Top Headlines

Celebrity Cruises takes delivery of its new mega yacht specifically designed for Galapagos

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 14 May 2019 14 May 2019

The first ship designed specifically for the Galapagos Islands – Celebrity Cruises’ revolutionary Celebrity Flora – is preparing to embark on her transatlantic journey to her new home in the diverse archipelago following an intimate delivery ceremony.

In honor of the significant moment – a culmination of more than two years of planning and 18 months of construction – Royal Caribbean Cruises Ltd.’s Chairman and CEO Richard D. Fain hosted a ceremony aboard Celebrity Flora, while docked in Rotterdam, Netherlands. Company and shipyard executives were also in attendance, plus more than 70 crew members, many of whom are Ecuadorian natives.

“The delivery of Celebrity Flora is a momentous occasion,” said Fain. “Designing a new ship specifically for the Galapagos Islands was an exciting challenge and we think Celebrity Flora succeeded beautifully. It is of course luxurious – but it’s also the most energy-efficient ship of its kind in the region, which further demonstrates our commitment to sustainability and protecting the vital ecosystem of this unique place.”

“More than two years of planning, collaboration and construction have led to this very exciting moment,” said Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises. “Thanks to the hard work of hundreds of architects, artisans, engineers and more, we’re one step closer to the first-ever sailing of the beautiful Celebrity Flora, which will forever change the way guests experience the Galapagos. Travelers will soon be able to step on board our stunning 100-guest mega yacht with the largest and most luxurious all-suite accommodations in the Galapagos Islands.”

The most energy-efficient ship of its kind in the region, the 100-guest Celebrity Flora was designed specifically to explore the Galapagos. The cutting-edge new ship will feature Celebrity’s signature outward-facing design concept, giving guests 360-degree views of the islands, and all-suite accommodations – including an unprecedented 50-percent Sky Suites with Infinite Veranda – with service provided by personal attendants. Unique to Celebrity Flora are the first-ever glamping experience at sea, new dining venues, an open-air stargazing platform, expert-led ecological seminars, and custom-designed Novurania yacht tenders, which create a seamless sea-to-shore experience.

Celebrity Flora will have the highest ratio of Certified Naturalists per guest (1:9) in the Galapagos, who will offer travelers an in-depth experience with certification by the Galapagos National Park, recognizing their extensive educational training and commitment to maintaining the pristine nature of these islands.

With the launch of their newest ship, Celebrity had the opportunity to blend exploration and research by making Celebrity Flora the first vessel in the Galapagos to be equipped with cutting-edge oceanographic research equipment, known as Oceanscope. The program builds on a more than 20-year relationship with University of Miami’s Rosenstiel School of Marine and Atmospheric Science that benefits from a cruise ship’s consistent itinerary to create a perfect and cost-effective way for scientists to gather and measure ocean circulation dynamics. The system will track and map the region while measuring sea-surface temperatures and gathering data critical to research prediction of El Niño and La Niña. All findings gathered by Celebrity Flora will become open source data – globally accessible to research – a first for scientists around the world and anyone with a passion for this information. Another first is that guests will be able to view the data through compelling real-time visualizations on board the ship. These visualizations will give guests the opportunity to learn more about the beautiful Galapagos Islands region and its scientific importance.

Celebrity Flora will sail from Baltra year-round, making her first sailing on June 30, 2019. Bookings are open at www.celebritycruises.com/galapagos/ships/celebrity-flora or through a travel advisor, for the ship’s alternating seven-night inner and outer loop itineraries and selection of 10-, 11-, and 16-night packages, which feature either pre- or post-cruise expeditions.

54th MedCruise GA reconnecting Eastern Mediterranean

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 09 May 2019 09 May 2019

Alan Lam reporting from Kuşadasi

The 54th MedCruise General Assembly is currently underway in Kuşadasi, Turkey, hosted by Global Ports Holding (GPH), the biggest specialist cruise port operator in the world. Unsurprisingly, the main focus of the conference is on the revival of Eastern Mediterranean cruise market in general, the Turkish market in particular.

As the geopolitical impact subsides and the memories of recent unfortunate events fade, cruise ships and passengers are coming back to the region in bigger numbers and at increasingly quicker paces. Most Turkish ports are experiencing rapid recoveries.

