Fincantieri sees demand to exceed cruise fleet lower berth capacity in 2026

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Written by Kari Reinikainen Kari Reinikainen

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Published: 19 December 2022 19 December 2022

A rapid recovery of the cruise industry from the Covid-19 pandemic and continued increase in demand should mean that the demand will exceed lower berth capacity of the global cruise fleet in 2026, Fincantieri has forecast.

The world’s largest builder of cruise ships said in a strategic business plan report that it assumes the global cruise fleet to resume full operations next year. The demand for cruises would grow by an average of 6% per annum 2022-30, the Italian company said.

It expects 38 million passengers to take a cruise in 2026, when it also expects the demand to exceed the lower berth capacity of the global cruise fleet. In the 2022-26 period, the demand would grow by an average of 8% per year.

The rate of growth would slow down to 5% per year in 2027- 30 and at the turn of the decade, Fincantieri expects 46 million passengers to take a cruise holiday.

“With regard to the global fleet and taking into account the deliveries of vessels in order book and potential decommissioning, a gap between supply and demand is expected starting from 2026, foreseeing a resumption of order intake from 2023,” the company said in the report.

“As of today, resumption of orders has already been recorded for the luxury niche segment, with newcomer operators, for medium to small vessels,” Fincantieri continued.

Business scenario as well as economic and geopolitical outlook would be influenced by level of technological maturity to address emission reduction requirements financial support to shipowners by Export Credit Agencies, the company concluded.

Norwegian Cruise Line Holdings announces leadership transitions at Regent Seven Seas Cruises and Oceania Cruises

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Written by Teijo Niemelä Teijo Niemelä

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Published: 15 December 2022 15 December 2022

Norwegian Cruise Line Holdings Ltd. today announced the following key organizational changes at the senior executive leadership level effective January 1, 2023, as part of its robust succession planning process:

– The appointment of Andrea DeMarco, current Chief Sales and Marketing Officer for Regent Seven Seas Cruises, as President of Regent Seven Seas Cruises, succeeding Jason Montague.

– The appointment of Frank A. Del Rio, current Chief Sales and Marketing Officer for Oceania Cruises, as President of Oceania Cruises, succeeding Howard Sherman.

To ensure a smooth and seamless transition, Montague and Sherman will serve as Special Advisors to the Company.
“We are grateful to Jason and Howard for their significant contributions to our Company’s success and their tremendous achievements at Regent Seven Seas Cruises and Oceania Cruises,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “We look forward to continuing to partner with them in their new roles as Special Advisors and benefitting from the wealth of knowledge, experience and strategic relationships they have accumulated as leaders in the cruise industry for over two decades.”

Del Rio continued, “Our entire management team and Board of Directors are confident that Andrea and Frank are the right executives to succeed as Presidents of Regent Seven Seas Cruises and Oceania Cruises, respectively. In their current roles as Chief Sales and Marketing Officers for their brands they have worked side-by-side with Jason and Howard, proving time and again their leadership acumen, strategic mindsets and ability to deliver top notch results. I have no doubt that they are prepared to take the helm and build on our significant momentum at this critical time as we complete our transition to steady-state operations and prepare to deliver on our industry-leading growth profile.”

“Today’s announcements are the culmination of a robust succession planning process and reflect the deep bench strength across our organization,” said Russell W. Galbut, chairman of the Board. “Andrea and Frank are talented and dynamic leaders who will bring unique, fresh and diverse perspectives in their new roles while also ensuring brand continuity with their significant Company and cruise industry experience. On behalf of the entire Board, I want to congratulate them on their new roles and I also want to thank Jason and Howard for their dedication, leadership and collaboration.”

Andrea DeMarco has nearly 20 years of diverse cruise industry experience across multiple areas of the business. She has served as Chief Sales and Marketing Officer for Regent Seven Seas Cruises since September 2021, during a pivotal time for the cruise line as it resumed operations post-pandemic. Prior to this role, DeMarco held various positions of increasing responsibility since joining the Company in 2012, including most recently as Senior Vice President of Investor Relations, Corporate Communications and Environmental, Social and Governance for Norwegian Cruise Line Holdings from January 2020 until August 2021. She successfully represented the Company to Wall Street since its initial public offering and earned numerous accolades including recognition as the #1 Overall Best Investor Relations Officer in the Leisure sector in the prestigious Institutional Investor All-American Executive Team rankings. Prior to her time at the Company, she worked in charter sales and corporate financial planning roles at Royal Caribbean Group. DeMarco has an M.B.A. in Finance from Florida International University and a B.S. in Finance from Florida State University.

