Unfortunately not, however, if the new cruise fare is lower than the Future Cruise Credits value, a new Future Cruise Credit will be issued for the remaining balance. It's really spread out over the course of the next three to five -- it's spread out, you know, I don't want to say radically, but relatively radically across all of the remaining newbuilds, excluding Norwegian Viva and Vista, which we just took delivery of, of course. So although guests can use the FCC until the end of the year 2022, they must also sail by the end of 2022. Your Future Cruise Credit will, most likely, only be redeemable towards a new cruise fare and is issued in lieu of a refund, however, some Cruise Lines have given customers the option to receive an onboard spend credit in lieu of a refund. Thousands of domestic & international car hire and both low-cost & scheduled flights. Overall, our cost levels typically tend to remain the same. Only the entire and full original value of Peace of Mind and suspended sailing FCCs worth 100% of the fare paid, as well as the bonus 25% or 50% FCCs, are eligible for transfer. I think that, you know, there was kind of the wave of pent up demand following some change in COVID restrictions at the mid to late part of last year. And we're very pleased with that. Yeah, so, definitely, we are planning -- you know, we are funding all of our existing debt maturities this year from cash on hand and organic cash flow. NCFs Sorry, at this time their Future Cruise Credits are not stackable and can only be redeemed towards a single guests' cruise booking. Norwegian Cruise Line sends out a letter about its Future Cruise Credits being extended to December 31, 2022, to provide a further chance to rebook. Beverage or dining gratuities (if part of the Free At Sea promotion selection) The onboard credit can be spent when onboard the cruise and cannot be used towards paying the cruise fare. Unfortunately, at the time of cancellation, all promotional offers, amenities, and value add-ons are removed and will not carry-over to future reservations. Thanks, Harry. Whats the difference between my Future Cruise Credit, a future cruise program and onboard credit? It's a little less close in demand there as we are booked further in advance. Future cruise credit (FCC) is a bit like store credit from a cruise line. Future Cruise Credit - What is a Future Cruise Credit and How to Redeem So, we have very efficient fixed rate financing for all of our newbuilds that are on scheduled to delivery through 2028 at an average rate of anywhere from 2% to 2.5 %. As we look to the remainder of the year, our substantial book position, coupled with the continued healthy demand metrics we are experiencing, gives us confidence in achieving our 2023 net per diem and net yield guidance, which Mark will touch on in more detail momentarily. We'll be taking delivery of a ship in the third quarter and fourth quarter. Take note of the fine print, and when in doubt, call your cruise line to clarify important things like expiration date or any blackout dates. So, Robin, is Harry, I'll take the first half, and I'll let Mark discuss the financing. You've come to the right place. This makes for an attractive entry point for investors as the newbuild pipeline adds significant potential future earnings power compared to today's levels. As a long-standing cruise industry and company veteran, he brings both continuity and a fresh perspective to this seat. With that, I will now turn the call over to Mark for his commentary on our financial position and outlook. As I've said, you know, internally, our target is to turn 2023 with a very high-five handle on a pro forma run rate leverage basis. We'll send you a weekly newsletter to your inbox. Future Cruise Credits issued in, for example, June 2020 would have expired in July of 2021; for that reason, Norwegian Cruise Line had already extended the booked by date to January 31. How Reassuring are New Cruise Cancellation Policies Really? 10/31/2017. It also cannot be used to pay the initial deposit. I won a bid on the Norwegian Upgrade Advantage. It has a monetary amount associated with it, and it is provided instead of a refund. I know that was a big part of the commentary last quarter just on the uncertain macro. Have comfort in knowing that we are Future Cruise Credit Experts and our specialised team will assist you along the whole way, You will have a full selection of sailings available from all major cruise lines alongside beautiful destinations to explore, Proud to be globally recognised and accredited agent. As Slide 5 shows, Harry has a broad range and depth of experience that makes him one of the premier executives in the industry. She will be offering guests cruises to the Greek Isles. So, just any more detail there between maybe the gross in the net. And then, secondly, if I have my notes correctly, for the 1.4 billion term loan, it's going to be either pushed out or amended and extended. You know, pretty much close to that, absent the Q1 commentary I gave you already. Norwegian Cruise Line | Future Cruise Credit - United Cruises What can the Peace of Mind FCC be used for? Bottles of wine Congrats, Frank and Harry. The only exception is if the current owner is requesting to transfer back to the original owner that the FCC was issued to. Have you received a Norwegian Cruise Line Future Cruise Credit and are looking for some advice on the best way to use it? Future Cruise Credits (FCC) are credits issued by a cruise line to use as payments towards another cruise vacation in the future. #1. