Norwegian Cruise Line (NCLH) 31 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the Norwegian Cruise Line Holdings Third Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Sarah Inmon, Head of Investor Relations. Please go ahead, Sarah.

Thank you, and good morning, everyone. for quarter us business earnings joining call. update for our XXXX third and Thanks by President Vice Harry Norwegian today joined I'm Sommer, Holdings; Mark CFO. Cruise and and Kempa, and Executive President Line of CEO

a company's Relations the this webcast www.nclhltd.com/investor. Investor call being website is As simultaneously reminder, on at conference

call. Throughout days available Both presentation call the can the and refer following for found be presentation slide we a will be replay conference XX for on today's call, will to that our website.

begin, like items. would we few Before cover a I to

press for this on Our release results third was morning, our quarter issued XXXX available and is website.

includes the results risks and to cautionary our earnings statement call considered These uncertainties actual from statements materially be our statements. contained such in cause This that differ statements release. forward-looking with that conjunction involve should could in

Our earnings non-GAAP also directly contained GAAP measures. financial to disclosures reconciliation and and release reference presentation. in comparable A are the other associated most measure our comments may financial

With over that, I'd like Harry? call Harry. to to turn the

thank for our good Well, today Happy XXXX call, earnings joining quarter Halloween. morning, you and for you, everyone. third us Thank and Sarah,

I'm and extremely and to progress, results, pleased experiences, vacation the Line Norwegian effectively delivering dedicated our all the leveraging of while demand exceptional meaningful strong environment, driving and efforts teams. make shoreside to while with Holdings continues thanks shipboard Cruise controlling our steady as costs, our

our financial us progressing guidance positive results key is say, well for and third results all positioning sustainability demonstrate in and time quarter, how results straight our guidance full XXXX These increase targets. to towards surpassed our yielding a we to year the delighted future, fourth for for steadily achieved am which across our the direction this now has an year. I that metrics, led strategic have

guest and this more, on earlier our which and you strategy. of to our X performance. focus to the the have with today growth our we fronts Ps: the Day I opportunity share as unveiled from Investor people, our better platform Charting vacation and to this like take product, several Course As strategy, to year, refer addition I recall what would experience on progress

my our an performance outlook. by year quarter both through providing of update results third highlighting remarks I'll and full begin pillar our our strong

I'll and build platform, as brands of our initiatives as our developments product discuss award-winning Next, part our on our recent of new as X program, exciting pillar. well of growth all new part

cost over on our I call drive will the continue onboard demand least, is which the and strategy. on also comment updated efforts, guidance. tenets return quality cover the the investment last management, key and of strategy. return our underpins disciplined satisfaction, advancements of some are I'll strong who to commentary our and our improved seeing, to will how provide one service our then we balancing guest And Mark, maintaining core I'll not of more and while detailed turn in each but that offerings sustainability of the pillar on of of results experience

combination of our in has First, robust teams continued strong that and performance. and continued the sustained first our a successful coupled the efforts, the of our am demand, for I into on half third report year, focus initiative quarter, to cost by execution resulting the with momentum pleased strategic exceptional

of the operational a our gross highest As points third EBITDA across guidance and company's and key third the adjusted highest the we percentage our since operations, regular to in quarterly only margin straight but full illustrated XX-month year. Slide last X, achieved exceeded history, improving adjusted quarter. trailing returning on revenue met almost We not EBITDA all quarter for from XX metrics

end adjusted our last XXXX. from at well a exchange negative leverage approximate And $X.XX X.XX impact $X.XX, to months the our guidance XX% higher to increased EPS from the rates. year-end just of X.XXx, foreign turn over drove improvement despite adjusted ahead Our X quarter an of $X.XX, net EBITDA

the effect third on lays strong X Slide of quarter year our out results guidance. our full

While highlight few our numbers. on would points to Mark a more commentary full year detailed like key shortly, will I provide

a is to We previous yield be carry are the expected from This company increase we public and X.X% forward XXXX, from projecting this net growth year, going point basis to fourth XXX quarter third since quarter for record guidance. a truly strength impressive exceptional. marking the in as guidance and our is improvement our raised

EBITDA expected approximately by flat and of dock during over growth to is cruise driven year. XXXX, excluding XX% percentage strong the our operational points improve XXXX, top margin to line net XX.X%, fuel and cost, in towards significant adjusted goal and Our a our X.X step adjusted dry

close to from digits, ROIC expect adjusted to our leverage our expect we an year on the double by our XXXX. in well demonstrating X% decrease approximately path by are the in X.Xx further We net XXXX, And that we XXXX XX% demonstrates lastly, strategic metrics to are track of targets of achieve Each Course our our our reinforces XXXX target the major in these a confidence and execute. ability towards to to year-end, mid-Xx. achieving we Charting our and direction on step year-end improvement

to which you Turning and optimize familiar to our deliver fleet measured drive returns. are X, I how with. highlight financial I long-term growth pillar to again platform once is our capacity know want Slide to strong set growth

