I Love Norwegian Cruise Line. That Doesn’t Mean It’s Well Run.

A Shareholder’s Honest Take on Norwegian Cruise Line Stock

I’ve stood on the deck of a Norwegian ship at sunset more than once.

You feel the breeze. You hear music somewhere behind you. You watch the ocean stretch out in every direction. For a few minutes, everything slows down.

It’s one of my favorite feelings in the world.

I genuinely love Norwegian Cruise Line.

I like the vibe. I like the design. I like that it feels modern but not pretentious. The Haven is one of the smartest premium products in cruising. The staff works hard. The ships feel alive.

I’m not writing this as someone who dislikes the brand.

I’m writing this as someone who owns the stock.

And those are two very different perspectives.

Because loving a company’s product does not mean it’s being run well.

That’s what this whole situation with Elliott Investment Management made me think about.

Not emotionally.

Operationally.

The Cruise Industry Is Strong

Let’s get this out of the way.

Cruising is not struggling.

People want experiences. Travel spending has stayed strong. Ships across the industry are sailing full. Norwegian has a modern fleet and three distinct brands. There is demand.

So when Norwegian Cruise Line stock trades far below competitors, that should make you pause.

This isn’t 2020 anymore.

This isn’t pandemic panic.

This is something else.

The Stock Tells a Story

Here’s one number that hit me.

When Norwegian went public in 2013, the stock closed around $25.

Recently, it’s been sitting around $21.

Thirteen years later.

Meanwhile, Royal Caribbean has exploded higher over that same stretch.

You don’t need a finance degree to understand that gap.

Elliott’s letter points out that Norwegian has underperformed peers by more than 200 percent over the last few years alone.

You can argue with tone.

You can argue with motives.

But you can’t ignore performance.

And performance eventually comes back to leadership.

When Something Is Off, I Look at Costs

I’ve spent most of my life in operations.

When I see a company with strong demand and good assets underperforming, I don’t start with marketing slogans.

I look at costs.

One of the more uncomfortable numbers in the Elliott presentation was this:

Since 2013, Norwegian’s overhead spending has grown close to 250 percent.

Not revenue.

Overhead.

That’s marketing, admin, corporate layers. The stuff that doesn’t show up on Instagram photos of the pool deck.

Now let me say something clearly.

I do not want Norwegian cutting corners on guests.

Don’t cheapen the food.
Don’t cut crew.
Don’t downgrade experience.

That’s not what cost discipline means.

Cost discipline means knowing exactly where your money is going and whether it produces return.

If overhead grows dramatically faster than competitors for a decade, something is drifting.

In my world, that’s usually culture.

Culture Shows Up in Spending

Over the years, there were headlines about extravagant ship launches. Big celebrity christenings. Multi-million-dollar art installations on board.

Again, design matters. Norwegian’s aesthetic is part of its brand.

But here’s the uncomfortable truth.

You can’t say “money is no object” for years and then wonder why margins are thin.

At some point, someone has to ask:

Is this investment driving measurable return?

Or are we just enjoying spending like a trophy builder?

That question is not anti-brand.

It’s pro-survival.

The Private Island Lesson

Here’s another simple example.

Royal Caribbean leaned hard into CocoCay. They built it out fully. Waterparks. Attractions. Clear marketing. Then they pushed capacity into it.

It became a revenue engine.

Norwegian owns Great Stirrup Cay. They’ve recently invested more, which is good. But for years, it lagged development compared to competitors.

Elliott’s letter highlights that Norwegian actually owned its island earlier than Royal Caribbean owned theirs.

That’s not a small detail.

If you have the asset first and still fall behind in development and monetization, that’s not bad luck.

That’s sequencing.

Build it.
Finish it.
Market it.
Then shift ships.

Not the other way around.

This isn’t Wall Street talk.

This is basic execution.

The Trust Issue

Here’s where everyday investors feel it.

Guidance.

If management keeps saying things look strong, then adjusts expectations a few months later, trust starts to erode.

Over the past couple of years, Norwegian has had multiple instances of adjusting yield or revenue outlook while peers were raising theirs.

You don’t need spreadsheets to feel that.

You feel it when the stock drops.

And when a company ends up trading at roughly 8 times earnings while the broader market trades much higher, that discount is telling you something.

It’s not about the buffet.

It’s about credibility.

I Still Love the Ships

Let me say this again because it matters.

I like cruising Norwegian.

The ships are beautiful.
The experience is fun.
The staff works hard.

This is not a broken product.

This is not a dying industry.

This is a leadership and discipline conversation.

Those are different things.

You can love the steak and still question the kitchen management.

Activists Aren’t Automatically Villains

When an activist investor shows up, people take sides quickly.

Some assume they’re vultures.
Others assume management must be incompetent.

I’m not interested in drama.

I’m interested in alignment.

Boards exist to hire the right leaders and hold them accountable.

If a company lags competitors for a decade in stock performance, margins, and cost control, governance naturally becomes part of the discussion.

That’s not politics.

That’s ownership.

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What I Actually Want

I don’t want chaos.

I don’t want ego battles.

Here’s what I want as both a cruiser and a shareholder:

1. Real cost discipline without hurting guest experience.
2. A fully developed, well-sequenced private island strategy.
3. Clear, conservative communication with investors.
4. Leadership with deep cruise operating experience.
5. Fewer surprises.

That’s it.

No grand speeches.

No emotional fights.

Just tighten it up.

Because the opportunity is there.

Loving a Brand Does Not Mean Being Blind

This is something I’ve learned over time.

Loyalty is not the same thing as silence.

If you care about something, you want it healthy.

You want it disciplined.

You want it sustainable.

You can stand on the deck at sunset and still read the quarterly report.

You can recommend the cruise and still ask hard questions about Norwegian Cruise Line stock.

That’s not betrayal.

That’s maturity.

The Real Opportunity

The cruise industry is strong.

Norwegian’s fleet is modern.

Guest satisfaction is real.

If leadership tightens cost structure, executes strategy properly, and rebuilds trust with investors, there is real upside.

Not hype.

Execution.

Norwegian doesn’t need magic.

It needs discipline.

And I say that as someone who wants to keep sailing with them for years.

Because I’d like to know the company beneath my feet is as strong financially as it feels emotionally.

— Ryan Gartrell
Operator. Investor. Builder of things that last.

Elliott Letters – NCL

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Disclosure: I am a shareholder of Norwegian Cruise Line Holdings. This article reflects my personal opinion and is not investment advice.