1 00:00:00,000 --> 00:00:02,020 Welcome to Cruise News, your daily 2 00:00:02,020 --> 00:00:03,799 update on everything happening at 3 00:00:03,799 --> 00:00:05,960 sea. Visit cruisenews .io to see 4 00:00:05,960 --> 00:00:07,599 today's stories and sign up for 5 00:00:07,599 --> 00:00:09,859 email alerts. Glad to be here. So, 6 00:00:09,859 --> 00:00:12,060 um... If you are a cruiser listening 7 00:00:12,060 --> 00:00:13,679 to this right now and you're thinking 8 00:00:13,679 --> 00:00:17,140 you can just wait until late 2025 9 00:00:17,140 --> 00:00:19,239 to, you know, casually book your 10 00:00:19,239 --> 00:00:21,660 2026 summer vacation, you might 11 00:00:21,660 --> 00:00:23,339 be in for a massive wake up call. 12 00:00:23,339 --> 00:00:25,100 Yeah, a really big one. Right. Because 13 00:00:25,100 --> 00:00:27,780 today we are doing a complete 2026 14 00:00:27,780 --> 00:00:29,660 reality check. We're looking at 15 00:00:29,660 --> 00:00:32,759 the the unforgiving physical realities 16 00:00:32,759 --> 00:00:35,200 of weather driven port changes. 17 00:00:35,380 --> 00:00:37,320 We're looking at the brutal financial 18 00:00:37,320 --> 00:00:39,060 pressures of corporate execution, 19 00:00:39,119 --> 00:00:40,679 which are intense. right now. Exactly. 20 00:00:40,740 --> 00:00:42,439 And we'll get into why certain cruise 21 00:00:42,439 --> 00:00:43,780 lines are already selling out of 22 00:00:43,780 --> 00:00:45,619 next year's inventory. And I think 23 00:00:45,619 --> 00:00:47,759 if there is one single word that 24 00:00:47,759 --> 00:00:49,399 ties all of this together, it's 25 00:00:49,399 --> 00:00:51,079 control. Control. Yeah, that is 26 00:00:51,079 --> 00:00:52,399 the perfect lens for this. Right. 27 00:00:52,460 --> 00:00:53,899 Like which lines have it, which 28 00:00:53,899 --> 00:00:55,640 lines have completely lost it, and 29 00:00:55,640 --> 00:00:57,399 how that directly impacts the vacation 30 00:00:57,399 --> 00:00:58,840 you are trying to take. Because, 31 00:00:58,840 --> 00:01:01,759 I mean, 2026 is no longer some distant 32 00:01:01,759 --> 00:01:03,539 concept on a whiteboard somewhere. 33 00:01:03,560 --> 00:01:06,439 It is a present day reality. It's 34 00:01:06,439 --> 00:01:08,019 dictating billion dollar decisions 35 00:01:08,019 --> 00:01:10,180 right now. The companies that are 36 00:01:10,180 --> 00:01:11,719 actively seizing control of their 37 00:01:11,719 --> 00:01:13,439 physical and commercial operations, 38 00:01:14,060 --> 00:01:16,439 they're thriving. And the ones reacting 39 00:01:16,439 --> 00:01:18,340 after the fact, well, they are getting 40 00:01:18,340 --> 00:01:19,819 heavily penalized by the market. 41 00:01:20,010 --> 00:01:21,689 So let's start with the ultimate 42 00:01:21,689 --> 00:01:23,629 test of control, which is the physical 43 00:01:23,629 --> 00:01:25,730 environment. Before we even get 44 00:01:25,730 --> 00:01:27,549 to the boardroom battles and the 45 00:01:27,549 --> 00:01:29,390 financial reports, we really have 46 00:01:29,390 --> 00:01:31,609 to talk about the sheer physical 47 00:01:31,609 --> 00:01:33,810 execution of operating a modern 48 00:01:33,810 --> 00:01:35,790 mega ship. Oh, for sure. Because 49 00:01:35,790 --> 00:01:38,269 look, the weather frankly does not 50 00:01:38,269 --> 00:01:40,280 care. about a perfectly marketed 51 00:01:40,280 --> 00:01:42,280 itinerary. No, it really doesn't. 52 00:01:42,340 --> 00:01:43,939 And the proactive shift we're seeing 53 00:01:43,939 --> 00:01:46,120 in the industry's execution baseline 54 00:01:46,120 --> 00:01:48,140 is just fascinating. Cruise lines 55 00:01:48,140 --> 00:01:49,719 are simply no longer willing to 56 00:01:49,719 --> 00:01:51,340 roll the dice on weather. Right. 57 00:01:51,640 --> 00:01:53,519 Let's look at a very specific present 58 00:01:53,519 --> 00:01:55,400 day example of this. So, Coaster 59 00:01:55,400 --> 00:01:56,659 Cruise has recently announced they 60 00:01:56,659 --> 00:01:58,560 are completely dropping La Goulette, 61 00:01:58,680 --> 00:02:00,439 which, for the listener, is the 62 00:02:00,439 --> 00:02:02,359 port for Tunis in Tunisia. Right. 63 00:02:02,599 --> 00:02:03,799 They're dropping it from the coast 64 00:02:03,799 --> 00:02:06,560 of Smaralda's March 4, 2026 itinerary. 65 00:02:06,560 --> 00:02:08,099 And they are swapping it out for 66 00:02:08,099 --> 00:02:10,259 a full day in Naples, Italy. Massive 67 00:02:10,259 --> 00:02:12,439 change. Huge. And the stated reason 68 00:02:12,439 --> 00:02:15,560 isn't geopolitical. It isn't demand 69 00:02:15,560 --> 00:02:17,360 driven. It is entirely about the 70 00:02:17,360 --> 00:02:19,319 wind. They are forecasting strong 71 00:02:19,319 --> 00:02:21,280 winds and gusts exceeding 40 miles 72 00:02:21,280 --> 00:02:22,840 per hour, which actually crosses 73 00:02:22,840 --> 00:02:24,240 the port established wind limits 74 00:02:24,240 --> 00:02:26,139 for a safe access channel transit. 75 00:02:26,539 --> 00:02:28,360 And Costa is not an isolated case 76 00:02:28,360 --> 00:02:30,919 here at all. MSC Cruises is facing 77 00:02:30,919 --> 00:02:33,360 the exact same structural geographical 78 00:02:33,360 --> 00:02:35,979 issue at that very same port. Really? 79 00:02:36,060 --> 00:02:38,659 At La Goulette? Yes. The MSC Splendida 80 00:02:38,659 --> 00:02:40,360 actually canceled its loglet calls 81 00:02:40,360 --> 00:02:42,819 for January and February of 2026. 