Princess Cruises to feature Diamond Princess in Japan 2015, Sun Princess to stay in Australia

Demonstrating a continuing commitment to developing the Japan cruise market, Carnival Corporation & plc has announced the 2015 Japan cruise program for Princess Cruises which features Diamond Princess returning for the line’s third season, and introduces new cruises as short as three nights to appeal for those local travelers seeking a quick getaway.

Beginning next April, the Japanese-built Diamond Princess will once again offer an exciting season sailing from the two home ports of Tokyo (Yokohama) and Kobe. During the four-month summer season the ship will offer 20 departures on a mix of itineraries visiting more than 20 destinations in Japan, Korea, Taiwan and Russia. The mix of itineraries is designed to have broad appeal, with cruises as short as three nights and up to 17 nights for guests seeking a more in-depth experience in Japan.

“We are very pleased to bring Diamond Princess back to Japan again next summer, this time with a broader variety of itineraries and cruise lengths offering guests a diverse choice of experiences and destinations,” said Jan Swartz, president of Princess Cruises. “In addition to offering local consumers a shorter cruise experience, our longer sailings will offer an enriching and convenient way to explore many of Japan’s most fascinating port cities.”

Swartz added that Sun Princess will not be returning to Japan next summer as it will instead be deployed to Australia where it has long been a popular ship based in the region. “Moving Sun Princess to Australia in 2015 doesn’t diminish our enthusiasm for the Japan cruise market. As demand for cruising grows further in Japan, we will review the opportunity to add additional capacity in the future.”

Diamond Princess will begin the 2015 season on April 29 in Yokohama with an eight-night Golden Week itinerary and a nine-night Taiwan & Korea sailing. The ship will then position to Kobe for a series of three cruises of Princess’ popular eight-night Ryukyu Islands & Taiwan voyages that include calls to Okinawa, Hualien, Kaohsiung and Taipei (Keelung). New for 2015 from Kobe is a 10-night Hokkaido cruise that includes appealing northern destinations of Aomori, Hakodate, Otaru and Abashiri.

Diamond Princess will return to Yokohama to spend the balance of the summer sailing north to the island of Hokkaido or around Japan, visiting culturally rich destinations such as Maizuru (for Kyoto), Nagasaki and Aomori. A special feature of the Hokkaido voyages is the late evening departure from Hakodate, which is famous for the nighttime view from the top of Mt. Hakodate, as well as the morning fish market.

Also new for the 2015 season, which runs through mid-September, are three-, four-, five- and seven-night itineraries designed to appeal to those with limited vacation time. Throughout the summer Diamond Princess will sail on a four-night Korea Getaway roundtrip from Kobe, plus a five-night Korea & Japan Getaway roundtrip from Tokyo (Yokohama) and a five-night Korea & Japan Getaway that positions between the two homeports. In August, the ship will sail on a week-long itinerary roundtrip from Yokohama which can be segmented into a three-night Korea Getaway disembarking in Hakata, or a four-night Korea & Japan itinerary embarking in Hakata.

The experience onboard Diamond Princess in Japan will substantially be the same as that offered by Princess Cruises around the world, providing an impressive array of dining and entertainment options in addition to the line’s signature innovations such as its popular Movies Under the Stars poolside theater and The Sanctuary, an exclusive top-deck retreat. However as done during the first two Japan seasons, some changes and enhancements will be made to appeal to the local market. The just-completed refurbishment of Diamond Princess added Izumi Japanese bath – the largest of its kind at sea – as well as a Kai Sushi restaurant. Photos of Diamond Princess post drydock can be found here: https://www.flickr.com/photos/princesscruises/sets/72157643606751373/

Dining room menus will offer international Princess cuisine, while additional offerings will cater to Japanese tastes, and a la carte sushi bar will be opened. Other amenities such as the spa treatments will also be tailored to Japanese preferences, and onboard collateral items and stateroom information will be translated into Japanese.

An extensive array of shore excursions will be available to complement the itineraries including opportunities to visit the UNESCO World Heritage sites.

Diamond Princess was built by Mitsubishi Heavy Industries in Nagasaki, Japan – the first of two Princess ships built in Japan.

The 2015 Japan cruise program opens for sale April 30.

Cruise Business Commentary - Quantum of the Seas' move to China could be game changer for cruising

Royal Caribbean International's decision to base the 167,800 gross ton Quantum of the Seas in Shanghai in May 2015 after an initial winter season in New York marks the first time a cruise brand has decided to operate a ship of its latest class on the Chinese market. And that decision could be a game changer for the cruise industry.

