News

Port of Seattle signs 15-year lease with Norwegian Cruise Line Holdings

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 12 August 2015 12 August 2015

The Port of Seattle signed a historic 15-year lease yesterday with Norwegian Cruise Line Holdings, parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. The deal secures NCLH ships in Seattle for the full term of the lease and provides passenger volume guarantees estimated to bring $73 million dollars of revenue to the port.

“We thank Norwegian Cruise Line for their commitment to Seattle and the Alaska cruise business,” said Commissioner John Creighton. “Cruise in Seattle means $440 million in annual economic impact for this region. This deal means more growth, which means more jobs.”

“Alaska is a favorite cruise destination for guests on all three of our brands and Seattle, with its incredible culinary offerings, luxurious accommodations and outstanding attractions, makes for an ideal homeport,” shared Frank Del Rio, chief executive officer for Norwegian Cruise Line Holdings Ltd. “With primary use of the world-class facilities at Pier 66, we can further customize our guests’ pre- and post-cruise experience and better align it with the superior service levels offered by our three award-winning brands.”

“This is a historic deal for the Port of Seattle,” said Port of Seattle CEO Ted Fick. “A 15-year lease for a cruise terminal is unprecedented on the West Coast. Norwegian Cruise Line is showing real vision by investing in the economic growth of this region.”

In addition NCLH will make tenant improvements to the Bell Street Cruise Terminal estimated at $30 million which will significantly expand the portion of the P66 facilities used for processing cruise passengers. Under the new lease NCLH will manage the cruise operations at P66 and will have priority rights to the cruise vessel berth during the cruise season. The port will operate the facilities outside the cruise season. The capital investment to complete the terminal improvements will be shared between the Port and NCLH. The 15-year business commitment is estimated to generate over $2 billion in total business revenue for the region, nearly 900 jobs, and over $65 million in state and local taxes.

The agreement also includes language that will establish a Project Labor Agreement (PLA) between the tenant’s general contractor and the building trades.

"We commend the Port of Seattle for their expansion of Project Labor Agreements." said Monty Anderson of the Seattle Building Trades. “This not only insures quality construction, this expansion opens the door for local residents to join apprenticeship programs that lead into great paying construction careers.”

Seattle’s cruise business—currently leading all cruise homeports on the U.S. west coast in passenger volume—is responsible for over 3,600 jobs, $441 million in annual business revenue, and $17.2 million annually in state and local tax revenues. Each homeport vessel call generates $2.5 million for the local economy.

Lacking investment, British market appears to fall even further behind Germany

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 11 August 2015 11 August 2015

An anaemic British cruise market appears to be unable to benefit from the country’s strong economy and to fall even further behind Germany due to lack of investment and exodus of ships.

The British market is poised to lose two high profile ships next year while there are no newbuildings on order to specially target it, while a total of eight new ships are on order to serve the German market.

As reported earlier, Royal Caribbean International will not bring back Anthem of the Seas that was completed in April next year following the ship’s initial season from Southampton. It will be replaced by the 2008 built Independence of the Seas that has served the British market earlier – initially year-round, but lately for just part of the year.

Princess Cruises will not bring back the Royal Princess that has sailed from the same port for the past two season – again, an older and smaller vessel will take its place.

Furthermore, Holland America Line will not have a ship in the UK in 2016 after Ryndam that has served from there for many years will be transferred to P&O Cruises Australia. Carnival Cruise Line, Norwegian Cruise Line and Costa Crociere have all ceased to base ships in British ports earlier, although all lines continue to sell fly cruises in the country.

The only addition to the British market known at the moment involves Thomson Cruises, which is due to receive Royal Caribbean International’s 1996 built Splendour of the Seas next year to replace the 1982 built Island Escape, which will be withdrawn from service with the company.

In 2014, the British source market contracted by 4.8% to 1.64 million passengers, while the German market expanded by 5% to 1.77 million and overtook Britain as the world’s second largest source market, according to Cruise Line’s International Association (CLIA) figures. Cruise line executives and CLIA have said the contraction of the British market was due to reduced capacity on the said market.

However, they have not elaborated on why the supply side has been reduced in Britain. Usually, the yield that ships are expected to obtain is a significant factor in allotment of capacity.

The loss of momentum of the industry in Britain becomes even more striking when one looks at the performance of the two economies. Gross domestic product (GDP) in the UK grew by 3.2% in 2014, twice the 1.6% growth rate of Germany.

Commercial restructure for P&O Cruises & Cunard

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 11 August 2015 11 August 2015

Carnival UK CEO David Noyes has today, August 11, 2015, announced a commercial restructure for P&O Cruises and Cunard Line.

Commenting on the new organisational structure David Noyes said: “We have two leading brands and we need to differentiate between them. By bringing sales and marketing together we will bring a greater focus to each of our great brands.”

As part of the restructure sales & distribution director, Chris Truscott will be leaving the business.

David Noyes said: “Chris Truscott leaves this business in a significantly better position than the one he joined. He should be proud of what he has achieved and the relationships he has built. I wish him every success for the future.”

Paul Ludlow has been appointed senior vice-president, sales & marketing for P&O Cruises.

Ludlow, 36, who joins from Princess Cruises where he was managing director UK & Europe, will have full responsibility for the sales and marketing for P&O Cruises as well as sales support, guest insight and digital teams for both brands.

Commenting on the appointment, David Noyes said “I am delighted to appoint Paul to this critical role. Paul’s 15 years of experience within our company makes him an ideal fit to lead the sales and marketing teams for P&O Cruises to ensure sustained growth of the brand.”

Paul Ludlow said: “Following the launch of Britannia in March, which positioned P&O Cruises at the forefront of the nation’s mind, there has never been a more exciting time for the company. The potential for the industry as a whole is vast and I am determined, through giving a seamless, exemplary guest experience, working closely with our travel agent partners, to develop this growth to the maximum for P&O Cruises.”

The restructure will also include a similar SVP sales & marketing role for Cunard, working alongside Rick Meadows, president for Cunard in North America. Recruitment for this position is currently underway.

Jeremy McKenna, head of partner sales will lead the agency sales team, currently for both brands, reporting directly to Ludlow in the interim period until the SVP Cunard sales and marketing role is appointed.

Princess Cruises will be recruiting for Paul Ludlow’s replacement. During his tenure at Princess Ludlow established separate commercial operations for Princess in the UK, including dedicated teams responsible for revenue management, sales, marketing, reservations, customer relations and PR. He led the team which launched Royal Princess in Southampton, by HRH The Duchess of Cambridge.

He also oversaw the growth of Princess guests from the UK, including the successful introduction of Asia as a key destination for the UK market and launched new travel agent tools, such as Flight Select and OneSource cruises, part of the line’s programme to support and reward its travel agent partners.