82 00:02:43,060 --> 00:02:44,620 Same reason. Predicted winds up 83 00:02:44,620 --> 00:02:46,520 to 50 knots, which if you do the 84 00:02:46,520 --> 00:02:48,560 math, translates to about 57 miles 85 00:02:48,560 --> 00:02:51,180 per hour. Wow. 57 miles per hour. 86 00:02:51,400 --> 00:02:53,039 That is serious wind. It's incredible. 87 00:02:53,120 --> 00:02:54,520 So for their February 12 sailing, 88 00:02:54,699 --> 00:02:56,159 instead of risking it, they just 89 00:02:56,159 --> 00:02:57,500 opted to turn it into a sea day. 90 00:02:57,719 --> 00:02:59,240 They expanded the onboard programming, 91 00:02:59,520 --> 00:03:01,240 fired the Formula One simulators, 92 00:03:01,560 --> 00:03:03,360 ran the 4D cinema. I kept everybody 93 00:03:03,360 --> 00:03:05,080 entertained on board. Exactly. And 94 00:03:05,080 --> 00:03:06,500 then they substituted a call in 95 00:03:06,500 --> 00:03:07,840 Palma de Mallorca, Spain for the 96 00:03:07,840 --> 00:03:09,680 following day. I always try to visualize 97 00:03:09,680 --> 00:03:11,360 the physics of this for you guys 98 00:03:11,360 --> 00:03:13,259 listening. Because 34 miles per 99 00:03:13,259 --> 00:03:15,060 hour is generally considered the 100 00:03:15,060 --> 00:03:16,719 absolute upper limit for safely 101 00:03:16,719 --> 00:03:18,120 docking a cruise ship. That's the 102 00:03:18,120 --> 00:03:19,900 baseline. Now think about the Custis 103 00:03:19,900 --> 00:03:24,400 Merelda. That ship is 185 ,000 gross 104 00:03:24,400 --> 00:03:27,580 tons. It carries over 5 ,000 passengers. 105 00:03:28,020 --> 00:03:30,699 It sits incredibly high out of the 106 00:03:30,699 --> 00:03:32,960 water. So high. Trying to maneuver 107 00:03:32,960 --> 00:03:35,560 a vessel of that sheer volume through 108 00:03:35,560 --> 00:03:38,240 a narrow channel in 40 to 50 mile 109 00:03:38,240 --> 00:03:39,520 per hour winds, it's like trying 110 00:03:39,520 --> 00:03:41,219 to parallel park a skyscraper in 111 00:03:41,219 --> 00:03:42,639 a hurricane, right? Yeah, the physics 112 00:03:42,639 --> 00:03:43,919 of it make it nearly impossible. 113 00:03:44,020 --> 00:03:45,439 Yeah. I mean, the surface area of 114 00:03:45,439 --> 00:03:46,960 the side of these modern mega ships 115 00:03:46,960 --> 00:03:49,180 acts exactly like a giant sail. 116 00:03:49,199 --> 00:03:51,099 A giant sail. Right. In the maritime 117 00:03:51,099 --> 00:03:52,219 industry, they actually refer to 118 00:03:52,219 --> 00:03:54,180 this as windage. When you have a 119 00:03:54,180 --> 00:03:56,460 massive block of balconies and superstructures 120 00:03:56,460 --> 00:03:58,080 catching a 50 mile per hour gust, 121 00:03:58,620 --> 00:04:00,280 the lateral force pushing that ship 122 00:04:00,280 --> 00:04:02,360 sideways is just immense. I can't 123 00:04:02,360 --> 00:04:03,659 even imagine the pressure on the 124 00:04:03,659 --> 00:04:06,300 thrusters. It's too much. If you 125 00:04:06,300 --> 00:04:08,280 are trying to transit a narrow port 126 00:04:08,280 --> 00:04:10,000 access channel, like the one in 127 00:04:10,000 --> 00:04:12,300 La Gulette, which is in a very exposed 128 00:04:12,300 --> 00:04:13,800 coastal setting during the winter 129 00:04:13,800 --> 00:04:15,840 and early spring, the thrusters 130 00:04:15,840 --> 00:04:18,100 on the ship simply cannot overpower 131 00:04:18,100 --> 00:04:19,819 the wind pushing it toward the rocks. 132 00:04:20,180 --> 00:04:21,839 It becomes a severe safety hazard. 133 00:04:21,959 --> 00:04:23,259 But what really stands out to me 134 00:04:23,259 --> 00:04:25,839 here is the sheer geographical and 135 00:04:25,839 --> 00:04:27,939 the logistical scale of these changes. 136 00:04:28,660 --> 00:04:30,600 Swapping a North African port like 137 00:04:30,600 --> 00:04:34,209 Tunis for Naples, Italy, or Palma 138 00:04:34,209 --> 00:04:36,449 de Mallorca in Spain. That is not 139 00:04:36,449 --> 00:04:38,350 taking a minor detour down a side 140 00:04:38,350 --> 00:04:40,509 street. You are completely redrawing 141 00:04:40,509 --> 00:04:42,149 the map for thousands of people. 142 00:04:42,700 --> 00:04:44,160 Walk me through the mechanics of 143 00:04:44,160 --> 00:04:45,459 that. How difficult is it to just, 144 00:04:45,459 --> 00:04:47,120 you know, swap a port? Oh, it is 145 00:04:47,120 --> 00:04:48,339 a massive logistical undertake. 146 00:04:48,500 --> 00:04:49,459 You don't just point the steering 147 00:04:49,459 --> 00:04:50,699 wheel toward Naples and say, hey, 148 00:04:50,800 --> 00:04:52,300 we're here. Right. Right. When a 149 00:04:52,300 --> 00:04:53,639 line changes a port call, they have 150 00:04:53,639 --> 00:04:55,399 to secure an open berth at the new 151 00:04:55,399 --> 00:04:56,980 port, which is highly competitive 152 00:04:56,980 --> 00:04:58,740 right now. They have to arrange 153 00:04:58,740 --> 00:05:01,120 for local harbor pilots, tugboats, 154 00:05:01,220 --> 00:05:02,759 and longshoremen to handle the mooring 155 00:05:02,759 --> 00:05:04,040 lines. You have to coordinate all 156 00:05:04,040 --> 00:05:06,920 those ground teams. Exactly. Then 157 00:05:06,920 --> 00:05:09,160 there is the provisioning. If they 158 00:05:09,160 --> 00:05:11,000 were planning to load fresh produce 159 00:05:11,000 --> 00:05:13,600 or offload waste in Tunis, they 160 00:05:13,600 --> 00:05:15,220 now have to coordinate all those 161 00:05:15,220 --> 00:05:17,720 vendor contracts in Spain or Italy. 