more to developments EBITDA revenue to measured capacity provide expect Slide driven Historically, as adjusted these turn to additions X. I'll vessels exciting and fleet. this trend growth, has with the we details new continue on and we our outsized growth of

we Norwegian, launch from exciting voyages, starting sailing when in April our sun roundtrip of be variety unveiled in XXXX and Luna. fun ship Miami will This XXXX. in recently Norwegian a At the will XXst addition fleet,

boasts new including suites, Pulse sister and centers. Class over water on would and guests coaster a Aqua, roller previous a Mandara new XX% luxurious in Fitness and revitalized slide haven to hybrid the next year for Salon our new exciting ship As that increase and Aqua, activities groundbreaking at games Norwegian capacity, [indiscernible] a Prima duplex ships, enhancements Luna Norwegian X-bedroom a service Spa

we're and impressive the launch Aqua, this vessel. progress next-generation for shipyard final I towards incredibly being our touch experience XXXX. Earlier guests is Norwegian month, the firsthand of in making this visited Class Prima witnessed I'm early excellent applied excited our ship. Fincantieri to the in Speaking to Italy,

recipes. delivering and at experience next At in committed when Boral of case year. the reaction And guest Oceania Craperdy we new on ] to In debuts sea, with France, exciting the resident sorry, finest anticipating appointed culinary eagerly ], Cruises, executive brand's and Alice ] XX this in master course, every Allura, we new Allura Coretti be cuisine of culinary directors upcoming first [ Oceania's experiences food-loving for Eric case, of crafted the over remain newly [ chefs are introducing new exquisite our build. I'm I'll this which [ have line. to the

Regent Seas ship, dining offer Seas Cruises vessel ratios experience numerous Prestige. that one and region XXX categories, introduce set including other exciting only will celebrated Finally, in ship and incredible of to luxury will The suites palatial the Seven industry. the our guests XX,XXX allow highest unrivaled fresh offerings accommodation innovations, will cutting guest suite, with Seven to tons duplex accommodating new a and guests, space our recently latest guests steel of its the experiences of other At ultra-luxury transcended. for a reimagined this sea, space

X. Slide to Moving

offerings, experience for to more Experience to guests nights our and and underscores Norwegian enhanced our new to an dining elevated Starlink The to building do, through value offering providing with an what see, guests and launched additional Internet. aspiration beverage love our offering enhanced brand more to at Sea more and the specialty Sea, more NCL's now and Free is on at evolution bold have high-speed more. of expansion they variety, venues while better previous which partnership, package, vacationing. package, commitment More enjoy vacation We its more positioning, provide Sea of at of with more More

unveiled In the as NHL's its latest partnership Norwegian to sports of the hockey for NCL. the and first cruise This how can connect partnership professional league addition fans League. new This fantastic platform to experience them and Sea partnership milestone also with first NCL's engage cruise everywhere lines with a and they positioning, at National provides with with partnership official More show marks the Hockey multiyear brand the line. the its

meanwhile, brand promise your offering, selection included, updated an and for its features Oceania, which guests. of value unveiled always world our new included amenities

unlimited brand guests now X. gourmet Starlink and specialty teas, services the others. promise, and generous on drive amenities have included prepaid will our laundry trends [indiscernible] demand, new coffees part of I'll fare, and of increased the among These have helped WiFi, a gratuities, dining, gourmet Slide suite restaurants, discuss now As including in enhancements in-suite

strong an strength the This by quarter. grew X% strength. consumer XXX Since demand continued allowed year-over-year the Canada but quarterly us in guidance to in the impressive to performance experienced show our and particularly advantage voyages. across last all Net in cruise amazing pricing geographies, England take This and demand basis of was and has update in resilience and Alaska has New points. largely we yield third July, outperformed due to

the of We out short which our to board, be by latter communications, the onboard ships and on strong the live is fleet, particularly in fleet year-end. also in XX saw revenue the and boosted XX across rolled Starlink, sturgeons already by entire will

from the confidence, improve, sign continues onboard from In digits and consumer nearly and another levels. revenue XXXX doubling to pre-booked mid-single health of up year previous

of X this our and on full or with XXXX we above for optimal brands ahead, basis, at for booked deployment, continue quarters in year. and Looking and and end a all range see we all the upper XX-month to load strong for demand levels are line year's forward pricing

was strength sales, the X% XX. Turning driven capacity achievement We advanced Slide increased to presale and packages This compared our reflected growth. ticket outpacing by dynamic our capacity mix, deployment year, of previous robust increased to in see demand a growth. which pricing, the

of sustainability, underpins Moving in I into our to will Slide some strategy. advancements our dive XX. now which

our stakeholders, our committed are while value some creating responsible key of all environment, of stewards our for of long-term proud and being share I'm highlights to to progress. We

and for a efforts. to the in testament a efforts business It's the dedication second This MSCI received to integrate reflects and gave to we This a responsible of year practices. recognition industry some our governance recognition environmental, our into practices. our for quarter, social rating sustainability row. our within A business ongoing factors us significant and transparency hotel travel

