Princess Makes Further Changes to Premier and Plus Packages

Princess Makes Further Changes to Premier and Plus Packages

Princess Cruises is making further changes to its Premier and Plus Packages after announcing updates to the products earlier this week.

According to a statement, speciality coffee and teas are now unlimited in the Plus package and will not count towards the 15-drink daily limit.

The additional change was made after feedback from its Princess guests’ community, the company explained.

Princess initially announced changes to its packages on July 21, revealing new refreshed product additions, such as extra casual dining options and shore excursion credits.

The premium brand also raised pricing for the add-ons, with the Princess Premier Package costing $100 per person per day and the Princess Plus Package costing $65 per person per day. Prices are based on guests booking pre-cruise.

When booked before the cruise, these packages were previously priced, respectively, at $90 and $60 per person per day.

Guests sailing on the company’s new Sphere class ships, the Sun Princess and the Star Princess, will pay an additional $5 per person per day, regardless of the package chosen.

According to Princess, these packages offer savings of between 50 and 70 per cent compared to purchasing their components separately.

In addition to a new shore excursion credit varying by voyage length, the Premier Package includes unlimited casual and speciality dining, a four-device Wi-Fi package and unlimited digital professional photos.

Other benefits include the unlimited premier beverage package, as well as reserved seating for theatrical shows and the inclusion of daily crew appreciation fees.

The Plus Package features four casual meals per voyage, in addition to the Plus beverage package, Wi-Fi for a single device and the inclusion of daily crew appreciation fees.

When purchasing any of the packages, guests will also take advantage of waived fees for Princess’s OceanNow, as well as room service deliveries.

The changes will be in effect for all voyages starting in 2026.

Majestic Princess Swaps Galveston for South America in 2026-27

Majestic Princess Swaps Galveston for South America in 2026-27

Instead of offering cruises departing from Galveston, the Majestic Princess will sail in South America during the 2026-27 winter season.

Initially scheduled to sail from Texas to the Caribbean, the Royal-class ship saw its four-month season in the region cancelled in early April.

At the time, Princess Cruises said that the decision was part of a “broader global fleet redeployment strategy.”

The company then announced, in late May, its plans to operate the Majestic Princess in South America and Antarctica.

Running between November 2026 and January 2027, the ship’s season in the region includes five itineraries and six departures.

The deployment is highlighted by scenic cruising in Antarctica, including two overnight experiences in the Antarctic Peninsula.

Ranging from 15 to 33 days in length, the ship’s itineraries in the region will also mark Princess’s debut in the Beagle Channel Fjords and Glacier Alley.

The Majestic Princess is also set to visit Brazil, Argentina, Uruguay, Chile and the Falkland Islands as part of cruises departing from Bridgetown, Buenos Aires and San Antonio.

In other recent deployment news, Princess announced that the Sapphire Princess, which is sailing in South America in 2025-26, will reposition to Asia.

Sailing along with its sister ship, the Diamond Princess, the ship will offer a series of cruises departing from Singapore and Yokohama.

The 14- to 42-night itineraries feature visits to destinations in Southeast Asia and the Far East, such as Hong Kong, Ha Long Bay and Ko Samui.

With the Majestic in South America and the Sapphire in Asia, Princess won’t offer cruises departing from Galveston in 2026-27.

The company is set to operate a farewell season from the Texas homeport in 2025-26, which will include the Regal Princess offering four- to eight-night cruises to destinations in the Western and Southern Caribbean.

Three Princess Ships to Undergo Drydocks in April

Three Princess Ships to Undergo Drydocks in April

Three Princess Cruises ships are set to undergo drydocks in April: the Emerald Princess, the Grand Princess and the Regal Princess.

The first ship to enter dry dock was the Emerald Princess, which recently arrived at the Fincantieri shipyard in Palermo, Italy.

After repositioning to Europe earlier this month, the 2007-built vessel arrived at the facility for scheduled maintenance, in addition to class inspections and technical work.

Set to spend the upcoming summer season sailing from Southampton, the Emerald Princess will resume service on April 29, 2025.

Before kicking off a summer deployment in Alaska and Canada, the Grand Princess is also undergoing a dry dock.

The 1998-built ship arrived at the Vigor Shipyard in Portland in mid-April and is now going through regular maintenance.

