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Tallink reports fall in 2013 profit, expects recovery this year

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 04 March 2014 04 March 2014

AS Tallink Grupp, the listed Estonian cruise ferry company, has reported a fall in net profit in 2013 on weak local economic environment, but says this year should see a recovery in earnings.

The group reported a final quarter 2013 net profit of €7.5 million, an increase from €5.7 million in the same period a year earlier, while revenues rose to €224.0 million from €222.8 million. For the full year 2013, the profit narrowed to €47.0 million from €53.5 million in 2012 as revenues contracted to €941.8 million from €943.8 million in 2012.

The 2013 financial year result did not meet the management’s expectations. Due to adverse macroeconomic developments in the region and the increased competition on Finland-Sweden routes the results for this year did not reach the previous year’s level. With an aim to increase revenue generation improvements in product development are being made, emphasis is on retail sales and upgrades to the public areas on selected vessels," the company said in a statement.

"Cost reductions in some areas are processed in order to adapt with the changed economic environment. The management expects an improvement in the results for the 2014 financial year," the company continued.

The Group successfully continued the deleveraging strategy and the net debt decreased by €52million to a total of €722 million in the 2013 financial year. The company that has 18 ships carried 9.11 million passengers last year, a decline of 1.6% year on.

"The 2013 financial year ticket and cargo sales showed a 3.4% and 2.7% increase respectively. Due to the decline in the passenger numbers on the Finland-Sweden routes caused by increased competition and structural changes the shop and restaurant sales experienced a 2.0% decline. Although there was a slight decrease in shop and restaurant sales, spending per passenger stayed on last year’s level. As a result of upgrading the fleet growth continued on the Riga-Stockholm route in the 2013 financial year, showing an 8.4% increase in revenue and the result for the financial year was positive for the first time since the route was opened in 2006," Tallink concluded.

Sir Richard Branson said to plan entry to cruise industry

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 03 March 2014 03 March 2014

Sir Richard Branson, the billionaire British serial entrepreneur, is drawing up plans for a secret assault on the international cruises sector which will involve raising hundreds of millions of pounds in funding from external investors, Sky News reports on its website.

"Sky News can reveal that Virgin Group has appointed the US-based corporate advisory firm Allen & Co to oversee the development of a cruise operation that would eventually aim to compete with industry giants including Carnival Corporation," the satellite broadcaster said on its news website.

"The development of Virgin Cruises, which is expected to be the name of the new venture, is at an early stage, people close to the project cautioned on Friday. However, Virgin executives and their advisers have already held detailed talks with banks about raising an estimated $1bn (£598m) of debt to finance the acquisition of the company's first vessels," the report said, adding that they also want to raise in the region of $700m (£418m) of equity by selling stakes in Virgin Cruises to outside investors.

Sir Richard and Josh Bayliss, chief executive of Virgin Management, are understood to believe the global cruises sector possesses many of the same characteristics which have led Virgin to build a significant presence in sectors such as aviation, rail and mobile telecoms.

The cruise market is dominated by three listed majors, Carnival Corporation & plc, Royal Caribbean Cruises Ltd and Norwegian Cruise Line. Between them, the three companies have a global market share of close to 80%.

Sir Richard is involved in a number of businesses that include aviation, telecoms, railways and financial services.

Daily Mail Cruise Show in London 22-23 March

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 03 March 2014 03 March 2014

The Daily Mail Cruise show will take place 22 and 23 March at the Olympis exhibition centre in London. This will be the sixth time the event will be arranged, the organisers say on their website, adding that it will be the largest event of its kind in Europe.

MSC Cruises to introduce four tier, experience based pricing structure

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 28 February 2014 28 February 2014

MSC Cruises, the Geneva based cruise shipping company, are launching a new pricing structure to ensure that guests get the most out of their cruise, the company said in a statement. The pricing structure will be based on experiences, rather than cabins and will feature the following four categories – Bella, Fantastica, Aurea and Yacht Club.

BELLA

The Bella Experience is available on Inside, Ocean View and Balcony cabins and represents excellent value for money. Not only will Bella guests have full access to the pool, state-of-the-art panoramic gym and open-air sports facilities, but they will also be able to experience Broadway-style entertainment and a packed programme of daily activities.

FANTASTICA

In addition to the benefits of the Bella Experience, guests opting for the Fantastica Experience will have the additional benefits of booking flexibility, 24-hour room service, 50% discount on fitness classes (e.g. yoga), special events for kids, free breakfast in their cabin and priority choice of dinner sittings.

AUREA

For guests wanting to relax and be pampered, the Aurea Experience offers an all-inclusive cruise with added spa benefits. As well as all the benefits of the Bella and Fantastica Experiences, each guest selecting the Aurea Experience will be offered a complimentary spa package, which includes access to the Thermal Area for their entire cruise; a 30 minutes Balinese massage; 10 minutes in the Solarium and a welcome vitamin cocktail. In addition to this, guests will receive priority embarkation, a complimentary bathrobe, slippers and spa products in their suite plus unlimited, complimentary drinks with every meal.

MSC YACHT CLUB

For guests wanting to be at the centre of a world of privacy and exclusivity, the MSC Yacht Club Experience offers a unique opportunity that combines the comfort and service of a private yacht with access to the extensive leisure facilities of a modern cruise ship.

The luxurious MSC Yacht Club suites come complete with pillow menu, marble bathroom and plasma TV and guests will receive complimentary meals in the dedicated MSC Yacht Club restaurant. A 24-hour Butler and Concierge service are also on-hand to tend to guests’ every need, whether it is delivering their preferred daily newspaper, escorting them to the Aurea Spa for a massage via the private lift or organising a bespoke shore excursion. The private restaurant allows guests to dine at any time and entry to the exclusive lounge, sun deck and pool bar is part of the experience as well.

"With the opportunity to earn MSC Club points during all four new experiences, guests will be able to enjoy even more benefits on their next cruise with MSC," the company said.

Anthem of the Seas fastest selling UK based Royal Caribbean ship - report

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 28 February 2014 28 February 2014

Royal Caribbean International has claimed Anthem of the Seas is its fastest selling UK-based ship for the line, Travel Weekly reports in daily newsletter emailed to Cruise Busiess.

During the first day of sales on February 26, two-thirds of bookings were for premium balcony staterooms or suites. Stuart Leven, managing director UK and Ireland, was quoted as saying: “Since the announcement in November last year that Anthem of the Seas will call Southampton its home, the reaction from holidaymakers and agents has been phenomenal. It’s been two weeks since we confirmed the itineraries and it’s clear that the anticipation has been there and converted to vigorous first day sales, and we haven’t even announced all of our groundbreaking features for this amazing new ship."

Anthem of the Seas, which is the second unit of the 167,800 gross ton Quantum class of Royal Caribbean International, will be introduced in April 2015 as replacement of the 158,400 gross ton Independence of the Seas in Southampton. The new ship will enter service only a few weeks after P&O Cruises, which is part of the Carnival Corp & plc group, will have introduced its143,000 gross ton newbuilding, Britannia.

Royal Caribbean will also employ Adventure of the Seas on a series of cruises from Souythampton in both 2014 and 2015, while a Radiance class vessel will be based at Harwich, north of London, in both years as well.