ranked cruising, recognizes maritime continue top in achievements and year, category, outstanding reinforces in within Additionally, the to company boundaries list. and and a This this only the this were in us to at we our the global as motivates Shipping sustainable the innovative leadership ESG the It area. leader even the initiatives make cruise putting industry. ESG our line Award accolade position

reducing to our biodiesel been and tested goal. operations. strides our our now has our in our achievement for we innovative fuel footprint underscores the made Operationally, carbon XXXX also solutions with cleaner XX% surpassing fleet commitment alternative of significant initiatives. blend, This exploring

strengthening program, our of is large. a at communities supporting and organizations sustain sail to and Finally, we benefit communities committed pillar key our global that are

the an During quarter, For crew the amplifying our at raising by its Oceania positive Insignia Cancer Oceania onboard on to guests the launched initiative roll wellness walk third out through to and of This Oceania's to this encouraging Relay this the fleet Sea focuses impact. American remainder awareness and excited We're on further Society. donations successfully later the Vista. the and of Life program program year,

the Red help Helene, we $XX,XXX in the Hurricanes caused and destruction by communities. wake Additionally, American those affected in to Milton of both the to Cross contributed

to efforts, previously towards Milton actors. the we relief Red $XX,XXX more to donated the in $XX,XXX Cross to public addition up donations Hurricane Helene support to are relief matching In Hurricane

our holistic responsibility and sustainability, and approach governance. stewardship, environmental encompassing social fulsome to achievements These demonstrate strong

positive we remain communities in to charting we future, towards As change we transparency more a touch. the creating innovation, and committed the sustainable continue course

go With detail. results to hand Mark more Mark? call over that, I'll the in to over financial

net comparisons constant on commentary financial and are Harry, full period my and Thank increased XXXX the day metrics, focus currency a morning, on yield XXXX our increasingly and year net in to commentary on XXXX XXXX. third cost, results, excluding quarter solid financial guidance position. today My you, everyone. good will otherwise capacity our adjusted cruise noted, same Unless basis, our and are fuel per

exceeding results, our highlighted of XX. X%, third basis strong, line, are quarter guidance the with XXX with our very which Slide points. begin increasing by Starting net top results X.X% with were Let's on yield

contributed growth factors line quarter. the strong the Several top in to

demand our solid across sailings Canada, X brands. deployment, for and England New and First, all across Alaska particularly exceptionally pricing

and and onboard in Second, across communications. line we occupancy, seasonally outsized compounded and revenue shore benefit spend this higher particularly growth stronger-than-anticipated top excursions the of EBITDA. adjusted board, is by experienced third the onboard in quarter's resulting the pricing The in high

fuel quarter. ex timing of due cost that costs. to is of capacity the fourth below net Adjusted This expenses shift certain to Moving guidance into $X per our day cruise will now came primarily in $XXX.

This $XX $XXX guidance by for at increasing EBITDA XX%. million our resulted $XXX coming million, and in in a of year-over-year while surpassing record-breaking adjusted million, quarter, approximately by over

was As guidance compared XX% a of increasing of and impact exceeding $X.XX third in result, adjusted $X.XX quarter quarter XXXX FX despite $X.XX, EPS a quarter. to the in negative the the from

strong with the And the will fourth along which through results months XX. the expectations guidance for of year. have seen year, We are for first the quarter, Slide I improved we increasing full discuss on X

at better our fourth growth quarter, we XXX basis is the guidance approximately of quarter. X.X%, first net last points yields. expecting Looking In which are than implied

and have quarter, factors: XX% continued prebooking for on onboard guidance our increasing based pricing onboard revenue healthy where in with amenities. are trends several strong capacity the strong in the and of we demand We Caribbean,

impressive These in sailings which growth quarter, rerouted was deployment of the the in yield QX considering our achieved XXXX, weighted XX% disproportionately net high-yielding we brands. are approximately XXXX very headwinds strong the and Middle fourth the of to and X% our in from comprised results East

fuel mentioned which We timing quarter our same anticipate to mainly slight cost year of and $XXX from the increase cruise X.X%, to This implied by day fourth costs. to quarter, certain guidance. above $X to capacity fourth $XXX net the is last from the per Moving in adjusted of increase costs due to third earlier. I the previously period ex

unit docks cost impact will fuel the our Excluding dry the in down year-over-year. quarter, be ex of X% approximately $X

which Reflecting to to of our fourth return in These quarter are increasing quarter, quarters fourth $XXX considering EPS adjusted a of the the is X expect trends, resulting $X.XX, to in guidance to $XXX in count these positive approximately income be a EPS million, driving EBITDA we results approximately approximately positive $XX positive net adjusted all year. and million. adjusted adjusted a million share

is these net we remind expect none fourth to there that in want at related expense dilutive of interest no you the notes back. I our exchangeable that income add and levels, are quarter,

year QX expect to record full represents and for fourth the the grow year expectations our are we the yield, basis beat yield XXX full are at Looking increasing which quarter, X.X%, points forward the for net now company. a and previous net better carrying than is and to guidance

