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TUI Cruises may order more ships, enter UK market

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 21 May 2014 21 May 2014

TUI Cruises, the Hamburg based premium cruise market operator jointly owned by TUI AG and Royal Caribbean Cruises Limited (RCCL), may order more ships and enter the UK source market, TUI AG said in a statement.

“Further fleet growth is conceivable to achieve the planned internationalisation of TUI Cruises within the TUI Group, in particular through a potential entry into source market UK. The Group is currently evaluating long-term options for an expansion of its fleet. However, here, too, capital discipline remains the priority,” TUI said in a statement.

TUI Cruises has two ships in service and two 99,300 gross ton newbuildings on order at STX Finland in Turku. The first one is due to enter service shortly and the second in the spring of 2015. They all cater for the German spaking market.

Thomson Cruises, which is part of the London based TUI travel plc group in which TUI Ag is the biggest shareholder, operates five ships on the British market.

“TUI is assessing the outlook for the cruises business as particularly positive. The Executive Board of TUI AG is confident that the Sector will achieve the turnaround by the end of the financial year. Following the commissioning of the third vessel by TUI Cruises in June 2014, Mein Schiff 4 is to be delivered in 2015, as scheduled,” TUI said.

TUI Cruises has been highly profitable, whereas the destinational to luxury brand Hapag-Lloyd Kreuzfahrten has experienced difficult times.

Norwegian Cruise Line investing $250 million for fleet enhancement program

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 20 May 2014 20 May 2014

Norwegian Cruise Line announced that it is investing more than $250 million in "Norwegian NEXT," a program focused on bringing "new enhancements, experiences and transformations" across the fleet, with the goal of elevating the guest experience and building on the success of the line's two new ships: Norwegian Breakaway and Norwegian Getaway.
Norwegian NEXT encompasses ship revitalizations, dining enhancements, new experiences in entertainment and guest activities, along with innovations in technology, new tropical destinations and the line's continued commitment to the environment. Through 2015, the company has plans to revitalize a number of vessels, including Norwegian Jewel, which just re-entered service following dry dock, along with Norwegian Pearl, Norwegian Sky and Norwegian Spirit, which were also recently refurbished.

"The youngest fleet at sea continues to get even better with our robust enhancement program taking place over the next two years," said Kevin Sheehan, Norwegian Cruise Line's chief executive officer. "We want to continue to provide fresh and relevant experiences to our guests every time they sail with us. We are investing significantly in making sure that our guests have the vacation of a lifetime and fully experience what it means to Cruise like a Norwegian."

Norwegian reinvented the dining experience at sea with the line's Freestyle Dining concept, which it is taking to the NEXT level with the introduction of new menus in complimentary dining rooms and Garden Cafes that offer more variety and choice, including numerous new dishes crafted by expert chefs using the finest ingredients. New food and beverage venues are also being introduced across the fleet. Norwegian Jewel is the first to be retrofitted with the popular, complimentary dining venue, O'Sheehan's Neighborhood Bar & Grill. The line is also adding the Sugarcane Mojito Bar, first introduced on Norwegian Getaway, to Norwegian Jewel, adjacent to the new location of the Moderno Churrascaria restaurant. In addition, treats from the wildly popular Carlo's Bake Shop by Buddy Valastro, star of TLC's Cake Boss and Next Great Baker, will be featured on all ships.

Along with dining, Norwegian is also making enhancements to its beverage program. A partnership with the world-renowned Michael Mondavi Family has already introduced a new wine menu across the fleet and the family is curating wine concepts for Norwegian's upcoming new ships. A new destination-based handcrafted beverage program, developed in partnership with James Beard Award-nominated mixologist Gabriel Orta of Miami-based Bar Lab Cocktails, is bringing guests seasonal specialty cocktails with a local twist. There will also be further fleet wide beverage training of bartenders, wine stewards and restaurant managers, providing guests with an even more knowledgeable staff to further enhance the dining experience onboard.

Norwegian is an innovator in entertainment and there are a wide range of new guest activities that will be introduced across the fleet. The line's exciting new H2GLOW Party, first introduced on Norwegian Breakaway and Norwegian Getaway, will also be rolled out fleet wide. Speaking to the quality of entertainment on board, the line is producing a series of new shows at its recently opened 45,000 square foot rehearsal facility, Norwegian Creative Studios, in Tampa, Florida. From soaring acrobats in "Elements," to the 15-foot revolving showgirl staircase in "Paradis" to rocking out with the full rock band in "Rock of Ages," Norwegian's award-winning entertainment will be customized for every ship and itinerary with line-ups that will constantly stay fresh. With a focus on family, Norwegian's five ships that feature exclusive Nickelodeon entertainment will offer new activities, dining experiences, and more ways to interact with Nickelodeon favorites like SpongeBob SquarePants.

The line is focused on introducing advanced technologies and innovations that bring more freedom and flexibility to its guests' cruise vacation from start to finish. Enhanced pre-cruise planning experiences give guests the opportunity to easily design their vacation. Once on board, there is wireless internet access from bow to stern along with interactive digital displays that are being added fleet wide. These touch screen signs will allow guests to order specialty items, get directions and reserve dining and shore excursions simply with a scan of their stateroom key. Guests can also take advantage of Norwegian's groundbreaking iConcierge mobile application to manage their cruise experience and stay in touch with fellow cruisers and family at home.

The line is also making a substantial effort to reduce its impact on the environment through its Eco-Smart Cruising programs and will install exhaust gas scrubbers on six ships, in addition to those that are already being fitted on Pride of America and the company's two new builds, Norwegian Escape and Norwegian Bliss.