162 00:05:18,879 --> 00:05:21,079 Furthermore, the ship's entire fuel 163 00:05:21,079 --> 00:05:23,519 consumption route has to be recalculated 164 00:05:23,519 --> 00:05:25,259 based on the new speed and distance 165 00:05:25,259 --> 00:05:27,420 required to hit those revised arrival 166 00:05:27,420 --> 00:05:29,759 times. Doing this a year in advance 167 00:05:29,759 --> 00:05:31,899 takes an incredible amount of operational 168 00:05:31,899 --> 00:05:33,790 coordination. Which brings us back 169 00:05:33,790 --> 00:05:35,470 to that central theme of control. 170 00:05:35,810 --> 00:05:38,029 Both Costa and MSC are making these 171 00:05:38,029 --> 00:05:40,110 decisive itinerary changes weeks, 172 00:05:40,269 --> 00:05:41,810 or in this case actually months 173 00:05:41,810 --> 00:05:44,110 in advance. Very early. Yeah. Costa 174 00:05:44,110 --> 00:05:46,110 is automatically processing refunds 175 00:05:46,110 --> 00:05:47,790 for canceled shore excursions right 176 00:05:47,790 --> 00:05:49,310 back to the original form of payment 177 00:05:49,310 --> 00:05:51,290 or the onboard accounts. They are 178 00:05:51,290 --> 00:05:52,589 not waiting until the morning of 179 00:05:52,589 --> 00:05:54,250 the arrival to see if the wind magically 180 00:05:54,250 --> 00:05:55,910 dies down. Which is the critical 181 00:05:55,910 --> 00:05:57,889 difference. Historically, a captain 182 00:05:57,889 --> 00:05:59,529 might sail toward the port, wait 183 00:05:59,529 --> 00:06:01,029 offshore, and just hope for a break 184 00:06:01,029 --> 00:06:02,129 in the weather. Cross their fingers. 185 00:06:02,029 --> 00:06:04,509 Pretty much. And if it didn't happen, 186 00:06:04,870 --> 00:06:06,329 the call was scrubbed at the last 187 00:06:06,329 --> 00:06:08,230 minute. The passenger wakes up, 188 00:06:08,370 --> 00:06:10,470 looks out the balcony, and is told, 189 00:06:10,509 --> 00:06:12,889 uh, sorry, too windy. We're spending 190 00:06:12,889 --> 00:06:15,069 the day at sea. Which ruins the 191 00:06:15,069 --> 00:06:16,550 day for the passenger. It totally 192 00:06:16,550 --> 00:06:18,870 does. By making the call early, 193 00:06:19,230 --> 00:06:20,589 the cruise line takes control of 194 00:06:20,589 --> 00:06:22,550 the narrative. Yes, they take a 195 00:06:22,550 --> 00:06:23,970 short -term hit by automatically 196 00:06:23,970 --> 00:06:25,529 refunding those excursions early, 197 00:06:25,889 --> 00:06:28,589 but they preserve... the brand relationship. 198 00:06:28,769 --> 00:06:31,189 That makes perfect sense. They prioritize 199 00:06:31,189 --> 00:06:33,230 safety, but they also provide the 200 00:06:33,230 --> 00:06:35,569 passenger with a guaranteed predictable 201 00:06:35,569 --> 00:06:37,970 alternative. It's a prime example 202 00:06:37,970 --> 00:06:40,209 of rigorous operational execution. 203 00:06:40,509 --> 00:06:42,129 OK, so making early calls on weather 204 00:06:42,129 --> 00:06:44,110 is an example of strong operational 205 00:06:44,110 --> 00:06:46,189 control. But what happens when a 206 00:06:46,189 --> 00:06:47,829 company loses control on a commercial 207 00:06:47,829 --> 00:06:49,329 level? That's where things get ugly. 208 00:06:49,470 --> 00:06:51,060 Yeah. Because I want to pivot to 209 00:06:51,060 --> 00:06:52,699 the corporate execution pressures 210 00:06:52,699 --> 00:06:54,399 currently facing Norwegian cruise 211 00:06:54,399 --> 00:06:56,339 line holdings. They are having a 212 00:06:56,339 --> 00:06:57,939 remarkably tough moment in the market 213 00:06:57,939 --> 00:06:59,819 right now. The market response to 214 00:06:59,819 --> 00:07:02,060 their recent updates has been incredibly 215 00:07:02,060 --> 00:07:04,220 severe. Yeah, their shares recently 216 00:07:04,220 --> 00:07:06,819 sank 11 % in early trading. And 217 00:07:06,819 --> 00:07:08,279 while Carnival and Royal Caribbean 218 00:07:08,279 --> 00:07:11,060 took minor sympathetic hits, Norwegian's 219 00:07:11,060 --> 00:07:13,000 drop was heavily tied to their specific 220 00:07:13,000 --> 00:07:15,500 2026 projections. Very specific. 221 00:07:15,980 --> 00:07:18,240 They projected a 2026 adjusted earnings 222 00:07:18,240 --> 00:07:21,720 per share of $2 .38. Now, Wall Street 223 00:07:21,720 --> 00:07:23,720 analysts were expecting $2 .55. 224 00:07:24,480 --> 00:07:26,079 On top of that, they announced they 225 00:07:26,079 --> 00:07:28,360 expect flat net yields in 2026, 226 00:07:28,860 --> 00:07:31,139 with the first quarter of 2026 actually 227 00:07:31,139 --> 00:07:33,689 seeing a net yield drop of 1 .6 228 00:07:33,689 --> 00:07:35,610 percent. Let's break down why those 229 00:07:35,610 --> 00:07:37,449 specific numbers caused such a dramatic 230 00:07:37,449 --> 00:07:39,550 sell off. Earnings per share or 231 00:07:39,550 --> 00:07:41,649 EPS is essentially the company's 232 00:07:41,649 --> 00:07:43,069 total profit divided by the number 233 00:07:43,069 --> 00:07:44,709 of outstanding shares. It's the 234 00:07:44,709 --> 00:07:46,089 bottom line for investors. Right. 