Michael Pace's questions to Norwegian Cruise Line Holdings Ltd (NCLH) leadership • Q3 2024
Question
Michael Pace sought more detail on the 'strong momentum' mentioned in the prepared remarks, asking about any notable outliers by brand or region and if there were any signs of demand softening for 2025. He also inquired about how to think about the linearity of costs in 2025 if yields were to exceed initial plans.
Answer
CEO Harry Sommer reiterated that the positive momentum is broad-based across all brands, geographies, and source markets, with no visible cracks in demand for 2025. Both Sommer and CFO Mark Kempa stressed that cost and yield targets are independent; outperformance on yield would not automatically lead to higher spending, as the company is focused on a culture of balancing ROI with guest experience and achieving sub-inflationary cost growth regardless of revenue performance.