1 00:00:00,000 --> 00:00:01,480 I was looking at a photo of a modern 2 00:00:01,480 --> 00:00:03,459 cruise ship this morning, one of 3 00:00:03,459 --> 00:00:05,780 those massive aerial shots where 4 00:00:05,780 --> 00:00:07,120 the ship just looks like a white 5 00:00:07,120 --> 00:00:08,980 skyscraper tipped on its side. Oh 6 00:00:08,980 --> 00:00:10,880 yeah, the drone shot. Right, exactly. 7 00:00:11,779 --> 00:00:13,660 And usually when you look at those, 8 00:00:13,779 --> 00:00:15,099 you just see a vacation, right? 9 00:00:15,160 --> 00:00:17,120 You see the pool deck, maybe a water 10 00:00:17,120 --> 00:00:20,039 slide, the buffet line. A giant 11 00:00:20,039 --> 00:00:22,839 floating hotel. Exactly. But looking 12 00:00:22,839 --> 00:00:24,480 at the news coming out of the industry 13 00:00:24,480 --> 00:00:27,339 just this week here in February 14 00:00:27,339 --> 00:00:30,160 2026, I'm seeing something completely 15 00:00:30,160 --> 00:00:31,699 different. I am seeing a machine 16 00:00:31,699 --> 00:00:33,880 that is basically fighting a war 17 00:00:33,880 --> 00:00:35,939 on three different trunks simultaneously. 18 00:00:36,560 --> 00:00:38,039 And honestly, the passengers, you're 19 00:00:38,039 --> 00:00:39,619 just along for the ride. That is 20 00:00:39,619 --> 00:00:42,799 a much more accurate, if slightly 21 00:00:42,799 --> 00:00:44,340 terrifying way to view it. Yeah. 22 00:00:44,520 --> 00:00:45,899 Because it really isn't just a hotel 23 00:00:45,899 --> 00:00:48,100 anymore. No. It is a piece of heavy 24 00:00:48,100 --> 00:00:50,090 industrial machinery. And right 25 00:00:50,090 --> 00:00:51,929 now, it's fighting a battle against 26 00:00:51,929 --> 00:00:53,609 obsolescence, so we're Asian steel. 27 00:00:53,969 --> 00:00:55,289 It's fighting a battle against nature, 28 00:00:55,630 --> 00:00:57,070 which we saw violently in the Mediterranean 29 00:00:57,070 --> 00:00:58,450 this week. Yeah, that was wild. 30 00:00:58,609 --> 00:00:59,890 And perhaps most viciously right 31 00:00:59,890 --> 00:01:01,429 now, it is fighting a battle inside 32 00:01:01,429 --> 00:01:03,289 the corporate boardroom over what 33 00:01:03,289 --> 00:01:05,049 the actual soul of this industry 34 00:01:05,049 --> 00:01:07,680 looks like. And that is exactly 35 00:01:07,680 --> 00:01:09,120 the mission for this deep dive. 36 00:01:09,379 --> 00:01:11,400 We have these three stories that 37 00:01:11,400 --> 00:01:13,920 on the surface, they look completely 38 00:01:13,920 --> 00:01:15,379 disconnected. You have a ship getting 39 00:01:15,379 --> 00:01:17,040 a makeover and a Singapore dry dock. 40 00:01:17,359 --> 00:01:19,280 You have a storm messing up Valentine's 41 00:01:19,280 --> 00:01:21,819 Day plans in Europe and a CEO getting 42 00:01:21,819 --> 00:01:24,439 fired in Miami. Right. But our job 43 00:01:24,439 --> 00:01:26,120 today is to connect those dots for 44 00:01:26,120 --> 00:01:27,959 you. We want to figure out how the 45 00:01:27,959 --> 00:01:29,959 Masaju book on Deck 12 is actually 46 00:01:29,959 --> 00:01:31,540 determined by cutthroat financial 47 00:01:31,540 --> 00:01:33,459 strategies happening 10 years prior. 48 00:01:33,659 --> 00:01:35,500 It really is the entire ecosystem 49 00:01:35,500 --> 00:01:37,019 of cruising. You've got the product, 50 00:01:37,379 --> 00:01:38,819 the operation, and the business. 51 00:01:39,239 --> 00:01:40,840 And frankly, all three are under 52 00:01:40,840 --> 00:01:42,640 immense stress right now. So let's 53 00:01:42,640 --> 00:01:44,180 start with the product. We are zooming 54 00:01:44,180 --> 00:01:46,140 in on the Carnival encounter. Right 55 00:01:46,140 --> 00:01:48,379 now, as we speak, this ship is sitting 56 00:01:48,379 --> 00:01:50,680 in a dry dock in Singapore. It went 57 00:01:50,680 --> 00:01:52,480 in on February 3rd, and it isn't 58 00:01:52,480 --> 00:01:54,439 coming out until March 5th. A solid 59 00:01:54,439 --> 00:01:56,620 month. Right. Now, first off, for 60 00:01:56,620 --> 00:01:58,079 anyone listening who thinks a dry 61 00:01:58,079 --> 00:01:59,879 dock is just, I don't know, a parking 62 00:01:59,879 --> 00:02:01,620 spot, paint a picture for us. What 63 00:02:01,620 --> 00:02:02,760 is actually happening in there? 64 00:02:03,140 --> 00:02:04,400 Well, think of it less like a parking 65 00:02:04,400 --> 00:02:06,099 spot and more like open heart surgery 66 00:02:06,099 --> 00:02:08,280 combined with a frantic home renovation 67 00:02:08,280 --> 00:02:10,180 show. That sounds chaotic. It is. 68 00:02:10,539 --> 00:02:12,099 The ship is lifted entirely out 69 00:02:12,099 --> 00:02:14,090 of the water. Which is critical 70 00:02:14,090 --> 00:02:15,490 because it allows them to work on 71 00:02:15,490 --> 00:02:17,050 the hull and the propulsion systems, 72 00:02:17,389 --> 00:02:19,030 but it's also the only time they 73 00:02:19,030 --> 00:02:21,069 can do massive structural changes 74 00:02:21,069 --> 00:02:23,789 without passengers underfoot. Because 75 00:02:23,789 --> 00:02:25,689 you can't exactly rip up the LIDO 76 00:02:25,689 --> 00:02:26,909 deck while people are trying to 77 00:02:26,909 --> 00:02:29,590 tan. Exactly. And for the Carnival 78 00:02:29,590 --> 00:02:32,590 Encounter, this is desperate, necessary 79 00:02:32,590 --> 00:02:34,689 work. because this ship was built 80 00:02:34,689 --> 00:02:37,629 in 2002 2002 okay so in car years 81 00:02:37,629 --> 00:02:40,030 that's a classic but in ship years 82 00:02:40,030 --> 00:02:41,870 where the new vessels