2016 Annual Report for Norwegian Cruiseline Holdings - 11

Revenue Management Practices
Our revenue management function performs extensive analyses in order to determine booking history and trends by sailing, stateroom category, travel
partner, market segment, itinerary and distribution channel in order to determine cruise ticket pricing. We concentrate on improving early booking
occupancy rates to drive higher Net Yields. We execute targeted and high-frequency marketing campaigns that communicate a message of a valuepacked cruise offering in both North American and select international markets. To increase the effectiveness of these targeted marketing programs, we
emphasize communication to keep the travel agents engaged and informed and utilize call centers focusing on both inbound calls and outbound calls to
high potential targeted customers. This marketing strategy assists in maximizing the revenue potential from each customer contact generated by various
marketing campaigns. We believe these strategies and other initiatives executed by our distribution channels will drive sustainable growth in the number
of guests carried and in Net Yields achieved.
Seasonality
Our revenue is seasonal and based on the demand for cruises. Historically, the seasonality of the North American cruise industry generally results in the
greatest demand for cruises during the Northern Hemisphere's summer months. This predictable seasonality in demand has resulted in fluctuations by
quarter in our revenue and results of operations. The seasonality of our results is increased due to ships being taken out of service for regularly scheduled
Dry-docks, which we typically schedule during non-peak demand periods.
Competition
Our primary competition includes operators such as Carnival Corporation & Carnival plc, which owns and operates Carnival Cruise Line, Holland
America Line, Princess Cruises and Seabourn Cruise Line, among others, and Royal Caribbean Cruises Ltd., which owns and operates Royal Caribbean
International, Celebrity Cruises and Azamara Club Cruises, among others, as well as other cruise lines such as Crystal Cruises, Silversea Cruises and
Viking Ocean Cruises. In addition, we compete with land-based vacation alternatives, such as hotels and resorts, vacation ownership properties, casinos,
and tourist destinations throughout the world.
Sales of cruises and onboard offerings are subject to consumer discretionary spending levels and may be influenced by geopolitical events and economic
conditions generally.
Marketing Strategy
Our marketing teams work to enhance brand awareness and increase levels of understanding and consideration of our products and services among
consumers and trade and travel partners with the ultimate goal of driving sales. We utilize a multi-channel strategy that may include a combination of
print, television, radio, website/e-commerce, direct mail, social media, mobile and e-mail campaigns, partnerships, customer loyalty initiatives, market
research, and business-to-business events.
Building customer loyalty among our past guests is an important element of our marketing strategy. We believe that attending to the needs and
motivations of our past guests creates a cost-effective means of attracting business, particularly to our new ships and itineraries, because past guests are
familiar with our brands, products and services and often return to cruise with us. We have shared customer databases across our brands to further
enhance our communications with our past guests who receive newsletters and mailings with informative destination and product information and
promotional amenities. Continued investments in our websites is also key to ensuring the optimal pre-cruise planning experience offering guests the
ability to shop, reserve and purchase a breadth of onboard products and services. We have a strong communications stream that provides customized
pre-cruise information to help guests maximize their cruise experience as well as a series of communications to welcome them home and ultimately
engage them in booking another cruise.
Travel agents are crucial to our marketing and distribution efforts. We provide robust marketing support and enhanced tools for our travel agent partners
through a variety of programs. Our travel partners can benefit from our online travel partner education programs that include a wide variety of courses
about our ships, itineraries and other best-selling practices. Agents can also easily customize a multitude of consumer marketing materials for their use
in promoting our products through our online platform.
Guest feedback is also a critically important element in the development of our overall marketing and business strategies. We regularly initiate guest
feedback studies among both travel partners and consumers to assess the impact of various programs and/or to solicit information that helps shape future
direction.
Ship Operations and Cruise Infrastructure
Ship Maintenance and Logistics
Sophisticated and efficient maintenance and operations systems support the technical superiority and modern look of our fleet. In addition to routine
repairs and maintenance performed on an ongoing basis and in accordance with applicable requirements, each of our ships is generally taken out of
service, approximately every 24 to 60 months, for a period of one or more weeks for scheduled maintenance work, repairs and improvements performed
in Dry-dock. Dry-dock interval is a statutory requirement controlled under IMO requirements reflected in chapters of the International Convention of the
Safety of Life at Seas ("SOLAS") and to some extent the International Load Lines Convention. Under these regulations, it is required that a passenger
ship Dry-dock once in five years (depending on age of vessel), twice in 5 years (depending on flag state and age of vessel) and the maximum interval
between each Dry-dock cannot exceed 3 years (depending age of vessel and flag state). However, most of our international ships qualify under a special
exemption provided by the Bahamas and/or Marshall Islands (flag state), as applicable, after meeting certain criteria set forth by the ship's flag state to
Dry-dock once every 5 years. To the extent practical, each ship's crew, catering and hotel staff remain with the ship during the Dry-dock period and
assist in performing repair and maintenance work. Accordingly, Dry-dock work is typically performed during non-peak demand periods to minimize the
adverse effect on revenue that results from ships being out of service. Dry-docks are typically scheduled in spring or autumn and depend on shipyard
availability.