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. I'm incredibly proud of you. It cannot be used to pay: Taxes Port fees Personally, I couldn't have asked for a more fulfilling and more successful career in this incredible industry, and everyone here contributed to that. 10 stocks we like better thanNorwegian Cruise LineWhen our analyst team hasa stock tip, it can pay to listen. Taiwan
And then, secondly, I think the other piece to look at is when you do the comparison versus a very strong second quarter 2019, we're comping over some difficult comps with Cuba that we had back in 2019, as well as the full benefit of Baltic itineraries. And the fact that they're willing to finance the additional 500 million euro, absolutely a positive. The FCC has been partially applied to an active and existing reservation. So, you know, what am I missing there, Mark? The original, full value FCC can be applied and used for the following: The FCC cannot be applied or used for the following: Final Payment and cancellation schedule for all voyages embarking May 1, 2022 forward will remain at our standard policy. We are implementing solutions for efficiency today; innovating for future solutions, including with our investment to modify two of our future newbuilds to create methanol-ready configurations; and are committed to collaborating with our stakeholders and partners along the way. But -- so I wouldn't get caught up too much on the slight impact to occupancy. The sail-by date had always been December 31, 2022, so it is only the effective date when guests must apply their credit that has been extended. In addition to using your Future Cruise Credit, you will have access to Cruise Line Promotions as well as savings on future travel when you book. I'll take that one, too. And I see no risk around that because there's just simply not an opportunity for the institutions to do that. The results of this initiative are ready to getting to bear fruit as demonstrated by our first quarter adjusted net cruise cost excluding fuel per capacity day, which was not only 14% below the run rate in the second half of 2022, but also outperformed our guidance by $4, as certain savings were realized earlier than anticipated. To find out more, please. Effective today, all FCCs with a current effective to date of January 31, 2022, will be updated to reflect a new effective to date of December 31, 2022, and a sail-by date of December 31, 2022.. Please proceed with your question. Harry, congrats on the new role. Focusing on the top line, total revenue per passenger cruise day in the quarter was up approximately 18% versus 2019. Scam or Deal: Will That Cruise Sale Really Save You Money? OK, great. Yeah, Patrick, we're firing on all cylinders. I know I speak on behalf of the entire NCLH team when I say thank you, Frank, for your countless contributions, not only to our company, but also to the broader cruise industry. And I think -- I'm very confident, I think quite a bit of -- we're nervous last quarter, whether or not we could achieve our cost savings. Look, our book position, Harry touched on it earlier, we're exactly where we need to be to hit our goals and our guidance. Partial value transfers or transfers of remaining FCC balance are not permitted. Norwegian Cruise Line Document Downloads What happens if the cruise I want to use my Future Cruise Credit against is cheaper than the value of my Future Cruise Credit? And there's two choices. In the first quarter, CruiseNext achieved its highest quarterly results in the program's history, surpassing the previous record. Listen, we were very pleased with the results in Q1. Frank del Rio -- President and Chief Executive Officer, Norwegian Cruise Line Holdings. Since the start, it's been our aim to provide the latest cruise news covering all the major cruise lines. Our press release with first quarter 2023 results was issued this morning and is available on our investor relations website. As we have stated previously, the second quarter will complete our occupancy ramp-up. I guess to what extent should we expect that to continue to step down throughout the year. inside cabins. On the other hand, a future cruise program is a way to secure a future cruise booking whilst onboard taking advantage of a great deal. Patrick Scholes -- Truist Securities -- Analyst. Your original Future