MSC Cruises' first title sponsorship with the Formula 1
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- Written by Teijo Niemelä Teijo Niemelä
- Category: More News More News
- Published: 31 July 2023 31 July 2023
MSC Cruises and Formula 1 reached a new milestone together over the weekend, celebrating the first Grand Prix with MSC Cruises as title sponsor.
The FORMULA 1 MSC CRUISES BELGIAN GRAND PRIX 2023, one of the most historic and prominent races on the F1 calendar, was held at the iconic Spa-Francorchamps Circuit in Belgium from 28 to 30 July 2023. As the race’s title sponsor and Global Partner of Formula 1, MSC Cruises, one of the world’s largest and fastest growing cruise brands, brought the line’s global reach and passion for excellence to this thrilling event, enhancing the experience for fans around the world.
Motorsports enthusiasts and MSC Cruises guests alike witnessed the merging of two world-class brands - each distinguished for their commitment to providing unforgettable experiences and pushing boundaries. As title partner, MSC Cruises had greater track branding visibility, prominently featuring its brand on the start-finish line amongst other key locations around the undulating and fast track.
Furthermore, the winning Driver and Constructor trophies have been co-designed by MSC Cruises to be unique for the brand and this event, with Gianni Onorato, CEO of MSC Cruises, who played an integral part of the podium ceremony. He commented, “Being the title sponsor in Belgium is the next milestone in our partnership with Formula 1. An MSC Cruises trophy was presented during the Formula 1 podium ceremony; an incredible moment celebrating the success of the drivers and recognising the teamwork that goes into delivering winning results. It was a real honour for me to participate in this special moment on behalf of MSC Cruises and present the winners with the trophy.”
This collaboration further strengthens the partnership that has already achieved strong results for both brands and future title sponsorships will be revealed at selected Formula 1 Grands Prix during the 2024 World championship season. MSC Cruises is the Official Cruise Partner of Formula 1 through to the end of the 2026 FIA Formula 1 World Championship.
Other upcoming collaborations
As part of the global partnership, MSC Cruises will position ships alongside races at select Grand Prix weekends, to offer a unique hospitality experience from the ship to the racetrack. The first of these event weekends will take place in November in Abu Dhabi, for the final race of the 2023 season with more races to come in 2024. MSC Virtuosa will spend the Grand Prix™ weekend dockside, offering motorsport fans a unique combination of world-class accommodation, unparalleled hospitality, and convenient transport, including VIP packages to ensure that the race weekend is a truly memorable experience. This offer will be extended to other destinations, with other ships, from the start of the 2024 season.
Updated: Crystal Cruises plans to order four newbuilds
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- Written by Teijo Niemelä Teijo Niemelä
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- Published: 29 July 2023 29 July 2023
Updated with official Crystal Cruises statement: "Today, during an executive briefing to media and travel advisors sailing onboard Crystal Serenity's preview voyage, Cristina Levis, CEO of A&k Travel Group, announced that the brand is working with their advisors, lenders and export credit agents in order to sign a memorandum of agreement with two European shipbuilders for four new ships. This will include two classic ships and two expedition vessels."
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Crystal Cruises, the two-ship ultra-luxury cruise operator, which is returning back to the business under A&K, has today announced plans for four new cruise ships. Two vessels will be built for the expedition segment and carry 220 guests, while two others will be traditional ultra-luxury vessels with a capacity of 650.
The news is reported by various members of the media, who currently sail onboard the Crystal Serenity, which emerged from the drydock in Trieste. Crystal Serenity will start its inaugural voyage with revenue guests on July 31 from Marseille.
Royal Caribbean Group reports second quarter profit
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- Written by Teijo Niemelä Teijo Niemelä
- Category: More News More News
- Published: 27 July 2023 27 July 2023
Royal Caribbean Group today reported second quarter Earnings per Share of $1.70 and Adjusted Earnings per Share of $1.82. These results were significantly better than the company's guidance due to stronger pricing on closer-in demand and further strength in onboard revenue. As a result of the accelerating demand environment for its vacation experiences, the company is increasing its 2023 Adjusted Earnings per Share guidance by 33% to $6.00 – $6.20.
