Azamara: Investing in Existing Fleet and More Markets

Azamara: Investing in Existing Fleet and More Markets

With a new refurbishment program underway, Azamara is focusing on hardware upgrades and operational agility to drive profitability, according to Chief Executive Officer Dondra Ritzenthaler.

The company last expanded its fleet in 2022, with the introduction of the Azamara Onward, which was acquired from Princess Cruises a year earlier.

According to Ritzenthaler, the company currently sees investment in its own fleet as the biggest opportunity for growth.

In 2026, Azamara announced the “Forward” refurbishment program, an $80-million project that will see the brand’s four ships undergoing major refits.

Ritzenthaler said that in addition to updates to existing areas of the vessels, the program includes major structural additions.

“We’re literally putting a deck on top of the ship that’s going to have 12 more suites,” she explained.

The first ship to undergo the project is the Azamara Quest, which will debut the new features ahead of its upcoming world cruise in early 2027. The Azamara Onward follows suit later next year.

Beyond hardware upgrades, the company is also planning to expand its global sourcing footprint, paying more attention to new markets around the world, Ritzenthaler said.

Azamara currently sources most of its guests in North America, the United Kingdom, Ireland and Australia, she explained.

Executing these growth strategies is made easier by the lack of corporate bureaucracy inherent in a smaller organization, Ritzenthaler noted.

“You can make changes; you can turn on the dime. And I think when you’re able to do that, then the economics of what you do become much easier to achieve,” she explained.

Ritzenthaler said that Azamara is currently performing extremely well financially from an EBITDA standpoint.

This so-called operational nimbleness is said to be transferred to the brand’s deployment strategy, allowing Azamara to secure premium berthing in highly regulated destinations.

“We simply can go in right into the city center. We literally go up the Seville River where the larger ships have to stay out and tender people in,” Ritzenthaler said.

As some ports push back against large tourist influxes, smaller vessels provide a vital economic lifeline for local communities without overwhelming local infrastructure, Ritzenthaler continued.

The ability to rapidly adjust deployments is also an important defense against external disruptions, including fluctuating fuel prices and regional conflicts.

“We look at this every single day,” Ritzenthaler said, noting that Azamara is in a better position to weather geopolitical issues due to being small and profitable.

She said that when itinerary changes occur, the company relies heavily on its travel advisor network to communicate with passengers, ensuring safety remains a non-competitive priority across the industry.

Speaking of demographics, Ritzenthaler said that the company caters to shifting audiences but tends to naturally attract a specific passenger demographic.

While maturing cruisers looking to step up from premium lines form a significant part of the company’s public, the core Azamara guest is defined by having ample time and resources.

“The average cruise length for us is 12 nights, but many of our customers do back-to-backs or take intensive cruises or even a world voyage,” she said.

“These customers are different customers who really want to get immersed,” noting that the company’s passengers ultimately “love cruising.”

This mindset fosters a strong onboard community, Ritzenthaler added, leading to repeat bookings among affinity groups.

However, despite having an affluent passenger base, the company sees a consistent demand for a clear upfront value.

“No matter how wealthy somebody is, people still love value for money,” she noted, pointing to the line’s inclusive pricing model.

Ritzenthaler said that while external challenges may arise, the company is in a good position to handle situations positively.

“In life, it’s only 10 percent what happens and 90 percent how you handle it, and we’re going to handle it in a positive, nimble, flexible and resilient way.”

Royal Caribbean Group Pandemic Exits: 10 Ships Have Now Left the Fleet

Royal Caribbean Group Pandemic Exits: 10 Ships Have Now Left the Fleet

The Royal Caribbean Group has sold a total of ten cruise ships since the start of the COVID-19 pandemic, according to the new Secondhand Market Report by Cruise Industry News.

While most of the exits are related to Pullmantur’s liquidation and Azamara’s sale, four ships have also left the fleet of Royal Caribbean International and Silversea Cruises.   