are basically 83 00:02:41,870 --> 00:02:43,849 floating spaceships that's well 84 00:02:43,849 --> 00:02:45,550 that's geriatric isn't it it is 85 00:02:45,550 --> 00:02:47,590 what the industry politely calls 86 00:02:47,590 --> 00:02:50,150 mature tonnage mature tonnage I 87 00:02:50,150 --> 00:02:51,310 like that right so this used to 88 00:02:51,310 --> 00:02:52,969 be the star princess then it was 89 00:02:52,969 --> 00:02:54,990 the Pacific encounter for Pino Australia 90 00:02:54,990 --> 00:02:56,629 and now it's joining the carnival 91 00:02:56,629 --> 00:02:58,270 fleet okay But here is the fundamental 92 00:02:58,270 --> 00:02:59,889 problem. You can't just run a 24 93 00:02:59,889 --> 00:03:01,409 -year -old ship next to a brand 94 00:03:01,409 --> 00:03:03,310 new mega ship that has, you know, 95 00:03:03,569 --> 00:03:04,990 roller coasters and robot bartenders. 96 00:03:05,030 --> 00:03:06,169 Right, because people will just 97 00:03:06,169 --> 00:03:07,949 book the newer ship. The gap in 98 00:03:07,949 --> 00:03:09,469 quality and the price you can charge 99 00:03:09,469 --> 00:03:12,090 is just too wide. So you have to 100 00:03:12,090 --> 00:03:13,370 reinvent the asset. You have to 101 00:03:13,370 --> 00:03:15,129 make the old hardware feel like 102 00:03:15,129 --> 00:03:16,849 new software. And looking at our 103 00:03:16,849 --> 00:03:18,490 source material, the reinvention 104 00:03:18,490 --> 00:03:20,469 here seems remarkably specific. 105 00:03:20,729 --> 00:03:21,949 They aren't just slapping a roller 106 00:03:21,949 --> 00:03:23,349 coaster on top or trying to force 107 00:03:23,349 --> 00:03:26,129 a go -kart track onto a 2002 deck 108 00:03:26,129 --> 00:03:27,860 plan. No, the structure couldn't 109 00:03:27,860 --> 00:03:29,639 handle it anyway. Right, so instead 110 00:03:29,639 --> 00:03:31,319 they're focusing heavily on wellness. 111 00:03:31,680 --> 00:03:33,539 They're installing these Cloud 9 112 00:03:33,539 --> 00:03:35,659 spa thermal suites. And I want to 113 00:03:35,659 --> 00:03:37,139 dig into this because it feels like 114 00:03:37,139 --> 00:03:38,919 a very intentional pivot. It is 115 00:03:38,919 --> 00:03:40,759 the key insight of this entire dry 116 00:03:40,759 --> 00:03:43,340 dock. Don't look at the spa as just 117 00:03:43,340 --> 00:03:45,259 a luxury add -on or a place to get 118 00:03:45,259 --> 00:03:47,759 a facial. Look at it as a pure revenue 119 00:03:47,759 --> 00:03:50,080 strategy. They're adding saunas, 120 00:03:50,439 --> 00:03:52,500 steam rooms, and specifically heated 121 00:03:52,500 --> 00:03:54,159 thermal loungers. Heated thermal 122 00:03:54,159 --> 00:03:55,379 loungers. I mean, I've been on one 123 00:03:55,379 --> 00:03:57,189 and they are delightful. But why 124 00:03:57,189 --> 00:03:58,909 is that specific piece of furniture 125 00:03:58,909 --> 00:04:01,150 the strategic linchpin for a ship 126 00:04:01,150 --> 00:04:03,530 like this? Because context is everything. 127 00:04:04,030 --> 00:04:05,349 This ship is based in Brisbane. 128 00:04:05,729 --> 00:04:07,189 It's serving the Queensland market. 129 00:04:07,469 --> 00:04:09,189 And we have notes here from Anton 130 00:04:09,189 --> 00:04:11,069 Loeb, the VP of Sales and Marketing 131 00:04:11,069 --> 00:04:12,909 over there. He explicitly points 132 00:04:12,909 --> 00:04:15,449 out that Queenslanders want luxury 133 00:04:15,449 --> 00:04:17,509 regardless of the season. But wait, 134 00:04:17,769 --> 00:04:19,069 Queensland is in Australia. Isn't 135 00:04:19,069 --> 00:04:20,610 it basically always sunny? I just 136 00:04:20,610 --> 00:04:22,610 picture surfing and beaches. Not 137 00:04:22,610 --> 00:04:25,079 in July and August. Oh, right. Southern 138 00:04:25,079 --> 00:04:26,579 Hemisphere. Exactly. That's their 139 00:04:26,579 --> 00:04:28,540 winter. It gets brisk. So if you 140 00:04:28,540 --> 00:04:31,100 rely entirely on outdoor pools and 141 00:04:31,100 --> 00:04:33,459 waterslides, your onboard revenue 142 00:04:33,459 --> 00:04:35,180 drops off a cliff when the temperature 143 00:04:35,180 --> 00:04:37,040 drops because nobody wants to be 144 00:04:37,040 --> 00:04:38,360 out on the Lido deck. That makes 145 00:04:38,360 --> 00:04:40,420 total sense. But if you install 146 00:04:40,420 --> 00:04:43,079 an indoor heated sanctuary, suddenly 147 00:04:43,079 --> 00:04:45,480 you can command premium ticket prices 148 00:04:45,480 --> 00:04:47,839 year round. You are effectively 149 00:04:47,839 --> 00:04:49,220 weatherproofing the revenue of the 150 00:04:49,220 --> 00:04:52,139 ship. Wow. That is incredibly smart. 151 00:04:52,360 --> 00:04:54,019 It's monetizing the indoor space 152 00:04:54,019 --> 00:04:55,680 to hedge against the outdoor weather. 153 00:04:55,939 --> 00:04:57,439 It basically turns a seasonal asset 154 00:04:57,439 --> 00:04:59,879 into a year -round cash cow. Exactly. 155 00:05:00,420 --> 00:05:01,860 But they are doing exterior work, 156 00:05:02,180 --> 00:05:04,199 too. The sources mention a new hull 157 00:05:04,199 --> 00:05:05,779 livery, which I assume isn't just 158 00:05:05,779 --> 00:05:07,779 for aesthetics. Livery is just ship 159 00:05:07,779 --> 00:05:09,420 speak for the paint job and the 160 00:05:09,420 --> 00:05:11,100 branding, right? Yeah. They are 161 00:05:11,100 --> 00:05:12,660 giving it the red, white, and blue 162 00:05:12,660 --> 00:05:15,079 Carnival hull. This is all about 163 00:05:15,079 --> 00:05:17,319 brand consistency. When a family 164 00:05:17,319 --> 00:05:18,959 walks down the pier, they shouldn't 165 00:05:18,959 --> 00:05:20,879 feel like they booked the leftover 166 00:05:20,879 --> 00:05:22,620 P &O ship. They need to feel like 167 00:05:22,620 --> 00:05:24,100 they're on a real carnival ship. 168 00:05:24,319 --> 00:05:25,819 Right. It's about setting expectations. 