Norwegian Cruise Line Is a Top Performer Partially Due To Millennials and Gen Z

Norwegian Cruise Line has experienced record bookings and surging profits, in a move that industry insiders are partially crediting to millennial and Gen Z customers.

Travel Pulse reported that the revelation was made during the Miami-based company’s annual investor day, which it held on the New York Stock Exchange (NYSE) on Monday, May 20.

In addition to its new strategy to attract more customers — “Vacation Better. Experience More.” — Norwegian Cruise Line has reported an increased profit of $1.42 per share (up from the original forecast of $1.32 per share). Net yield growth has also increased from 6.4% to 7.2%, and adjusted EBITDA has increased from $2.25 billion to $2.30 billion.

“We have continued to see very strong demand and record bookings,” said Mark Kempa, Norwegian Cruise Line’s chief financial officer, during the company’s investor day. “We are now thrilled to launch this financial plan by setting long term targets with increased 2024 guidance, putting ourselves on solid footing to enhance shareholder value in the coming years.”

The company also unveiled its three-year financial and sustainability targets, which it said would “increase returns for shareholders.”

Shares for Norwegian Cruise Line have risen after the company raised its financial outlook twice in under a month. According to Barron’s, “Norwegian stock was up 8.5% to $17.08 in afternoon trading Monday, making it the leading performer in the S&P 500.”

CEO Harry Sommer told CNBC on Monday that younger people are starting to be more interested in Norwegian Cruise Line’s offerings. “We appeal obviously to older customers, but millennial and Gen Z is the fastest-growing segment of our cruising right now,” he explained. “They’re coming, they’re enjoying it, they see the value for the money, but they also appreciate the guest experience.”

In addition to the cruise line’s popularity amongst millennials and Gen Z, the company is experiencing a surge in bookings thanks to specialty travel events, including the upcoming clothing-optional February 2025 offering known as “The Big Nude Boat.”

Norwegian and Bare Necessities & Travel, who have been planning clothing-free vacations since 1990, are teaming up to produce a 10-day Caribbean trip aboard the Norwegian Pearl. Starting on Feb. 3, 2025, the ship will leave the Port of Miami and travel to the Bahamas, Puerto Rico, St. Maarten, Dominica, Martinique, and St. Lucia before arriving back in Miami on Feb. 14.