"Our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations," said Jason Liberty, president and CEO, Royal Caribbean Group. "Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year. We also expect to achieve record Adjusted EBITDA per APCD and Return on Invested Capital this year and are well on our way toward achieving our Trifecta goals."
Key highlights
Strong ticket pricing from both North America and Europe itineraries, combined with strength in onboard revenue, led to better-than-expected revenues in the second quarter and the significant increase in the company's full year outlook for revenue and earnings.
Second quarter 2023
Gross Margin Yields increased 13.1% As-Reported, and Net Yields increased 12.9% in Constant-Currency (12.6% As-Reported), both compared to the second quarter of 2019.
Gross Cruise Costs per Available Passenger Cruise Day ("APCD") increased 10.9% As-Reported, and Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased 9.0% in Constant-Currency (8.6% As-Reported), both compared to the second quarter of 2019. Favorable timing of operating expenses was offset by the increase in stock compensation expense due to the rise in share price and expected financial performance.
Total revenues were a record $3.5 billion, Net Income was $458.8 million or $1.70 per share, Adjusted Net Income was $491.7 million or $1.82 per share, Adjusted EBITDA was a record $1.2 billion and Operating Cash Flow was $1.4 billion.
Full year 2023 outlook
Net Yields are expected to increase 11.5% to 12.0% in Constant-Currency and As-Reported, compared to 2019.
NCC, excluding Fuel, per APCD is expected to be up approximately 7.0% in Constant-Currency (6.7% As-Reported), compared to 2019. The increase in costs, relative to previous guidance, is driven by an increase in stock compensation expense due to the rise in share price and expected financial performance.
Adjusted Earnings per Share for the full year are expected to be in the range of $6.00 to $6.20 per share.
Third quarter 2023 outlook
Net Yields are expected to increase 13.5% to 14.0% in Constant-Currency (14.0% to 14.5% As-Reported), compared to the third quarter of 2019.
NCC, excluding Fuel, per APCD is expected to increase approximately 11.2% in Constant-Currency and As-Reported, compared to third quarter 2019. Approximately half of the cost increase compared to 2019 is related to structural costs, timing shift of operating expenses from the second quarter, and increase in stock compensation expense.
Adjusted Earnings per Share for the third quarter are expected to be in the range of $3.38 to $3.48 per share.
Second quarter 2023
The company reported Net Income for the second quarter of $458.8 million or $1.70 per share compared to Net Loss of $(0.5) billion or $(2.05) per share for the same period in the prior year. The company also reported Adjusted Net Income of $491.7 million or $1.82 per share for the second quarter compared to Adjusted Net Loss of $(0.5) billion or $(2.08) per share for the same period in the prior year.
Second quarter revenue significantly exceeded the company's guidance due to higher pricing and higher shipboard revenue across the company's key itineraries, including the Caribbean and Europe. Load factor for the second quarter was 105%.
Gross Cruise Costs per APCD increased 10.9% As-Reported, compared to 2019. NCC, excluding Fuel, per APCD increased 8.6% As-Reported and 9.0% in Constant-Currency, compared to 2019. Favorable timing of operating expenses drove NCC lower, however it was offset entirely by an increase in stock compensation expense related costs due to the significant rise in share price and expected financial performance.
Update on bookings
Booking volumes in the second quarter remained significantly higher than the corresponding period in 2019 and at record pricing levels. Demand for 2023 sailings has significantly exceeded expectations and bookings for 2024 sailings are up significantly versus all prior years at record prices. Demand from the North American consumer has remained incredibly strong throughout the year, and booking volumes from European consumers who are booking European cruises this summer have accelerated.
The further increase in yield expectations for the year is the result of higher pricing and onboard revenue expectations for key itineraries, particularly in North America and Europe. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2019 levels driven by greater participation at higher prices.
As of June 30, 2023, the Group's customer deposit balance was at a record-high $5.7 billion.
Fuel expense
Bunker pricing net of hedging for the second quarter was $682 per metric ton and consumption was 405,000 metric tons.