169 00:05:26,100 --> 00:05:27,899 Exactly. They're also replacing 170 00:05:27,899 --> 00:05:31,040 all seven Jacuzzi tubs. Seven? That 171 00:05:31,040 --> 00:05:32,959 sounds like a massive plumbing nightmare. 172 00:05:33,300 --> 00:05:34,699 I can't even get a plumber to fix 173 00:05:34,699 --> 00:05:36,879 one sink in my house on a Tuesday, 174 00:05:37,399 --> 00:05:39,120 let alone seven hot tubs on a ship 175 00:05:39,120 --> 00:05:41,100 in a month. It's a massive undertaking. 176 00:05:41,660 --> 00:05:43,279 And they're refreshing the twin 177 00:05:43,279 --> 00:05:45,420 racer waterslides, updating the 178 00:05:45,420 --> 00:05:46,680 basketball court with new hoops 179 00:05:46,680 --> 00:05:48,800 and netting. It's all about removing 180 00:05:48,800 --> 00:05:51,040 any kind of budget stigma from an 181 00:05:51,040 --> 00:05:52,620 older vessel so they can charge 182 00:05:52,620 --> 00:05:54,939 mainline prices. No, there is a 183 00:05:54,939 --> 00:05:56,379 logistical nugget here that I found 184 00:05:56,379 --> 00:05:58,029 really interesting. The ship is 185 00:05:58,029 --> 00:05:59,670 in Singapore for the work, but you 186 00:05:59,670 --> 00:06:01,129 said it lives in Brisbane. Right. 187 00:06:01,230 --> 00:06:03,149 That's a long way to travel thousands 188 00:06:03,149 --> 00:06:05,050 of miles with an completely empty 189 00:06:05,050 --> 00:06:07,310 ship. That burns a lot of fuel for 190 00:06:07,310 --> 00:06:09,230 zero profit. Which is exactly why 191 00:06:09,230 --> 00:06:10,750 they don't run it empty. This is 192 00:06:10,750 --> 00:06:12,529 the sheer efficiency of the industry 193 00:06:12,529 --> 00:06:14,529 at work. They turn the delivery 194 00:06:14,529 --> 00:06:16,529 trip into a repositioning cruise. 195 00:06:16,910 --> 00:06:18,810 Oh, of course. It leaves Singapore 196 00:06:18,810 --> 00:06:21,800 on March 5th and takes paying passengers 197 00:06:21,800 --> 00:06:25,160 to Lombok, Vanoa in Bali, Cairns 198 00:06:25,160 --> 00:06:27,360 and Darwin before it ever even arrives 199 00:06:27,360 --> 00:06:28,879 in Brisbane. So they basically get 200 00:06:28,879 --> 00:06:30,500 the passengers to pay for the gas 201 00:06:30,500 --> 00:06:32,139 to get the ship home. Pretty much. 202 00:06:32,279 --> 00:06:34,160 By March 20th, it's back in Brisbane, 203 00:06:34,600 --> 00:06:36,579 refitted, rebranded and ready to 204 00:06:36,579 --> 00:06:38,560 generate cash. That is the highly 205 00:06:38,560 --> 00:06:39,800 controlled side of the industry. 206 00:06:39,879 --> 00:06:41,800 It's basically a massive spreadsheet 207 00:06:41,800 --> 00:06:43,399 exercise. You plan the drydock, 208 00:06:43,540 --> 00:06:44,879 you book the contractors, you sell 209 00:06:44,879 --> 00:06:47,420 the tickets. But let's pivot to 210 00:06:47,420 --> 00:06:49,800 segment two, where those spreadsheets 211 00:06:49,800 --> 00:06:51,399 just go completely out the window 212 00:06:51,399 --> 00:06:52,939 because Mother Nature decides to 213 00:06:52,939 --> 00:06:54,399 intervene. The operations side. 214 00:06:54,519 --> 00:06:56,220 Right. We are moving from the controlled 215 00:06:56,220 --> 00:06:58,360 drydock to the absolute chaos of 216 00:06:58,360 --> 00:07:00,000 the Mediterranean, specifically 217 00:07:00,000 --> 00:07:02,779 Valentine's Day weekend 2026. And 218 00:07:02,779 --> 00:07:04,300 it sounds like this was less about 219 00:07:04,300 --> 00:07:05,920 romance and roses and more about 220 00:07:05,920 --> 00:07:07,910 holding on for dear life. Absolutely. 221 00:07:08,269 --> 00:07:09,970 For a lot of passengers on MSC, 222 00:07:10,189 --> 00:07:11,990 this was a very stark reminder that 223 00:07:11,990 --> 00:07:14,389 they are, in fact, on a boat in 224 00:07:14,389 --> 00:07:16,550 the open ocean. We had severe winter 225 00:07:16,550 --> 00:07:17,990 storms slamming into the coast of 226 00:07:17,990 --> 00:07:19,550 France. The sources mentioned the 227 00:07:19,550 --> 00:07:21,149 mistral winds really kicking up. 228 00:07:21,329 --> 00:07:23,649 Yeah, the data here shows wind gusts 229 00:07:23,649 --> 00:07:25,670 over 40 knots on the 14th, topping 230 00:07:25,670 --> 00:07:28,089 50 knots on the 15th. Now, for those 231 00:07:28,089 --> 00:07:29,389 of us listening who don't sail, 232 00:07:29,600 --> 00:07:31,860 Put that in perspective, is 50 knots 233 00:07:31,860 --> 00:07:33,600 just really windy or is that actually 234 00:07:33,600 --> 00:07:35,980 dangerous? 50 knots is force 10 235 00:07:35,980 --> 00:07:37,879 territory on the Buford scale. It's 236 00:07:37,879 --> 00:07:40,000 roughly 57 miles per hour. Wow. 237 00:07:40,420 --> 00:07:42,720 Now, imagine a skyscraper, which 238 00:07:42,720 --> 00:07:44,459 is essentially what the MSC World 239 00:07:44,459 --> 00:07:46,560 Europa is. It has this massive surface 240 00:07:46,560 --> 00:07:49,459 area. When a 57 mile per hour wind 241 00:07:49,459 --> 00:07:51,480 hits the side of that ship, it creates 242 00:07:51,480 --> 00:07:53,459 what we call a sail effect. So the 243 00:07:53,459 --> 00:07:55,259 whole ship acts like a giant sail. 244 00:07:55,540 --> 00:07:57,819 Exactly. It pushes the ship sideways 245 00:07:57,819 --> 00:07:59,839 with immense uncontrollable force. 