Before welcoming guests back in early May, the Grand Princess is also scheduled to undergo class inspections, as well as upkeep and minor updates to public areas and staterooms.

A third Princess ship is undergoing a dry dock later this month, the Regal Princess.

Currently sailing in Northern Europe, the vessel is set to arrive at the Damen Shiprepair Yard in Rotterdam on April 25, 2025.

The 3,600-guest ship is expected to undergo technical work and general maintenance before resuming service in early May.

Sailing from Southampton, the Regal Princess is set to offer 12-night cruises to the British Isles during the summer of 2025.

Earlier this year, the Majestic Princess also visited a shipyard in Europe, emerging from dry dock with new venues and reimagined spaces.

According to Princess, the 2017-built vessel saw the addition of new bars and restaurants, including O’Malley’s Irish Pub, Sabatini’s Italian Trattoria and Good Spirits at Sea.

Sailing in Europe for the first time in eight years, the ship is currently offering itineraries in the Mediterranean.

Disney: Adventure, Heritage and Families

Disney: Adventure, Heritage and Families

What sets Disney Cruise Line apart is the fact that it is an entertainment company first and then an experienced business that is also in the cruise business, according to Sharon Siskie, senior vice president and general manager.

“Entertainment is a big component,” she told Cruise Industry News aboard the Disney Treasure. “We have a big commitment to bringing stories to life.

“When it relates to the individual ships, we have a little bit of a different story to tell aboard all of them,” she added.

The bottom line, according to Siskie, is that guests will have a Disney-quality cruise experience.

“While we focus on some level of differentiation between each ship with new shows and new spaces, we also focus on the elements that are consistent and constant across the fleet.”

With Marvel, Star Wars and Pixar stories and characters onboard, thinking about Disney over time, people still love the traditional classics, Siskie added, referring to the “Fab Five” that includes Mickey Mouse and Donald Duck.

“For the younger audiences, the new characters may be more relevant and we have diversity within the ranks of the characters. All of our characters have a special place and role to play in the mosaic of the character interactions and experiences that we have.”

The ships are designed with families in mind with staterooms that have split bathrooms and plenty of storage space. But everyone in a family should feel it is designed just for them, Siskie said.

“When you think about it, we are designed with kids in mind, but if I am a mom, I should feel it is designed for me too.”

She explained how the family market can be geographically dispersed, it can be within the U.S. and out of Florida ports, or on a global scale, and the very definition of families can be different. There can be multigenerational families, with grandparents bringing kids and grandkids. Or there can be couples without kids who are also families just defined a little bit differently.

“It goes back to the point of spaces that they feel are designed just for them,” she added.

“It is more a mindset than a demographic. If you have a passion for creativity and fun and enjoy fantasies getting away from the real world, you may just want a touch of that. It is like when you step into the Grand Hall (atrium aboard the Disney Treasure), you feel like you have stepped into a very unique kind of immersive space and experience.

“When you overlay the service and the details with the design and the approach to how we deliver it with our crew, it is a combination of all these factors that sets us apart.

“And how we can contribute to the greater Disney company in terms of the experiences we deliver and really be what we call a brand deposit, that’s what we try to do,” she said.

“We know how to run this business and we know how to run it very well, and the economics are very strong.”

Growing the cruise line makes a lot of sense for Disney, Siskie said.

“First of all, we have more demand than we have supply today, and by a pretty wide margin. We know there is a lot of interest in Disney’s cruises. So that allows us to think about expanding the footprint for Disney experiences globally.”

With seven more ships coming, she admitted there are many decisions to be made about future deployment.

Carnival Corporation Actively Managing Brand and Ship Portfolio

Carnival Corporation Actively Managing Brand and Ship Portfolio

“We’ve been actively managing the portfolio and allocating ships differently, moving vessels and winding up a brand in the case of P&O Australia,” said Josh Weinstein, president and CEO of Carnival Corporation.

“I think it’s setting ourselves up to really put the assets where the highest returns are in the immediate term and the medium term, while we help all the brands who aren’t yet where I think they should be, get to those levels,” he continued, speaking on the company’s year-end and fourth-quarter earnings call.

“At a base level, it’s a continuation of all of those things in the commercial space and having those great brand leaders really lean in even further. We’re investing in our people. We’re investing in our tools, our revenue management tools, to make sure that we are utilizing the technology effectively to optimize the yields.”