235 00:07:46,230 --> 00:07:47,709 It is the ultimate scorecard for 236 00:07:47,709 --> 00:07:49,069 Wall Street. When a company misses 237 00:07:49,069 --> 00:07:51,389 that expectation by 17 cents, it 238 00:07:51,389 --> 00:07:52,970 signals to investors that management's 239 00:07:52,970 --> 00:07:54,149 internal forecasting is flawed. 240 00:07:54,589 --> 00:07:55,730 And the phrase from their update 241 00:07:55,730 --> 00:07:57,170 that really alarmed the market was 242 00:07:57,170 --> 00:07:58,470 the admission of self -inflicted 243 00:07:58,470 --> 00:08:01,740 execution gaps. Yes, their new CEO. 244 00:08:02,110 --> 00:08:04,569 John W. Chidsey literally used that 245 00:08:04,569 --> 00:08:06,689 phrase, self -inflicted. They had 246 00:08:06,689 --> 00:08:09,250 this massive 40 % year -over -year 247 00:08:09,250 --> 00:08:10,870 capacity increase in the Caribbean. 248 00:08:11,490 --> 00:08:12,970 But it was poorly aligned with their 249 00:08:12,970 --> 00:08:14,269 marketing, and crucially, it was 250 00:08:14,269 --> 00:08:15,949 completely out of sync with the 251 00:08:15,949 --> 00:08:17,750 operational readiness of their private 252 00:08:17,750 --> 00:08:19,689 island destination, Great Stirrup 253 00:08:19,689 --> 00:08:21,569 Cay. A huge mistake. They didn't 254 00:08:21,569 --> 00:08:23,189 have the full slate of amenities 255 00:08:23,189 --> 00:08:24,670 ready for the passengers they were 256 00:08:24,670 --> 00:08:26,629 bringing in. Wait, help me understand 257 00:08:26,629 --> 00:08:28,870 this disconnect. Consumers are spending 258 00:08:28,870 --> 00:08:30,790 record amounts on vacations right 259 00:08:30,790 --> 00:08:33,419 now. How does a massive, sophisticated 260 00:08:33,419 --> 00:08:35,940 corporation like Norwegian drop 261 00:08:35,940 --> 00:08:37,419 the ball this hard on their own 262 00:08:37,419 --> 00:08:39,080 private island? That's a great question. 263 00:08:39,539 --> 00:08:40,940 I mean, to me, it sounds like throwing 264 00:08:40,940 --> 00:08:42,720 a highly advertised grand opening 265 00:08:42,720 --> 00:08:44,860 for a brand new luxury restaurant, 266 00:08:45,299 --> 00:08:46,879 inviting the entire town, and then 267 00:08:46,879 --> 00:08:48,460 realizing on opening night you forgot 268 00:08:48,460 --> 00:08:49,879 to install the ovens in the kitchen. 269 00:08:49,980 --> 00:08:51,600 The restaurant analogy is spot on. 270 00:08:51,799 --> 00:08:53,700 And if we extend it, here is what 271 00:08:53,700 --> 00:08:55,139 actually happens behind the scenes. 272 00:08:55,580 --> 00:08:57,639 In a corporation that size, forgetting 273 00:08:57,639 --> 00:08:59,000 the Evans means your marketing and 274 00:08:59,000 --> 00:09:00,820 commercial team sold thousands of 275 00:09:00,820 --> 00:09:02,480 premium tickets based on the promise 276 00:09:02,480 --> 00:09:04,620 of a fully upgraded island experience. 277 00:09:05,080 --> 00:09:06,779 Right. They sold the dream. They 278 00:09:06,779 --> 00:09:09,740 sold the dream. But the operations 279 00:09:09,740 --> 00:09:11,960 team, the people actually pouring 280 00:09:11,960 --> 00:09:13,659 the concrete and building the cabanas, 281 00:09:14,100 --> 00:09:16,240 were on a completely different timeline. 282 00:09:16,580 --> 00:09:18,299 They were working in silos. Exactly. 283 00:09:18,919 --> 00:09:20,600 When those two silos don't communicate, 284 00:09:20,970 --> 00:09:22,629 You have a disaster on your hands. 285 00:09:22,769 --> 00:09:24,250 The commercial team fills the ships. 286 00:09:24,970 --> 00:09:26,870 A 40 % capacity increase in the 287 00:09:26,870 --> 00:09:28,870 Caribbean is a massive influx of 288 00:09:28,870 --> 00:09:30,750 people. Oh, yeah. Thousands of extra 289 00:09:30,750 --> 00:09:32,649 people a week. But when those passengers 290 00:09:32,649 --> 00:09:34,610 arrive at Great Sturb K and the 291 00:09:34,610 --> 00:09:36,289 amenities aren't finished, the cruise 292 00:09:36,289 --> 00:09:37,830 line can't charge premium prices. 293 00:09:38,070 --> 00:09:39,710 They have to issue massive refunds, 294 00:09:39,850 --> 00:09:41,929 offer discounts, or give away onboard 295 00:09:41,929 --> 00:09:43,690 credit just to apologize for the 296 00:09:43,690 --> 00:09:45,750 construction. That directly destroys 297 00:09:45,750 --> 00:09:47,600 your pricing power. Which explains 298 00:09:47,600 --> 00:09:49,759 that flat net yield metric we mentioned 299 00:09:49,759 --> 00:09:51,399 earlier. For the listener, what 300 00:09:51,399 --> 00:09:53,360 exactly is net yield and why is 301 00:09:53,360 --> 00:09:55,019 it so dangerous for it to be flat? 302 00:09:55,399 --> 00:09:57,000 Net yield is essentially the true 303 00:09:57,000 --> 00:09:59,460 profit a cruise line makes per passenger 304 00:09:59,460 --> 00:10:01,419 per day after you strip out all 305 00:10:01,419 --> 00:10:02,779 the unavoidable costs of getting 306 00:10:02,779 --> 00:10:04,580 them on board. So if you pay fifteen 307 00:10:04,580 --> 00:10:06,620 hundred dollars for a cruise, the 308 00:10:06,620 --> 00:10:08,019 line immediately has to subtract 309 00:10:08,019 --> 00:10:10,039 travel agent commissions, port taxes 310 00:10:10,039 --> 00:10:11,779 and the cost of the flights if they 311 00:10:11,779 --> 00:10:13,409 were included in the package. OK, 312 00:10:13,529 --> 00:10:15,490 so whatever is left is the net yield. 