246 00:08:00,420 --> 00:08:02,259 So trying to maneuver a 200 ,000 247 00:08:02,259 --> 00:08:03,959 ton vessel into a narrow concrete 248 00:08:03,959 --> 00:08:05,740 port like Marseille in those conditions 249 00:08:05,740 --> 00:08:07,800 isn't just difficult, it's negligent. 250 00:08:08,199 --> 00:08:10,779 You risk smelting the pier or worse, 251 00:08:11,160 --> 00:08:12,019 breaching the hull of the ship. 252 00:08:12,279 --> 00:08:13,579 So the captain makes the call. We 253 00:08:13,579 --> 00:08:16,000 cannot dock in Marseille. Now, usually 254 00:08:16,000 --> 00:08:17,180 when a ship ships a port, people 255 00:08:17,180 --> 00:08:18,699 are annoyed because they miss their 256 00:08:18,699 --> 00:08:20,100 wine tour or their lunch in town. 257 00:08:20,540 --> 00:08:21,920 But the sources highlight that Misson 258 00:08:21,920 --> 00:08:23,319 Marseille is a very specific type 259 00:08:23,319 --> 00:08:24,920 of disaster because it's a turnover 260 00:08:24,920 --> 00:08:26,740 port. Why is that distinction so 261 00:08:26,740 --> 00:08:28,430 important? This is where the logistical 262 00:08:28,430 --> 00:08:30,769 nightmare really begins. Most ports 263 00:08:30,769 --> 00:08:32,490 you visit are transit ports. You 264 00:08:32,490 --> 00:08:34,269 get off, buy a magnet, eat a crepe, 265 00:08:34,490 --> 00:08:35,710 you get back on the ship. Right. 266 00:08:35,929 --> 00:08:37,470 A turnover port is where the cruise 267 00:08:37,470 --> 00:08:39,610 actually begins and ends for a huge 268 00:08:39,610 --> 00:08:41,409 chunk of the passengers. So you 269 00:08:41,409 --> 00:08:43,110 have thousands of people with their 270 00:08:43,110 --> 00:08:44,730 suitcases waiting on the pier in 271 00:08:44,730 --> 00:08:46,549 Marseille to board. And you have 272 00:08:46,549 --> 00:08:47,970 thousands of people currently on 273 00:08:47,970 --> 00:08:49,669 the ship who are desperately trying 274 00:08:49,669 --> 00:08:51,309 to catch flights home from the Marseille 275 00:08:51,309 --> 00:08:52,980 airport. Oh, wow. I didn't even 276 00:08:52,980 --> 00:08:54,279 think about the flights. So if the 277 00:08:54,279 --> 00:08:56,059 ship can't dock, you have people 278 00:08:56,059 --> 00:08:57,679 stranded on the dock in the rain 279 00:08:57,679 --> 00:08:59,480 and people trapped on the ship missing 280 00:08:59,480 --> 00:09:01,879 their connections, the entire logistics 281 00:09:01,879 --> 00:09:03,919 chain just snaps in half. Instantly. 282 00:09:04,259 --> 00:09:05,779 And this is where we see the harsh 283 00:09:05,779 --> 00:09:07,840 difference between the glossy brochure 284 00:09:07,840 --> 00:09:10,399 and the reality of operations. MSC 285 00:09:10,399 --> 00:09:11,899 had to divert immediately to find 286 00:09:11,899 --> 00:09:15,039 safety. The MSC World Europa went 287 00:09:15,039 --> 00:09:16,720 to Toulon, which is a naval port 288 00:09:16,720 --> 00:09:18,740 about 40 miles away. It's much more 289 00:09:18,740 --> 00:09:20,159 sheltered from the wind. OK, 40 290 00:09:20,159 --> 00:09:22,289 miles isn't terrible. No. But the 291 00:09:22,289 --> 00:09:24,149 MSC Splendida had it worse. It had 292 00:09:24,149 --> 00:09:26,330 to go even further, about 130 miles 293 00:09:26,330 --> 00:09:28,450 away de Villefranche -sur -Mer over 294 00:09:28,450 --> 00:09:30,169 near Nice. So now you have your 295 00:09:30,169 --> 00:09:32,570 passengers either 40 or 130 miles 296 00:09:32,570 --> 00:09:33,870 away from where they parked their 297 00:09:33,870 --> 00:09:36,070 cars or booked their outbound flights. 298 00:09:36,909 --> 00:09:39,830 How did the cruise line handle that 299 00:09:39,830 --> 00:09:41,850 chaos? Because I have to assume 300 00:09:41,850 --> 00:09:43,409 the passengers were highly vocal 301 00:09:43,409 --> 00:09:45,970 about this. They always are. And 302 00:09:45,970 --> 00:09:47,129 this is where it gets really interesting 303 00:09:47,129 --> 00:09:48,870 from a crisis management perspective. 304 00:09:49,409 --> 00:09:51,830 The guest experience depended entirely 305 00:09:51,830 --> 00:09:53,710 on which ship you happen to be on. 306 00:09:54,070 --> 00:09:55,710 How so? Well, if you were on the 307 00:09:55,710 --> 00:09:58,429 Splendida in Villefranche, 130 miles 308 00:09:58,429 --> 00:10:01,190 away, the decision was binary. It's 309 00:10:01,190 --> 00:10:02,710 simply too far to bus people back 310 00:10:02,710 --> 00:10:04,690 and forth to Marseille for day trips. 311 00:10:04,830 --> 00:10:06,549 So the company just said, automatic 312 00:10:06,549 --> 00:10:08,070 refunds for your shore excursions. 313 00:10:08,269 --> 00:10:09,950 Go rebook something local here in 314 00:10:09,950 --> 00:10:11,889 Nice. Done. It was a clean break. 315 00:10:12,149 --> 00:10:13,470 That makes sense. It's disappointing 316 00:10:13,470 --> 00:10:15,450 for the guest, but it's clear communication. 