Weinsten also pointed to strength in onboard spending.

“We’ve got a good amount of runway to continue the progress we’ve been making around pulling forward the spend, which as everybody knows, opens up the second wallet and the more people spend before they get on the cruise, the more they spend on the cruise. So our brands are again working hard to continue that and we’re nowhere near what the cap could be on those types of efforts.”

2024 Cruise ship Calendar On Sale Now. 

MSC Virtuosa Passing Perch Rock Lighthouse

Celebrity Eclipse In front of the Hubbard Glacier Alaska

Celebrity Apex Arriving into Liverpool

Silver Muse Cruising Alaska.

The above images are taken from my 2024 Cruise Ship Calendar, there are 13 high quality images taken by myself in Alaska, Azores, Norway, Scotland and Liverpool, this Calendar is available on an Etsy Site by Crafty Ideas by Dawn-

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Port of Bilbao Closes Season with 80 Ships and 150K Passengers

Port of Bilbao Closes Season with 80 Ships and 150K Passengers

The Port of Bilbao has concluded the 2023 season with 80 cruise ships and 148,791 passengers, according to a statement.

The last cruise ship of the year was the Bolette, which docked on November 16.

Most of the tourists have been transit passengers coming from the UK (41%), North America (27%), or Germany (13%). Thirteen  cruise ships made their first call at the port in 2023.

“We continue to position the Port of Bilbao and its terminal in Getxo on the route of the major cruise shipping companies, and this is making a significant contribution to the increase in tourism in the Basque Country and, by extension, to boosting our economy,” said Ricardo Barkala, president of the Port Authority of Bilbao. “As a result, we continue to support this activity and to promote the development of the economic fabric of Bizkaia and the Basque Country”.

“In a sector as competitive as the cruise sector, the shipping companies choose Bilbao because of the infrastructure and services it offers, the operability of the terminal, the flexibility and ease with which stopovers can be managed, and the convenience for their passengers,” Barkala added.

In 2019, 50 cruise ships arrived at the Port of Bilbao. In 2020, cruises were suspended due to the Covid-19 pandemic. Fourteen calls were made in 2021, and 78 cruise ships arrived at the port in 2022.

The Port Authority has announced the BilbOPS project to deploy shore power technology in several of the port’s docks, including the cruise ship docks. The aim of the initiative is to improve service delivery, and, in turn, contribute to environmental sustainability. The facilities will become operational in the beginning of 2026.

 

Port Everglades: New Lines, New Ships and a New Terminal

Port Everglades: New Lines, New Ships and a New Terminal

Port Everglades is kicking off the 2023-24 cruise season by welcoming new cruise lines and ships, and establishing itself as a new homeport for Disney Cruise Line, according to a press release.

“We could very well top our 4 million passenger record, although our ‘official’ projected number is conservatively estimated at some 3.7 million embarking and disembarking guests,” said Port Everglades CEO and Port Director Jonathan Daniels.

“As a trend, we are seeing more luxury ships such as Viking and Ritz-Carlton, and shorter itineraries from Royal Caribbean, Celebrity and Disney,” Daniels added.

So far this season, which started in October, Port Everglades has welcomed first calls from Viking’s expedition ships Viking Octantis and Viking Polaris, Viking Mars, as well as Phoenix Reisen’s Artania.

Beginning November 20, 2023, the Disney Dream will homeport year-round in a specially designed cruise terminal dedicated for Disney Cruise Line guests. The partnership with Disney includes a 15-year agreement with one ship to be homeported in Port Everglades year-round and joined by a second, seasonal ship, to be announced, in 2025.

Celebrity Cruises’ Celebrity Ascent debuts at Port Everglades with two 3- and 4-night preview sailings in November 2023 before being named at Port Everglades on December 1, 2023, and embarking on her inaugural Caribbean season with alternating 7-night Eastern and Western Caribbean itineraries. Celebrity Ascent is the fourth ship in Celebrity’s Edge Series class, and one of seven Celebrity ships to sail from Port Everglades this season.

The Silver Nova will be named at Port Everglades on January 4, 2024. This will be the first ship to use liquefied natural gas (LNG) as its main fuel at Port Everglades.