Cruise Industry News looks into the vessels that left the fleet and their fates:

Ship: Monarch
Brand: Pullmantur Cruceros
Year Built: 1991
Original Cost: $300 million
Capacity: 2,390 guests
Tonnage: 73,941
Date: July 2020
Fate: Scrapped in Aliaga, Turkey

Ship: Sovereign
Brand: Pullmantur Cruceros
Year Built: 1988
Original Cost: $185 million
Capacity: 2,322 guests
Tonnage: 73,192
Date: July 2020
Fate: Scrapped in Aliaga, Turkey

Ship: Horizon
Brand: Pullmantur Cruceros
Year Built: 1990
Original Cost: $185 million
Capacity: 1,442 guests
Tonnage: 47,000
Date: July 2020
Fate: Laid up in Elefsis, Greece

Ship: Empress of the Seas
Brand: Royal Caribbean International
Year Built: 1990
Original Cost: $170 million
Capacity: 1,607 guests
Tonnage: 48,563
Date: December 2020
Fate: Sold to Cordelia Cruises; now sailing in India as the Empress

Ship: Majesty of the Seas
Brand: Royal Caribbean International
Year Built: 1992
Original Cost: $300 million
Capacity: 2,354 guests
Tonnage: 73,941
Date: December 2020
Fate: Laid up in Greece after being bought by Seajets, a Greek ferry operator 

 

Ship: Azamara Journey
Brand: Azamara
Year Built: 2000
Original Cost: $190 million
Capacity: 718 guests
Tonnage: 30,200
Date: January 2021
Fate: Sold to Sycamore Partners along with the Azamara brand

Ship: Azamara Quest
Brand: Azamara
Year Built: 2000
Original Cost: $150 million
Capacity: 710 guests
Tonnage: 30,200
Date: January 2021
Fate: Sold to Sycamore Partners along with the Azamara brand

 

Ship: Azamara Pursuit
Brand: Azamara
Year Built: 2001
Original Cost: $190 million
Capacity: 710 guests
Tonnage: 30,200
Date: January 2021
Fate: Sold to Sycamore Partners along with the Azamara brand

Ship: Silver Galapagos
Brand: Silversea Cruises
Year Built: 1990
Original Cost: $20 million
Capacity: 100 guests
Tonnage: 4,077
Date: June 2021
Fate: Replaced by a new build; laid up in Panama after being renamed Mantra

Ship: Silver Explorer
Brand: Silversea Cruises
Year Built: 1989
Capacity: 132 guests
Tonnage: 6,130
Date: January 2022
Fate: Sold to a startup named Exploris; leaving the fleet in September 2023

Azamara to Drop Pre-Embarkation Testing

The line will ditch testing on Monday (25 July) in countries where the protocol is no longer legally required

The line will ditch testing on Monday (25 July) but will still require proof of vaccination prior to embarkation from all guests aged over 12.

 

Azamara said it recommends all guests departing from any port undergo testing before getting onboard – but results will not be needed to be shown in order to sail.

 

At ports where pre-cruise testing remains, guests must produce a negative Covid test before sailing.

 

Carol Cabezas, Azamara president, said the easing of the line’s testing policy “marks a step in the right direction towards a return to normalcy for the travel and cruising industry”.

 

“Cruising is one of the safest ways to travel, and our existing health and safety protocols onboard will ensure peace of mind for our guests and crew as we move forward,” she said.

Royal Caribbean To Sell Azamara Brand To Sycamore Partners

Azamara Quest.

Royal Caribbean Group today announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash carve-out transaction for $201 million, subject to certain adjustments and closing conditions.

Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.

"Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period," said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. "Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore's track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years."

"We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth," said Stefan Kaluzny, Managing Director of Sycamore Partners. "We are excited to partner with the Azamara team and build on their many years of success serving the brand's loyal customers. We believe Azamara will remain a top choice for discerning travellers as the cruising industry recovers over time."

Azamara's value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration on a seamless transition for Azamara employees, customers and other stakeholders. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand.

