Millennials want to cruise. How Norwegian is preparing for these young travelers to hop aboard
watch now

When you come on board as a guest, we want you to think you are on that ship's maiden voyage. It's got to have that new car smell. Frank Del Rio Norwegian Cruise Line CEO

Del Rio says the company is also pouring millions into its existing fleet. "Back in 2015 we said we would spend in the neighborhood of $500 to $600 million on the Norwegian brand. Another $100 million plus was spent on the Region brand, and we just recently announced a $100 million refurbishment program for the Oceania brand," he said. He added that by the end of February 2020, the 1998 Norwegian Spirit will have "a $150 million head-to-toe refurbishment." On May 9 Norwegian reported its Q1 earnings: a jump in revenue of 8.5%, to $1.4 billion. Today it is the third-largest cruise line in the world, controlling approximately 9% of the total worldwide share of the cruise market by passengers as of 2018. (Carnival controls the largest market share, at 45%, followed by Royal Caribbean, at 25%). Yet while growth is strong, Del Rio says he's always aware of the competition — and the fact that customers are more demanding today. "How do you make your product different? How do you motivate the consumer to choose your brand, which is higher-priced than a competitive brand? "When you come on board as a guest, we want you to think you are on that ship's maiden voyage. It's got to have that new car smell. The carpets have to be clean, that ... the art is relevant. Everything is new, and people are willing to pay for that kind of quality, for that kind of value. [The customer] is more demanding. I mean, the competition is fierce."

Norwegian Cruise Lines Breakaway Photo: Norwegian Cruise Lines