313 00:10:15,870 --> 00:10:17,570 Exactly. What is left over is the 314 00:10:17,570 --> 00:10:19,470 net yield. If your net yield is 315 00:10:19,470 --> 00:10:21,730 flat or dropping 1 .6 percent like 316 00:10:21,730 --> 00:10:23,350 Norwegian's first quarter projection, 317 00:10:23,970 --> 00:10:25,669 it means you are losing your ability 318 00:10:25,669 --> 00:10:27,509 to squeeze profit out of each ticket. 319 00:10:27,639 --> 00:10:29,299 And that is incredibly dangerous 320 00:10:29,299 --> 00:10:31,000 because their costs are not flat. 321 00:10:31,259 --> 00:10:32,559 No, they're reclimbing. Their chief 322 00:10:32,559 --> 00:10:34,740 financial officer, Mark Kempe, noted 323 00:10:34,740 --> 00:10:36,480 that their fuel costs are projected 324 00:10:36,480 --> 00:10:39,340 to rise from $662 per metric ton 325 00:10:39,340 --> 00:10:43,679 in 2025, up to $670 per ton in 2026. 326 00:10:44,320 --> 00:10:45,759 So if your costs are going up, but 327 00:10:45,759 --> 00:10:47,000 the profit you make per passenger 328 00:10:47,000 --> 00:10:48,580 is flat because you have to discount 329 00:10:48,580 --> 00:10:50,240 for a half -finished private island, 330 00:10:50,820 --> 00:10:52,480 your margins just collapse. There's 331 00:10:52,480 --> 00:10:53,919 Iceland. And the pressure isn't 332 00:10:53,919 --> 00:10:55,519 just in the Caribbean. Campa also 333 00:10:55,519 --> 00:10:57,059 pointed out pricing softness in 334 00:10:57,059 --> 00:10:59,259 Alaska. Yeah, I saw that. He specifically 335 00:10:59,259 --> 00:11:01,679 tied that to mid single digit industry 336 00:11:01,679 --> 00:11:04,669 capacity growth. When every major 337 00:11:04,669 --> 00:11:06,269 cruise line decides to send an extra 338 00:11:06,269 --> 00:11:08,009 ship or two to Alaska to chase the 339 00:11:08,009 --> 00:11:10,309 money, the market gets flooded with 340 00:11:10,309 --> 00:11:12,370 cabins and prices soften across 341 00:11:12,370 --> 00:11:14,629 the board. Supply and demand. Exactly. 342 00:11:15,429 --> 00:11:16,909 Furthermore, Norwegian didn't see 343 00:11:16,909 --> 00:11:18,330 the expected momentum in Europe 344 00:11:18,330 --> 00:11:20,429 and they are facing pricing pressures 345 00:11:20,429 --> 00:11:22,090 while trying to roll out their new 346 00:11:22,090 --> 00:11:24,309 Philadelphia home port. So you have 347 00:11:24,309 --> 00:11:26,789 a perfect storm of lost operational 348 00:11:26,789 --> 00:11:29,539 control. siloed departments, unfinished 349 00:11:29,539 --> 00:11:32,259 projects, rising fuel costs, and 350 00:11:32,259 --> 00:11:33,960 increased competition in key markets. 351 00:11:34,879 --> 00:11:36,460 When you have execution lapses like 352 00:11:36,460 --> 00:11:38,100 this, the wolves start circling 353 00:11:38,100 --> 00:11:39,340 the boardroom, don't they? They 354 00:11:39,340 --> 00:11:41,480 do. And in this case, the wolf is 355 00:11:41,480 --> 00:11:43,580 Elliott Investment Management. They 356 00:11:43,580 --> 00:11:46,000 are an aggressive, activist investor 357 00:11:46,000 --> 00:11:47,860 firm, and they recently disclosed 358 00:11:47,860 --> 00:11:49,340 an ownership stake of more than 359 00:11:49,340 --> 00:11:51,139 10 percent in Norwegian Cruise Line 360 00:11:51,139 --> 00:11:53,309 holdings. That's a huge stake. It 361 00:11:53,309 --> 00:11:55,409 is. When an activist investor buys 362 00:11:55,409 --> 00:11:57,029 up that much stock, they aren't 363 00:11:57,029 --> 00:11:58,190 just looking to hold it quietly. 364 00:11:58,480 --> 00:12:00,600 They want to force changes to maximize 365 00:12:00,600 --> 00:12:02,919 their return. And they are aggressively 366 00:12:02,919 --> 00:12:04,700 escalating their demands ahead of 367 00:12:04,700 --> 00:12:05,919 the annual shareholder meeting. 368 00:12:06,299 --> 00:12:07,740 Yeah, I saw their statement. They 369 00:12:07,740 --> 00:12:09,460 publicly called out a troubling 370 00:12:09,460 --> 00:12:11,919 pattern of execution lapses and 371 00:12:11,919 --> 00:12:14,299 strategic missteps. They are demanding 372 00:12:14,299 --> 00:12:16,559 a comprehensive board refresh. They 373 00:12:16,559 --> 00:12:18,620 want stricter cost controls. And 374 00:12:18,620 --> 00:12:20,320 they are pushing heavily for a former 375 00:12:20,320 --> 00:12:22,000 royal Caribbean executive, Adam 376 00:12:22,000 --> 00:12:23,620 Goldstein, to join the board. Which 377 00:12:23,620 --> 00:12:25,320 is a very specific demand. Right. 378 00:12:25,639 --> 00:12:27,320 And Elliott claims that if Norwegian 379 00:12:27,320 --> 00:12:28,899 can just To fix these execution 380 00:12:28,899 --> 00:12:30,700 gaps, the stock could lift to as 381 00:12:30,700 --> 00:12:33,259 high as $56 a share. That would 382 00:12:33,259 --> 00:12:35,919 be a 159 % increase over recent 383 00:12:35,919 --> 00:12:37,559 levels. The data underneath the 384 00:12:37,559 --> 00:12:38,860 surface points to something really 385 00:12:38,860 --> 00:12:41,039 critical here, though. The problem 386 00:12:41,039 --> 00:12:42,879 Norwegian is facing isn't a lack 387 00:12:42,879 --> 00:12:44,980 of consumer demand. The consumer 388 00:12:44,980 --> 00:12:47,200 is still extremely healthy. And 389 00:12:47,200 --> 00:12:48,779 Norwegian's own portfolio proves 390 00:12:48,779 --> 00:12:50,769 this. Right, because they own more 391 00:12:50,769 --> 00:12:52,730 than just the main contemporary 392 00:12:52,730 --> 00:12:54,470 Norwegian