But I guess what I'm just getting at here is, you know, if your customer base stays pretty much status quo from here, you know, it would seem to us that it would be tough not to get to the high end of your full year guidance and maybe even exceed the top end of your guidance. You know, I think that range applies to the end of wave as well that we like to be between 60% to 65% booked for the following 12 months at the end of wave. 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. To find out more, please. I am booked on a Sixthman full ship chartered cruise, which sails on Norwegian. Learn More, Norwegian Cruise Line(NCLH 8.91%)Q12023 Earnings CallMay 01, 2023, 10:00 a.m. Effective May 18, 2020, FCCs from either the 2020 Suspended Sailings or Peace of Mind FCC are transferable. Cost basis and return based on previous market day close. Norwegian's Future Cruise Credit (FCC) is credit that you can use for your next Norwegian cruise. These statements should be considered in conjunction with the cautionary statement contained in our earnings release. Applicable refunds will be returned to the original form of payment sixty (60) days after the request for the refund has been made. And I'm just trying to -- and obviously, if we try and back into what's implied for the full year, you know, it would seem like it's very modest improvement, almost flattish from a pretty high level. Flights are considered an add-on to the main cruise fare so, your Future Cruise Credit would not cover the cost of the flight, however, here at my Future Cruise Credit, we can help you use your Future Cruise Credit towards a cruise inclusive of the promotional add-ons you had with your original cruise. Our next question is from Vince Ciepiel with Cleveland Research Company. NCL's CruiseFirst and CruiseNext programs Norwegian Bliss in the Caribbean. So, I think, you know, the best indicator for us is our advanced passenger ticket sale revenue. Future reservations are subject to prevailing fares and offer in-market at the time of booking. So, that does somewhat elevate your unit cost, although we do receive benefit on both the top and bottom lines from that. Please proceed with your question. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. They either make their own air arrangements or they make air arrangements through us. I'm just curious, if flight prices broadly is acting as a headwind and if you think about your book or your strategy this year for the summer, is it -- is flight prices being bundled in for the consumer? I have a sneaking suspicion you were a contributor to the stellar booking and pricing on the around-the-world sailing. On the other hand, a future cruise program is a way to secure a future cruise booking whilst onboard taking advantage of a great deal. This is driven by our organic pricing power and in part by a favorable comp, as the second half of 2019 included various headwinds, like the rapid exit from Cuba and the close in resale of those sailings. Don't rely on the cruise line to keep track of your credit; bookmark, print or save the email with your future cruise credit information so you have everything you'll need -- or your agent needs -- when you're ready to rebook. With this significant achievement, we have also nearly closed the occupancy gap versus 2019 levels. We look forward to continuing to demonstrate this improvement over the coming quarters. And, Steve, thank you for the kind words at the initial start of your question. Can you kind of help us understand why that's different now? And just any color on how you're expecting on board trends in the second half would be helpful. But, you know, Q1 finished up at 101.5. And then, on the cost side, you know, the cost guidance, obviously, the first quarter was better. Whats the difference between my Future Cruise Credit, a future cruise program and onboard credit? Amenities New Zealand The new policy applies to both individual and group bookings*. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and presentation. We also revamped our climate action strategy, which is now centered on three key pillars: efficiency, innovation, and collaboration. The Motley Fool has a disclosure policy. 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. Turning to Slide 11, after a very strong wave season, our cumulative book position for the balance of 2023 remains ahead of 2019's record performance and at higher prices. Yes. So, we were very happy with the way wave turned out, and our book position both on a basis of itself and compared to 2019 is doing very well. With Harry Sommer at the helm, I leave this company in the most capable of hands. 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. Is there anything the Peace of Mind FCC cannot be used for? Thanks for that, Mark. Ancillary pre-purchased items include: Norwegian Cruise Line (NCLH) Q1 2023 Earnings Call Transcript But also, in Q4, where we expect quite a substantial amount of our pricing power, we are actually in the Alaska season longer this year, as well as in the European season longer this year. Future cruise credit guide: Everything you need to know - The Points Guy Therefore, we focus on total net per diem and net yield as a better holistic representation of our pricing power. Can I use my Future Cruise Credit to prepay gratuities? Peace of Mind allows you to defer decisions to a later date and therefore the cancelled cruise may not be re-booked using the FCC. And then, my other question is just on the 1.7 billion in additional ECA financing. Booksafe Travel Protection will be issued as a separate additional Future Cruise Credit worth the value of the travel protection plan paid. 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. And we are even more pleased with the depth and breadth of the strength across revenue streams, ships, and regions. And we hope to deliver on that, and we're feeling good with what the outlook looks like today. Check your Regent Seven Seas Cruises here. Taking all of this into account, adjusted EBITDA for the second quarter is expected to be approximately 485 million, which is roughly the same level as EBITDA in the same quarter of 2019, another stepping stone to closing the gap versus pre-pandemic levels. Any unused portion of the credit will be forfeited after the expiration date. Future cruise credit (FCC) is a bit like store credit from a cruise line. Go to the "My Account" section of MyNCL, and you'll see your available FCCs in the My Coupons & Credits section. The value of the original Future Cruise Credit will now be added to the new Future Cruise Credit at 100% of its original value, plus 125% of any amount paid by the guest on the cancelled sailing. Right now, many people are receiving Future Cruise Credits because the cruise they were supposed to sail on was cancelled due to unprecedented circumstances. NORWEGIAN CRUISE LINE Norwegian Cruise Line has a unique CruiseFirst program that allows anyone to put down an open deposit for a future cruise right from the website, even if you haven't ever cruised with the line. 