2018 Annual Report for Norwegian Cruiseline Holdings - 10

Our Business Strategies
Driving Demand
We seek to attract vacationers to our products and services in several ways, including:
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delivering an enhanced, value-added vacation experience to our guests relative to other vacation alternatives;

creating diverse and unique itineraries in new and existing markets for our current and upcoming ships;

utilizing effective marketing and sales initiatives with a market-to-fill strategy; and

expanding internationally.

Our value-added-vacation product, itinerary diversification, marketing and sales initiatives and international expansion strategies contribute
to driving increased revenues for our fleet. Our market-to-fill strategy maintains pricing integrity by offering both the best price early in the
booking cycle and value-added promotions when necessary to mitigate the need to compromise on price.
Diversification of deployment is achieved by our destination management team which reviews deployments across the fleet, either
repositioning ships to new destinations or fine-tuning itineraries, with the goal of creating product scarcity which, in turn, leads to higher
pricing.
We also seek to increase demand through effective marketing campaigns across various channels such as branding campaigns on nationwide
television, robust and varied digital campaigns or targeted mail campaigns aimed at supporting seasonal deployments. Our sales forces are
also drivers of demand, particularly in terms of educating travel agents on our products and services in order to better sell to potential
vacationers.
Lastly, our international expansion efforts are aimed at increasing brand awareness across the globe which allows us to diversify our guest
sourcing. We maintain numerous sales offices which support sales and marketing efforts in various markets outside of North America
including the United Kingdom, Europe, China, Australia, New Zealand, Brazil, India, Japan and Singapore.
Leveraging Scale to Suppress Costs
We continue to leverage the combined purchasing power of our three brands to reduce costs throughout the organization. This initiative is
bolstered by our Supply Chain and Logistics Management function which supports our three brands as well as our corporate and
international offices.
Enhanced Product Offerings and Guest Experience
Norwegian's ships offer up to 28 dining options, a diverse range of accommodations and what we believe is the widest array of entertainment
at sea. Oceania Cruises' award-winning onboard dining, with multiple open seating dining venues, is a central highlight of its cruise
experience. Regent's all-inclusive offering includes air transportation, shore excursions, pre-cruise hotel stays (for concierge level and
above), specialty restaurants, premium spirits and fine wines, gratuities, wi-fi and other amenities.
Maximize Revenue
We focus on growing revenue through various initiatives aimed at increasing ticket prices and Occupancy Percentages as well as onboard
spending to drive higher overall revenue. Our specific initiatives include:
Strategic Relationships. We have strategic relationships with travel agencies and tour operators who commit to purchasing a
certain level of inventory with long lead times.
Promotional Strategy. With our Norwegian brand, we utilize a more inclusive product offering on certain sailings and in certain
cabin selections which provides guests a choice of multiple amenities.
Casino Player Strategy. We have non-exclusive arrangements with over 100 casino partners worldwide whereby loyal gaming
guests are offered cruise reward certificates redeemable for cruises. Through property sponsored events and joint marketing
programs, we have the opportunity to market cruises to these guests. These arrangements with casino partners have the dual benefit
of filling open inventory and reaching guests expected to generate above average onboard revenue through the casino and other
onboard spending.

2018 Annual Report for Norwegian Cruiseline Holdings

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