brand. Correct. Their 393 00:12:54,470 --> 00:12:56,269 luxury brands, Regent Seven Seas 394 00:12:56,269 --> 00:12:58,210 Cruises and Oceania Cruises, are 395 00:12:58,210 --> 00:13:00,429 seeing incredible numbers. Oh, yeah. 396 00:13:01,169 --> 00:13:02,629 Regent just recorded its strongest 397 00:13:02,629 --> 00:13:04,289 booking month in history this past 398 00:13:04,289 --> 00:13:06,690 January. Oceania is seeing record 399 00:13:06,690 --> 00:13:08,049 booking activity for their newest 400 00:13:08,049 --> 00:13:11,129 ship, the Oceana Sonata. And that 401 00:13:11,129 --> 00:13:12,830 ship doesn't even debut until August 402 00:13:12,830 --> 00:13:16,509 of 2027. Wow. So passengers are 403 00:13:16,509 --> 00:13:18,450 perfectly happy opening their wallets 404 00:13:18,450 --> 00:13:20,450 for the ultra premium experience. 405 00:13:20,769 --> 00:13:22,649 They are. The luxury brands tend 406 00:13:22,649 --> 00:13:24,429 to benefit from longer booking curves, 407 00:13:24,909 --> 00:13:26,190 meaning passengers book further 408 00:13:26,190 --> 00:13:28,029 in advance. But more importantly, 409 00:13:28,250 --> 00:13:29,669 those brands are executing well. 410 00:13:29,750 --> 00:13:31,629 Right. The operational and commercial 411 00:13:31,629 --> 00:13:33,730 pressure is almost entirely concentrated 412 00:13:33,730 --> 00:13:35,769 on the contemporary Norwegian Cruise 413 00:13:35,769 --> 00:13:37,470 Line brand, which is the largest 414 00:13:37,470 --> 00:13:38,789 piece of the company's portfolio. 415 00:13:38,909 --> 00:13:40,230 So it drags everything else down. 416 00:13:40,409 --> 00:13:42,340 Exactly. That's why the issues there 417 00:13:42,340 --> 00:13:43,980 are dragging down the consolidated 418 00:13:43,980 --> 00:13:46,379 numbers so heavily. It is a pure 419 00:13:46,379 --> 00:13:48,019 internal execution issue on the 420 00:13:48,019 --> 00:13:50,419 contemporary side. Activist investors 421 00:13:50,419 --> 00:13:52,100 like Elliott look at that and see 422 00:13:52,100 --> 00:13:54,519 massive unlocked value. They believe 423 00:13:54,519 --> 00:13:56,080 the underlying asset is strong, 424 00:13:56,419 --> 00:13:57,700 but the management's grip on the 425 00:13:57,700 --> 00:13:59,620 steering wheel is just loose. That 426 00:13:59,620 --> 00:14:01,259 distinction between the contemporary 427 00:14:01,259 --> 00:14:03,039 struggle and the luxury success 428 00:14:03,039 --> 00:14:05,200 perfectly bridges us to our final 429 00:14:05,200 --> 00:14:07,580 segment. Because while Norwegian's 430 00:14:07,580 --> 00:14:09,039 contemporary brand is struggling 431 00:14:09,039 --> 00:14:10,919 to align their capacity with demand 432 00:14:10,919 --> 00:14:12,480 and getting hammered by Wall Street 433 00:14:12,480 --> 00:14:14,879 analysts, Viking Holdings is facing 434 00:14:14,879 --> 00:14:17,120 the exact opposite reality. They 435 00:14:17,120 --> 00:14:19,399 are quite literally running out 436 00:14:19,399 --> 00:14:21,980 of inventory for 2026. The contrast 437 00:14:21,980 --> 00:14:23,860 in operational control is staggering. 438 00:14:24,039 --> 00:14:25,200 Let's look at the numbers because 439 00:14:25,200 --> 00:14:27,600 they are jaw dropping. As of February 440 00:14:27,600 --> 00:14:30,720 15th, 2026, Viking has already sold 441 00:14:30,720 --> 00:14:34,740 an astounding 86 % of its 2026 capacity 442 00:14:34,740 --> 00:14:36,649 for its core products. That is just 443 00:14:36,649 --> 00:14:38,269 unheard of. Just process that for 444 00:14:38,269 --> 00:14:40,649 a second. 86 % of their cabins for 445 00:14:40,649 --> 00:14:42,210 the entire year are already gone. 446 00:14:42,480 --> 00:14:44,179 By February. Unbelievable. They 447 00:14:44,179 --> 00:14:47,000 are sitting on $5 .96 billion in 448 00:14:47,000 --> 00:14:49,220 advance bookings. That is 13 percent 449 00:14:49,220 --> 00:14:50,860 higher than this exact time last 450 00:14:50,860 --> 00:14:52,500 year. And keep in mind, their operating 451 00:14:52,500 --> 00:14:54,620 capacity for 2026 is actually 7 452 00:14:54,620 --> 00:14:56,139 percent higher. They have more ships 453 00:14:56,139 --> 00:14:57,639 and more cabins to sell, yet they 454 00:14:57,639 --> 00:14:59,080 are selling out faster than ever. 455 00:14:59,340 --> 00:15:00,600 And that level of advanced booking 456 00:15:00,600 --> 00:15:02,039 translates directly to the strength 457 00:15:02,039 --> 00:15:03,820 of their balance sheet. Their 2025 458 00:15:03,820 --> 00:15:05,340 financial results were entirely 459 00:15:05,340 --> 00:15:06,720 record breaking. Tell me about it. 460 00:15:06,779 --> 00:15:09,399 They posted $6 .5 billion in total 461 00:15:09,399 --> 00:15:12,419 revenue. They achieved a 95 % occupancy 462 00:15:12,419 --> 00:15:14,419 rate in the fourth quarter. And 463 00:15:14,419 --> 00:15:16,679 crucially, their net leverage dropped 464 00:15:16,679 --> 00:15:19,679 all the way down to 1 .1x from 2 465 00:15:19,679 --> 00:15:22,019 .4x the year prior. OK, for those 466 00:15:22,019 --> 00:15:23,360 of you listening who are not living 467 00:15:23,360 --> 00:15:25,279 in financial spreadsheets, explain 468 00:15:25,279 --> 00:15:27,480 net leverage. Why is that drop from 469 00:15:27,480 --> 00:15:30,570 2 .4 to 1 .1 such a big deal? So 470 00:15:30,570 --> 00:15:32,169 net leverage is a ratio that