The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on the Royal Caribbean Group's future financial results. Perella Weinberg Partners LP served as financial advisor to Royal Caribbean Group and  Freshfields Bruckhaus Deringer LLP provided legal counsel. Kirkland & Ellis LLP provided legal advice to Sycamore Partners.

Royal Caribbean Cruises to buy Adonia from P&O Cruises

Royal Caribbean Cruises to buy Adonia from P&O Cruises

Azamara Club Cruises is to buy P&O Cruises’ ship Adonia, taking its fleet to three ships.

The 30,000-ton ship will join Royal Caribbean Cruises’ upmarket Azamara fleet in March 2018.

It will be renamed Azamara Pursuit and will join two similar-sized ships – Azamara Journey and Azamara Quest.

The 704-passenger ship will undergo refurbishment before Azamara takes delivery. Information about deployment and itineraries will be released in October.

Adonia’s last cruise for P&O will be on February 23 to March 9 starting and ending in Barbados.

Guests booked on any Adonia cruises after March 2018 will be contacted directly either by P&O Cruises or their travel agent.

Adonia returned to P&O’s fleet in Southampton in June after a year on secondment to social impact brand Fathom when it ran the first US sailings from Miami to Cuba in 50 years.

Most recently, the adults-only ship has been running a series of “discovery” itineraries with P&O, including a seven-night cruise to Bordeaux, Honfleur and Guernsey.

P&O Cruises senior vice president Paul Ludlow said: “During her time with us Adonia has captured the hearts of many thousands of P&O Cruises guests. She has ventured into new ports of call around the globe and has negotiated Icelandic Fjords, European rivers and Caribbean coves. We will ensure that these discovery itineraries are continued on other ships in the fleet.

“With almost six months until Adonia leaves the fleet, we will ensure that each of the cruises in her final season with us are extra special and celebratory.”

President and chief executive of Azamara Club Cruises Larry Pimental said: “We are pleased to expand our portfolio by 50%, allowing us to visit even more regions of the world through the acquisition of this sister ship.

“Our loyal guests and travel partners have asked for this expansion for a long time; we are very pleased to deliver this to them.”

Last year, Pimentel described extra capacity in the luxury cruise sector as “too much, too quick and too fast” and warned it would drive down prices.

Earlier this month Silversea Cruises announced it would launch a new ship in 2020 and unveiled plans to build two more.

Ritz-Carlton also revealed its plans to enter the cruise sector with three yachts, while Celebrity Cruises has three ships on order, Ponant has four, and Crystal Cruises, Scenic, Seabourn and Star Clippers also have new vessels set to launch.

Azamara triples down on destination-focused cruising

Azamara Quest

Azamara Club Cruises plans to deepen its brand identity as an immersive, destination-oriented cruise line by adding more opportunities for passengers to connect locally on shore excursions and by offering more overnight and late-night port stays.

Azamara has for many years featured longer port stays and overnights, but is "tripling down" in the words of president and CEO Larry Pimentel. Marketing will be built around the phrase "Stay Longer. Experience More.," which Pimentel, said "is not just a tagline, but a definition of brand essence."

The two-ship line (Azamara operates the 700-passenger Quest and Journey) will offer over one thousand destination experiences "that can't be Googled or found anywhere else because we're creating them," Pimentel said.

It will include over 250 overnight and late-night stays (8 p.m. or later) in ports, which is roughly 50% of all its port calls, in a total of 70 countries. He also said that over 50% of the ports on its itineraries are ones where larger ships can't dock.

Azamara's immersive program includes Country Intensive Voyages, a product that will allow guests to experience more of a given country, as the majority of the destinations are concentrated in one country such as Japan, Italy, Spain, Norway, New Zealand, Australia, Greece or Croatia.

Pimentel said that focus on a single country, in which a ship may visit 13 ports in 14 days, gives travel advisers an opportunity to introduce cruising to clients who otherwise might be considering a land-based tour of a country. During a presentation of the concept, he referred to Azamara as "a no-cruise cruise."