remains the our is the year-over-year cruise performance of and compensation docks, flat the net the expected dry fuel to adjusted and ex For cost remain impact despite excluding strong increased impact inflation of guidance business. our unchanged variable and due to of

hard organization, the in of and in dedication million result of the XXXX. to a of our target $XXX to deliver As continue work we entire ahead savings pace

increase which toward to adjusted target and full increased XXX% year $X.XX. On Course the $X.XXX EPS full billion, adjusted is a we approximately to guidance year XXXX of have increasing is Charting EBITDA, $X.XX, approximately guidance progress significant approximately over and marks XXXX, our

has results from our resulted year. guidance across current our XX organization expected the to Slide for by how significant hard the in initial put in the teams work our demonstrates improvements

increased net has year X.X% to growth from full yield basis XXX Our X.X%. points, approximately expectation

maintained the for to be dry have excluding expected docks. flat year, year-over-year, which cost impact We the our full guidance is of

while a to our increased strong executing demand, is adjusted billion, $XXX $X.XX. to ability approximately cost EBITDA capitalize adjusted As initiatives. from has our stems $X.XX and performance result, guidance efficiency to our This increasing on our and approximately million $X.XXX EPS on

shaping net is to expectations growth. up our year, XXXX optimistic mentioned, previously Harry As extraordinary with an yield be surpassing record

position, expect at algorithm next we current yield year Looking with trends Day. our net XXXX consistent year, based grow to our booking our booked on Investor discussed to our in will full continue

the of modeling of first for XXXX. net yield quarter in a Now notes couple

quarter the number have number days dry of while total year-over-year. the First, XX% XXXX, due the lower-yielding dock is number a days the of of first as we in and similar of to mix to this related vessels capacity higher days, repositioning

first of in growth XX% to these come yield Second, we The quarter. 'XX had comp yield the the quarter quarter first year growth expect recall, providing that result as average. is in we XXXX, factors very full strong for in net X of a the than of net you lower challenging a

want Looking bit into XX, our Slide dive initiatives. I to a deeper at enhancement margin

cornerstone during reduce delivery. product across the organization, our costs a and of margins is experience or enhancing outlined to and Investor As strategy guest Day, maintaining boost while the

speak results Our for as and expect continue themselves, to this we we XXXX. executing close algorithm out on

in to fuel inflation cruise We capacity have expect that cost well due been able throughout to guidance maintain flat net we as to year-over-year, and fully our continue offsetting ex increased performance strong the will per day essentially as the variable be year, compensation adjusted year. cost

initiatives continue organization. the enhancement margin significant Our across results yield to

we to which mentioned, fuel million we our confident savings through our reach previously includes to $XXX ability and savings, target are in $XXX of pacing certain ahead As XXXX. our achieve XXXX, of of in million remain initiatives

As strong we our committed targets. rate unit our XXXX inflation, to we our costs supports on the maintaining building stated of look ahead to which 'XX, performance remain below XXXX, in

on Slide progress cost around adjusted savings approximately margins. margin XXX points how returning Moving XX-month basis the positively full come margins to target expect and initiatives This EBITDA we Last We operational us our XX. for our quarter sets third now to continued improved can XX.X%, these see benefited to XX%. have well to of up in in the at for XXXX year XX.X%. approximately

debt to Moving to the Slide developments portfolio highlight some XX. and the composition in of key I'd our like quarter.

of still the debt, note debt remaining credit ship for financing export prefer, than that is agency ECA XX% in higher public the it orders. consists source we While or XX% financing, to of of crucial the leverage with form our is is our primary of our which

loans rates orders, in with that ECAs that be would which by favorable more Italy, secured obtained we than as capital the governments, are essentially resulting in a such markets. the financing sovereign much connection the guarantee in of provide of ship

gradual we ships and online to is repaid. financing ahead, remaining Looking new a a our expected ECA come anticipate of proportion as matures and/or shift higher debt

Additionally, approach and management of will We optimize we we liability aim further forward. our cost structure balance opportunities to derisk to over going time. capital our and look at strategic sheet as continue reduce believe our profile, capital our debt

of to we the refinanced million $XXX XXXX, XXXX, December at $XXX million quarter, notes X.XX% with with due This due remaining of balance maturity. paid unsecured be notes

balance December, we remaining the of After XX, notes upcoming On address you components the have X we of the in debt down Slide to our XXXX maturities. of million can the see $XXX horizon. pay on

XXXX to plan which our [ First, our the X.X exchangeable current ] we notes, billion first X will X/X second, XXXX, due become in quarter of XXXX. settle and in which shares; notes

Additionally, early to become we X as XXXX in notes the evaluating will XXX improve. [ have we X/X million are callable environment of which rate ], continues that

leverage to XX. on Turning Slide

X.XXx We have ended the year-end. on continued from leverage, reduction to make net which quarter XXXX at a progress X.XXx, our

Moving expect [indiscernible] of in to is mid-Xs. the X.Xx, the we an leverage target our important and to our reducing year ending milestone achieving of into important the around at for path continue XXXX another leverage XXXX, step, remainder

it to Harry that, closing I'll back for With turn comments.