Royal Caribbean International’s Oasis-class Symphony of the Seas will shift to Port Everglades after returning from Europe in November 2023 and will sail alternating 6- and 8-night cruises to the Caribbean.

Azamara also joins the Port Everglades fleet for the first time with the arrival of the Azamara Onward on November 30, 2023. Azamara Onward will finish the 2024 season at Port Everglades with an inaugural 155-night World Voyage departing January 5, 2024, visiting over 40 countries with 22 overnight stays and 27 late nights in port.

Port Everglades said it also looking forward to having a busier than usual summer 2024 with five cruise ships including Celebrity Beyond (7-days), Celebrity Reflection (3- and 4-days), Disney Magic (3-, 4- and 5-days), Enchanted Princess (7-days), and Freedom of the Seas (7 days).

Princess Cruises will homeport the brand-new Sun Princess at Port Everglades beginning in October 2024. The Sun Princess, the first in the line’s new Sphere class, will be Princess Cruises’ first LNG-fueled ship and its largest, accommodating more than 4,000 guests.

The newly rebranded luxury line Crystal recently announced that it will move from Miami and begin homeporting from Port Everglades in November 2024, with the completely refurbished Crystal Serenity.

Port Everglades has completed a study to add shore power to the port’s eight cruise terminals, which will allow cruise ships to use electricity while idling in port instead of burning fuel. The study was performed by Moffatt & Nichol, a global infrastructure advisory firm working in cooperation with Florida Power & Light (FPL), Carnival Corporation, Disney Cruise Line and the Royal Caribbean Group. The recommended plan is capable of delivering up to 16 megawatts of electricity simultaneously to each of the eight terminals in accordance with IEC/IEEE 80005 standards.

The projected cost for the project, including the estimates for FPL supply and distribution system upgrades, is approximately $20 million per cruise terminal, for a total cost of $160 million. The project is expected to be financed through federal and state grant funds, contributions from FPL, the participating cruise lines, and Broward County. Implementation will occur in phases. The earliest construction could occur is mid-2024 with all phases completed by the end of 2027, the port said.

Carnival Corp Posts 109% Occupancy in Third Quarter

Carnival Corp Posts 109% Occupancy in Third Quarter

P&O one of the Carnival Group, photo credit Spacejunkie2 (Flickr account)

Carnival Corporation’s nine brands enjoyed full ships in the third quarter of 2023 as the company delivered a profit of over $1 billion and record revenue.

The ships on average were 109 percent full. Cruise ship occupancy is calculated by having two people in each stateroom, bringing a ship to 100 per cent. Any additional guests, such as children, will push a ship over the 100 per cent mark.

The company said that the 109 per cent occupancy number was better than its own expectations and marked a return to historical levels, compared to just 84 per cent in 2022 and 113 per cent in 2019, the last normal year prior to the pandemic.

“On the European front, occupancy came in better than anticipated for Costa and AIDA, with both brands hitting 119 per cent occupancy in August. Not to be outdone, P&O Cruises achieved its highest occupancy in over a decade,” said Josh Weinstein, president and CEO, on the company’s third-quarter earnings call.

“And so I can’t say that their yields were higher. But I can tell you that their occupancy is back, and they are well on their way, and that’s absolutely as expected,” said Weinstein, commenting on the company’s P&O brand.

Royal Caribbean Sails Up as Largest Brand in the Industry

Royal Caribbean Sails Up as Largest Brand in the Industry

Royal Caribbean International will be the largest cruise brand in the world by 2029 noticeably ahead of Carnival Cruise Line, according to the 2023 Cruise Industry News Annual Report.

The Royal Caribbean brand will have an annual global capacity of approximately 6.5 million passengers in 2029, compared to 5.4 million for Carnival Cruise Line.

Royal Caribbean will sail 30 ships versus 27 for Carnival.

While Royal Caribbean will be the largest globally, based on known deployment and the current orderbook of new builds to be introduced, Carnival will most likely continue to dominate in the Caribbean where the brand tends to concentrate its deployment.

The other largest brands on a global scale in order of size will be MSC Cruises, Norwegian Cruise Line, Princess, Celebrity, AIDA, Costa, TUI and Holland America.

Two question marks would be what happens in China with Carnival’s joint Adora venture that could grow quickly when the Chinese market returns, and if more Costa ships were to be transferred to Carnival’s Fun Italian Style product.