measures 471 00:15:32,169 --> 00:15:33,909 a company's total debt against its 472 00:15:33,909 --> 00:15:35,929 actual cash earnings. The cruise 473 00:15:35,929 --> 00:15:37,950 industry is incredibly capital intensive, 474 00:15:38,190 --> 00:15:39,789 right? Building ships requires taking 475 00:15:39,789 --> 00:15:42,110 on billions in debt. Billions. When 476 00:15:42,110 --> 00:15:43,549 a company's net leverage drops to 477 00:15:43,549 --> 00:15:45,450 1 .1x, it means their earnings are 478 00:15:45,450 --> 00:15:47,049 so strong that they could almost 479 00:15:47,049 --> 00:15:48,269 pay off all their corporate debt 480 00:15:48,269 --> 00:15:49,549 with just a little over a year's 481 00:15:49,549 --> 00:15:51,409 worth of profit. It is an indicator 482 00:15:51,409 --> 00:15:53,590 of massive financial health instability. 483 00:15:53,649 --> 00:15:55,149 And they are certainly using that 484 00:15:55,149 --> 00:15:56,889 stability to expand. They are taking 485 00:15:56,889 --> 00:15:58,549 delivery of two new ocean ships 486 00:15:58,549 --> 00:16:00,529 and 10 new rivers. ships in 2026 487 00:16:00,529 --> 00:16:02,710 alone. Plus they have options for 488 00:16:02,710 --> 00:16:05,289 more ocean ships in 2034 and expedition 489 00:16:05,289 --> 00:16:07,649 ships coming in 2030 and 2031. They're 490 00:16:07,649 --> 00:16:09,649 not slowing down. Not at all. But 491 00:16:09,649 --> 00:16:10,950 I want to play devil's advocate 492 00:16:10,950 --> 00:16:13,389 here for a second. Is this massive 493 00:16:13,389 --> 00:16:15,169 advanced booking rate purely just 494 00:16:15,169 --> 00:16:17,450 the luxury of serving the premium 495 00:16:17,450 --> 00:16:19,450 older demographic? Because we just 496 00:16:19,450 --> 00:16:21,610 established that Regent and Oceania 497 00:16:21,610 --> 00:16:23,490 are also doing well in that luxury 498 00:16:23,490 --> 00:16:25,830 space. Or is Viking actually doing 499 00:16:25,830 --> 00:16:27,250 something fundamentally different 500 00:16:27,250 --> 00:16:28,750 with their physical ship design 501 00:16:28,750 --> 00:16:31,070 and operations to secure these insane 502 00:16:31,070 --> 00:16:33,450 margins? It is absolutely the latter. 503 00:16:33,950 --> 00:16:35,610 Viking success is a master class 504 00:16:35,610 --> 00:16:37,789 in operational control and it is 505 00:16:37,789 --> 00:16:39,610 entirely tied to how they design 506 00:16:39,610 --> 00:16:41,610 and build their physical hardware. 507 00:16:42,490 --> 00:16:44,389 Their CEO, Thorsten Hagen, points 508 00:16:44,389 --> 00:16:46,409 specifically to their strategy of 509 00:16:46,409 --> 00:16:47,970 building interchangeable, purpose 510 00:16:47,970 --> 00:16:49,850 -built ships. Meaning all the ocean 511 00:16:49,850 --> 00:16:51,370 ships are virtually identical clones 512 00:16:51,370 --> 00:16:52,830 of each other? Yes. And the river 513 00:16:52,830 --> 00:16:54,049 ships have a strictly standardized 514 00:16:54,049 --> 00:16:55,309 design as well, right? Exactly. 515 00:16:55,769 --> 00:16:57,750 When your ships are completely interchangeable, 516 00:16:58,090 --> 00:17:00,029 you unlock massive economies of 517 00:17:00,029 --> 00:17:02,419 scale. First, building them is cheaper 518 00:17:02,419 --> 00:17:04,400 because the shipyard doesn't have 519 00:17:04,400 --> 00:17:06,039 to re -engineer the blueprints every 520 00:17:06,039 --> 00:17:07,599 single time. Oh, that makes sense. 521 00:17:07,859 --> 00:17:09,259 But the real magic happens in the 522 00:17:09,259 --> 00:17:11,599 daily operations. When every ship 523 00:17:11,599 --> 00:17:13,640 has the exact same layout, the same 524 00:17:13,640 --> 00:17:15,940 engines, and the same galleys, your 525 00:17:15,940 --> 00:17:17,759 crews become incredibly efficient. 526 00:17:18,360 --> 00:17:20,339 A chef or an engineer can transfer 527 00:17:20,339 --> 00:17:21,740 from one Viking ship to another 528 00:17:21,740 --> 00:17:23,839 and instantly know where everything 529 00:17:23,839 --> 00:17:25,859 is. They don't have to relearn the 530 00:17:25,859 --> 00:17:27,799 ship. Right. You only have to warehouse 531 00:17:27,799 --> 00:17:30,019 one type of spare part for the entire 532 00:17:30,019 --> 00:17:33,559 fleet. This lean, standardized operation 533 00:17:33,559 --> 00:17:35,579 drastically reduces wasted space 534 00:17:35,579 --> 00:17:37,880 and weight, allowing for a remarkably 535 00:17:37,880 --> 00:17:40,569 fast payback period. They pay off 536 00:17:40,569 --> 00:17:42,130 their ocean ships in five to six 537 00:17:42,130 --> 00:17:44,289 years and their river vessels in 538 00:17:44,289 --> 00:17:45,970 just four to five years. Which gives 539 00:17:45,970 --> 00:17:47,650 them an incredible buffer against 540 00:17:47,650 --> 00:17:49,210 the chaos we saw with Norwegian. 541 00:17:49,410 --> 00:17:51,519 It gives them total armor. Because 542 00:17:51,519 --> 00:17:53,039 their core demographic locks in 543 00:17:53,039 --> 00:17:54,740 their travel so early, and their 544 00:17:54,740 --> 00:17:56,140 operations are so standardized, 545 00:17:56,759 --> 00:17:58,339 Viking has built a massive financial 546 00:17:58,339 --> 00:17:59,839 cushion against the very variables 547 00:17:59,839 --> 00:18:01,279 currently plaking the rest of the 548 00:18:01,279 --> 00:18:03,160 industry. Like the fuel costs. Take 549 00:18:03,160 --> 00:18:05,180 fuel volatility, exactly. We just 550 00:18:05,180 --> 00:18:06,400 discussed how a few dollars per 551 00:18:06,400 --> 00:18:08,160 ton in fuel costs is hurting Norwegian. 