Well, of that thank at we and you, our Day, ambitious Slide to out Mark. strategy on holistic everyone targets summarized I by Investor which are reminding close XX. want laid the

into end adjusted and With this we future to net are all-time record track as adjusted our high in note, sales, our performance exceptionally We marking strong a record company confident yield since on growth remain operations, we and visibility year an our on EBITDA. to strategy. returned an best XXXX

sub-inflationary the drive growth to ambitious cost next positioning mid-single-digit unit Charting targets. Investor year, well low of continue increases, achieve guidance us into Course our will to Day to and net Looking XXXX yield our we towards

and instrumental to commitment express our and I unwavering teams, work dedicated been gratitude success. to both Their shoreside to want have our my shipboard. hard deepest

we about Norwegian the for future, I'm that Holdings. As Cruise filled to Line the optimism with opportunities look ahead lie

With begin call. that, hand of the I'll call the to operator portion to back question-and-answer the the

Hardiman Citi. coming first [Operator from James question Instructions] Our is from

quarter on focus pricing to really here, the where really question. is wanted particularly on a strong front, Congrats my I which

in quarter. the So or gets considering, math be call second ago, exceptional. right, which third The were, range, guidance, positive per in quarter. quarter, it, to really doing math to not we That which the doing conversation just good, I'm us long to the Mark, back is the obviously X% right whether accelerated diems here, X% as quarter the it, were having the we is even fourth in not that, if X% if would I'm [ call fourth ]

couple But strong? maybe of that? and an do really walk just through I'm decelerating, I tailwinds diems out on figure apples-to-apples last How through some the noncomparable of staying basis accelerating, think headwinds trying per to or us over consistently the quarters?

couple James a and Well, ago. report that weeks issued way, -- by of nice the you

talking this think or I through that in the it. against. we're pricing a things as about was think listen, quarter I think quarters X we to fourth X%. of implied there's we the in you challenging flat So I ago, look somewhere But that X, important remind to going we're nailed pricing, When zone down to ourselves were of couple

Recall, pricing of XX%. did QX have of XXXX, we

over rolling and also to But and are yield we to X%. in one, number near-term of that translated continue to a a our both deployments. strength able Caribbean see strong we've So been comp,

to continued we've that. build So upon

we proportion ending in weighted our last the higher year, a to was the QX, then brand. of East an outsized as late about disruptions capacity, overall scheduled which disproportionately and XX% is had need East recall think originally And Mid of result we I represented to Middle capacity that of our what also was that for our

fact can somewhere the we of -- and certainly around think where is given feel now X%, we're X%, showing we this pricing continue build great I a of almost upon. So to that yield this improvement

guidance in that delta sort and Day I Got bit I found the rubric. to between the a it. of and helpful costs, which particular, be yields And a pretty talk then about little Analyst to wanted

grow stands year, the call Analyst was this delta X.X now yields X%, at costs, it. maybe for even. X.X, going It X%, to right? you're in of of that not As Day, If X,

a delta. X% You're looking at

to roll does that It we year, over more even if that that points. ultimately, forward I particular, And deltas? you're difficult as period. that X.X think to XX that that is we X -- XXXX? do significant see ] seems target been there's make likely But of I going next earnings in if X-year you're increasingly some it comfortably as to guess I as Basically you possible to exceed that you're maintain [ going for 'XX. forward that figure pull because trying think delta, about out to the

So Harry. This that sure, is take James. I'll one.

a you neighborhood I think was, XXXX EPS rubric in numbers. margin XX%. the the mentioned, what see mid-X way to record EBITDA The But easily and XXXX. how at approaching through just actual as we're as a is we can the ROIC to get of on XX%, operational focused leverage $X.XX,

performance seeing just obviously more -- I this visibility X since months obtain more better And allows targets, to us certain optimistic the now we we numbers. ability XXXX be have our to so year been introduced about and the to well, these as it's think and

we've out I bit little where on specific on get the given numbers a focused that any more I there. So X group less

are committed in numbers fully obtaining these We XXXX. and optimistic about

And add that. to James, I'll

One cost a the of $XXX deliver we we we've today we've program past, in talked And intend that that that reiterated to cornerstones the about is million-plus in is sub-inflationary growth. as have of place. unit

with on are that. pace We

feel be more so In fact, our with more we we that, around that. pace continue ahead increasingly and confidence to of

the at the as Harry So we're pieces, lining metrics end focused XXXX. said, key of but X on up we're those

is from from Next Barclays. Brandt today Montour coming question

up any color bookings brands, quarter in any standing different of could the be What with it X, but guys one I Maybe layer -- though that some you and geographies, would And question maybe that go on correlate you're gave know talk said about strength. brands, and lens color. the think extra the was first but well different database, 'XX can and sort probably color we deeper all you out, through the demographics your quarters, So would of you then in booking your I helpful. about the is you appreciated. talk

