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Ponant plans to acquire Paul Gauguin Cruises

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 09 August 2019 09 August 2019

Ponant, the world leader of luxury expeditions to locations that only small ships can navigate, has announced its plan to acquire Paul Gauguin Cruises, the renowned specialist in sailings to exotic ports in French Polynesia and the South Pacific. Like Ponant, Paul Gauguin combines exceptional itineraries with luxury hotel services and fine cuisine to create memorable experiences at sea. Following the acquisition, the two cruise lines will keep their management, Diane Moore acting as CEO of Paul Gauguin Cruises with her team still based in Bellevue, WA and Navin Sawhney acting as CEO Americas of Ponant, based in New York.

“We are pleased to welcome Paul Gauguin Cruises to our Ponant family,” noted Jean-Emmanuel Sauvée, Founder and President of Ponant. “Our guests can now select from a wider range of iconic destinations and become enriched by cultural and expedition cruises of their choice, that literally travel to the ends of the earth from the most remote ports to more perennial favorites, on our combined fleet of small ships. We share the same core values. The synergy between our operations makes this the perfect collaboration while preserving the unique DNA of both brand experiences.”

Speaking for Paul Gauguin Cruises, Richard Bailey, Chairman, observed, “With this strategic alliance we look forward to delivering even more unique, luxury, small-ship experiences to our guests.”

Navin Sawhney, CEO Americas for Ponant, added “Ponant is proud to be at the forefront of small ship exploration. We are expanding our Ponant fleet to 14 ships by 2021. Now, through Paul Gauguin and its expertise, we will be able to offer our clients and partners yet another bucket list destination visiting the exotic islands of Tahiti, French Polynesia and the South Pacific.”

“As we join the Ponant family, we remain dedicated to our shared passion for authentic experiences, high quality service and sustainable practices. We are excited about introducing our guests to the wider world of Ponant and to welcoming Ponant guests on board Paul Gauguin,” remarked Diane Moore, CEO of Paul Gauguin Cruises.

Hong Kong cruise tourism unaffected by unrest

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 09 August 2019 09 August 2019

Alan Lam reporting from Hong Kong

For weeks, the interminable unrest in Hong Kong has been headline news all over the world. We see shocking scenes of street battles taking place in the city, which is otherwise deemed to be one of the safest in the world. Inevitably, as a result, Hong Kong has suffered a significant drop in visitor numbers. But so far, at least, its cruise business appears have escaped relatively unscathed.

“Preliminary figures show a double-digit decline in the number of visitor arrivals in the second half of July, leading to a fall in total arrivals for the month,” Hong Kong Tourism Board (HKTB) told CruiseBusiness.com Magazine.

According Jeff Bent, Managing Director of World Wide Cruise Terminals, to date, cruise ship calls and passenger numbers have not been affected to the same extent. “I think that given the protests do not target bystanders or shops, calls can continue as usual,” he told us. “The largest group of Hong Kong cruise passengers are locals, who have not been disturbed.”

But the picture is more complicated; the situation is still evolving from day to day. The exact extent of the impact on cruise tourism is as yet undetermined. Moreover, “since the ship deployment pattern is different, it is difficult to make direct comparison with the same period last year,” said HKTB.

Proper perspective

As the city prepares for yet another weekend of confrontations, it may be easy for the wider world to lose sight of the fact that Hong Kong is above everything else an iconic cruise destination, a highly efficient city with a shining word-class infrastructure, which is well run and well maintained, and has an almost peerless hospitality industry that is in no way undermined by the recent event.

International media have reported and often sensationalised the Hong Kong protests. For those of us who live and work in the city, the reality is quite different.

Indeed our daily life and movements have been inconvenienced somewhat by civil disobediences and sporadic public transport disruptions. The very nature of these protests is different from those encountered elsewhere. They are by and large good-natured and not threats to the safety of people and properties.

“International media do not generally make it clear that bystanders and local businesses have not been targeted. We hope that this is more accurately reflected going forwards,” said Bent.

Hong Kong’s cruise industry and HKTB are constantly monitoring the situation and are in communication with cruise lines. “At present, the operation of cruise terminals and the tourist activities in Hong Kong continue as usual,” said HKTB. “Hotel and tourism operators are also monitoring the situation, and are prepared to provide necessary assistance to minimise disruption to travellers in the event that unforeseen circumstances arise.”