11



Table of Contents for the Digital Edition of 2016 Annual Report for Norwegian Cruiseline Holdings

Contents
2016 Annual Report for Norwegian Cruiseline Holdings - Cover1
2016 Annual Report for Norwegian Cruiseline Holdings - Cover2
2016 Annual Report for Norwegian Cruiseline Holdings - I
2016 Annual Report for Norwegian Cruiseline Holdings - II
2016 Annual Report for Norwegian Cruiseline Holdings - III
2016 Annual Report for Norwegian Cruiseline Holdings - IV
2016 Annual Report for Norwegian Cruiseline Holdings - V
2016 Annual Report for Norwegian Cruiseline Holdings - VI
2016 Annual Report for Norwegian Cruiseline Holdings - VII
2016 Annual Report for Norwegian Cruiseline Holdings - VIII
2016 Annual Report for Norwegian Cruiseline Holdings - IX
2016 Annual Report for Norwegian Cruiseline Holdings - X
2016 Annual Report for Norwegian Cruiseline Holdings - XI
2016 Annual Report for Norwegian Cruiseline Holdings - Contents
2016 Annual Report for Norwegian Cruiseline Holdings - 1
2016 Annual Report for Norwegian Cruiseline Holdings - 2
2016 Annual Report for Norwegian Cruiseline Holdings - 3
2016 Annual Report for Norwegian Cruiseline Holdings - 4
2016 Annual Report for Norwegian Cruiseline Holdings - 5
2016 Annual Report for Norwegian Cruiseline Holdings - 6
2016 Annual Report for Norwegian Cruiseline Holdings - 7
2016 Annual Report for Norwegian Cruiseline Holdings - 8
2016 Annual Report for Norwegian Cruiseline Holdings - 9
2016 Annual Report for Norwegian Cruiseline Holdings - 10
2016 Annual Report for Norwegian Cruiseline Holdings - 11
2016 Annual Report for Norwegian Cruiseline Holdings - 12
2016 Annual Report for Norwegian Cruiseline Holdings - 13
2016 Annual Report for Norwegian Cruiseline Holdings - 14
2016 Annual Report for Norwegian Cruiseline Holdings - 15
2016 Annual Report for Norwegian Cruiseline Holdings - 16
2016 Annual Report for Norwegian Cruiseline Holdings - 17
2016 Annual Report for Norwegian Cruiseline Holdings - 18
2016 Annual Report for Norwegian Cruiseline Holdings - 19
2016 Annual Report for Norwegian Cruiseline Holdings - 20
2016 Annual Report for Norwegian Cruiseline Holdings - 21
2016 Annual Report for Norwegian Cruiseline Holdings - 22
2016 Annual Report for Norwegian Cruiseline Holdings - 23
2016 Annual Report for Norwegian Cruiseline Holdings - 24
2016 Annual Report for Norwegian Cruiseline Holdings - 25
2016 Annual Report for Norwegian Cruiseline Holdings - 26
2016 Annual Report for Norwegian Cruiseline Holdings - 27
2016 Annual Report for Norwegian Cruiseline Holdings - 28
2016 Annual Report for Norwegian Cruiseline Holdings - 29
2016 Annual Report for Norwegian Cruiseline Holdings - 30
2016 Annual Report for Norwegian Cruiseline Holdings - 31
2016 Annual Report for Norwegian Cruiseline Holdings - 32
2016 Annual Report for Norwegian Cruiseline Holdings - 33
2016 Annual Report for Norwegian Cruiseline Holdings - 34
2016 Annual Report for Norwegian Cruiseline Holdings - 35
2016 Annual Report for Norwegian Cruiseline Holdings - 36
2016 Annual Report for Norwegian Cruiseline Holdings - 37
2016 Annual Report for Norwegian Cruiseline Holdings - 38
2016 Annual Report for Norwegian Cruiseline Holdings - 39
2016 Annual Report for Norwegian Cruiseline Holdings - 40
2016 Annual Report for Norwegian Cruiseline Holdings - 41
2016 Annual Report for Norwegian Cruiseline Holdings - 42
2016 Annual Report for Norwegian Cruiseline Holdings - 43
2016 Annual Report for Norwegian Cruiseline Holdings - 44
2016 Annual Report for Norwegian Cruiseline Holdings - 45
2016 Annual Report for Norwegian Cruiseline Holdings - 46
2016 Annual Report for Norwegian Cruiseline Holdings - 47
2016 Annual Report for Norwegian Cruiseline Holdings - 48
2016 Annual Report for Norwegian Cruiseline Holdings - 49
2016 Annual Report for Norwegian Cruiseline Holdings - 50
2016 Annual Report for Norwegian Cruiseline Holdings - 51
2016 Annual Report for Norwegian Cruiseline Holdings - 52
2016 Annual Report for Norwegian Cruiseline Holdings - 53
2016 Annual Report for Norwegian Cruiseline Holdings - F-1
2016 Annual Report for Norwegian Cruiseline Holdings - F-2
2016 Annual Report for Norwegian Cruiseline Holdings - F-3
2016 Annual Report for Norwegian Cruiseline Holdings - F-4
2016 Annual Report for Norwegian Cruiseline Holdings - F-5
2016 Annual Report for Norwegian Cruiseline Holdings - F-6
2016 Annual Report for Norwegian Cruiseline Holdings - F-7
2016 Annual Report for Norwegian Cruiseline Holdings - F-8
2016 Annual Report for Norwegian Cruiseline Holdings - F-9
2016 Annual Report for Norwegian Cruiseline Holdings - F-10
2016 Annual Report for Norwegian Cruiseline Holdings - F-11
