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The Honolulu Advertiser

Posted at 11:44 a.m., Wednesday, August 15, 2007

NCL says cruise pricing pressures continuing here

Advertiser Staff

NCL Group said second-quarter revenue gains didn't keep up with an increase in capacity as it continued to experience pricing pressure in its Hawai'i interisland cruise business.

The company, which in April announced plans to move one of its two Hawai'i-based interisland cruise ships out of the state next year, said its second-half outlook includes continued pricing pressure in the Hawai'i trade. The disclosures were made in an earnings report by NCL's parent company, Star Cruises Ltd.

NCL reported a 10.7 percent rise in second-quarter revenue, with much of the gain coming in a 13.6 percent increase in capacity from its introduction of the Pride of Hawaii and Norwegian Pearl over the last year.

It reported a decline in passenger prices in Hawai'i along with lower onboard passenger spending as people doled out less for shore excursions and because the company introduced a new art concessionaire.

NCL has announced the 2,466-passenger Pride of Hawaii will leave Hawai'i waters in February and be redeployed for European cruises.