There is a very human story to be told here. This is the part of the world where human history and civilisation are measured by millennia, not by centuries. It is the home of the Seven Wonders of the Ancient World. The connection and yearning to reconnect with the past is so strong that no geopolitical force can render it asunder. Cruise ships approaching and departing the ancient harbours of Eastern Mediterranean are symbols of this reconnection. Cruise business of this region has now a new perspective of its mission.

Not all cruise lines withdrew their ships in the aftermath of the recent events. Those who never left are now reaping the rewards and thriving.

As creating new itineraries needs time, major differences in traffics will only begin to be felt in 2021 and beyond.

Meanwhile, cruise ports and destinations in Turkey have taken the opportunity to upgrade their facilities and rethink their strategies. GPH ports are already feeling the forces of the returning tides and are rising to the challenges.

There is much excitement, euphoric anticipation, and optimism among the stakeholders. A full analytical feature of the Assembly will appear in the next issue of CruiseBusiness.com Magazine

NCLH raises 2019 EPS guidance to $5.40 to $5.50 range

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 09 May 2019 09 May 2019

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, said it has raised its 2019 full year net yield growth guidance on a constant currency basis by 50 basis points from the prior guidance to 3.5% to 4.5%.

However, NCLH now forecasts net cruise costs to rise by about 3.5% per capacity day, excluding fuel. The previous forecast was 3.25%.

As a result of higher pace of yield increase than that of net cruise costs, the company raised its full year earnings per share (EPS) guidance to the $5.40 to $5.50 range from a previous guidance of $5.20 to $5.30.

“The strong demand environment we have been experiencing for some time is continuing throughout 2019 and into 2020,” said Mark A. Kempa, executive vice president and chief financial officer of NCLH, in a statement.

“We remain confident in our outlook to achieve our Full Speed Ahead 2020 targets and have opportunistically executed $200 million in share repurchases in the quarter, bringing our total shareholder capital returns to $600 million over the last four quarters.”

Income tax benefit lifted NCLH first quarter net income, operating income fell

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 09 May 2019 09 May 2019

A significant income tax benefit in the first three months of this year lifted net income of Norwegian Cruise Line Holdings Ltd (NCLH) well above the level of the same period last year, but operating income fell.

Net income amounted to $1181 million in January-March 2019 compared to $103.1 million in the same period last year. A tax benefit of $33.8 million compared to a tax expense of $2.5 million in the corresponding period in 2018 lifted the fresh figure.

Operating income decreased to $158.8 million from $167.0 million as cruise operating expenses increased to $826.6 million from $768.1 million. Revenues rose to 1.40 billion from $1.29 billion.

Earnings per share rose to $0.54 from $0.45, according to US GAAP, the company said in a statement.

“We were pleased to enter the year in a record booked position, which when combined with a solid WAVE season and record results for the first quarter, paved the way for an increase to our full year Adjusted EPS outlook that now exceeds the high-end of our previous guidance range, and would result in yet another year of double-digit Adjusted EPS growth," said Frank Del Rio, president and chief executive officer of NCLH.

“Our modest in-year capacity growth of less than 3%, coupled with continued robust global demand for our portfolio of brands allowed us to focus on driving pricing as evidenced by our first quarter topline beat, our record wave season pricing and higher net yield growth expectations for the remainder of the year.”

Revenue increased 8.5% to $1.4 billion compared to $1.3 billion in 2018. These increases were primarily attributed to the addition of Norwegian Bliss to the fleet, along with strong growth in organic pricing across all core markets and robust onboard spending. Gross Yield increased 2.8%. Net Yield increased 4.1% on a Constant Currency basis and 3.2% on an as reported basis.

Total cruise operating expense increased 7.6% in 2019 compared to 2018, primarily due to an increase in Capacity Days. Gross Cruise Costs per Capacity Day increased 2.4%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 3.6% on a Constant Currency basis and 3.0% on an as reported basis.

Fuel price per metric ton, net of hedges increased to $461 from $448 in 2018. The Company reported fuel expense of $98.3 million in the period.

Interest expense, net increased to $73.5 million in 2019 from $59.7 million in 2018. The increase in interest expense reflects additional debt in connection with the delivery of Norwegian Bliss in 2018, Project Leonardo financing, as well as higher interest rates due to an increase in LIBOR.

Also included in 2019 were losses on extinguishment of debt and debt modification costs of $6.1 million in connection with refinancing of certain of our credit facilities.