The 2023 Cruise Industry News Annual Report is in digital and printed formats. Order today by clicking here.

Jamaica Welcomes Over 1.5 Million Visitors In 2023

Jamaica Welcomes Over 1.5 Million Visitors In 2023

Minister of Tourism Edmund Bartlett revealed that Jamaica has welcomed over 1.5 million total visitors since January 2023, according to a press release.

“Between January 1, 2023, and May 10, we received 1,586,303 total visitors, stopover and cruise, earning $1.69 billion, putting our destination on par with 2019 record figures. We have seen steady growth in our arrivals and continued investment in the tourism sector, which is a tremendous achievement,” said Bartlett.

Bartlett said that strategic investments and resilience were vital in sustaining such a strong recovery of the tourism sector.

“To keep this growth on an upward trajectory, we continue to secure new air service with the addition of new routes by prestigious carriers such as American Airlines, Frontier Airlines, Spirit Airlines, Arajet, and Edelweiss Airlines. We are expanding and modernizing Sangster International Airport and have approximately 8,000 new hotel rooms slated for construction over the next two to five years.”

Bartlett also highlighted that the Ministry of Tourism’s Blue Ocean Strategy and its Destination Assurance Framework and Strategy have influenced the development of a more sustainable and diverse tourism product.

“Jamaica is leveraging key pillars for tourism that showcase the destination’s unique culture and heritage while simultaneously addressing the desire of today’s traveller to experience more than just sun, sea and sand. We need to carefully manage the industry through resilience building, so it can continually adapt to issues that may arise and put plans in place to protect it from potential future shocks,” concluded Bartlett.

 

Modest Growth Forecast for UK Market

Modest Growth Forecast for UK Market

Celebrity cruise in Southampton photo credit Spacejunkie2 (Flickr)

The UK market has had to absorb additional capacity amounting to 316,000 more passengers, coming out of the pandemic in 2022 and 2023, according to the 2023 Cruise Industry News Annual Report.

The capacity growth was driven by P&O Cruises’ introducing two new ships in short order, the Iona and Arvia, boosting the brand’s capacity from just short of 550,000 in 2019, the last typical operating year, to nearly 800,000 in 2023.

The other major operator in the UK market is Marella Cruises, which will see its capacity grow from approximately 407,000 in 2023 to 440,000 by 2024. It remains at that level, barring any more ship introductions, and maintaining its position as the second-largest brand in the UK.

Thus, the national cruise supply is forecast to see little growth from 2023 to 2029, only increasing from approximately 1.6 million to 1.8 million passengers over the time period.

The P&O and Marella brands typically target different market segments, with P&O in the premium segment and Marella in the more price-conscious so-called budget segment.

Cunard Line is also based in Britain, but also markets its capacity in other countries, such as the United States, Australia, Germany and Japan.

Other more typical British brands include Fred. Olsen, Saga and newcomer Ambassador Cruises, with the latter taking up the slack where Cruise and Maritime have been.

As the second largest national cruise market in Europe, Princess and MSC also have ships dedicated to the UK market and other European and North American cruise lines market.

Britain Predicts a Record 2023 Cruise Season

Britain Predicts a Record 2023 Cruise Season

According to numbers released by Cruise Britain, the cruise industry’s post-Covid transition year was a success with predictions for a projected record season in 2023, according to a press release.

“2022 was the first full year of cruise activity since the pandemic and really built upon the unprecedented success of the 2021 domestic season. What we are seeing now are the rewards for an industry that has consistently worked together to recover, regenerate and develop”, said Ian McQuade, chair of Cruise Britain. “Whilst Round Britain and Ireland cruise popularity continues to grow, we have now seen the successful return of itineraries where British port calls are part of a multi-country story of discovery.”

The previous record season for the UK was 2019 while in 2022, the UK welcomed a total of 2,176 cruise calls, which is a drop of 22 per cent compared to that record year. UK orts welcomed nearly 1.4 million guests, which is around 80 per cent of the 2019 numbers. In addition, visitors in 2022 brought around £100m to Britain’s coastal economies. 

“Looking ahead to this year, we see a very robust projected growth of 8 per cent in terms of port calls across the UK. Some regions such as the South West, North West and Scotland are reporting likely figures in excess of this national growth rate,” added McQuade. 

