bit less of pricing power on your lower meter, i.e. They either make their own air arrangements or they make air arrangements through us. This website uses cookies. That is just a complete no-no in our organization. As Slide 5 shows, Harry has a broad range and depth of experience that makes him one of the premier executives in the industry. 19952023, The Independent Traveler, Inc. Special Event: Q&A with Rudi Schreiner, President, Co-Founder & Co-Owner - AmaWaterways River Cruises, Q&A with Avoya Travel: Learn How to Turn Your Passion into Success by Becoming an Independent Travel Advisor. Dan Politzer -- Wells Fargo Securities -- Analyst. No. Cruise tours purchased through Norwegian Cruise Line This allowed cruise lines to retain cash -- at 25% interest -- at a time when ships weren't bringing in revenue. W9 Tax document form. Our record book position also gives us high visibility into the back half of the year and beyond. And, of course, as we buy air tickets for over a million guests a year, we have some really good systems and efficiencies to leverage the best prices out there. Here at myFCC, we're committed to helping you make the most of your Future Cruise Credit. And I'm just trying to reconcile that with the seasonality that we used to see in your business with the 3Q costs usually being pretty elevated given, you know, more exotic itineraries. Better Buy: Royal Caribbean or Norwegian Cruise Line Stock? The cruise line has extended this period again; FCCs are now valid through December 31, 2022. 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. Sign up and register your future cruise credit details to get personalised service, cruise line updates and exclusive promotions. But things are looking very, very healthy from our perspective in terms of the overall consumer demand for cruise. When is the best time to go on an Alaska cruise? Our next question is from Conor Cunningham with Melius Research. Okay, gotcha. Harry, welcome. disneylover89, May 3, 2022 in Norwegian Cruise Line. Mark, over the past year, you've given some longer-term net debt-to-EBITDA target ratios for various years. If the new cruise fare is lower than the Future Cruise Credit value, a new Future Cruise Credit will be issued for the remaining balance. Can guests use their FCC to pay for more than one cruise in the future? Is that sort of more -- is that more of a factor now than it was in '19, and how should we think about that? But it's a bit early for us to give additional color on that. Once added to your profile, Future Cruise Credit can then be applied to any existing booking or newly created booking. Now if you happen to have more Amex NCL $150 back offers on a number of cards (or other offers like 15,000 Membership Rewards points) when you spend $500 you could load in one of these to your cruise account. I won a bid on the Norwegian Upgrade Advantage. Please allow up to 7 business days for the transfer request to be completed. This call includes forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from such statements. Thanks for that, Mark. That's right -- theythink these 10stocks are even better buys. Pricing for the same itinerary, similar dates, and Getaway instead of Escape are. Thank you. I would now like to turn the conference over to your host, Jessica John, vice president of investor relations, ESG, and corporate communications. What Is Future Cruise Credit and How Can I Use It? Anything in place already since April 2021 would not allow the guest to cancel and receive the above. I have a sneaking suspicion you were a contributor to the stellar booking and pricing on the around-the-world sailing. However, for FCCs associated with the Peace of Mind policy, the FCC must be first generated and attached to the guest profile before it can be added to a reservation. This average is slightly below 2019 levels as a result of our strategic shift to longer, more immersive itineraries at the Norwegian Cruise Line brand, naturally resulting in less thirds and fourths, which is what historically pushes passenger occupancy above the 100% mark, all while enhancing margin over time. What do I do if I am ready to book my next cruise with My Future Cruise Credit? Look, Steve, I think first and foremost, we have to look at the underlying fundamentals of the business. Can I make a new booking before I receive the future cruise credit for a cancelled booking? that was extended to January 2025, we will address that -- start addressing that later this year. The Future Cruise Credit may be used for sailings that embark on or before December 31, 2022. If I cancel a reservation using Peace of Mind can I use my FCC to rebook the same sailing? Effective May 18, 2020, FCCs from either the 2020 Suspended Sailings or Peace of Mind FCC are transferable. When you get to the "Payment Page" of booking, choose "My Coupons and Credits" from the Payment Type pull down menu. Is there anything the Peace of Mind FCC cannot be used for? We expect this metric to continue to show modest sequential improvement each quarter for the remainder of 2023 as seen on Slide 8. Before we get to the questions on the line, we first want to address a top question from our online shareholder Q&A platform, which provides all of our investors another avenue to submit and upvote questions for management. Thank you. Simply put, for new and existing bookings made by January 31, 2022, for any voyage with an embarkation date through and including May 31, 2022, guests were free to cancel up to and including January 31, 2022 with Norwegian's Peace of Mind. This will either cover the cost of the fare or be issued in the form of an open certificate similar to the Future Cruise Credit. Sure, Jessica, happy to, and that's a great question. It's also on the back of bringing on some of our premium brand vessels. 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. Hindi Future Cruise Credit Expiration Dates: Do I Need to Worry? 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. What to Expect on a Cruise: Booking With a Cruise Line. We are committed to identifying and evaluating incremental opportunities across every area of the business to help accelerate our margin recovery. And I think -- I'm very confident, I think quite a bit of -- we're nervous last quarter, whether or not we could achieve our cost savings. So, I think, you know, the best indicator for us is our advanced passenger ticket sale revenue. Good morning, and welcome to the Norwegian Cruise Line Holdings first quarter 2023 earnings conference call. We'll be taking delivery of a ship in the third quarter and fourth quarter. But overall, our NPDs remained very healthy and strong. Once the transfer takes place, the receiving guest is now the owner and the previous owner cannot request a transfer back. Or is it spread out over a number of deliveries between now and then? Posted 2 hours ago. Given their very efficient financing structures made possible to the unique nature of the industry's interconnected financing ecosystem, new ships are able to contribute immediately and are expected to be meaningful drivers of the company's future earnings growth and margin expansion. 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. Please proceed with your question. And I think we've demonstrated that in Q1. I won a bid on the Norwegian Upgrade Advantage. What Charges Does Future Cruise Credit Not Cover?