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Princess Cruises introduces all-inclusive Premier package offering top amenities

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 11 May 2022 11 May 2022

Princess Cruises today announced Princess Premier, a new premium add-on package that offers guests unlimited WiFi for up to 4 devices, premium/top-shelf beverages, photos, specialty dining, and crew gratuities/appreciation. For just $75 per person per day, the inclusive package builds off the popular Princess Plus add-on to offer a more comprehensive bundle and savings of more than 50% when the amenities of Princess Premier are purchased separately. In a unique promotion twist, Princess Premier guests also will be automatically entered into a new onboard promotion for a chance to win a cruise for two every year for a decade and up to $100,000 in cash prizes.

“Guests have overwhelmingly embraced the convenience and value offered in Princess Plus, so we are adding Princess Premier to take our inclusivity options to the next level,” said John Padgett, Princess Cruises president. “Princess Premier is our most inclusive package, offering guests sought-after onboard amenities at an incredible value. Whether a guest prefers a standalone cruise purchase or a fully inclusive vacation, Princess has hassle-free options for everyone. Every option is intended to provide great value.”

Princess Premier goes on sale May 25, for voyages starting June 25 and beyond. The package is available for just $75 per person, per day, and includes:
– Unlimited MedallionNet WiFi - for up to four-devices
– New “Premier” Beverage Package – top-shelf spirits and cocktails up to $18 with bar service charge included, new selection of wines by the glass, 25 percent bottles of wine, specialty coffees, smoothies, and bottled water
– Two specialty dining meals per person including popular restaurants like Crown Grill and Sabatini’s Italian Trattoria
– Digital downloads of all photos taken by professional staff onboard, plus three prints of any size up to 8 x 10
– Entry into new Princess Prizes on board promotion
– Daily Crew Appreciation

Princess Premier also includes entry into Princess Prizes, a new experience that transforms guests’ stateroom entry into an exciting experience for chances to win cruise vacations, cash, exclusive onboard experiences and more. The new game is a first-of-its-kind stateroom gaming experience exclusively with MedallionClass capabilities.

For a one-time entry fee per stateroom of $20 per day, when purchased separately, every time an adult guest accesses their stateroom with their Medallion*, they will have the chance to win grand prizes that include $100,000 in cash and a cruise for two every year for the next decade, along with prizes won on every voyage that range from a cruise for two in a balcony stateroom, onboard cruise credits from $25 up to $250, wine tastings, and chef’s table dinners. Guests can also win entries for an end-of-cruise drawing in which someone will win at least $5,000 every voyage.
All Princess vacations offer accommodations, world-class entertainment, gourmet dining and the MedallionClass experience. The addition of Princess Premier gives guests three package options when booking a Princess cruise vacation:
– Princess Standard cruise package, including the standard cruise fare
– Princess Plus ($40 per person, per day until May 25; $50 per person, per day starting May 25) –
including unlimited WiFi for a single device; Plus Beverage package (covering drinks up to $12, 25 percent off bottles of wine, specialty coffees, smoothies and bottled water); and daily crew appreciation
– NEW! Princess Premier ($75 per person, per day), on sale beginning May 25
Guests on voyages departing June 25 and beyond who previously purchased Princess Plus can upgrade
to Princess Premier for an additional $25 per person, per day.

TUI AG’s cruise bookings at higher prices but suffer from short lead times

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 May 2022 11 May 2022

TUI AG, the German tour operator that operates a fleet of 16 ships, said that its bookings are running at higher prices to prior years, but noted that the recovery of the sector would be slower than the wider tourism sector as a result of short lead times of bookings.

“Since the beginning of April, all 16 ships across our three brands are back in operation. Compared to our other segments, Cruises recovery is expected to be slower with short-term bookings continue to represent a large share of overall bookings. We see H2 2022 calendar year building steadily. Bookings are currently trending at higher rates for all three cruise brands, in comparison to prior years,” the company said in a statement.

In three months to 31 March, it reported an underlying EBIT negative by €73.5 million, much deeper than the €55.0 million figure for the same period a year earlier. In the six months to the same date that is the first half of its financial year, the figure however, improved to negative by €105.3 million from €153.5 million.

The group’s cruises segment comprises the joint venture TUI Cruises, which operates cruise ships under the brands Mein Schiff and Hapag-Lloyd Cruises, and Marella Cruises.

In the six month period, cruises revenue, reflecting Marella Cruises solely (TUI Cruises consisting of Mein Schiff and Hapag-Lloyd Cruises is equity accounted) grew to €75.5 million, an improvement of €74.0 million year-on-year, reflecting the more normalised pre-pandemic travel environment, versus the prior year when Marella’s operations were sus-pended in line with UK government travel advice.

Second quarter revenue for Marella Cruises that operates in the UK grew to €41.3m respectively, improving €40.3m year-on-year. “Q2 underlying EBIT loss (including equity result for TUI Cruises) increased by €18.5m to €-73.5m loss due to Omicron restrictions introduced at the end of Q1 2022, which resulted in operational disruption costs for all three brands throughout January and February,” the company said.

Mein Schiff that operates on the German market saw January in particular impacted by short-term Omicron-related amendments, resulting in the cancellation of itineraries and a temporary operational pause for part of the fleet.

Four ships out of seven operated in January, five ships operated in February, returning to six ships from March as Omicron-related travel restrictions eased during the quarter. (Mein Schiff 5 already in use as a vaccination hub until February and Mein Schiff Herz in pre-planned lay-up until April),” TUI AG said

“Occupancy of the operated fleet in the second quarter was 51% as a result (Q2 2021: 34%). Q2 average daily rate of operated fleet was €138, up 55% versus prior year (Q2 2021: €89), with cruises operated in the Canaries, the Mediterranean, Caribbean, and United Arab Emirates during the second quarter, versus shorter average duration “Blue Cruises” operated in the prior year,” it added.