Yes.

we cost patterns is positive managed really for revenue I or or tools, yield. the I'll stand that guests, for to the Brandt, to Harry that our across we question. management curve, booking that again. tell thanks, This maximize say brands can't we've the So the out so matter, you, geographies we any And discernible a or the fine-tuned see negative. sourcing across for of managed

Broadly us curves continue see this we'd allows advantage everything based, to to it Clearly, it. to like reconsider exactly demand, over robust sort booking which want obviously, of of because as be. time to is close-in our progressing take we we

focus We don't we before, said yield. record book record focus position. on We on

I made only I position of to and is, in our book year's can't "I call take think book I focus." the bank. that's quote last XXX% can the to take yield the bank,

inflationary we overall we sheet. moderate gave solid, bookings, for the of our with of growth, to and line in so moderate the get to strong setting in improve continuing So expectation yield see growth, commentary question, back balance capacity drive Mark with targets Course our cost the delever both to your with our on load as the good, and cash growth, goal margins, flows mentioned, line Charting pricing factor XXXX, in our

second the on is question curve. great. That's then booking And the Okay.

to in that that that optimal post-COVID, if if optimal said guys want is had you're end evolved the downward of curve color leave to the part you're I'm optimal pre-COVID that just of You pricing in seeing upper over again, curious versus you're time, extra Any recalibrate didn't on and of an you environment and of the because that just and sort table, how upward the travel. money what managing on curve. all means? point -- you demand your strength of at sort optimal has of the

Sure.

reiterate think, but or I me comment, it think I covered part let both my So points. to, the of last sub in I react

advance the table. to coming COVID, a didn't We uncertainty, the order overall, in what booking of didn't and was take to little push think off further looking out we we in there risk were know clearly, some I curve know.

demand as now more year, saw it's Clearly, different year were us little good of what to a has a last demand, be as -- have a row last we hoping seen a few is robust, quarters we the for opposed last little as close-in where bit wasn't quarters from which few to we close for, certainly where the close allowed which in to challenging.

that So being booking time. thought said, XXX%, above curve our over

the static the take also but it. curve, It look know that by teams every mean it's it that Brandt, latest And not we into stress, I varies I want and this, by all have itinerary, I for day account one say set you at day varies But to this number. information brand. record. booking to

answer than yes, short think we is, booking especially robust seeing we the with We the demand are further that have booked we've this were quarters. curve close-in think continue your don't we pre-COVID, last need to few need to in further, to don't we but question line push records. been the to we So in ahead

next question from is today Steve Wieczynski coming Your Stifel. from

probably is of could well, it of historically, want advance design, that can, I some in start itineraries, the scale, guys I a fair here. the you rate? And management about see revenue So single-digit enhanced to to of and call stuff. on well have there question, if ask if Based changes shorter you cabin as bigger yield that range. all that to grown, in talked low chance, yields they've growth be start good we about, cruise kind picture guys think to a low and Is it, think that historical that industry single-digit could that

yield our of et think can. that growth the many the time times to as low to is sticking algorithm being. cost growth, grow mid-single goal we're we with below inflationary clearly, Steve, as is yields I we've cetera, discussed But it So fast to, what to

cost as see, do as to growth, crystal and yield results. our everything possible. we been little it, now. 'XX stick Steve, power, to we're term, in Obviously, thrilled growth. to talking up is a ad mid-single-digit yield with. ball, and while thrilled lack bit same we that our I unusual prepared look to of growth, much Low longer based based But inflationary for what low an for for we're on on our that's way, year a with we're positive what I have better But of think a was growth about we moderate -- a we've term, below that in capacity with continue think

And Got cost and the in Mark, to $XXX of your And cost savings about and question to that equation, you this kind of so side $XXX kind second million the remarks, to now between prepared goal of you noted obviously, that that is million going in Okay. far year. talked you. third XXXX. going then of go you're exceed

guys have go you already structure you as I'm what -- kind there of going -- on what through based of kind continue being your but and conservative? this identified ask So up fair you you done, me is based to end it's or sit cost way $XXX million said a that have when might give answer, low it and to might think in on an to all

Yes. Steve.

we identifying multiyear have certainly tell This that I the goals ourselves we further, want what said far So I done very that out. a is that will is journey. is being good a get wouldn't to is of ahead What set not we've in at this lower onetime you job exercise. terms of And conservative. a have

guest process focused and protecting looking low-hanging every So not the at all on we any business looking just the to experience product delivery. in fruit, from while end, the are end for

path targets. stand, X, -- on progress good goals our where So hopefully, -- X year, what it's we're are are increasingly on if with into sometime early we feeling large And that. our or feeling we towards look, further next conservative, we're months we, stated We're can where confident today. we but and

is Matthew Next from Pace from question today coming JPMorgan.

