Norwegian Cruise Line Turns
In 2016 Norwegian Cruise Line celebrated their 50th
anniversary. Being the first company to offer luxury
cruising, innovation has defined Norwegian over
the years. Nevertheless, there were times when that
pioneering spirit pushed the boundaries too far, leaving
some choices with no pay off. While it hasn’t always
been clear sailing for Norwegian, they still managed to
celebrate their 50th as the number 3 cruise line.
Breaking Ground
Norwegian continued on their journey as innovative leaders in
1977. Purchasing and transforming a private Bahamian island into
an exclusive port, Norwegian demonstrated their forward thinking
assertiveness. In 2010, Norwegian took the hotel-within-a-hotel
concept popularised in Las Vegas and introduced the private ship-
within-a-ship concept. However, the biggest game-changer came
with the freestyle cruise. For decades, cruises offered set dining
and entertainment schedules, with early and late seating times at
assigned tables. In 2000, Norwegian decided to change course
and allow guests to dine when they wanted and with whomever they
wanted. To accommodate, they added additional restaurants and
replaced twice-nightly shows with gen eral entertainment. This
concept alone, completely revolutionised luxury cruises.
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Challenges
Norwegian has also faced many challenges over the years.
Challenges include the purchase of two cruise lines that proved to
be unprofitable, and a failed attempt to install inter-island cruising
in Hawaii. But perhaps one of the biggest missteps came in the
1970s. Norwegian purchased the SS France (later rechristened the
SS Norway) for $18 million in the late 1970’s. With the capacity for
nearly 2,000 passengers, the ship was a rarity at the time. However,
Norwegian also needed to pour $100 million into renovations. A
costly investment that prevented the line from building a new ship
until 1988. Norwegian’s fleet was aging and failing, and they were
facing tough competition from other lines offering fresh new ships.
Company management was also unstable and by the mid-1990s,
Norwegian was drowning in debt and on the edge of bankruptcy.
Full Steam Ahead
Norwegian got back on course by restructuring their debt and
management team. The acquisition of Norwegian by Star Cruises
(Genting Hong Kong Limited), also gave them a much needed
financial boost. They managed to anchor their Hawaiian endeavour
by altering their approach, and in 2010 launched Epic. A 4,100
passenger boat, Epic exemplifies everything Norwegian stands
for—prestigious quality, great service, and a luxury experience.
Norwegian went public in 2013 and paid more than $3 billion to
acquire Prestige Cruises International in 2014. With a current fleet
of 14 ships, servicing over 2 million passengers a year, Norwegian
looks set to continue on their current course.