Cruise Credit can be applied to Pre-paid service charges, Beverage or dining gratuities (if part of the Free At Sea promotion selection), Air purchased through Norwegian Cruise Line, Hotel purchased through, Norwegian Cruise Line, Cruise tours purchased through Norwegian Cruise Line, Pre-booked and pre-paid shore excursions, Transfers, Essentials, Booksafe Standard or Platinum Travel Protection insurance (if purchased on the original suspended reservation). Our record book position also gives us high visibility into the back half of the year and beyond. And then, you know, Mark, probably for you as well, if we go back to your initial guidance back in February, you noted that you turned the year, I think it was around 62% booked, which was in your historical range. Those ships, along with some of our other recent additions, translate to a nearly 20% growth in capacity when compared to 2019. It works like a store credit for a cruise, so it can be redeemable towards a cruise fare of a future booking. And, of course, with our bundling strategy that we've embarked on, you know, over the last few years, and that's really taking full throttle in 2023, that does have some headwinds to our overall net yield. Amenities Second, we are already starting to see the benefits of our margin enhancement efforts and will continue to take strategic measures to best position the company for its next chapter while ensuring that we keep the secret sauce that makes our brand so special fully intact. Great. And now that you've kind of moved through wave and have more of Alaska and Europe for this summer filled out, can you talk about how you're feeling about pricing for the summer? You can redeem any FCC by calling us! Invest better with The Motley Fool. and related brands, logos and marks are registered trademarks and/or service marks in the United States and internationally. I mean, is there any net cruise costs changes or net yield changes that we should be thinking through? 2023 Norwegian Cruise Line Holdings Ltd. 11-Reasons to Cruise to Alaska this Summer | NCL Travel Blog, 14-Day Authentic Alaska - Northbound Cruisetour | Norwegian Cruise Line, 14-Day Authentic Alaska - Southbound Cruisetour | Deck Plans | Norwegian Cruise Line, 20-Day Transpacific from Tokyo (Yokohama) & Alaska | Norwegian Cruise Line, 11 Reasons to Cruise to Alaska this Summer | NCL Travel Blog. Future Cruise Credit FAQs So, while on the surface it may appear that there is a -- it is a bit softer than Q1. If the amount of your credit exceeds the cost of the new cruise, then the balance will be reissued as a new FCC voucher (but likely the same expiration date). And then, I'm just trying to figure out the limit to rebuild an occupancy into 2024 assuming no change to your footprint overall. In addition, they agree they are authorized to remove the value of any bonus future cruise credits offered by Norwegian Cruise Line for all guests. Yeah, you know, Brandt, I think you've hit it right. As a result, growth is in line with our expectations, with net per diem increasing approximately 5.5% to 6.25%, and net yield expected to increase approximately 2.5% to 3.25%. Reservations cancelled outside of final payment received a full refund back to the method of payment used to book. FCCs are now valid through December 31, 2022, Norwegian Cruise Line Holdings Is First to Opt-In to Voluntary CDC Guidelines, Coast Guard Rescues 4 Passengers from 3 Cruise Ships in 24 Hours, Holland America Opens Alaska Season With Special 150th Events, Viking Vessel Launches Toronto 2023 Cruise Season, MSC Cruises Announces First-Ever Winter Season in Japan. Mark, over the past year, you've given some longer-term net debt-to-EBITDA target ratios for various years. Flights are considered an add-on to the main cruise fare so, your Future Cruise Credit would not cover the cost of the flight, however, here at my Future Cruise Credit, we can help you use your Future Cruise Credit towards a cruise inclusive of the promotional add-ons you had with your original cruise. I wanted to dig a little bit more into the regional setup. This is applicable to Peace of Mind and suspended sailings FCCs, including 25% and 50% credit FCCs issued for suspended sailings. So, there's always going to be some puts and takes until when you actually purchase the flight where you may have some variability in there. CruiseNext deposits applied to a reservation cancelled under our Peace of Mind policy will not be reissued. All future cruise credits must be redeemed within one year from issue date and can be used for sailings departing on or before December 31, 2022. For guests who are no longer able to travel as a result of an official announcement by a government or agency that takes place within 14 days of sailing (when Peace of Mind is no longer available), and the mandate states guests are NOT allowed to travel, then a refund would be available.
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