And so it begins ... the first crack .. NCL admits it might fail

Today NCL admitted it could not meet financial obligations and is trying to raise money

https://www.theglobeandmail.com/business/international-business/us-business/article-norwegian-cruise-line-flags-cash-crunch-going-concern-risks/

14 Answers

I think they will be okay.

12-14% on a few million over the course of 5 years is Big money (In our world). In the world of the Multi Millionaire, making a return of $700,000 on a $5,000,000 investment might not be enough...

It would be, except that isn't what they eventually did. If you review some of the posts after the initial "offer", it becomes clear what their "private investors" wanted...NCL wasn't driving the bus. but frankly I don't care if its NCL or XYZ...just get me on a properly run ship thankyou. Im suffering from withdrawal....

I have no doubt there will be investors to fill the demand vacuum of those business enterprises which fail. What concerns me over the cruise industry, is that they may have a business model today that is destined for the dust bin of history. Are the huge mega ships with close to 9000 guests and crew going to survive even infrequent epidemics or pandemics like we are beginning to experience in the contemporary world?

After all, for some time now, there has been a retail apocalypse the closing of numerous North American brick-and-mortar retail stores. This rash of bankruptcies and store closings is expected to greatly intensify due to the coronavirus pandemic, already struggling mall-based retailers which have been closing for extended periods of time anyway. In 2017 a report dubbed this phenomenon the "Amazon effect," and calculated that Amazon.com was generating greater than 50% of the growth of retail sales.

Maybe the cruise industry is going to revert back to smaller ships offering cruise experiences of longer duration to more remote ports.

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