Another new point of emphasis will be "Cruise Global, Connect Local," a series of land programs that are designed to deliver personalized and authentic experiences. Programs are built around biking, golf, food, local celebrations and site-specific wildlife and wilderness tours, as well as overland tours either during the voyage or pre- and post-cruise.

That tagline is purposefully elastic to permit labeling of specific programs, e.g., "Cruise Global, Bike Local" or "Cruise Global, Golf Local."

There will also be a program called Meet Local, involving immersive cultural experiences that offer people-to-people connections at the homes, farms and villas of local families, Azamara said.

"Our land product will be curated to ensure guests get to connect in a personalized and unique way with the people in the destinations they visit," Pimentel said.

Onboard programming will be augmented to present more information than ever on local destinations ranging from local culinary and beverage selections to travel movies, lecturers and panel discussions on destinations and other relevant topics, as well as entertainment.

Pimentel, who is also "chief destination experience officer" for parent company Royal Caribbean Cruises Ltd., said that the concept could extend to other RCCL brands, but for only for "a very tiny subset" of Royal Caribbean International clients in the highest cabin classifications or a small percentage of Celebrity passengers in "rarefied suites."

He nonetheless expects that other lines will begin to offer deeper land experiences. "It will change. People always follow a good concept."

Azamara unveils details of Cuba cruise

Azamara Quest due to start cruise's from Cuba.

Azamara Club Cruises will make an overnight stay in Havana on its March 21 departure of the Azamara Quest from Miami, taking advantage of newly granted permission by the Cuban government.

The 12-day cruise will also call in Key West, Tampa and Cozumel and spend two nights in New Orleans.

The cruise opened for booking on Dec. 9, with prices starting at $2,799 per person.

Azamara said that in time, it looks to add more ports of call in Cuba into several of its itineraries.

Azamara ships getting major face-lifts

Amazara's rendering of a new Asian restaurant.

Azamara Club Cruises’ two ships, the Journey and Quest, will undergo major renovations in early 2016.

The 686-passenger ships will be outfitted with renovated cabins and new public spaces, including for dining and entertainment.

“Each corner of the ships will have a new look and feel, setting a brighter, more contemporary ambience, while the new venues will bring guests fresh experiences. We're also investing in new onboard innovations and have paid close attention to the smallest of details,” Azamara CEO Larry Pimentel said.

The Journey will enter dry dock in January 2016 in the Bahamas, and the Azamara Quest in April 2016 in Singapore.

Azamara Cruises' new ads emphasize port stays

Azamara Club Cruises will launch a marketing campaign that for the first time will include television advertising. 

The multi-channel campaign is built around the theme “The Voyage for Those Who Love Travel.”

It continues to highlight Azamara’s competitive positioning as a destination-focused cruise line that features longer stays, more overnights and evening tours. In addition to television, the campaign will have print, social media, online, direct mail, e-marketing, website and brochure components, Azamara said.

Azamara TV advert below.

Azamara drops free Internet from loyalty program

Azamara Club Cruises has changed Le Club Voyage, its loyalty program, by adding new features but dropping others, including free Internet and laundry service.

“We expect mixed reaction to the discontinued benefits,” the two-ship cruise line said in a posting on its website. It said the change is “the right long-term decision for our guests and brand.”

Among the new benefits are more complimentary voyage nights for achieving a higher tier in the program.

Passengers earn points in a five-tier program according to number of nights sailed and cabin category. In the new program, guests staying in Club Oceanview cabins will earn three points a night instead of two, and those staying in Club Veranda cabins will earn five points a night instead of three, Azamara said.

Other new benefits include a dedicated shoreside program manager, various discounts and upgrades and a Club Voyage desk for guest inquiries.

Benefits being discontinued, in addition to free laundry service and Internet access, include a bottle of sparkling wine on embarkation, free wine tastings on voyages of 10 nights or longer and a welcome-home gift for advancing to the next tier.

