The acquisition of Crystal Cruises, the Los Angeles based luxury cruise operator, by Genting Hong Kong from Nippon Yusen Kaisha (NYK) is good for the luxury segment as it highlights its need to be profitable, said Robin Farley, cruise industry analyst at UBS in New York.
"We believe it'll also make for a healthier competitive environment to now have three of the four luxury brands owned by public co's that view such assets as a business that needs to make money rather than a trophy property. That is also marginally positive for CCL (Carnival Corp & plc), whose Seabourn brand is one of industry's 4 luxury brands," she said in a research note.
NYK is a major Tokyo based shipping group that has interest in container, crude carrier, dry bulk and vehicle shipping sectors. It retains one cruise liner, the 1990 built Asuka II that caters for rhe Japanese narket.
"It's unclear what Genting HK's plans are for the brand outside of their expressed intention to order a new ship for the brand, which is currently comprised of only two ships, & that would still taketwo to three years to enter service since it is not currently on order. But if Genting were to target the luxury brand to the Chinese market, for example, that could eventually help pave the way for other luxury brands in the Chinese market, also a potential positive for NCLH's (Norwegian Cruise L:ine Holdings') Regent brand and CCL's Seabourn brand," she pointed out.