317 00:10:16,029 --> 00:10:17,470 But the World Europa was only 40 318 00:10:17,470 --> 00:10:20,210 miles away and two on. That's tantalizingly 319 00:10:20,210 --> 00:10:21,809 close. Right. And that proximity 320 00:10:21,809 --> 00:10:23,529 caused what I call the friction 321 00:10:23,529 --> 00:10:25,629 of uncertainty. The operations team 322 00:10:25,629 --> 00:10:26,850 probably looked at the map and thought, 323 00:10:27,029 --> 00:10:28,590 hey, it's only 40 miles. Maybe the 324 00:10:28,590 --> 00:10:30,090 wind will die down. Maybe we can 325 00:10:30,090 --> 00:10:31,490 secure enough buses to run people 326 00:10:31,490 --> 00:10:33,309 down the highway. Oh, no. So they 327 00:10:33,309 --> 00:10:35,350 didn't just cancel. Exactly. Instead 328 00:10:35,350 --> 00:10:37,169 of a quick, clean refund, guests 329 00:10:37,169 --> 00:10:38,590 were told to just wait for case 330 00:10:38,590 --> 00:10:39,809 -by -case letters to be delivered 331 00:10:39,809 --> 00:10:41,370 to their cabins. Which is honestly 332 00:10:41,370 --> 00:10:42,789 the absolute worst thing you can 333 00:10:42,789 --> 00:10:44,830 tell a passenger in a crisis. Just 334 00:10:44,830 --> 00:10:46,870 wait. It completely removes their 335 00:10:46,870 --> 00:10:48,809 agency. It perfectly illustrates 336 00:10:48,809 --> 00:10:50,750 the decision matrix these companies 337 00:10:50,750 --> 00:10:54,210 face every day. First, safety. Yeah. 338 00:10:54,269 --> 00:10:55,529 You have to divert the ship. That's 339 00:10:55,529 --> 00:10:57,669 non -negotiable. Right. Second is 340 00:10:57,669 --> 00:10:59,929 revenue. Can we somehow save the 341 00:10:59,929 --> 00:11:01,309 excursion money by busing them? 342 00:11:01,610 --> 00:11:03,190 And third is guest satisfaction. 343 00:11:03,689 --> 00:11:06,129 In this specific case, trying to 344 00:11:06,129 --> 00:11:08,149 save the revenue or perhaps just 345 00:11:08,149 --> 00:11:10,250 trying to salvage the original itinerary 346 00:11:10,250 --> 00:11:11,870 might have actually hurt satisfaction 347 00:11:11,870 --> 00:11:13,269 more because it left people in limbo. 348 00:11:13,450 --> 00:11:15,169 It's a great example of the operational 349 00:11:15,169 --> 00:11:17,009 resilience required, though, because 350 00:11:17,009 --> 00:11:18,429 you can build the most advanced 351 00:11:18,429 --> 00:11:19,710 ship in the world and the world 352 00:11:19,710 --> 00:11:21,509 Europa is LNG powered, it's cutting 353 00:11:21,509 --> 00:11:23,490 edge stuff. But if the wind blows 354 00:11:23,490 --> 00:11:25,830 50 knots, you are still entirely 355 00:11:25,830 --> 00:11:27,649 at the mercy of the elements. You 356 00:11:27,649 --> 00:11:29,269 simply can't engineer your way out 357 00:11:29,269 --> 00:11:31,289 of a hurricane force gust. You really 358 00:11:31,289 --> 00:11:33,330 can't. And that feeling of being 359 00:11:33,330 --> 00:11:35,029 at the mercy of forces you can't 360 00:11:35,029 --> 00:11:37,269 control transitions us perfectly 361 00:11:37,269 --> 00:11:38,889 to the biggest story of the week. 362 00:11:39,870 --> 00:11:40,889 Because while the captains were 363 00:11:40,889 --> 00:11:42,070 out there fighting the wind in the 364 00:11:42,070 --> 00:11:43,970 Mediterranean, the executives at 365 00:11:43,970 --> 00:11:45,629 Norwegian Cruise Line Holdings were 366 00:11:45,629 --> 00:11:47,250 fighting for their jobs in Miami. 367 00:11:48,519 --> 00:11:51,120 The boardroom. And this is the heavy 368 00:11:51,120 --> 00:11:53,299 hitting financial stuff. On February 369 00:11:53,299 --> 00:11:56,360 12th, 2026, Harry Summer was ousted 370 00:11:56,360 --> 00:11:58,759 as the CEO of Norwegian Cruise Line 371 00:11:58,759 --> 00:12:01,059 Holdings. A massive industry shaking 372 00:12:01,059 --> 00:12:03,580 move. and he is being replaced by 373 00:12:03,580 --> 00:12:05,639 John W. Chidsey. Okay, so I looked 374 00:12:05,639 --> 00:12:06,980 up John Chidsey's resume when I 375 00:12:06,980 --> 00:12:08,179 was reading the sources, and I actually 376 00:12:08,179 --> 00:12:08,980 double -checked it because I thought 377 00:12:08,980 --> 00:12:10,659 I had the wrong browser tab open. 378 00:12:11,179 --> 00:12:13,740 I saw Subway and Burger King. Yes. 379 00:12:13,820 --> 00:12:15,139 This guy isn't a cruise guy, he's 380 00:12:15,139 --> 00:12:16,399 a fast food guy. You're reading 381 00:12:16,399 --> 00:12:18,580 that entirely correctly. His executive 382 00:12:18,580 --> 00:12:20,139 claim to fame is running massive 383 00:12:20,139 --> 00:12:22,460 fast food franchises. Now, he has 384 00:12:22,460 --> 00:12:23,799 been on the NCAA's board of directors 385 00:12:23,799 --> 00:12:25,620 since 2013, so he certainly knows 386 00:12:25,620 --> 00:12:27,000 the corporate structure of the company, 387 00:12:27,019 --> 00:12:29,679 but he has never run a cruise line 388 00:12:29,679 --> 00:12:31,830 operationally. He hasn't spent his 389 00:12:31,830 --> 00:12:33,809 life dealing with shipyard dry docks 390 00:12:33,809 --> 00:12:36,029 and mistral winds. This feels very 391 00:12:36,029 --> 00:12:37,830 intentional. You don't hire the 392 00:12:37,830 --> 00:12:39,549 Burger King guy if you want to focus 393 00:12:39,549 --> 00:12:41,789 on artisanal, luxury, or bespoke 394 00:12:41,789 --> 00:12:43,950 travel experiences. You hire him 395 00:12:43,950 --> 00:12:46,389 to cut costs and streamline operations. 396 00:12:46,870 --> 00:12:49,850 Precisely. This move is being heavily 397 00:12:49,850 --> 00:12:52,090 driven by an activist investor group 398 00:12:52,090 --> 00:12:53,769 called Elliott Investment Management. 399 00:12:54,490 --> 00:12:56,389 They recently bought a 10 % stake 400 00:12:56,389 --> 00:12:58,110 in the company, and they're effectively 401 00:12:58,110 --> 00:12:59,710 walking into the boardroom and saying, 402 00:13:00,080 --> 00:13:02,460 The party is over. But what is their 403 00:13:02,460 --> 00:13:04,340 actual beef with Norwegian? Is the 404 00:13:04,340 --> 00:13:05,799 company failing? I feel like I see 405 00:13:05,799 --> 00:13:07,220 their commercials everywhere. It's 406 00:13:07,220 --> 00:13:08,559 definitely not failing, but it is 407 00:13:08,559 --> 00:13:10,899 lagging behind its peers. Elliott 408 00:13:10,899 --> 00:13:12,220 is looking at something called the 409 00:13:12,220 --> 00:13:14,320 yield gap. They compare Norwegian 410 00:13:14,320 --> 00:13:16,779 to its two massive rivals, Carnival 411 00:13:16,779 --> 00:13:18,440 Corporation and Royal Caribbean. 