Evolving situation

Our correspondent has been in Hong Kong throughout the unrest. He can report that so far, besides the well-publicized recent flight cancellations and transport disruptions there have been minimal interruptions to tourism-related services. Hotels, shops and restaurants are operating as usual. All cruise ports are functioning normally.

The situation remains fluid. More protests are expected. As the movement spreads, its very nature is evolving. Flashmob tactics are employed by some. The Chinese government is becoming increasingly agitated and it has not ruled out the deployment of the army. If the PLA (People’s Liberation Army) enters the tableau, the entire picture will be radically different.

As we write these lines, air, rail, and road transports services are operating normally and with typical efficiency. There are no discernible safety issues concerning travellers. Citizens and visitors are kept well informed of potential service interruptions.
“As the safety and security of travellers are of the utmost importance, the Hong Kong Tourism Board continues to monitor the current situation closely,” said HKTB. “Should there be any tourist areas or major attractions affected by public events, we will inform visitors via our website, visitor centres and visitor service hotline to help them plan their trips.”

NCLH shaves $0.40 from 2019 EPS guidance midpoint on Cuba, Norwegian Pearl

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 08 August 2019 08 August 2019

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reduced the midpoint of its guidance for adjusted full year 2019 earnings per share (EPS) by $0.40 due to Cuba and technical problems that hit Norwegian Pearl earlier in the summer.

“Full year adjusted EPS is now expected to be in the range of $5.00 to $5.10, inclusive of a $0.45 adverse impact from the abrupt change in federal regulations surrounding cruises to Cuba and a $0.07 impact from a technical issue on Norwegian Pearl in July,” NCLH said in a statement. 

NCLH’s previous forecast was from May, when the company said its adjusted EPS is expected to be in the range of $5.40 to $5.50, despite an impact of approximately $0.10 from higher fuel prices and unfavorable foreign exchange rates.

The company noted that without these headwinds, the company’s outlook would have exceeded its May guidance primarily as a result of revenue outperformance in the second quarter, coupled with a stronger revenue outlook for the back half of the year.

“The combination of the continued robust demand environment, the building excitement for the upcoming launches of Norwegian Encore and Seven Seas Splendor and the march towards achieving our Full Speed Ahead 2020 Targets is setting up 2020 to be another milestone year,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

“We remain committed to maximizing shareholder returns and believe our current valuation does not reflect the strong core fundamentals of our business; therefore, we will be focusing our capital allocation strategy on opportunistic share repurchases,” he added.

NCLH reports rise in second quarter and first half earnings on strong demand

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 08 August 2019 08 August 2019

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported an increase in both second quarter and first half  net income p[lus operating income on strong demand.

Net income in the second quarter rose to $240.2 million from $226.7 million in the same period last year, while operating income rose to $308.9 million from $292.1 million, Revenues reached $1.65 billion, an increase from $1.52 billion year on.

In the first six months of the year, NCLH’s net income rose to $358.3 million from $329.8 million and operating income rose to $466.9 million from $459.2 million. Revenues increased to $3.07 billion from $2.82 billion.

“The Company generated Adjusted Net Income of $282.1 million or Adjusted EPS of $1.30 compared to $271.9 million or $1.21 in the prior year,” NCLH said in a statement.

“Continued robust demand for our global brands along with our strong consumer focused value proposition, honed revenue management practices and best guest marketing strategy, enabled us to continue to drive ticket pricing higher which, when coupled with strong onboard revenue performance, resulted in record second quarter results,” said Frank Del Rio, president and chief executive officer of NCLH.

“The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings, ” he added.

Increase in revenues in the second quarter was primarily attributed to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 along with an increase in net yield driven by the repositioning of Norwegian Joy to North America, robust onboard spending along with strong growth in organic pricing across all core markets. Gross yield increased 7.5%. Net yield increased 5.8% on a constant currency basis and 5.0% on an as reported basis.

Total cruise operating expense increased 11.1% in 2019 compared to 2018, primarily due to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 and the redeployment of Norwegian Joy to North America. 

Gross cruise costs per capacity day increased 8.3%. Adjusted net cruise cost excluding fuel per capacity day increased 6.1% on a constant currency basis and 5.1% on an as reported basis. Fuel price per metric ton, net of hedges increased to $493 from $481 in 2018.  The company reported fuel expense of $100.5 million in the period, NCLH said.