Execs Say It’s Biz As Usual Following Norwegian, Prestige Deal

No imminent changes are expected as a result of Norwegian Cruise Line’s $3 billion acquisition of Oceania and Regent Seven Seas, according to executives.

On a company conference call, travel agents voiced their concerns about any changes that might follow the deal, but representatives were steadfast in their commitment to “business as usual.”

“We are three distinct brands [now], with three distinct partnerships with our travel partners,” said Andy Stuart, executive vice president of global sales and passenger services for Norwegian Cruise Line.

“There will be no changes to things like schedules, itineraries or future bookings; our absolute focus is preserving and enhancing the guest experience.”

The executives said the deal is expected to close toward the end of the fourth quarter this year, at which point more details will be forthcoming about any changes to loyalty programs, booking engine integration or other programs.

But for now, the lines are not looking to leverage their partnership in a way that will impact every day life for agents.

“We’re going to be completely laser-focused on our relationship with our travel partners,” said Stuart.

Agent concerns
Cruise Planners agent Michael Consoli said he was concerned that his clients may expect changes in the Regent and Oceania product as a result of the deal.

“It would be silly for Norwegian to pay $3 billion for these brands to water them down,” said Kunal S. Kamlani, president and chief operating officer of Prestige Cruise Holdings. “That travesty will not occur on any of our watches.”

Kamlani also addressed agent concerns about potential changes to commission structures.

“I don’t envision any changes for calendar year 2015,” he said.

Stuart echoed Kamlani when responding to questions about a possible merger of loyalty programs.

“You’ve seen a lot of airlines tinkering with loyalty programs, [with mixed success],” said Stuart.  “We’ll figure out first if we should or should not change anything, and then proceed from there.”

Limited collaboration
BDMs and cruise line representatives, however, will facilitate agent contact with other lines they may be less experienced with.

Kamlani encouraged agents who sell Norwegian to reach out to their BDMs to find out more about the new brands in the Norwegian family.

“I’m willing to bet there is an Oceania or Regent customer already in your client portfolio,” said Kamlani.

“Once you look at all the inclusions, the value is often better for an enhanced experience. These folks are in you books and deserve this experience.”

They will also assist agents who want to sell luxury product across different brands.

“If our Oceania salesperson is working with a travel agent and can’t close the booking, we’ll work with the same client to try and close a Regent booking,” said Kamlani.

“We now have an opportunity to do something with the Haven side as well,” Kamlani said, referring to Norwegian’s luxury product.