Lizzie Dahl

Lizzie Dahl asked about the impact of family-related pricing dilution and whether the competitive Caribbean promotional environment is affecting Norwegian Cruise Line Holdings. She also questioned the long-term strategy for absorbing increased Caribbean capacity, including marketing efforts and costs associated with private island investments like Great Stirrup Cay.

Answer

Harry Sommer (President and CEO) stated that the promotional landscape in the Caribbean is normal, not unusual, supporting the expected 3.5%-4% yield increase in Q4. He outlined the strategy to appeal to Caribbean demographics through branding and marketing, highlighting Great Stirrup Cay's (GSC) new amenities (holidays 2025) and waterpark (summer 2026) as key demand drivers. He confirmed increased marketing spend, funded by efficiencies, will continue into 2026 while maintaining strong cost control.

Lizzie Dahl asked about the promotional environment in the Caribbean due to increased competition and its potential impact on Norwegian Cruise Line. She also questioned the long-term strategy to absorb growing Caribbean capacity, including marketing efforts and costs related to private island investments like Great Stirrup Cay.

Answer

Harry Sommer (President and CEO) stated that no unusual promotional landscape was observed within their competitive set, and the expected 3.5-4% yield increase in Q4 was on track. He detailed the strategy for Caribbean capacity absorption, focusing on brand construct, targeted marketing, and the build-out of Great Stirrup Cay (GSC). He confirmed increased marketing spend, funded by efficiencies, and reiterated strong cost control despite these investments.