412 00:13:18,620 --> 00:13:19,779 OK, let's look at those numbers. 413 00:13:19,940 --> 00:13:22,379 In 2025, Carnival brought in record 414 00:13:22,379 --> 00:13:25,750 revenue. nearly $27 billion. And 415 00:13:25,750 --> 00:13:27,570 CLH, in its strongest quarter, did 416 00:13:27,570 --> 00:13:29,809 about $2 .9 billion. That's a massive 417 00:13:29,809 --> 00:13:31,029 difference. But isn't that just 418 00:13:31,029 --> 00:13:33,169 a scale issue? Carnival is a much 419 00:13:33,169 --> 00:13:34,970 bigger company with way more ships. 420 00:13:35,370 --> 00:13:38,070 It is partly scale, yes. But Elliott 421 00:13:38,070 --> 00:13:40,450 argues that Norwegian stock is fundamentally 422 00:13:40,450 --> 00:13:42,610 undervalued relative to its actual 423 00:13:42,610 --> 00:13:44,909 potential. They believe that if 424 00:13:44,909 --> 00:13:46,309 Norwegian adopted what they are 425 00:13:46,309 --> 00:13:48,629 calling a Norwegian Now Plan, which 426 00:13:48,629 --> 00:13:50,549 is essentially a strict diet of 427 00:13:50,549 --> 00:13:51,809 financial discipline and margin 428 00:13:51,809 --> 00:13:54,990 expansion, the stock could hit $56 429 00:13:54,990 --> 00:13:58,710 a share. Wow. Which is 159 % upside 430 00:13:58,710 --> 00:13:59,830 from where it has been trading. 431 00:14:00,590 --> 00:14:02,789 159 % upside is exactly the kind 432 00:14:02,789 --> 00:14:04,490 of number that makes Wall Street 433 00:14:04,490 --> 00:14:07,309 sit up and listen. So Ellie comes 434 00:14:07,309 --> 00:14:09,350 in, pushes out the cruise guy Harry 435 00:14:09,350 --> 00:14:11,309 Summer, and installs the efficiency 436 00:14:11,309 --> 00:14:13,610 guy, John Chidsey. But there's a 437 00:14:13,610 --> 00:14:14,830 twist in the source material here 438 00:14:14,830 --> 00:14:15,950 that I found really fascinating. 439 00:14:16,090 --> 00:14:17,509 They aren't just asking for cuts, 440 00:14:17,549 --> 00:14:18,769 are they? Oh, they aren't. And this 441 00:14:18,769 --> 00:14:20,149 is the central paradox of the whole 442 00:14:20,149 --> 00:14:22,299 situation. At the exact same time 443 00:14:22,299 --> 00:14:23,460 they are installing a fast food 444 00:14:23,460 --> 00:14:25,720 CEO to cut costs, they are publicly 445 00:14:25,720 --> 00:14:27,320 demanding their legend of the cruise 446 00:14:27,320 --> 00:14:29,039 industry, Adam Goldstein, be put 447 00:14:29,039 --> 00:14:30,299 on the board of directors. Adam 448 00:14:30,299 --> 00:14:32,360 Goldstein. That name definitely 449 00:14:32,360 --> 00:14:33,679 rings a bell. He was with Royal 450 00:14:33,679 --> 00:14:35,179 Caribbean, right? He was the president 451 00:14:35,179 --> 00:14:37,539 of Royal Caribbean for years. He 452 00:14:37,539 --> 00:14:39,899 has over 30 years of deep experience 453 00:14:39,899 --> 00:14:41,960 in this industry. He is literally 454 00:14:41,960 --> 00:14:44,940 the guy who helped build the modern 455 00:14:44,940 --> 00:14:47,000 mega ship experience that dominates 456 00:14:47,000 --> 00:14:48,899 the market today. So Elliott is 457 00:14:48,899 --> 00:14:50,580 playing a very complex game here. 458 00:14:50,659 --> 00:14:53,379 They want Chidsey to tighten the 459 00:14:53,379 --> 00:14:55,279 bolts on the finances, make the 460 00:14:55,279 --> 00:14:57,159 burgers cheaper to produce, if you 461 00:14:57,159 --> 00:14:59,220 will. But they want Goldstein in 462 00:14:59,220 --> 00:15:00,360 the room to make sure they don't 463 00:15:00,360 --> 00:15:01,759 actually destroy the product in 464 00:15:01,759 --> 00:15:03,340 the process. Because if you cut 465 00:15:03,340 --> 00:15:05,299 too much, if you turn a premium 466 00:15:05,299 --> 00:15:07,679 Norwegian cruise into the equivalent 467 00:15:07,679 --> 00:15:09,299 of a soggy sandwich sitting under 468 00:15:09,299 --> 00:15:11,340 a heat lamp, people just stop booking. 469 00:15:11,340 --> 00:15:13,019 Right. And then your profit margins 470 00:15:13,019 --> 00:15:14,379 don't matter because your revenue 471 00:15:14,379 --> 00:15:16,600 plummets. Right. Cruising is fundamentally 472 00:15:16,600 --> 00:15:18,840 an experienced economy. It relies 473 00:15:18,840 --> 00:15:21,039 heavily on repeat customers. You 474 00:15:21,039 --> 00:15:22,580 simply can't efficiency your way 475 00:15:22,580 --> 00:15:24,340 to popularity if the food is bad, 476 00:15:24,740 --> 00:15:26,539 the cabin service is slow, and the 477 00:15:26,539 --> 00:15:27,860 entertainment is cheap. And the 478 00:15:27,860 --> 00:15:29,379 stakes are incredibly high right 479 00:15:29,379 --> 00:15:31,600 now. Because Norwegian isn't just 480 00:15:31,600 --> 00:15:32,960 cutting back and playing it safe. 481 00:15:33,360 --> 00:15:34,759 They're currently committed to spending 482 00:15:34,759 --> 00:15:36,340 billions of dollars on brand new 483 00:15:36,340 --> 00:15:37,340 ships. I'm glad you brought that 484 00:15:37,340 --> 00:15:39,429 up. The new Fingantieri deal. Right. 485 00:15:39,629 --> 00:15:40,929 The sources mention they are ordering 486 00:15:40,929 --> 00:15:42,870 new ships for Norwegian, Oceania 487 00:15:42,870 --> 00:15:44,909 and Regent Seven Seas, but the delivery 488 00:15:44,909 --> 00:15:48,429 dates are in 2036 and 2037. 