Other income (expense), net was an expense of $0.4 million in 2019 compared to an expense of $1.7 million in 2018. In both periods, the expense was primarily related to losses on foreign currency exchange.

“In the quarter we had an income tax benefit of $33.8 million compared to an income tax expense of $2.5 million in 2018. In 2018, we implemented certain tax restructuring strategies that created the ability to utilize the net operating loss carryforwards of Prestige, for which we had previously provided a full valuation allowance. As a result, we recorded a tax benefit of $35.7 million in connection with the reversal of substantially all of the valuation allowance,” NCLH said.

AmaWaterways' revolutionary newbuild, AmaMagna, enters service

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 09 May 2019 09 May 2019

AmaWaterways today released highly anticipated images of its revolutionary new ship – AmaMagna – celebrating its arrival as she set sail on an inaugural voyage from Vilshofen, Germany to Budapest, Hungary. The brain child of AmaWaterways’ president and co-founder Rudi Schreiner, AmaMagna surpassed guests’ expectations on embarkation day with the highest level of luxury and generous personal space of any ship on the rivers. The first-ever photos of AmaMagna’s public spaces showcase the stunning design and elegant décor of a multi-level lounge and Main Restaurant, which features floor-to-ceiling windows. They also provide a first look at new dining venues – the Al Fresco Restaurant (pictured right) and Jimmy’s (pictured below), the latter of which is named in honor of the late Jimmy Murphy, one of AmaWaterways’ original co-founders and co-owners.

“Dreams are fueled by an individual’s passion but usually accomplished through the creativity and hard work of many,” said Schreiner. “This ship represents a labor of love for so many people who contributed groundbreaking ideas, as well as a lot of hard work that was done by the team to bring my dream project to reality.”

At an exclusive Oktoberfest welcome event in Vilshofen, Captain Jan de Bruijn, Cruise Manager Dragan and Hotel Services Manager Guido greeted AmaMagna’s first guests, many of whom were loyal AmaWaterways cruisers anxious to be among the first to experience the newest member of the family. Equally excited were first-time river cruisers like Barry Blake, traveling with the High Country Charity Foundation/Elk River Club group from Minnesota, who remarked “WOW! The ship is beyond believable. We had dinner at The Chefs Table last night…exquisite!”

“The delighted reactions of our guests and travel partners when they embarked on this cruise is genuinely rewarding,” said Kristin Karst, executive vice president and co-founder. “With the choice of four distinct dining venues, five bars, elegant lounges and exceptional accommodations, AmaMagna has been designed for those seeking a fresh, contemporary and dynamic take on river cruising. This beautiful ship has a direct appeal to ocean cruisers, who are accustomed to the luxury of expansive personal space and a wide variety of leisure activities during their vacation.”

AmaMagna is twice the width of traditional river cruise ships, yet welcomes only 20% more guests, allowing generous personal space - with more than half of the 98 staterooms designated as suites measuring between 355 and 710 sq. ft. All staterooms and suites are appointed with stylish décor and natural wood accents. The suites feature full outside balconies, open seating areas and luxurious bathrooms, complete with double sinks and walk-in showers. Six Grand Suites (474 sq. ft.) and an Owner’s Suite (710 sq. ft.) provide even more amenities with separate seating areas and sizable bathrooms complete with spa-like bathtubs.

The ship also provides enhanced entertainment offerings with an onboard cinema and amenities, including a large boutique; an expansive Zen Wellness Studio, complete with a large exercise area offering group classes focused on stretching, cardio and core strengthening and spin classes led by a professionally trained Wellness Host, a juice bar and two massage rooms, along with manicure, pedicure and hair services; and a sun deck with a large heated pool, relaxing whirlpool and sky bar. All sun deck facilities are easily accessible via an innovative pop-up elevator serving all four decks.

Exclusive to AmaMagna, guests may take advantage of a new Concierge Golf Program, providing the opportunity to experience four top-level golf courses in Hungary, Slovakia, Austria and Germany while enjoying the magic of river cruising. AmaMagna’s itineraries include Romantic Danube, Melodies of the Danube and Christmas Markets on the Danube.

AmaMagna will be officially christened by her godmother, respected travel expert and Emmy Award-winning television host, Samantha Brown, during a July 11 christening ceremony in Grein, Austria.