Congrats quarter. on great a

you -- Any that look of softening all into strong as 'XX? on Harry, elaborate at And you region? outliers cited? by any So brand momentum notable you could signs or maybe the

comments think of earlier with I on geographies. We're happy commented I our all keep this, We're I'll my so this markets. little a the Really, it's on board. all X all We're with happy guest with Michael, sourcing happy short. across brands.

any of It's don't our cracks. want hard skis. to see get I to ahead

you my yield mid-single-digit growth, so reflective I are happy exuberant is XXXX, want As this numbers. I we're to today. mentioned but absolutely commentary with we before, be build we're of low the rationally on seeing focused what about if don't those

yields to XXX about target circle Great. if spread. to point maybe in to back to how year, to were costs above the best Mark, then basis next plan? just of cost And initial Maybe linearity think your yield come your

we may our we've roughly plan. about year, speaking, right? about always marginally. as million million said, it we So when think That per $XXX down I Generally, out generally laid think $XXX or up vary

But that spend go mid-single-digit I that, in going to not saying growth are yield think money. a this we're translate low- something that public that's important to that we if able to to note, does more and year, necessarily about we've probably is been and exceed pretty

this the We our scale that and focusing and part base. leveraging cost of of includes rightsizing are unit rightsizing on business,

terms So on of outperformance yield. that, in not does we're that on direct focused correlation have but any

and that or really inflationary independent These If we targeting inflationary the worse, on I seen return will we seeing low the this we've really is cost growth, to balance how point up, yield were of important. investment the mean and cost year it's to mid-single-digit company change talked is shapes we that at Mark which in Day. below below yield continue where growth, culture targeting factors, experience, makes about target return towards -- Investor are growth. on better we're a

things that truly focused super experience, ROI but passionate that guests great things are about for delivering and and on the positive a company. care We generate on

is from Research. Next from Cunningham coming Melius question Conor

ask I'm the going way to maybe. a yield different question

table. The that viewed cruise that that when -- pricing yield is should to core they've does reason has is left I your money -- on moderate you be the how that every why low kind about ask So outcome? say as of line talked growth,

like bookings that the here just get as now managing, around historical the just more have yield levels? I'm better you So swing you -- to back what's is at question opportunity

So to I try subquestions and X going so or were X I'm there remember there, my think like to best answer that. do to

Yes.

most don't material going change going see yield in you're pricing. to that occupancy. in on XXXX to of the any expect change think I is be I

I yet. 'XX fully essentially, are not we're course, think basis. giving But we guidance Of sold cabin on a

to children see contribute it's or So picture big a which does on on don't I meaningfully of perspective. based if swinging infield revenue we the swing, take much number that from that primarily doesn't brand, the it

say someone day swing up. to this? is opportunities -- was get our of to second that's no revenue just everything I me, to changes question, Listen, The continue with the at coming mid-single-digit new mind of increase in better the remind what your how a day by of what that we out, algorithm There's We and [indiscernible]. X% best, keeping evolutionary management company get in part capacity do year do do, slightly to stated we ships is part our to come yield online. builds which low better our to growth, do between X% as to of

So our every I maximize day and Obviously, opportunities huge to is don't here. see goal work yield. we

I another revenue a better onboard which are onboard or ticket revenue, -- component, management the on is management tool talks well. of that we product opening price. talked about is primarily doesn't say, there's in get which should to think because much our phases as I we're But revenue trying doing

the to purchase is as opportunities, it onboard not of although in strength well. our on better to and board, revenue close-in speak, seeing also on QX the QX, it's better to that we're of for so QX is only, we financial providing strength marketing, us is very QX more seeing also, around because experiences bundle the revenue which some you're management, better some through our that guests think in but and but hard revenue, product, I parse And statements the generating

presales? More

dovetails pre-booked onboard percentage are into What And then, what's your customers my That question. spend? the... today doing of follow-up actually

list Nearly on. if front about of tours, the goes robust packages, things and short of offer, buys you if between the all on them that something spa, cruise, we think dining packages, mean, you will. drinks I in and the

before of I the customer most ones. are every ship. Nearly something on they buys big those get think the

question coming from Ciepiel Next from Company. is Vince Research Cleveland

out the are As you the points over how thinking your I couple you occupancy? in XX it yield some growth next Norwegian shy I next in months the might of part was expect But occupancy you as as XX, do you're about 'XX, plan, long-term -- mix. look of in where think adding and of to know be and of trend be historically, years? 'XX that hardware are to couple line tailwind new a a you

about I little commented think I bit occupancy early question. an in a

brand, either generate don't third on which are fourth ships us. in so from really primarily we full in changes negative, occupancy, be the and a around positive perspective, that would Our NCL much may the see essentially cabin mostly cabin, children revenue the

given that our or remain forward. at our a where expect from XXXX, doesn't tailwind it deployment So I least I being stable, occupancy perspective relatively shift. see headwind employment, don't going to through

much on forward, talked I us building really passengers at Great 'XX. the see bring compared in on Stirrup Remember, new PO 'XX, really won't but we to have 'XX years. about allow larger going the Cay, reliance Caribbean double which see until on number that somewhat will a happening primarily we to occupancy that But but the of the more don't slightly late recent to 'XX we there results, we're based in

Great. another And then costs. on

year, points. maybe headwinds when tailwind you think about next costs XQ believe yield the and about bit. the I some look X But dock docks, think also neutral, impact dry is years I repositioning called you utilize growth? which having ahead? kind to on this to dry days, dry on Is hinders I out When year, a into of year think a of cost in headwind, this new dock it's baseline you full

Vince, yes.