The changes take effect Jan. 1.

Azamara to include companion air for some cruises

By Tom Stieghorst

Azamara Club Cruises will offer free companion air for flights booked in conjunction with more than 100 cruises in 2015-16.

The offer applies to bookings of Club Oceanview staterooms or higher. Also, the booking must be made from June 2 to July 31 with full deposit.

Agents must register offer code “FreeAir2ndGuest” in the reservation at the time of booking, and the offer is only applicable for select U.S. and Canadian international gateways, Azamara said.

Azamara Journey returning to duty March 17th

Azamara Journey returning to duty March 17th

Azamara Journey will return to service on March 17th, following repairs to the damaged propeller that forced it to cancel its upcoming voyage from Shanghai.

Earlier this week, the ship was forced to cut its current cruise of Asia short after debris caused damage to the propeller. The ship was en route to Tokyo when the 601 passengers and 399 members of the crew on board felt an "unusual vibration", according to a statement from the cruise line.

A subsequent inspection revealed the damage. Although Azamara said that the required repair work is relatively straightforward, it does require access to a dry dock, which is why the ship will be out of action for the first half of March.

The vessel will travel to Korea's Orient Shipyard Gwanguang for repairs, according to Seatrade-Insider, before resuming service mid-March with a 17-night cruise around Asia.

A tweet from Azamara read: "It is regrettable that this incident occurred and spoiled our guests' vacation. We will do everything we can to assist them."

Big Interview: Azamara boss looking to build on 'explosive' UK growth

By Hollie-Rae Merrick

Azamara chief executive outlines his UK plans for the line to Hollie-Rae Merrick

Azamara Club Cruises is looking to increase its presence in the UK market by targeting “high‑value customers” through luxury agents.

Larry Pimentel, the brand’s chief executive and president, says the company needs to push forward in increasing awareness in the UK and that first-time cruisers need to be a focus for the line.

His comments on the future of Azamara come as the brand unveiled Richard Twynam as its first dedicated managing director for the UK and Ireland.

Twynam, who takes up his position in the new year, has almost 20 years’ experience in the industry, having previously worked at Virgin Holidays Cruises and Kuoni. He will lead a 10-strong team including new commercial director David Duff.

As part of that, there will be a three‑strong sales team and a marketing and PR manager supported by a trade marketing executive for the first time.

The new team is being put in place as Pimentel looks to drive 
up guest numbers from the UK and Ireland, the brand’s second‑largest source market behind the US and Canada.

Pimentel expects UK passengers next year to account for a quarter of guests – a figure he aims to increase to one-third in two years’ time. The key to this, he says, is attracting more first-time cruisers, who accounted for 22% of passengers this year.

“Our growth has been quite explosive,” he adds. “We have 19% net yield growth – not many people can say they have that figure.

“If we look back to the beginning of my time [in 2009] 
we had 5,000 passengers from 
the UK; in 2014 we expect that 
to be 10,000. On two ships that hold less than 700 each, that’s pretty amazing.”

The upward trend continues. Pimentel says UK bookings for 2014 are up 41% over the past year and puts the brand’s success down to UK guests’ eagerness to explore destinations.

Pimentel says one of Twynam’s main tasks will be to drive the number of high-value customers booking Azamara sailings.

“I have no desire to be the market leader in low prices,” he stresses.

“It’s about getting to an even broader base of clients from other cruise lines and tour operators, and Richard has a background in that through Kuoni.

“He has seen it before and can use that experience to his advantage. He knows agents.

“We need to be even more focused on the trade. We already are very trade dependent and we want to be. It is easier to reach out to customers through the trade than directly. We are small so we don’t have the scope to go straight to customers.”

Pimentel: I want to build a fleet

Azamara Club Cruises is likely to add capacity in the future.

Larry Pimentel said that while no ship orders had been placed, his plan was to expand the line from its existing two ships, Azamara Quest and Azamara Journey.