2037. 489 00:15:48,950 --> 00:15:50,169 Just think about that time frame 490 00:15:50,169 --> 00:15:51,450 for a second. I mean, I don't even 491 00:15:51,450 --> 00:15:52,370 know what I'm having for dinner 492 00:15:52,370 --> 00:15:54,009 tonight, let alone what the global 493 00:15:54,009 --> 00:15:55,809 economy or travel trends will look 494 00:15:55,809 --> 00:15:57,730 like in 2037. That's more than a 495 00:15:57,730 --> 00:15:59,549 decade away. But that is the massive 496 00:15:59,549 --> 00:16:01,549 lead time of this heavy industry. 497 00:16:01,769 --> 00:16:03,710 You have to place your multi -billion 498 00:16:03,710 --> 00:16:05,490 dollar bets 10 years in advance. 499 00:16:05,929 --> 00:16:07,250 And they are building an entirely 500 00:16:07,250 --> 00:16:09,070 new class of ship for Norwegian 501 00:16:09,070 --> 00:16:13,509 over 227 ,000 gross tons. That size 502 00:16:13,509 --> 00:16:15,870 will hold over 5 ,000 passengers. 503 00:16:15,929 --> 00:16:17,269 That puts it right up there with 504 00:16:17,269 --> 00:16:18,490 the biggest ships in the world, 505 00:16:18,710 --> 00:16:20,429 the absolute behemoths. It does. 506 00:16:21,029 --> 00:16:23,049 So here is the very real situation 507 00:16:23,049 --> 00:16:25,490 facing the new CEO today. You have 508 00:16:25,490 --> 00:16:27,509 John Chidsey, brought in and known 509 00:16:27,509 --> 00:16:29,570 for extreme cost cutting and operational 510 00:16:29,570 --> 00:16:31,730 efficiency. And sitting on his desk, 511 00:16:31,850 --> 00:16:33,009 he has an invoice for the biggest, 512 00:16:33,029 --> 00:16:34,730 most expensive luxury vessels the 513 00:16:34,730 --> 00:16:36,389 company has ever built arriving 514 00:16:36,389 --> 00:16:38,210 in a decade. Talk about pressure. 515 00:16:38,509 --> 00:16:40,110 Right. He has to figure out how 516 00:16:40,110 --> 00:16:41,730 to pay for those massive future 517 00:16:41,730 --> 00:16:43,710 ships while actively trying to slash 518 00:16:43,710 --> 00:16:45,769 today's operating budget. It really 519 00:16:45,769 --> 00:16:47,169 feels like a battle for the soul 520 00:16:47,169 --> 00:16:49,029 of the company. Are they going to 521 00:16:49,029 --> 00:16:50,330 be the premium line they always 522 00:16:50,330 --> 00:16:51,330 claim to be in their marketing? 523 00:16:51,690 --> 00:16:53,370 Or are they going to become the 524 00:16:53,370 --> 00:16:55,830 fast food chain of the seas? Highly 525 00:16:55,830 --> 00:16:57,570 efficient, very profitable, very 526 00:16:57,570 --> 00:16:59,370 consistent, but not exactly where 527 00:16:59,370 --> 00:17:02,190 you go for a gourmet luxury experience. 528 00:17:03,149 --> 00:17:04,549 That is the multi -billion dollar 529 00:17:04,549 --> 00:17:05,910 question that everyone is asking 530 00:17:05,910 --> 00:17:08,130 right now. The expert consensus 531 00:17:08,130 --> 00:17:10,049 seems to be that Chidsey is there 532 00:17:10,049 --> 00:17:12,490 to make the machine run leaner today 533 00:17:12,490 --> 00:17:14,869 so that the massive revenue from 534 00:17:14,869 --> 00:17:16,930 those future ships actually turns 535 00:17:16,930 --> 00:17:18,450 into the kind of profit margins 536 00:17:18,450 --> 00:17:20,289 that satisfy Elliott management. 537 00:17:20,440 --> 00:17:21,900 So he's there to fix the plumbing, 538 00:17:22,140 --> 00:17:23,819 not necessarily to design the dinner 539 00:17:23,819 --> 00:17:25,480 menu. Exactly. But it connects right 540 00:17:25,480 --> 00:17:26,640 back to our first story, doesn't 541 00:17:26,640 --> 00:17:28,200 it? Carnival is out there spending 542 00:17:28,200 --> 00:17:30,039 millions of dollars to put heated 543 00:17:30,039 --> 00:17:31,920 thermal loungers on a 24 -year -old 544 00:17:31,920 --> 00:17:34,160 ship because they fundamentally 545 00:17:34,160 --> 00:17:35,940 know the experience is what sells 546 00:17:35,940 --> 00:17:38,279 the tickets. They know that if the 547 00:17:38,279 --> 00:17:40,259 passenger is cold on a sea day in 548 00:17:40,259 --> 00:17:43,759 August, they won't come back. Precisely. 549 00:17:43,960 --> 00:17:45,259 Carnival is upgrading the physical 550 00:17:45,259 --> 00:17:48,319 product to compete. And CLH is currently 551 00:17:48,319 --> 00:17:49,579 upgrading the corporate management 552 00:17:49,579 --> 00:17:52,319 to compete. But eventually those 553 00:17:52,319 --> 00:17:53,880 two strategies have to meet in the 554 00:17:53,880 --> 00:17:55,880 middle. You can't have financial 555 00:17:55,880 --> 00:17:57,259 discipline without a product that 556 00:17:57,259 --> 00:17:58,720 people actually want to buy. And 557 00:17:58,720 --> 00:18:00,099 you certainly can't have a great 558 00:18:00,099 --> 00:18:01,700 product if you go bankrupt trying 559 00:18:01,700 --> 00:18:03,440 to build it. It seems like a constant 560 00:18:03,440 --> 00:18:05,400 high wire tightrope walk. It is 561 00:18:05,400 --> 00:18:07,279 a very delicate ecosystem. Yeah. 562 00:18:07,559 --> 00:18:08,700 And right now the wind is blowing 563 00:18:08,700 --> 00:18:11,200 50 knots on all sides of it. So 564 00:18:11,200 --> 00:18:12,700 if you're a listener who just wants 565 00:18:12,700 --> 00:18:14,299 to book a nice vacation for your 566 00:18:14,299 --> 00:18:15,900 family next year, what does all 567 00:18:15,900 --> 00:18:17,440 this corporate drama actually mean 568 00:18:17,440 --> 00:18:18,960 for you, should you be worried about 569 00:18:18,960 --> 