News

RCCL group to separate three brands to separate companies in the UK

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 September 2013 04 September 2013

Royal Caribbean Cruises Ltd (RCCL), the world's second largest cruise shipping group, has decided that RCL Cruises Ltd, its operating company in the UK, is to create three individual businesses for each of its brands in the the country as they have each now grown to a size that warrants “increased focus and investment," Travel Weekly reports in a newsletter emailed to Cruise Business.

The news comes on the same day as it emerged that Royal Caribbean International, the group's contemporary market brand, appears to replace Independence of the Seas in Southampton by the new Anthem of the Seas upon delivery from Meyer Werft in the spring of 2015.

The new structure, which will take effect from January 1, 2014, will see current associate vice president & general manager Jo Rzmowska become managing director for Celebrity Cruises. A recruitment process is already underway both internally and externally for separate managing directors for the Royal Caribbean and Azamara Club Cruises brands, Travel Weekly said.

Each individual managing director will also get his or her own commercial, marketing and sales teams, as well as separate agent trainers and trade marketing budgets.

Dominic Paul, who remains as vice president and managing director of Europe, the Middle East and Africa, said the proposed restructure was an important milestone in the history of the global RCL Cruises Ltd business:

“The only other market that we have this kind of focus is North America. This is the first time we have given any other market such attention. We have seen that when a market gets to a certain size of importance, this is the structure that works best to grow.

“The UK is the second-largest market globally and this move is a recognition of the growth achieved so far and to best position each cruise line for future development and growth.”

The three RCL brands collectively in the UK and Ireland have seen 8% growth in the last five years versus the overall cruise market in the UK and Ireland which has grown at 3% in the same period.

Asked if it meant the company, which is the second largest cruise operator in the world, would deploy more than the current five ships to the UK as a result of the restructure, Paul said: “This underlines our commitment to the UK market. We are investing in the brands and see the future potential for more growth. We hope that this will mean we can bring new ships into this market," he said.

The UK is an important location for the RCCL group also from the ship management point of view. In its 2012 annual report, RCCL said it operates 13 of its total fleet of some 40 vessels under companies which have elected to be subject to the United Kingdom tonnage tax regime. "The requirements for a company to qualify for the U.K. tonnage tax regime include being subject to United Kingdom corporate income tax, operating qualifying ships, which are strategically and commercially managed in the United Kingdom, and fulfilling a seafarer training requirement. Failure to meet any of these requirements could cause us to lose the benefit of the tonnage tax regime which will have a material effect on our results of operations," RCCL said.

Polar Cruise Enterprises talks with G Adventures, ship could also be used as training vessel

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 September 2013 04 September 2013

Polar Cruise Enterprises, the Norwegian company that plans to build an ice strengthened cruise vessel for operations mainly in Arctic waters, says it is in talks with Gap Adventures, the Canadian expedition cruise company, to employ the projected ship and that it also intends to have it used as a training vessel.

The company calls its project Ursus Maritimus; the projected vessel will have a length of 137m and passenger capacity of 240 persons, while crew of will number 70-plus.

“There are several tour operators within this passenger cruise niche that would be interested in adding a vessel like this to the fleet they are operating, However, we are in close contact with Canadian G Adventures for an eventual chartering arrangement,” Polar Cruise Enterprises said in a statement.

“We also have plans to get passengers from Asia in the future, especially from Japan and China. The Helsinki- Vantaa airport is a transportation hub for Asia, and most likely in the future Finnair will open a Helsinki to Tromso route. So we will not need to add more than Tromso - Longyearbyen to have the perfect channel to Asia,” the company stated.

The ship is also intended to be used also for scientific exploring. There will be built laboratory facilities as well as facilities for diving activities, such as a portable compression chamber.

Manning and technical management of the ship would be taken care by the Satakunta University of Applied Sciences in Finland. The vessel is planned to be a training ship as well.

It is easy to arrange many trainee cabins and lecture rooms on board this kind of cruise ship. “The ship will be navigated by Finnish officers. In addition to the Finnish crew there will be Filipinos as deck hands and stewardesses. They are found to be very suitable for this type of cruising service,” the company said.

“The vessel will be built with an icebreaker bow and will be built to the highest polar ice class. In principle the vessel will not have any operational limits. It will be able to operate in all seasons in all oceans of the world. The main objective, however will be to operate the vessel in the polar seas: in the North: Svalbard, Greenland waters, Arctic Canada, the Northeast and the Northwest Passage and the waters around the Antarctica,” the company said, adding that no such cruise vessel had been built to date.

The projected vessel is designed by Aker Arctic in Helsinki in cooperation with Capt. Endresen, one of the initiators of the project. The first drawings were made in 2008. Minor changes were made in the spring of 2012. The plan is to build the vessel at STX Finland’s Rauma shipyard and the ship would fly the Finnish flag, with Rauma as home port.

New Norwegian-Finnish venture plans Arctic cruise liner

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 03 September 2013 03 September 2013

Polar Cruise Enterprises, a new Norwegian-Finnish venture, is planning to build an ice breaking cruise liner at the Rauma yard of STX Finland, a Finnish media report says.

The venture plans to construct a ship with accommodation for 240 passengers and a crew of 70.

“Calculations regarding profitability have been made on the basis of a vessel of the same size that is already in service,” Petri Kangasvuo, spokesman for the company, was quoted by the Lansi-Suomi daily as saying.

“It would be best if the vessel could be constructed without debt financing. For that reason, the project needs additional investors. Of course, we will also apply for an innovation grant from the (Finnish) state,” Kangasvuo stated, adding that the project has already attracted a number of investors.

The planned vessel would be built to the highest ice class and it would mostly be used in the Arctic, the report said.