2016 Annual Report for Norwegian Cruiseline Holdings - F-12
2016 Annual Report for Norwegian Cruiseline Holdings - F-13
2016 Annual Report for Norwegian Cruiseline Holdings - F-14
2016 Annual Report for Norwegian Cruiseline Holdings - F-15
2016 Annual Report for Norwegian Cruiseline Holdings - F-16
2016 Annual Report for Norwegian Cruiseline Holdings - F-17
2016 Annual Report for Norwegian Cruiseline Holdings - F-18
2016 Annual Report for Norwegian Cruiseline Holdings - F-19
2016 Annual Report for Norwegian Cruiseline Holdings - F-20
2016 Annual Report for Norwegian Cruiseline Holdings - F-21
2016 Annual Report for Norwegian Cruiseline Holdings - F-22
2016 Annual Report for Norwegian Cruiseline Holdings - F-23
2016 Annual Report for Norwegian Cruiseline Holdings - F-24
2016 Annual Report for Norwegian Cruiseline Holdings - F-25
2016 Annual Report for Norwegian Cruiseline Holdings - F-26
2016 Annual Report for Norwegian Cruiseline Holdings - F-27
2016 Annual Report for Norwegian Cruiseline Holdings - F-28
2016 Annual Report for Norwegian Cruiseline Holdings - F-29
2016 Annual Report for Norwegian Cruiseline Holdings - F-30
2016 Annual Report for Norwegian Cruiseline Holdings - F-31
2016 Annual Report for Norwegian Cruiseline Holdings - F-32
2016 Annual Report for Norwegian Cruiseline Holdings - F-33
2016 Annual Report for Norwegian Cruiseline Holdings - F-34
2016 Annual Report for Norwegian Cruiseline Holdings - F-35
2016 Annual Report for Norwegian Cruiseline Holdings - F-36
2016 Annual Report for Norwegian Cruiseline Holdings - F-37
2016 Annual Report for Norwegian Cruiseline Holdings - Cover3
2016 Annual Report for Norwegian Cruiseline Holdings - Cover4
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http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss18
http://www.nxtbook.com/nxtbooks/ncl/fleetsp_18
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_2019
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_aunz
http://www.nxtbook.com/nxtbooks/ncl/uknewitineraryleafletuk_20192020
http://www.nxtbook.com/nxtbooks/ncl/ce_dach
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_mea
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_ce
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_uk
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_2018-2019
http://www.nxtbook.com/nxtbooks/ncl/stewardshipreport_2017
http://www.nxtbook.com/nxtbooks/ncl/annualreport_2017
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide1819_aunz
http://www.nxtbook.com/nxtbooks/ncl/charters18_latam
http://www.nxtbook.com/nxtbooks/ncl/cubabahamas1719_latam
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss_latam
http://www.nxtbook.com/nxtbooks/ncl/hawaiicruisingguide_2018-2021
http://www.nxtbook.com/nxtbooks/ncl/thehaven2018_latam
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019sp
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2019
http://www.nxtbook.com/nxtbooks/ncl/norwegianjewel_201819aunzcruise
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2019_aunz
http://www.nxtbook.com/nxtbooks/ncl/thehaven2018_de
http://www.nxtbook.com/nxtbooks/ncl/thehaven2018_es
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_es
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_it
http://www.nxtbook.com/nxtbooks/ncl/bestofalaska_asia2017
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_fr
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss_aunz
http://www.nxtbook.com/nxtbooks/ncl/thehaven2017_aunz
http://www.nxtbook.com/nxtbooks/ncl/thehaven2017
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss
http://www.nxtbook.com/nxtbooks/ncl/deckbydeckasia_2017
http://www.nxtbook.com/nxtbooks/ncl/carribbeancruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/nedeparturescruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/asiaaunzcruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/hawaiicruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/southamericacruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/pcmrtrcruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/bestofalaska2017
http://www.nxtbook.com/nxtbooks/ncl/bestofeurope2017
http://www.nxtbook.com/nxtbooks/ncl/environmentalreport_2016v2
http://www.nxtbook.com/nxtbooks/ncl/environmentalreport_2016
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_ge
http://www.nxtbook.com/nxtbooks/ncl/norwegianjewel_201718aunzcruise
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http://www.nxtbook.com/nxtbooks/ncl/worldwidecruises_allinclusive_2017-2019_uk
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http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2016-2018_jp
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