Cruise into Convenience: Norwegian Cruise Line Holdings expands strategic collaboration with PayPal

Rhea-AI Summary

PayPal Holdings (NASDAQ: PYPL) has expanded its strategic partnership with Norwegian Cruise Line Holdings (NYSE: NCLH), enabling PayPal as a checkout option for all U.S.-based cruise reservations across Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. The collaboration includes continued use of PayPal Braintree for credit-card processing for both reservations and shipboard payments.

According to data provided, customers using PayPal experience 43% faster checkout compared to traditional methods, and the payment platform has demonstrated an average 84% increase in conversion among online travel customers. This integration aims to enhance the booking experience by providing a more convenient and secure payment option for cruise reservations.

Positive

• Integration shows 43% faster checkout compared to traditional methods
• Demonstrates 84% increase in conversion rate for online travel payments
• Expands payment processing reach in cruise industry through both direct PayPal and Braintree services

Negative

• None.

Insights

Payment Industry Analyst

This strategic collaboration marks a significant expansion of PayPal's footprint in the high-value travel sector, particularly noteworthy as cruise bookings typically represent transactions ranging from $2,000 to $10,000 per reservation. The comprehensive nature of this partnership - covering both initial bookings and onboard purchases - positions PayPal to capture the entire payment journey in the cruise experience.

The reported 84% increase in conversion rates for online travel payments is particularly impactful in the cruise industry, where higher transaction values mean each converted booking has a substantial effect on payment processing revenues. For context, with Norwegian Cruise Line Holdings' annual revenue exceeding $8.5 billion, even a small share of payment processing could generate significant merchant services revenue for PayPal.

The integration of both PayPal's consumer-facing payment solution and Braintree's backend processing infrastructure demonstrates a strategic approach to capturing the entire payment value chain. This dual-pronged strategy not only secures the initial high-value booking transaction but also establishes a recurring revenue stream through onboard purchases throughout the cruise duration.

The 43% faster checkout metric addresses a critical friction point in travel bookings, where cart abandonment rates typically exceed 80%. By streamlining the payment process for high-value transactions, PayPal is positioning itself to capture a larger share of the lucrative travel payments market, while simultaneously building valuable consumer behavior data in the premium travel segment.

SAN JOSE, Calif., Feb. 12, 2025 /PRNewswire/ -- PayPal Holdings Inc. (NASDAQ: PYPL) today announced the addition of PayPal as a checkout option for all U.S.-based cruise reservations operated by Norwegian Cruise Line Holdings Ltd (NYSE: NCLH). Now, travelers looking to cruise with Norwegian Cruise Line®, Oceania Cruises® and Regent Seven Seas Cruises®, can benefit from the ease, simplicity and security of paying with PayPal when booking their next travel experience.

In addition to offering travelers the ability to checkout with PayPal, Norwegian Cruise Line Holdings will continue to leverage PayPal Braintree for credit-card processing for both reservations and all shipboard payments.

"At PayPal, we're making travel more seamless for consumers by deepening our relationship with well-loved global travel brands," said Suzan Kereere, President, Global Markets, PayPal. "With Norwegian Cruise Line Holdings, we're offering people a convenient way to book their dream cruises all the way from reservations to experiences on high seas."

Customers who pay with PayPal enjoy a 43% faster checkout than those using traditional checkoutⁱ. In addition, PayPal has shown to help increase conversion by an average of 84% among customers who pay online for travel.ⁱⁱ  

"The implementation of PayPal marks a major milestone in our payments acceptance journey. At Norwegian Cruise Line Holdings, we are committed to providing guests with more variety and more value through elevated offerings," said Harry Sommer, President and CEO at Norwegian Cruise Line Holdings Ltd. "The addition of PayPal as an easy and secure option to pay for their cruise is a key contributor to providing our guests with the best vacation and experience possible."

About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.

About Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a leading global cruise company that operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. With a combined fleet of 32 ships and approximately 66,500 berths, NCLH offers itineraries to approximately 700 destinations worldwide. NCLH expects to add 13 additional ships across its three brands through 2036, which will add approximately 41,000 berths to its fleet. To learn more, visit www.nclhltd.com

Media Relations Contact:
Malini Mitra, malini.mitra@paypal.com and mediarelations@paypal.com

i PYMNTS.com, The 2022 Buy Button Report: Accelerating Checkout Optimization. August 2022. N=636: Merchants that accepted at least one buy button in Q2-2022, fielded May 23, 2022–June 5, 2022. Compared to merchants that do not use the PayPal button feature. ii Checkout conversion measured from the point at which customers start to pay. Nielsen Study, Commissioned by PayPal, Nielsen Media Behavioral Panel of USA with 408,000 large enterprise desktop purchase transactions, from 25,000 consumers between January-December 2022.

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SOURCE PayPal Holdings, Inc.

FAQ

What payment options did PayPal (PYPL) add for Norwegian Cruise Line Holdings in February 2025?

PayPal added its checkout option for all U.S.-based cruise reservations across Norwegian Cruise Line Holdings' brands, including Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises.

How much faster is PayPal checkout compared to traditional methods for PYPL cruise bookings?

According to the announcement, PayPal checkout is 43% faster compared to traditional checkout methods.

What is the conversion rate improvement for PayPal (PYPL) in online travel payments?

PayPal has shown to increase conversion by an average of 84% among customers who pay online for travel.

Which payment processing service does PYPL provide for Norwegian Cruise Line's shipboard payments?

PayPal Braintree handles credit-card processing for both reservations and all shipboard payments for Norwegian Cruise Line Holdings.