“I am honored to lead the world’s leading luxury cruise line,” said Andrea DeMarco, chief sales and marketing officer for Regent Seven Seas Cruises. “The hard-working and talented team at Regent is truly unrivaled, and I look forward to contributing to the line’s future growth and success, particularly as we prepare for the addition of our newest ship, Seven Seas Grandeur®, in 2023.”

Frank A. Del Rio is an industry veteran, having started his career in the cruise industry in 2003. Frank A. Del Rio has served as Chief Sales and Marketing Officer for Oceania Cruises since March 2022, where he worked side-by-side with Sherman, and as Senior Vice President, Port Destinations and Onboard Revenue from March 2015 through April 2017. From 2018 until March 2022, Frank A. Del Rio pursued entrepreneurial opportunities in the private equity, finance, and tech spaces, where he was involved across a wide spectrum of products and industries, including AI, telecommunications and 5G network solutions, medical, and real estate development, including serving as Chief Executive Officer of Divinus Life LLC, a specialty provider of skin and wellness products, from 2018 through 2020. Prior to the Company’s acquisition of Prestige Cruises International S. de R.L. and its subsidiaries (“Prestige”), Frank A. Del Rio served as Senior Vice President, Port and Destination Services at Prestige from 2008 until March 2015 and as Vice President, Destination Services and Product Development at Prestige from 2003 to 2008. Frank A. Del Rio has a B.S./B.A. in Finance and Economics from the University of Florida.

“I look forward to building on the incredible momentum we are experiencing at the renowned Oceania Cruises brand,” said Frank A. Del Rio, chief sales and marketing officer for Oceania Cruises. “I am truly humbled and thankful to lead the world-class team at Oceania and I am excited for the bright future we have ahead of us at the brand and the Company.”

P&O Cruises takes delivery of Arvia

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Written by Kari Reinikainen Kari Reinikainen

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Published: 15 December 2022 15 December 2022

At a handover ceremony with the Meyer Werft shipyard on 15 December 15, P&O Cruises took ownership of Arvia, the latest addition to its fleet and, similar to its sister ship Iona, the largest cruise ship ever built for the UK market.

 At 185,000 tonnes, 345m in length with 16 guest decks and setting new ground for guest experience, Arvia is P&O Cruises second ship to be powered by liquefied natural gas (LNG), the marine industry’s most advanced fuel technology to date. Arvia has an optimised hull design to minimise drag and is installed with the latest energy-efficient technology on board, the company y said in a statement.

P&O Cruises president, Paul Ludlow, who was present at the event in Bremerhaven and signed the Protocol for Delivery and Acceptance said:

“Arvia, as the latest evolution in the P&O Cruises experience, embodies the newest trends in travel, dining and entertainment and is the epitome of a sunshine resort sailing year-round to the warmest climates. It takes its sister ship Iona’s design aesthetic and general arrangement but provides new and exciting outside and inside spaces which make the most of Arvia’s deployment to the Caribbean and the Mediterranean. Arvia is a very evident symbol of optimism for the future of the cruise industry as we see a new generation recognising the value for money and individuality of a holiday at sea."

The ship is now part of the P&O Cruises fleet and is being readied to welcome guests for the maiden cruise on 23 December 23 before departure to the Caribbean on  6 January 2023 for a winter season from Barbados.

Arvia is the seventh ship in the fleet of P&O Cruises, which is part of the Carnival group. The ship is a member of Excellence class, a design which P&O Cruises shares with Carnival group members AIDA Cruises, Carnival Cruise Line and Costa Crociere.

TUI reports strong final quarter cruise recovery

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Written by Kari Reinikainen Kari Reinikainen

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Published: 15 December 2022 15 December 2022

TUI AG, the German tour operator that has a stake in 16 cruise liners, has reported a strong recovery in its cruise activities for the final quarter of its financial year that ended 30 September.

“The cruises segment reported a fourth underlying EBIT of €103 million (4QFY21 €43 million loss). The improvement of €146m year-on-year is supported by the fleet returning to full operations for all three cruise brands,” the company said in a statement. 

TUI Cruises, which entails Mein Schiff and Hapag- Lloyd and in which TUI has a 50% stake, achieved the second positive quarter on an EAT basis of €66m. Mein Schiff and Hapag-Lloyd Cruises offered itineraries in the Mediterranean, Northern Europe and around the world with a fleet of 12 ships. Marella Cruises, which TUI owns in full and which operates four ships on the UK market, operated itineraries across the Mediterranean.

Available passenger cruise days of 2.4 million were up 30% year-on-year. Occupancies continued their recovery during the year ranging in fourth quarter between 80% and 93% across the three cruise brands compared to 39% to 53% in the same period last year with rates improving significantly year-on-year, the company said.