00:18:21,490 booking your next cruise? I don't 570 00:18:21,490 --> 00:18:22,470 think you need to be worried at 571 00:18:22,470 --> 00:18:23,950 all, but I do think it means we 572 00:18:23,950 --> 00:18:25,450 are entering a major transition 573 00:18:25,450 --> 00:18:27,490 period for the industry. The Wild 574 00:18:27,490 --> 00:18:29,170 West era of just building bigger 575 00:18:29,170 --> 00:18:31,069 and bigger ships with crazier attractions 576 00:18:31,069 --> 00:18:33,690 is settling into a phase of intense 577 00:18:33,690 --> 00:18:35,589 operational optimization. Meaning 578 00:18:35,589 --> 00:18:37,150 the accountants are taking over? 579 00:18:37,410 --> 00:18:39,289 Essentially, yes. You might start 580 00:18:39,289 --> 00:18:42,289 to see fewer free perks, more strategic 581 00:18:42,289 --> 00:18:44,470 upselling -like charging for access 582 00:18:44,470 --> 00:18:46,529 to those thermal suites, and just 583 00:18:46,529 --> 00:18:48,630 a tighter, more strictly managed 584 00:18:48,630 --> 00:18:50,569 operation overall. We've really 585 00:18:50,569 --> 00:18:52,509 seen the full life cycle of the 586 00:18:52,509 --> 00:18:55,069 industry today. We saw the old ships 587 00:18:55,069 --> 00:18:56,829 getting new life with Carnival's 588 00:18:56,829 --> 00:18:58,130 massive renovation in Singapore. 589 00:18:58,589 --> 00:19:00,910 We saw the harsh operational reality 590 00:19:00,910 --> 00:19:03,329 of dodging winter storms with MSC 591 00:19:03,329 --> 00:19:05,549 in the Med. And we saw the future 592 00:19:05,549 --> 00:19:07,109 strategy being fought over tooth 593 00:19:07,109 --> 00:19:08,849 and nail in the Norwegian boardroom 594 00:19:08,849 --> 00:19:11,059 in Miami. It really does validate 595 00:19:11,059 --> 00:19:12,759 that floating city concept we started 596 00:19:12,759 --> 00:19:13,960 with. You have the construction 597 00:19:13,960 --> 00:19:15,940 crews, the emergency splices and 598 00:19:15,940 --> 00:19:17,460 the city council all screaming at 599 00:19:17,460 --> 00:19:18,920 each other at once, just trying 600 00:19:18,920 --> 00:19:20,079 to keep the whole thing afloat. 601 00:19:20,359 --> 00:19:21,660 Here is a provocative thought to 602 00:19:21,660 --> 00:19:22,859 leave you with as we wrap up this 603 00:19:22,859 --> 00:19:24,559 deep dive. We have a former Subway 604 00:19:24,559 --> 00:19:26,259 and Burger King CEO now running 605 00:19:26,259 --> 00:19:28,220 a luxury cruise holding company. 606 00:19:28,980 --> 00:19:30,799 Investors are aggressively demanding 607 00:19:30,799 --> 00:19:32,940 higher margins. Are we inevitably 608 00:19:32,940 --> 00:19:34,519 moving toward a fast food model 609 00:19:34,519 --> 00:19:36,180 of efficiency in cruising? It is 610 00:19:36,180 --> 00:19:38,039 a very valid fear. Standardization 611 00:19:38,039 --> 00:19:39,880 is great when you are buying a $5 612 00:19:39,880 --> 00:19:41,900 burger. You want it to taste exactly 613 00:19:41,900 --> 00:19:43,259 the same in London as it does in 614 00:19:43,259 --> 00:19:45,519 New York. But I am not sure if that 615 00:19:45,519 --> 00:19:48,700 logic holds up for a $5 ,000 luxury 616 00:19:48,700 --> 00:19:50,859 vacation where people specifically 617 00:19:50,859 --> 00:19:52,940 want to feel special, not processed. 618 00:19:53,319 --> 00:19:55,160 And if that standardization really 619 00:19:55,160 --> 00:19:57,640 does take hold, can the Cloud9 spa 620 00:19:57,640 --> 00:19:59,480 experience, those heated loungers 621 00:19:59,480 --> 00:20:00,859 we started this whole conversation 622 00:20:00,859 --> 00:20:03,359 with, survive the spreadsheet? Or 623 00:20:03,359 --> 00:20:05,500 will they just be looked at as an 624 00:20:05,500 --> 00:20:07,460 unnecessary line item expense by 625 00:20:07,460 --> 00:20:09,400 a CEO who is used to counting pickle 626 00:20:09,400 --> 00:20:11,559 slices? That is exactly what we 627 00:20:11,559 --> 00:20:12,759 will have to watch, and I would 628 00:20:12,759 --> 00:20:14,220 highly suggest keeping a close eye 629 00:20:14,220 --> 00:20:16,640 on March 2nd. March 2nd? Why? What 630 00:20:16,640 --> 00:20:18,930 happens then? That is when NCLH 631 00:20:18,930 --> 00:20:20,329 is scheduled to report their full 632 00:20:20,329 --> 00:20:22,130 earnings. It will be the very first 633 00:20:22,130 --> 00:20:24,049 time we really get to hear the new 634 00:20:24,049 --> 00:20:25,710 leadership's tone. It will be the 635 00:20:25,710 --> 00:20:27,890 next major chapter in this drama. 636 00:20:28,170 --> 00:20:29,930 And we will get to hear John Chidsey 637 00:20:29,930 --> 00:20:31,970 speak directly to the market and 638 00:20:31,970 --> 00:20:33,630 lay out his vision. We will definitely 639 00:20:33,630 --> 00:20:34,769 be listening for that. Thanks for 640 00:20:34,769 --> 00:20:36,170 taking this deep dive with us today 641 00:20:36,170 --> 00:20:37,730 and helping us navigate these very 642 00:20:37,730 --> 00:20:39,250 choppy waters. Always a pleasure. 643 00:20:39,390 --> 00:20:40,329 Hopefully next week the weather 644 00:20:40,329 --> 00:20:42,460 is a bit calmer for everyone. Fingers 645 00:20:42,460 --> 00:20:44,380 crossed. And for everyone listening, 646 00:20:44,660 --> 00:20:46,059 whether you are dreaming of relaxing 647 00:20:46,059 --> 00:20:47,759 in a thermal suite or just trying 648 00:20:47,759 --> 00:20:49,700 to avoid a winter storm at an airport, 649 00:20:50,319 --> 00:20:52,220 keep your eyes on the horizon. We'll 650 00:20:52,220 --> 00:20:52,900 catch you next time.