Sommer rejects hotels comp: 'No cracks' in NCLH customer spending

Barclays analyst Brandt Montour asked about 'any wobbles' in spending at NCLH with Marriott seeing 'slightly lower ancillary spend.'

In reporting a better than expected second quarter profit and raising full year guidance, NCLH mentioned 'Robust onboard spending continues across all categories' with 'greater pre-sold onboard revenue.' Sommer added pre-sail spending at NCLH is up 'considerably.'

Echoes Royal Caribbean's Jason Liberty

Like Royal Caribbean Group President/CEO Jason Liberty, who addressed a similar hotels comparison question from Montour last week, Sommer pointed to the 'huge value gap' between hotel rates and cruises. Sommer put that at 40%, versus Liberty's 20%.

The NCLH chief said there's still 'tremendous runway' for cruise pricing to catch up with hotels, making a 'long-term tailwind for the company.'

More opportunities to engage with cruisers

And because cruises book so far in advance, there are 'lots of opportunities to engage with the consumer' about onboard purchase opportunities, Sommer added, plus passengers are on the ship for more time than hotel guests, who come and go.

'No cracks. No deterioration,' in onboard spending, Sommer reiterated. 'It contines to be strong and, long-term, there are fundamental things that work in our favor and make our industry more resilient than hotels in the ancillary spend category.'

NCLH shares were down around 1% in late morning trading.