CruiseBased on conversations he'd with large banks, Norwegian Cruise Line CEO Harry Sommer expects things to turn around by early 2023.

Will inflation be short-lived? This cruise CEO thinks so

By
|
Norwegian Cruise Line CEO Harry Sommer (third from left) shared his business projections in the near future during the inaugural sailing of the Norwegian Prima, which was attended by global superstar and godmother of Norwegian Prima, Katy Perry, and other NCL executives.
Norwegian Cruise Line CEO Harry Sommer (third from left) shared his business projections in the near future during the inaugural sailing of the Norwegian Prima, which was attended by global superstar and godmother of Norwegian Prima, Katy Perry, and other NCL executives.

Norwegian Cruise Line CEO Harry Sommer said he expects inflation will be short-lived and begin to turn around in the back half of Q4 and Q1 of 2023.

He based that expectation on consultations with large investment banks, including Goldman Sachs which presented to the company's board three weeks ago that it doesn't see inflation as a long-term issue, he said.

He added that a reduction in fuel prices, negative inflation from wholesalers and a strong employment market in countries where NCL sources most of its guests from, including the U.S., give him confidence.

"We really think it's a short-term phenomenon. We're not assuming a huge inflationary number as part of our future prices and planning. We'll see what happens, but I don't think it's a long-term issue," Sommer said while taking questions from media during the inaugural cruise of the Norwegian Prima.

"Knock on wood, things are looking very good for the last quarter of 2022 into '23," said Sommer.

While inflation is high, it has cooled in July in part due to lower gas prices. Consumer prices rose 8.5% in July, which was less than expected. Inflation rose 9.1% in June.

NCL bookings are at an all-time high for 2023, Sommer said, with record prices and load factors. The Prima, Sommer added, is the "best-sold ship in the history of the company."

Source: Travel Weekly

Welcome to PARKROYAL COLLECTION Marina Bay, Singapore

Eco-friendly practices and innovations, thoughtfully integrated at PARKROYAL COLLECTION Marina Bay, Singapore, provide sustainable travel experiences for everyone.

Read Now

Up, Up and Sail Away Into Opportunities
July - September 2022 eBook

As ports of calls resume in Southeast Asia, it’s time for travel agents to take advantage of the sea of opportunities in cruising and grow their business.

Read Now



JDS Travel News JDS Viewpoints JDS Africa/MI