Top Headlines

Norwegian joins RCCL and Carnival in UK commission cut

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 24 October 2012 24 October 2012

Norwegian Cruise Line has announced that it will amend its base commission to 10% in the UK market effective from 1 January 2013, whereby it joins Royal Caribbean and Carnival groups that have unveiled a similar move earlier.

The move reinforces Norwegian’s commitment to the UK trade, through its Partners First philosophy, as it develops new ways to ensure fairness, greater price parity, less confusion for customers and an increase in the number of agents selling cruise. In addition, Norwegian will reward travel agents with incremental earning opportunities through performance-based incentives.

Francis Riley, Vice President and General Manager International for Norwegian Cruise Line said, “By amending our commission rates, we believe this will help bring a stop to the discounting culture that is currently widespread in the UK cruise market. We hear daily from customers about the confusion and uncertainty of what, where and when to book. We believe the revised business model, developed with our trade partners in mind and in discussions with them, is an investment in the future success and earning potential of travel agents.”

Riley also added, “Moving to 10% and putting in place policies to police the rebating will help to attract new travel agents to the market who in the past have felt they were unable to compete with the big discounters. One of the cornerstones of driving incremental demand for our product is in building travel agent advocacy and having travel partners excited about selling Norwegian Cruise Line. With our recent announcement of another new ship joining the fleet with an option for a second ship, travel agents are and will continue to remain the lifeblood of Norwegian and I sincerely hope this move will make it fairer and more profitable for travel partners overall.”

For 2013, the company will continue to make major investments into joint marketing funds as a further commitment to the travel trade and to further reinforce its commitment to price parity in the market, the company will remove its five percent online discount on www.ncl.co.uk from 1^st January 2013.

Russian source market needs indigenous cruise brand to grow – G.P. Wild

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 22 October 2012 22 October 2012

Russia only generates about 50,000 cruise passengers each year, but given increasing affluence of its population, this figure could be much higher in the future provided that the potential be exploited successfully, said Peter Wild of G.P. Wild (International), the UK based consultancy.

In a presentation at the recent Transtech trade show in ST Petersburg, Wild outlined views on how to develop the Russian source market and how to develop cruise industry in the country’s ports with visiting foreign ships in mind.

Wild said that to develop the domestic source market, operators could charter tonnage to cater for the short season when the country’s own ports could come to use as base for cruises. An indigenous Russian mainstream cruise brand could be developed, this could be done in a joint venture with an international operator and also nice products targeting the Russian market could be developed.

As a source market, Russia only produces about 50,000 cruise passengers per year, which translates to a market penetration of only 0.04%. Assuming that the Russian source market reached the 3.56% penetration level of the US, the highest rate of any major market, the country could generate 5.05 million cruise passengers. In case the penetration rate reached the 2.6% of the UK or 2.1% of Germany, the source market would still produce between 2.87 million and 3.70 million passengers each year.

Although the level of affluence is increasing in Russia, the question is whether Russians are attracted to cruise holidays. It should also be noted that the level of affluence is higher than in Russia on all major source markets for cruises apart from Brazil, which has nevertheless grown by an average of 28% per year from 2004/05 to 693,000 passengers in the2010/11 season. “This clearly suggests that Russia offers a major opportunity for development of cruise tourism in future,” Wild concluded.

Due to their seasonality, Russian ports would play a limited role in the growth of the Russian source market, while St Petersburg and Sochi would be best positioned to capitalize from the growth of a Russian source market. However, fly cruises could be operated from various airports to Istanbul, Dubai, Singapore, Shanghai, Hong Kong and Barbados outside the home country cruise season.

Majority of the 142 million people in Russia live west of a line drawn from St Petesrburg and Omsk, while 74% of the country’s population live in urban communities. The length of Russia’s coastline is 37,653km, but inspite of this fact, the country only has a few ports that are ice free in the winter. Most of the coastline is in the Arctic regions of the country and it cannot be visited by cruise liners.

Consequently, only four of the 29 ports used by foreign ships regularly feature on cruise itineraries – these are St Petersburg, Sochi, Murmansk and Vladivostok. In addition, Novorossiysk and Petropavolvsk-Kamchatsky receive occasional cruise calls. The port of Archangel on the White Sea has a fascinating history that goes back to the medieval times and it receives nine calls this years.

Novorossiysk on the Black Sea could be developed thanks to its proximity to the health resort of Anapa. However, as far as ports in the Far East are concerned, developing the facilitiesat Vladivostok should be an obvious choice ahead of other ports in the region as places like Nakhodka and Vosctochny are not well known outside shipping circles.

Norwegian Cruise Line orders a 163,000 gross ton newbuilding from Meyer Werft

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 17 October 2012 17 October 2012

Norwegian Cruise Line announced today that it has reached an agreement with Meyer Werft GmbH of Germany to build a new cruise vessel, for delivery in October 2015, with the option for a second ship for delivery in spring 2017. The new ship, at 163,000 gross tons and approximately 4,200 passenger berths, will be larger than the Company's Breakaway class ships currently under construction at Meyer Werft and incorporate many of those vessels' unique design elements and innovations. With the project name "Breakaway Plus," this new vessel will be the largest in Norwegian's fleet.