Until now, cruise lines have sent ships that have seen years of service on the North American and European markets to China. However, some critics have noted that as the region has some of the finest hotels in the world, it is unwise to assume that Asians in general and Chinese in particular would flock in great numbers on these sometimes already tired ships.

On the other hand, a decision to send a brand new ship that often carries a price tag in the region of $1 billion to the Far East, only to operate it half-empty, would be a disastrous decision. Quite simply, the volumes have to be built up first and once the market has reached a critical mass, then it is the time to up the ante and deploy a first rate vessel on the Asian market.

The growth rate of China has been very rapid: it was only in 2006 that Costa Crociere, the Italian unit in Carnival Corp & plc group, based the 28,400 gross ton Costa Allegra in Shanghai,which made it the first western cruise line to have a ship based there.

For Royal Caribbean International, the time to send a top rate ship to China has now come. As company executives explained in a conference call, the line needs to seek a balanced view to its ship deployments, so that customer needs and company's interests will both be met in an optimal way. This does not only mean looking for the best yields at all times, but also to factor in long term strategic prospects in the equation. Deployment of Voyager of the Seas and soon afterwards Mariner of the Seas to Shanghai had significantly boosted the line's business there. Clearly, this must have been a major factor to base Quantum of the Seas in Shanghai: the long term strategic prospects appear encouraging and the executives noted they have lots of confidence in the China business.

The decision is likely to have a number of consequences:

-Royal Caribbean's competitors will have accept that the Chinese / Asian markets have become significantly more important regions for the business than what they have been so far,

-Asia will join North America and Europe as key deployment area of first rate cruise ships,

-Dated tonnage will have increasingly limited prospects to trade in the region and

-Major brands will have to factor in the requirements of the Asian market in the design of their new ships.

For Royal Caribbean International, a lot is at stake. Success with Quantum of the Seas could help it to establish itself as the definite market leader in the Chinese source market and pave the way for positioning of the third Oasis class ship, currently under construction, to China. The financial rewards of all this could, in the medium to long run, be phenomenal.

But risks are great as well.

Booking windows are short on the Chinese market, which limits the visibility the management has to foresee the development of the business. The business has substantial seasonal fluctuations and political risks arising from maritime border disputes between China, Japan and South Korea can also upset the business. In case major problems arise that require repositioning ships away from China, the positioning voyages will be long and therefore, expensive.

Royal Caribbean's announcement came a short while after Star Cruises had unveiled a decision to build a second 150,000 gross ton cruise ship at Meyer Werft in Germany that also targets the Asian market. With three 20-year plus old ships in its fleet, Star may have to axe these, perhaps in favour of a newbuilding. A major competitor has just thrown the gauntlet at Star's home turf.

Strategic decision in changing world to send Quantum of the Seas to China

The decision to send Quantum of the Seas to China in May 2015 was based on strategic considerations in a changing world, said Lisa Lutoff-Perlo, svp operations at Royal Caribbean International, the contemporary market unit of Royal Caribbean Cruises Ltd (RCCL).

"The world is changing, this ship appeals to guests from all over the world and we need to take a balanced view where our hardware is based," she said in as conference call. Ship deployments are not always based on prospects regarding revenue, but also strategic objectives of the company in the long term. "The decisions where to sail from are also of strategic, not always financial nature," she stated.

Certain modifications will be required in retail offerings, galleys and menus before the 167,800 gross ton Quantum of the Seas will be introduced on the Chinese market, with Shanghai as its base. The company would unveil its 2015-16 Asia-Pacific programmes at a later stage, said Chris Allen avp of global deployment and itinerary planning, declining to comment on questions regarding whether Quantum of the Seas would operate cruises from other ports than Shanghai.

Allen said that the Chinese market had seen an acceleration on business following the introduction of Voyager of the Seas and then Mariner of the Seas there and that the company has a lot of confidence in this market and its potential.

Royal Caribbean officials that hosted the conference call said that the deployments of the third Oasis class and third Anthem class ships had not been decided yet, but that a balanced view with regards of what the company can offer to its customers in various parts of the world plus what is in the interest of the company itself would determine these deployments.

The decision to base Quantum of the Seas in Shanghai resulted in a number of other changes in ship deployments, the most important of which being the transfer of Anthem of the Seas, the second unit of the Anthem class from Ft Lauderdale in Florida to Cape Liberty in the New York region for the 2015-16 winter season.