Enhancements continue on the line's private island in the Bahamas, Great Stirrup Cay, with the opening of the Bacardi Bar. In addition, the line is developing a new eco-friendly cruise destination, Harvest Caye, in southern Belize. The 75-acre experience is planned to open in fall 2015 and will offer guests the option to take shore excursions on the mainland or enjoy the authentic shopping village, water sports or relaxing beach area on the island.

Cruise Business Commentary – Eastern Pacific region developing to third strategic source market of cruise industry

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 20 May 2014 20 May 2014

The news that P&O Cruises Australia will receive the 55,000 gross ton Statendam and Ryndam from sister brand Holland America Line in 2015 highlights a trend whereby Eastern Pacific source markets are becoming a third strategic leg for the cruise industry, in addition to North America and Europe.

Only a short while before that, Costa Crociere, another brand of Carnival Corp & plc group, had unveiled a decision to base the 114,000 gross ton Costa Serena year round in China as the third ship of the company to operate from there on a year round basis. This again was a counter-attack to Royal Caribbean group’s substantial increase of foothold to take place in China next year, but also Star Cruises’ fleet expansion.

The positive news is that Asia-Pacific source markets, with China and Australia in particular, are becoming a third stratetic leg for the cruise industry. China is forecast to overtake the UK in2017 by Carnival to become the world’s second largest source market for cruises, while Australia is likely to reach 1.0 million passenger mark by 2016, three years earlier than forecast so far, according to Ann Sherry, head of Carnival Australia.

With capacity moving to the eastern Pacific, there will be more room for attempts to drive up yields in Europe and North America, which remain well below their 10 year highs for both Carnival and Royal Caribbean groups.

Although these source markets increasingly absorb new ships, at least in the case of Australia, there is still room to employ older tonnage as well: the two ships to be transferred to P&O Cruises Australia both date from the early 1990s. With the second hand market virtually extinct, this allows profitable use of ships that might be difficult to trade profitably on other markets, yet which still have a good number of service life left from technical point of view.

The bad news is that Australia, which had a population of 22.7 million in 2012, cannot be expected to sustain double digit growth of its cruise passenger numbers is all eternity. However, it may still take a good many years until a ceiling will be reached. 

Also, it seems that Japan remains a tough nut to crack for western cruise operators, at least for as long as higher returns appesr to be available in China and Australia.

Holland America's Statendam and Ryndam to join P&O Cruises Australia

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 20 May 2014 20 May 2014

In its biggest ever single fleet expansion, P&O Cruises will welcome two more ships next year to make it the largest fleet of cruise ships home-ported year round in Australia.

Today’s announcement is an emphatic statement about Carnival Australia’s confidence and leadership in the Australian cruise market and reaffirmation of P&O Cruises’ status as Australia's iconic 'home brand' cruise line.

The additional ships, which will transfer to P&O Cruises from Holland America Line, will deliver much needed capacity in the world's fastest growing cruise market.

"This is a very exciting development for the Carnival Group, P&O Cruises and for our shipside and shoreside teams who have worked so passionately and effectively to build the business and the cruise category," said Ann Sherry, CEO of Carnival Australia which operates P&O Cruises.

"The P&O brand set the foundation for the resurgence of cruising in this region making it the most successful sector of Australian tourism. Adding two more ships to the fleet is a signal that the next generation of P&O Cruises is about to commence. It will also accelerate progress in reaching the industry goal of a million passengers a year by 2016 – four years earlier than forecast.

“With the P&O expansion, Carnival Group will have 12 ships home-ported in Australia with fleets from P&O Cruises, Carnival Cruise Lines and Princess Cruises calling Australia home.”

The two ships will join P&O Cruises in November 2015. Work is already underway to develop itineraries and home-porting arrangements for the expanded fleet.

Both ships are of a similar mid-range size to the three existing P&O Cruises ships, Pacific Dawn, Pacific Jewel and Pacific Pearl with a range of onboard features that will be tailored for Australian and New Zealand cruise customers.

"The ships are a perfect size for the Australian market. They are intimate, offering space, comfort and style, giving passengers more destinations to choose from, more onboard experiences to indulge in and more reasons to cruise," said Senior Vice President P&O Cruises Tammy Marshall.

"We face a very busy time in preparing for the arrival of the two ships and their integration into the existing P&O Cruises fleet and look forward to announcing the exciting new itineraries, onboard features and other great additions over the coming months.”

The arrival of Australia’s first superliner Pacific Dawn in 2007 set the scene for P&O Cruises’ leadership in building the cruise category in Australia to record levels.

Pacific Dawn was quickly followed by two more P&O Cruises’ superliners, Pacific Jewel and Pacific Pearl, in 2009 and 2010 respectively.

“This further fleet expansion is entirely appropriate for P&O Cruises, the shipping line that pioneered cruising from Australia more than 80 years ago and has set the pace for the industry ever since,” Ms Marshall said.

Having a five-ship fleet will give P&O Cruises greater flexibility in its increased offering of short break cruises, traditional cruises to the South Pacific and cruises to new destinations such as Papua New Guinea and Asia.

More than 800,000 Australians cruised last year with a majority travelling with P&O Cruises. Over a five year period between 2007 and 2012, Australian cruise passenger numbers increased 130 per cent.

Carnival Australia accounts for most of the cruise ships that cruise to or from Australia and New Zealand. Carnival Australia’s ‘House of Brands’ comprises P&O Cruises Australia, Princess Cruises, Carnival Cruise Lines, Cunard Line, P&O Cruises World Cruising, Holland America Line and Seabourn.