On right. relatively drydocks absolutely you're So same. our basis, the year-over-year annual an are

this run generally is So rate consistent our COVID. post

capacity the represents more dock days is actually timing prior some called year, year, we it we even out there where Why X did have though QX dry within because only XX% than days. we more the is in issues

that So was of the why the called that's for over that in yields first prepared in cost, and the remarks. terms had the course that that our comps But overall it's evens have of and we out not our a itself again, impact out on necessarily year, the more quarter. will out call it of

coming is from from UBS. Robin Next Farley question today

algorithm. points X.X than Just is not growth? the wanted kind in you on goals was be to year Harry, growth and were yield this better higher other you about were the than when piece really that of of to suggesting long-term have the go necessarily your expense number that lot back XXXX, So words, a would in year talking clarify, focus the every that

was in points. to even So Like the is were how absolute next on interpret year same if that XXXX could we your the get you when of could that than every number communicating the year sort that be X.X looks you comment? Is not said there? less focus

be individually. on we're or not To I'm on focused for long-term spread think, targets so to not for specific in specific not clear, a comment that's I broadly providing number. 'XX 'XX XXXX these Robin, going 'XX, correct. we're today, guidance a But on

Of periods to don't have today. that X-year vary these visibility we based expect on the the we in results much course,

you Great. you've about Okay. of And to think what then thinking refer XXXX, today expenses inflation you growing just when also that? inflation, do mentioned broadly of as sort of sub kind

Yes, Robin.

inflation, broadly when keep a we speaking, in is inflation at look something to U.S. bit we're it's So But worldwide obviously a not just operator. volatile. mind,

inflation. So we look at global

around see zone on we somewhere thinking are generally based we today. X% what So the

longer-term associate that obviously, would what speaking, go part Now we typically we of generally through plan. time. or may up But our that's as down change as

from Scholes from Truist question Securities. coming today is final Patrick Our

further Harry, pier? during progress? this timing? thoughts next can Any very give above and happening after what's Stirrup the may beyond us you about in Cay. specific Great briefly Can And a little you you you share anything more with be where call just mentioned what just on color stand

progress Sure. status. give color you on Happy to some and

year. some So job Stirrup incredible we that time on we announced a that been in schedule we The a see an we building it. times focused going, is of personally new in earlier and really were to QX. Great remain are really out team the to doing how pier open this things there comfortable feel putting in I've few pier to Cay

becomes believe happy to that starting island double higher generate to a to that a visit guest earlier we little utilize pier us bit repeat call, rates today, that because, allow satisfaction, in specifically should winter more revenue, virtuous [ region, will in I which that the compared guests when it's get it as really more mentioned from where speak, perspective. in in the we wavy to We're cycle, plans island higher in that and the higher ] the 'XX are so

Listen, is that, island we past great. the think

beach. a have great We private

We a lots I jet experience you, on do. Silver forget the private is to things great skis, of great it's -- -- haven-like what have Cove, lines, for well, which thank as island the interesting zip called people

get future. with but the to guests every we But asset we drive have in ROX see are a our towards constantly nothing you, can do ROI. balance announce tell we to what to like that I today, portfolio, that I'll reviewing and ROI this better view continue will that of and experience analysis

question next coming Our Securities. from is from Chaiken Mizuho Ben

you share, anything as 'XX quick areas specific you one. opportunities? one if Just [indiscernible] the Would Day, update and of At out Investor a see here, love then number on any in that examples to there's side. cost the

look, all or with we impact from of called consistent delivery the it's do product basis start Again, finish. It's of experience. deliver to so at there. Yes. product not our looking want on the what how Ben, around to very we we guest out

on that either to guests invisible guests. focused or are can value So we're of facet business, to ultimately and the guests, at don't things the we are that the looking provide we more importantly, value more every the that so

our a whether disciplined things, in shipside significant shoreside terms looking the categories other in overall very it's our we methodical than nothing of X and So or at manner. operations are operations to at share, on

docks, squeeze give can just in us the on year I one on 'XX chance from distribution the the color year-over-year meaning high absolute some XH dry basis, in. know if any you XH? just of 'XX. versus very an But level I one us can you then quick versus impact dry docks gave And

Yes.

call. I up post think, that probably we can follow with Ben,

that. We can certainly give you some color on

want have. a Happy to and and you I you to joining well. questions We'll We again, were you around once have answer with So everyone. report day. Halloween, Happy Bye, very are today. may wonderful as pleased today be all. for our hopefully, Thank any thank us Diwali, everyone

does That Thank you. conclude today's teleconference webcast. and

your your wonderful and disconnect participation time, a We this may at thank day. you for line have You today.