Hapag-Lloyd Cruises saw the same short-term Omicron-related amendments, resulting in the cancellation of itineraries and temporary operational pause of two ships, with three out of five operated in January and February, returning to full fleet of five from March as Omicron-related restrictions eased during the quarter.

“Q2 average daily rate of operated fleet was €606, an increase of 61% on prior year (Q2 2021: €376), re- flecting the resumption of worldwide itineraries versus European cruises in the prior year. Q2 occupancy of the operated fleet was 29% (Q2 2021 Q2: 29%), reflecting the previously discussed factors,” TUI AG said.

Similarly to Mein Schiff and Hapag-Lloyd Cruises, Marella operated a partial fleet throughout the second quarter, with just one ship out of four in operation in January, two in February and three in March as Omicron-related restrictions eased. “Q2 average daily rate of was £156 and occupancy was 53%, versus a previous Q2 which saw operations suspended in line with UK government travel advice,” TUI AG concluded.

Second quarter loss looms as bookings remain below pre-Covid but at higher prices, NCLH says

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 May 2022 11 May 2022

Norwegian Cruise Line Holdings (NCLH), the world’s third largest listed cruise shipping company, said it expects to report a loss for the second quarter despite strong pricing as booking volumes remain below pre-Covid 19 levels.

“As a result of the COVID-19 pandemic, most recently fueled by the Omicron variant and the effects of the Russia-Ukraine conflict, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it will report a net loss for the second quarter of 2022,” the company said in a statement.

NCLH dis not provide estimated future results on a GAAP basis because it is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. “These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP,” it said in a statement.

As a result of the temporary setbacks from Omicron and the Russia-Ukraine conflict, NCLH’s current cumulative booked position for the second half of 2022 is below the comparable 2019 period but at meaningfully higher pricing even when including the dilutive impact of future cruise credits (“FCCs”).

The booked position improves throughout the year with the fourth quarter of 2022 in line with the comparable 2019 period and at meaningfully higher prices. “Booking trends for 2023 continue to be positive with both booked position and pricing significantly higher and at record levels when compared to bookings for 2019 and pre-pandemic 2020 at a comparable point in the booking curve,” NCLH stated.

NCLH’s advance ticket sales balance, including the long-term portion, increased $418 million in the quarter to $2.2 billion as of March 31, 2022. This includes approximately $0.6 billion of FCCs or 27% of the total deposit balance. Gross advance ticket sales build was approximately $1.1 billion during the quarter, the highest level since the start of the pandemic, it said.

NCLH cuts first quarter loss as bookings stage strong recovery

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 May 2022 11 May 2022

Norwegian Cruise Line Holdings (NCLH), the world’s third largest listed cruise shipping company, has significantly reduced its losses in the first quarter from the same period a year earlier as bookings staged a strong recovery after a soft period at the start of the year, the company said in a statement.

“The quarter began with net bookings, particularly for close-in voyages, negatively impacted by the Omicron surge, which began to improve in mid-January. This momentum was temporarily disrupted as the Company experienced elevated cancellations, primarily for itineraries in the Baltic region, in the immediate weeks following the start of the Russia-Ukraine conflict,” NCLH said.

However, this impact was short-lived and net booking volumes have since shown sequential improvement, not only rebounding back to pre-Omicron levels but also now approaching the booking pace needed to consistently sail at historical load factor levels.

Total cruise operating expense increased 266.1% in 2022 compared to 2021, primarily due to the resumption of cruise voyages. The increase reflects higher payroll, fuel, and direct variable costs of fully operating ships. “Cost for certain items such as food, fuel and logistics also increased due to inflation. Additionally, in 2022, there was an increase in repair and maintenance costs, including planned dry-docks,” the company stated.

Fuel price per metric ton, net of hedges, increased to $724 from $590 in 2021. The company reported fuel expense of $135.5 million in the period. Interest expense, net was $327.7 million in 2022 compared to $824.4 million in 2021. “The decrease in interest expense reflects lower losses from extinguishment of debt and debt modification costs, which were $188 million in 2022 compared to $674 million in 2021. The decrease in interest expense also reflects lower interest expense in connection with the recent refinancing, partially offset by higher debt balances and higher LIBOR rates,” NCLH noted.

SunStone Ships moves on to new class after Chinese yard walks away from Infinity contract

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 May 2022 11 May 2022

SunStone Ships, the Miami based expedition cruise ship tonnage provider, has decided to move to a new class of newbuildings after the Chinese yard that as been building Infinity class ship for the company walked out of the contract, said Niels- Erik Lund, CEO of the company.

“They have informed us that they will not be building ship seven. We do not know why, and are not happy about this,” Lund told CruiseBusiness.com. China Merchants group has built six 8,200 gross ton Infinity class ships for SunStone Ships and the seventh vessel, which had been intended to be called Ocean Discoverer, was due for delivery next year. However, it will not be built now.

SunStone Ships would now switch its focus to order ships of the boundless class that it has been developing for some time. The projected ships would be larger than the Infinity class, with a gross tonnage in the region of 12,000 to 13,000 and they would have accommodation for 200 to 300 passengers compared to 140 on the Infinity class vessels

“Our specifications have been finished and we have been negotiating with approx. 20 shipyards, at this time we are down to three shipyards, and hope to finalise a framework agreement very soon,” Lund said.

OSK-ShipTech in Denmark has designed the Boundless class ships, whereas the Infinity class design came from the Ulstein Group in Norway, Lund said.