Norwegian Cruise Line Holdings (NCLH) is shifting its business strategy to attract more families with children, using flexible pricing and shorter itineraries to boost occupancy while maintaining profitability.
During the company’s Q3 earnings call, CEO Harry Sommer said Norwegian Cruise Line (NCL) has begun adjusting prices by charging more for the first two guests in a cabin while offering lower rates for third and fourth guests, typically children. The approach “naturally dilutes pricing,” Sommer said, but it supports stronger family bookings and higher overall occupancy.
The change comes ahead of a 40% increase in short Caribbean itineraries and the opening of new developments at Great Stirrup Cay, NCL’s private island in the Bahamas. The line is also shortening European voyages to seven-day sailings to appeal to more family travelers.
Despite a slight reduction in full-year net yield growth expectations – now projected at 2.4% to 2.5% – executives emphasized continued margin expansion and profitability. NCLH reported record Q3 revenue of $2.9 billion, a 5% increase year over year, with occupancy at 106.4%, exceeding guidance.
Across its three brands – Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises – bookings rose 20% over last year, signaling sustained consumer demand and confidence in the cruise market’s ongoing recovery.