The ship's contract price is approximately 700 million euros and the Company has export credit financing in place which was arranged and underwritten by KfW IPEX-Bank GmbH of Germany.

"Norwegian Breakaway and Norwegian Getaway have garnered significant attention in the marketplace with their innovative design, rich stateroom mix and world-class amenities. Building on that momentum, along with Meyer Werft's expertise and efficiency in the design and construction process, we are extending the excitement and anticipation with a new, larger edition Breakaway Plus class ship to further distinguish the Norwegian brand," said Kevin Sheehan, Norwegian Cruise Line's chief executive officer. "This new order further solidifies our commitment to continued innovation in terms of the guest experience and will incorporate technical and environmental advances as well."

Meyer Werft, based in Papenburg, Germany, is currently building Norwegian's two new 146,600 gross ton, 4,000-passenger Breakaway class vessels: Norwegian Breakaway, scheduled for delivery in late April 2013, and Norwegian Getaway, scheduled for delivery in mid-January 2014. Prior to the Breakaway class ships, Meyer Werft built Norwegian's four Jewel-class ships - Norwegian Gem delivered in 2007, Norwegian Pearl and Norwegian Jade delivered in 2006, and Norwegian Jewel delivered in 2005. This new vessel on order, along with the option for the second ship, will be the tenth and eleventh that the Company will build with Meyer Werft.

"We are pleased that Norwegian Cruise Line has decided to expand and enlarge its exciting Breakaway class at Meyer Werft," said Bernard Meyer, managing partner of Meyer Werft. "Our companies have a long history together and we appreciate Norwegian Cruise Line's continued commitment to Meyer Werft."

Norwegian Cruise Line pioneered the concept of Freestyle Cruising and currently offers guests the freedom and flexibility to enjoy their cruise vacation on their own terms, including multiple dining venues, relaxed attire, a variety of accommodations and world-class entertainment. The Company took Freestyle Cruising to the next level with the introduction of Norwegian Epic in June 2010 and is continuing to innovate with the launch of "New York's Ship" Norwegian Breakaway in late April 2013. The company has revealed the ship's groundbreaking design, including The Waterfront and 678 Ocean Place; a wide range of indoor and outdoor venues on three dynamic decks that will create a whole new complex at sea that enhances guests' connection with the ocean.

Norwegian Breakaway's entertainment will include three Broadway shows: five-time Tony nominated ROCK OF AGES; the dance sensation BURN THE FLOOR; and CIRQUE DREAMS & DINNER JUNGLE FANTASY. The famed comedy troupe The Second City, Howl at the Moon dueling pianos, and New York's own Slam Allen will also perform on the vessel. Celebrity Chef and Food Network star Geoffrey Zakarian will also debut his first restaurant at sea on Norwegian Breakaway: Ocean Blue by Geoffrey Zakarian. The top decks of Norwegian Breakaway will feature the first Aqua Park at sea with five full-size water slides, including twin Free Fall slides, the first ever at sea, and a three-story sports complex that includes the largest ropes course at sea, a nine-hole miniature golf course, basketball court, rock climbing wall and more.

Norwegian Breakaway will also feature a rich mix of stateroom options including The Haven by Norwegian, comprised of 42 Suites at the top of the ship in an exclusive, private key-card enclave and 22 additional Suites located throughout the ship. The innovative Studios are designed and priced for solo travelers. Other accommodations include Oceanview and Balcony staterooms, and Mini-Suites; along with Spa Balcony, Mini-Suites and Suites in close proximity to the spa.

RCL Cruises cuts agents' commission to 10% from 15%

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 16 October 2012 16 October 2012

RCL Cruises, the UK company that operates Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises in the country, says it has reduced the commission it pays to travel agents to 10% from up to 15%, a spokeswoman for the company told Cruise Business Online.

Complete Cruise Solutions, the Carnival UK unit that deals with travel agents, has carried out a similar cut earlier.

The companies in question have said reducing the commission will help them ion an effort to combat heavy discounting by some travel agents.

Singapore based Avic to acquire Deltamarin in Finland for €32 million

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 13 October 2012 13 October 2012

AVIC International Investments Limited said it is acquiring Deltamarin Oy, the Finnish ship design specialist, for €32.11 million.

Deltamarin provides design, engineering and contracting services for offshore, shipping, shipbuilding, naval and marine industries. It is a well-known name in passenger ship design and has e.g. worked on the Titanic II project of Blue Star Line. However, it also works for customers in other areas of shipping.

Avic is a Singapore-listed provider of project management and consultancy services to shipping and shipbuilding, said in a statement the acquisition will contribute greatly to the group's plans to become a dominant player global shipping.