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. During the quarter, gross onboard revenue per passenger cruise day was nearly 30% higher than the comparable 2019 period. ET. Since then, not all those guests have rebooked for a new voyage. That is just a complete no-no in our organization. Norwegians Enhanced Peace of Mind Policy was available from December 30, 2021 through January 31, 2022. Future Cruise Credit Refund Requests - mia-ce.ncl.com Capacity growth in 2023 is expected to be just shy of 20% compared to 2019, as we add over 5,000 berths to our world-class fleet. And did I get that correct? Future Cruise Credit - What is a Future Cruise Credit and How to Redeem OK, great. How can I see my Future Cruise Credit balance. Norwegian Cruise Line | Future Cruise Credit - CruisesOnly What Is Future Cruise Credit and How Can I Use It? And then, maybe also kind of give us a look at '24. Is that still the intention? So, we have very efficient fixed rate financing for all of our newbuilds that are on scheduled to delivery through 2028 at an average rate of anywhere from 2% to 2.5 %. Water/soda packages Our first question is from Dan Politzer with Wells Fargo. I think that, you know, there was kind of the wave of pent up demand following some change in COVID restrictions at the mid to late part of last year. My FCC is equal to or greater than the sailing I want to book, so why do I still owe money? www.ncl.com/travel-requirements-by-country. Thanks Mark. Shifting our attention to guidance, our outlook for the second quarter can be found on Slide 14. Obviously, it sounds like wave has been healthy, but would you say things are stable, accelerating, or decelerating kind of on a core basis when you adjust for those factors? To redeem a Future Cruise Credit or for additional questions, please call 1-866-921-7925 to speak with a Costco Travel expert. So, you know, what am I missing there, Mark? You know, we're expecting roughly 11% or 12%, if I recall correctly. Got it. Norwegian Cruise Line | Future Cruise Credit - Cruises.com Another strong indicator that our product continues to resonate with our guests is the performance of NCL's CruiseNext program, an onboard program in which we sell nonrefundable future cruise certificates. We've covered a lot today, so I'll conclude our commentary here and open up the call for your questions. What protocols have been implemented to address COVID-19? Thank you. Once the transfer takes place, the receiving guest is now the owner and the previous owner cannot request a transfer back. We covered our leadership transition already, which could not have gone smoother, so I will skip ahead to what continues to be a healthy demand environment. Turning to costs, adjusted net cruise costs, excluding fuel per capacity day, averaged $161.25, better than expected and approximately 14% lower than the run rate in the second half of 2022. Harry, congrats on the new role and look forward to getting to know you better. Shore excursions booked whilst onboard What is a Future Cruise Credit? Can you use your Future Cruise Credit to pay for more than one cruise in the future? Sun will return on May 5, sailing from Seattle to Alaska, and Norwegian Spirit will sail on May 7, from Papeete, Tahiti. Registered Seller of Travel. 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. Shifting our discussion now to our booking demand and pricing trends, you can see on Slide 10, we reached low factors of 101.5% in the first quarter, exceeding our guidance and breaking triple-digit levels for the first time in three years, with some voyages exceeding occupancy of 115%. You know, I just want to add to Mark's comment that our guests have to fly to get to a cruise. With that, I'll turn it back to Frank for closing comments. Norwegian Cruise Line | Future Cruise Credit - BJ's Travel Yes. By proceeding, you agree to Cruise Critics. What is excluded in the future cruise credit (FCC) or refund? Good luck in retirement. The value will be included in the POM-NRD credit that was issued. 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. Frequently Asked Questions - Norwegian Cruise Line Norwegian Cruise Line ; Transfer cruise credits Please . ALL RIGHTS RESERVED. Once added to your profile, Future Cruise Credit can then be applied to any existing booking or newly created booking. This is applicable to Peace of Mind and suspended sailings FCCs, including 25% and 50% credit FCCs issued for suspended sailings. How long is my Future Cruise Credit valid for? Your Future Cruise Credit may be used towards the base cruise fare of a future cruise booked within its expiration date. This includes improvements in areas such as supply chain initiatives, back office optimization, as well as crew costs and travel expenses. But it's a bit early for us to give additional color on that. a new quarantine requirement upon return from travel (but not a travel ban), then an FCC would be offered. Essentials, Booksafe Standard or Platinum Travel Protection insurance (if purchased on the original suspended reservation), The Future Cruise Credit cannot be applied or used for the following: Thank you. But most of all, you've made us better. To find out more, please. Mark, you sort of gave us quick update and sort of sequential improvement on the dollar basis throughout the year. Cruise tours purchased through Norwegian Cruise Line And there's two choices. So, but, you know, if you just took Q1 in isolation and you said, "OK, we beat the quarter by $0.15 and you look at the rest of the year, almost half of that is being eroded by fuel and FX headwinds. Why book your Future Cruise Credit with us? Social Security Cuts May Be Coming. Focusing on the top line, total revenue per passenger cruise day in the quarter was up approximately 18% versus 2019. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. 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. Bon voyage gifts and celebration packages So, I'm going to kind of ask Dan's question maybe a little bit differently. This represents a 15% decrease as compared to the average of $187 in the second half of 2022. This is a strategic and cost-effective initiative to help address the consistent pain point we hear from guests regarding the reliability and speed of internet connectivity at sea. Is my Future Cruise Credit transferable and can I gift My Future Cruise Credit? These guests will now be able to take their time to decide when to take their next cruise. This consists of approximately 700 million of cash and cash equivalents, nearly 600 million of availability under our revolver, and our 650 million undrawn commitment.