552 00:18:08,759 --> 00:18:10,180 Viking controls this in two ways. 553 00:18:10,660 --> 00:18:12,220 On the ocean side, their ships use 554 00:18:12,220 --> 00:18:13,890 closed -loop scrubbers. Which are 555 00:18:13,890 --> 00:18:15,369 essentially giant exhaust filters. 556 00:18:15,690 --> 00:18:18,049 Yeah, exactly. A closed -loop scrubber 557 00:18:18,049 --> 00:18:19,630 washes the sulfur out of the engine 558 00:18:19,630 --> 00:18:22,190 exhaust. This means Viking can purchase 559 00:18:22,190 --> 00:18:24,670 cheaper, unrefined, heavy fuel oil, 560 00:18:25,250 --> 00:18:26,670 clean the emissions themselves on 561 00:18:26,670 --> 00:18:28,849 board, and still strictly meet all 562 00:18:28,849 --> 00:18:30,559 environmental regulations. Wow. 563 00:18:30,579 --> 00:18:32,519 So they save on the raw fuel costs. 564 00:18:32,539 --> 00:18:34,460 It is a massive structural cost 565 00:18:34,460 --> 00:18:36,119 advantage. And on the river side, 566 00:18:36,480 --> 00:18:38,660 they secure fixed price fuel contracts 567 00:18:38,660 --> 00:18:40,500 for a significant portion of the 568 00:18:40,500 --> 00:18:42,500 season. They are actively hedging 569 00:18:42,500 --> 00:18:44,220 their bets to lock in their expenses. 570 00:18:44,339 --> 00:18:46,299 Wow. So they are locking in their 571 00:18:46,299 --> 00:18:48,140 revenue billions of dollars in advance 572 00:18:48,140 --> 00:18:49,779 and they are locking in their operational 573 00:18:49,779 --> 00:18:51,740 costs at the exact same time. That 574 00:18:51,740 --> 00:18:53,799 is the ultimate definition of control. 575 00:18:54,119 --> 00:18:56,319 It seems like even global geopolitics 576 00:18:56,319 --> 00:18:57,900 doesn't shake their model. I know 577 00:18:57,900 --> 00:18:59,599 they did have to temporarily pause. 578 00:18:59,440 --> 00:19:01,140 their operations in Egypt due to 579 00:19:01,140 --> 00:19:02,700 the ongoing tensions in the Middle 580 00:19:02,700 --> 00:19:04,559 East, but they noted that Egypt 581 00:19:04,559 --> 00:19:06,720 only accounts for about 3 % of their 582 00:19:06,720 --> 00:19:08,539 total capacity. It's a tiny fraction. 583 00:19:09,460 --> 00:19:11,160 Yeah. Analysts from Jeffries and 584 00:19:11,160 --> 00:19:13,400 BMP Paribas both pointed out that 585 00:19:13,400 --> 00:19:15,880 this localized pause hasn't slowed 586 00:19:15,880 --> 00:19:17,660 Vikings' overall booking momentum 587 00:19:17,660 --> 00:19:19,660 at all, and their pricing trends 588 00:19:19,660 --> 00:19:21,529 are actually accelerating. Which 589 00:19:21,529 --> 00:19:22,990 really brings us full circle to 590 00:19:22,990 --> 00:19:25,430 the reality of 2026. You have contemporary 591 00:19:25,430 --> 00:19:26,809 lines that are locked in fierce 592 00:19:26,809 --> 00:19:28,690 capacity battles, fighting over 593 00:19:28,690 --> 00:19:30,309 pricing in the Caribbean and Alaska, 594 00:19:30,630 --> 00:19:32,190 dealing with siloed marketing teams 595 00:19:32,190 --> 00:19:34,230 and activist investors. It's a mess. 596 00:19:34,630 --> 00:19:36,490 Meanwhile, Viking is sitting above 597 00:19:36,490 --> 00:19:38,509 the fray, utilizing identical ship 598 00:19:38,509 --> 00:19:40,609 designs and fuel hedges. And they 599 00:19:40,609 --> 00:19:41,890 are essentially finished selling 600 00:19:41,890 --> 00:19:44,349 2026. They are operating on a completely 601 00:19:44,349 --> 00:19:45,529 different timeline than the rest 602 00:19:45,529 --> 00:19:47,099 of the industry. which leaves you 603 00:19:47,099 --> 00:19:48,460 with a really provocative thought 604 00:19:48,460 --> 00:19:50,319 about where this entire industry 605 00:19:50,319 --> 00:19:52,319 is heading and how you have to plan 606 00:19:52,319 --> 00:19:55,079 your own life. If 86 % of Viking's 607 00:19:55,079 --> 00:19:57,099 2026 core capacity is already gone 608 00:19:57,099 --> 00:19:59,160 by February, and the contemporary 609 00:19:59,160 --> 00:20:00,539 lines are brutally fighting for 610 00:20:00,539 --> 00:20:01,839 whatever market share and pricing 611 00:20:01,839 --> 00:20:03,900 power is left over, what does this 612 00:20:03,900 --> 00:20:05,440 actually mean for 2027? That's a 613 00:20:05,440 --> 00:20:06,720 great question. Are we entering 614 00:20:06,720 --> 00:20:08,460 an era where passengers must plan 615 00:20:08,460 --> 00:20:10,519 their vacations two to three entire 616 00:20:10,519 --> 00:20:12,480 years in advance just to secure 617 00:20:12,480 --> 00:20:14,660 the itinerary, the cabin, and the 618 00:20:14,660 --> 00:20:16,619 price they actually want? Because 619 00:20:16,619 --> 00:20:18,000 looking at these numbers, it seems 620 00:20:18,000 --> 00:20:19,980 the days of casually booking a premium 621 00:20:19,980 --> 00:20:22,160 cruise just a few months out might 622 00:20:22,160 --> 00:20:24,630 be a of the past. It certainly looks 623 00:20:24,630 --> 00:20:26,869 that way. Thanks for listening to 624 00:20:26,869 --> 00:20:29,130 Cruise News. Visit CruiseNews .io 625 00:20:29,130 --> 00:20:30,509 to catch up on the latest updates 626 00:20:30,509 --> 00:20:32,329 and sign up for free email alerts.