SimonCommunity
Moderator
Contributor Level: Captain

Rumor: Norwegian to Acquire Oceania, Regent in $3 Billion Deal

Rumors of a deal are surfacing this afternoon that would have Norwegian Cruise Lines acquire Prestige Cruise Holdings, parent of Oceania and Regent.

http://www.reuters.com/article/2014/08/31/us-norwegiancruise-prestigecruises-idUSKBN0GV0T720140831

Any thoughts on what this might mean for cruisers?

Tags: Business of Cruising Norwegian Cruise Lines Oceania Regent

7 Answers

Johngold
Moderator
Contributor Level: Captain

Wow, More amalgamation of cruise lines. This will be interesting. I cannot yet afford to cruise those lines, but if they are under the envelope of NCL. Then maybe a cruise to the MED may be in order.

glomarrone
Contributor Level: Admiral

I don't cruise those more expensive cruise lines.  I wouldn't be able to cruise as often as I do .  It will be fun to see if NCL moves into the high price arena.  Gloria

JusMe
Moderator
Contributor Level: Captain

If NCL handles it like Carnival Corp has leaving the lines independent it may work out. I can not see any of the high line customers putting up with the food and lack of service that I had on NCL.

 

I have thought of doing those lines,  but if NCL takes them over I would think twice before booking on them.

WeCruiseToo
Moderator
Contributor Level: Captain

This is an excellent and proven business strategy.  No cruise line can be all things to all people, nor should they try to be.  By owning multiple cruise lines one company can cater to multiple markets.  There’s no reason to think these lines would become anything remotely like Norwegian – that would completely defeat the purpose of the acquisition.  Hopefully there will be some sort of past passenger benefit reciprocation in the future (like Royal/Celebrity/Azamara has now) so that when we finally do cruise with Oceania we’ll get some perks for our history with Norwegian!Happy

SimonCommunity
Moderator
Contributor Level: Captain

It's official: Norwegian will be acquiring Prestige for just over $3 billion, and according to a report by Gene Sloan of USA Today's CruiseLog blog, they see about $25 million in "synergies" from the merger and expect to share "best practices" between the cruise lines.

Additionally. Sloan quotes Norwegian CEO Kevin Sheehan as saying the merger paves the way for "new cross-selling opportunities, cross-brand collaboration."

BAK1061
Contributor Level: Captain

3 Billion !!!!!!!

That explains why I didn't get a price drop on my last Norwegian cruise

Kennicott
Contributor Level: Captain

The latest update on the Norwegian Cruise Line acquisitions occurred just a few weeks ago when Frank Del Rio (FDR) took over the helm of NCL. FDR has made quite a name for himself in the cruise industry, primarily with Oceania and then Regent. A Cuban born success story, he came to the US when he was 7 with his parents.

One blemish on his record occurred when he was co-head of Renaissance Cruises which had the 9 or so "R" ships, remember? They had a disastrous bankruptcy. Argument abounds as to how much fault FDR had leading up to the fiasco, but nevertheless he has been pretty successful since. NCL will be his big test, actually he had not long ago announced his retirement, but here he is now, top dog of the world's third largest cruise conglomerate. 

Apparently, NCL had problems as this amounts to a "shake up".  

Regarding the comment about Carnival Corporation allowing all their many cruise line holdings to remain independent and autonomous. Well, things change. Apparently Carnival got tired of the cut throat competition between two of their big ones, HAL and Princess, so they formed up a new entity, titled Holland America Group last year. They put long time head of HAL, Stein Kruse, in charge. Kruse now runs not only HAL and Princess and their Alaska land tour interests but also Seabourn and all of Carnival's P&O Australian cruise operations. The Statendam and Ryndam will soon be going to P&O Australia and Princess will be shedding all ships under 90,000 gross tons, eventually ending up with no ships under 140,000 gross tons.

 
"Norwegian Cruise Line Holdings Ltd. has named Frank Del Rio as president and CEO of the company, which includes Norwegian Cruise Line (NCL), Regent Seven Seas Cruises and Oceania Cruises, which Del Rio co-founded. Kevin Sheehan, who had led Norwegian for seven years, has resigned."

http://www.travelweekly.com/Cruise-Travel/Del-Rio-expected-to-take-helm-of-NCL-parent-without-a-hitch
http://www.travelagewest.com/News/Frank-Del-Rio-to-Head-Norwegian-Cruise-Holdings/

"The parent company of the two lines, Carnival Corp., today announced that Holland America president and CEO Stein Kruse is being appointed CEO of a newly created entity called Holland America Group that will include both Holland America and Princess."
http://www.seatrade-insider.com/news/news-headlines/from-newbuilds-to-new-leaders-kruse-lays-out-the-vision-for-his-holland-america-group.html
http://maritimematters.com/2013/11/executive-shuffles-at-princess-carnival-and-the-new-holland-america-group/
http://www.usatoday.com/story/cruiselog/2013/11/04/holland-america-princess-cruise/3433875/
http://www.alaskatia.org/news-events/convention/speakers/stein-kruse

Reply

*Cruiseline.com is not a booking agent or travel agency, and does not charge any service fees to users of our site. Our partners (travel agencies and cruise lines) provide prices, which we list for our users' convenience. Cruiseline.com does not guarantee any specific rates or prices. While prices are updated daily, please check with the booking site for the exact amount. Cruiseline.com is not responsible for content on external web sites.

Back to Top