The analyst thinks that the cruise line operator is in the best position to benefit from the recovery after the pandemic and from people spending more money on travel. He or she also thinks that the cruise line operator will do better than its industry peers because of its premium products and best-in-class fleet in the very profitable luxury and ultraluxury markets.
Strong booking and onboard spending trends will lead to a big improvement in Business Performance, he says, which will lead to record revenue and profits.
By the middle of 2023, NCLH’s revenue, economic operating cash flow (EBITDAR), and net operating profit after taxes (NOPAT) should all be higher than they were before the pandemic. This is because NCLH is well-positioned to benefit from the travel industry’s recovery after the pandemic and from rising consumer spending on travel.
Also, Norwegian Cruise Line is likely to make even more money with the help of the three new ships that just came out and the three new ships that are coming in 2023.
Over the next five years, Norwegian will add nine high-tech, state-of-the-art ships to its fleet, which will increase its size by almost 40% and help it make more money and grow its business.
Feinseth says that prices for 2023 trips are 20% higher than comparable 2019 prices, and bookings are 40% higher than in 2019, while capacity is 20% higher than in 2019.
Even though there could be problems and investors might be skeptical, Norwegian is in a better position than its competitors because it has a smaller and younger fleet, modern and unique ship designs, and a high-quality product offering.