“I didn’t join Azamara for just two ships; I want to build a fleet,” he said.

“There is always a desire for any chief executive to grow their business and to do so at the right time for the company – this is a view I take. We are proving the brand has return on investment capital and that a product like this can be profitable. That gives the board movement to grow the brand. There is no official word and I haven’t been given a green light yet, but I wouldn’t bet against new ships.”

Call centre move will not hinder drive for quality

The plan for Azamara Club Cruises, Celebrity Cruises and Royal Caribbean International to operate as individual businesses will allow Azamara to become even more focused on the UK, said Pimentel.

“The move will allow us as Azamara – through our team – to focus on the product.

“I’m very encouraged because for us it means a dedicated marketing team and sales people. This team will help to present us more in the marketplace.”

Despite some trade criticism of the company’s plan to base its guest and trade service call centres in Guatemala, Pimentel insisted he was optimistic.

He stressed that moving call centres overseas was always controversial, whatever the industry, and that the business was investing heavily in training its new staff.

“Some call‑centre moves haven’t been executed well.

“If we are going in a direction that doesn’t work, we change it – it’s as simple as that. This has been very well thought out and I’m positive about it.

“I have listened in to some of the test calls and the quality is quite superb.”

Azamara to pay Virtuoso agents more for high-value cruisers

Azamara Club Cruises and travel agency network Virtuoso have agreed to a new compensation model, in which Azamara will pay Virtuoso agents incremental commissions when they book high-value customers.

The new commission structure takes into account factors such as stateroom category booked, how far in advance the booking occurs and length of voyage.

“Virtuoso clients tend to book more than 300 days in advance, they book in higher categories, spend more on board and are brand loyal. We want to aptly reward advisers who are bringing us these valuable guests who can be converted into repeat cruisers,” Azamara CEO Larry Pimentel said in a statement.

Virtuoso CEO Matthew Upchurch said the new commission structure “recognizes the value of agencies and advisers who book higher-value clients.”

Insurance questions in wake of passenger's emergency

By Tom Stieghorst

Can you insure something that’s worth nothing?

That’s one of the questions raised by the unfortunate case of Dodge Melkonian, the passenger who broke his hip in the middle of the night on an Azamara Club cruise and was disembarked to the nearest hospital in a small town along the Black Sea coast of Turkey.

Physicians at the hospital didn’t speak English and weren’t equipped to perform the surgery Melkonian needed.

Fortunately, he had an active and concerned travel agent, Tammy Levent, CEO of Elite Travel Management Group, at his service.

One of her first tasks was to get Melkonian transferred to a better-equipped hospital in Ankara, six hours away. But the travel insurer balked at some of the transportation arrangements, leading to a delay before it finally provided an ambulance.

Levent said the insurer also required Melkonian to pay his expenses upfront and then get reimbursed. “Who does that?” Levent said.

The travel insurer, On Call International, was supplied by Azamara. Levent said she would have preferred to have Melkonian insured by a third party, but there was a special circumstance.

The cruise he was on was a makeup cruise for an Azamara Quest sailing in March that was disabled by a fire near the Philippines. Melkonian technically didn’t pay anything for the complimentary cruise, raising the question of whether something of no value can be insured.

“We always seek third-party insurance,” Levent said. “We didn’t have a choice here.” In the future,  “we have to find a way of getting supplemental insurance,” she said.

Other travel agents said companies such as Travel Guard International will write policies on complimentary cruises, even though there is no ticket price to establish a value.

Lori Whitt, a spokeswoman for Travel Guard, confirmed that it sells policies on “the entire range of trip costs, down to zero.” That accommodates not only complimentary cruises, but incentive awards or cruises acquired with reward points.

Clients usually aren’t interested in cancellation coverage but in the other hazards such as interruptions, delays or medical emergencies. She said that even free cruises sometimes have costs associated with air transport or other incidentals. Anything that is prepaid or nonrefundable can potentially be insured, she said.