The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on today's fuel prices, the company has included $275 million of fuel expense in its third quarter guidance at a forecasted consumption of 408,000 metric tons, which is 55% hedged via swaps. Forecasted consumption is 54%, 60% and 40% hedged via swaps for the remainder of 2023, 2024 and 2025, respectively. The annual average cost per metric ton of the hedge portfolio is approximately $573, $509, and $496 for 2023, 2024, and 2025, respectively.
The Ritz-Carlton Yacht Collection announces new promotions
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- Written by Teijo Niemelä Teijo Niemelä
- Category: More News More News
- Published: 25 July 2023 25 July 2023
The Ritz-Carlton Yacht Collection has announced key promotions and expansion of its sales team as part of its continued growth plans. These new promotions and appointments underscore the company’s continuous commitment to providing exceptional service, delivering extraordinary experiences, and expanding its global reach in the luxury travel industry.
Kristian C. Anderson has been promoted to Senior Vice President, Global Sales. Since joining the company in 2021, Kristian has consistently demonstrated his expertise and exemplary leadership, driving the growth of the company’s sales team. In his expanded role, Kristian will oversee all facets of the company’s sales operations, including global reservations, trade sales, meetings and incentives sales, air and hotel programs, and special services. His effective sales coaching and managerial abilities will play a vital role in further enhancing the performance of the sales department.
With over 30 years in the travel industry, Kristian brings a wealth of experience in leading global sales teams within the luxury hospitality sector. Prior to joining The Ritz-Carlton Yacht Collection, he served as the Executive Vice President of Global Sales for luxury river cruise operator Uniworld River Cruises and held leadership positions at Silversea Cruises, Qatar Airways, and Aeromexico Airlines. During his time at Uniworld, Kristian served as the chair of the Cruise Lines International Association (CLIA) Trade Relations Committee.
The Ritz-Carlton Yacht Collection also welcomes two additional team members to its expanding trade sales team, further strengthening relationships with travel partners across the globe and providing resources to help grow their businesses: based in Barcelona, Joan Brullet Gubern, Director, Trade Industry Sales – EMEA and based in Los Angeles, Stephanie Seghers-Narvaez, Manager, Strategic Accounts – Western USA & Canada. With these new appointments, the company furthers its dedication to fostering lasting partnerships.
Carolina Acero has been promoted to Vice President, Finance. Recognized for her outstanding managerial and strategic skills, Carolina has played a crucial role in building a strong and high-performing finance team over her five-year tenure with the company. In her new role, Carolina will continue to guide the organization by fostering a robust financial mindset and serving as a strategic business partner for various departments. The accounting and tax teams, along with financial planning and analysis, insurance, and treasury teams, will report to her, facilitating streamlined communication and comprehensive financial guidance across the organization. Carolina holds an MBA from Harvard Business School and has held previous roles at Royal Caribbean Group and various companies focused on the Latin American market.
Tobias King, the company’s leader in new build projects, has been promoted to Vice President, Newbuild. His dedication and expertise have been pivotal in the company's growth, particularly in building and leading the newbuild team at Chantiers de l’Atlantique for the company’s upcoming superyachts Ilma and Luminara, slated to sail in 2024 and 2025, respectively. Tobias' remarkable ability to develop positive relationships and conduct successful negotiations has solidified the foundation of the newbuild department, positioning the company for continued success in delivering extraordinary experiences to its guests. With a background in naval architecture and marine engineering, Tobias managed several projects for Celebrity Cruises and held engineering and consultancy positions with DNV prior to joining The Ritz-Carlton Yacht Collection.
“Kristian has consistently demonstrated his ability to drive revenue performance and provide exceptional leadership. We congratulate him on this well-deserved promotion and are confident that his expanded role will contribute to our continued success,” said Jim Murren, Executive Chairman and CEO of The Ritz- Carlton Yacht Collection. “I would also like to extend my congratulations to Carolina and Tobias on their elevated roles. Their expertise and dedication will be crucial to drive the company forward as we embark on an exciting phase of growth and expansion.”
“Kristian, Carolina, and Tobias exemplify exceptional leadership and dedication,” said Ernesto Fara, President and CFO of The Ritz-Carlton Yacht Collection. “Their invaluable contributions to the company have been instrumental in driving our growth and success, and they will undoubtedly continue to lead the way with thoughtfulness and strategic vision.”
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