“This is a fantastic projection and the strength of the immediate growth trend is a testament to the increasing popularity of Britain as a cruise destination. We really can offer a port for every cruise ship currently sailing – from expedition ships to boutique and mid-range vessels up to the largest afloat.”

In the previous year, the UK welcomed 52 different cruise lines with ships visiting diverse ports including Belfast and Bristol, Portland and Portsmouth, Douglas (Isle of Man) and Dover, among others.

“The UK offers an incredibly diverse cruise holiday experience for guests and this is one of the most powerful reasons for the growth projections that we are seeing. Cruise Britain and all its members continue to work with cruise lines, industry partners and stakeholders, and government to support the development of cruise as a resilient and profitable sector of the travel industry,” concluded McQuade.

 

Carnival Corporation Reports 2022 Q3 Earnings; EBITDA Turns Positive

Carnival Corporation Reports 2022 Q3 Earnings; EBITDA Turns Positive

Carnival Corporation has provided its third quarter 2022 business update.

Key Highlights:

• U.S. GAAP net loss of $770 million and an adjusted net loss of $688 million for the third quarter of 2022.
• Adjusted EBITDA for the third quarter of 2022 was over $300 million, turning positive for the first time since the resumption of guest cruise operations and marking a significant milestone.
• Revenue increased by nearly 80% in the third quarter of 2022 compared to second quarter 2022, reflecting continued sequential improvement.
• Occupancy in the third quarter of 2022 increased 15 percentage points from the prior quarter.
• Since the announcement of the company's relaxed protocols in mid-August, aligning the company towards land-based vacation alternatives, booking volumes for all future sailings are considerably higher than strong 2019 levels.
• The third quarter of 2022 ended with $7.4 billion of liquidity, including cash and borrowings available under the company's revolving credit facility.

Carnival Corporation & plc's Chief Executive Officer Josh Weinstein commented: "The well-being of the Caribbean region, Florida and other states still in the path of Hurricane Ian is very important to us. On behalf of Carnival Corporation, I would like to extend our deepest concern for those affected by Hurricane Ian and Fiona, some of whom are our own employees, travel agent partners, destination communities and loyal guests."

Weinstein noted: "During our third quarter our business continued its positive trajectory, achieving over $300 million of adjusted EBITDA and reaching nearly 90% occupancy on our August sailings. We are continuing to close the gap to 2019 as we progress through the year, building occupancy on higher capacity and lower unit costs."

Weinstein continued: "Since announcing the relaxation of our protocols last month, we have seen a meaningful improvement in booking volumes and are now running considerably ahead of strong 2019 levels. We expect to further capitalize on this momentum with renewed efforts to generate demand. We are focused on delivering significant revenue growth over the long-term while taking advantage of near-term tactics to quickly capture price and bookings in the interim."

Weinstein added: "With a transformed fleet, an unmatched portfolio of well-recognized brands, unparalleled scale in an under-penetrated industry and an incredibly talented global team, we have the ability to drive durable revenue growth through pricing improvements over time. We believe this will provide significant free cash flow and accelerate our return to strong profitability and investment grade credit ratings."

Third Quarter 2022 Results and Statistical Information

• Revenue increased by nearly 80% in the third quarter of 2022 compared to the second quarter of 2022, reflecting continued sequential improvement. For the cruise segments, revenue per passenger cruise day ("PCD") for the third quarter of 2022 decreased compared to a strong 2019.
• Onboard and other revenue per PCD for the third quarter of 2022 increased significantly compared to a strong 2019.
• PCDs for the third quarter of 2022 were 17.7 million, representing a 55% increase from the prior quarter.
• Occupancy in the third quarter of 2022 increased 15 percentage points from the prior quarter.
• Available lower berth days ("ALBD") for the third quarter of 2022 were 21.0 million, which represents 92% of total fleet capacity, increasing from 74% in the second quarter of 2022.
• Adjusted EBITDA for the third quarter of 2022 was over $300 million, turning positive for the first time since the resumption of guest cruise operations and marking a significant milestone.

Total customer deposits were $4.8 billion as of August 31, 2022, approaching $4.9 billion as of August 31, 2019, which was a record third quarter. New bookings during the third quarter of 2022 primarily offset the historical third quarter seasonal decline in customer deposits (a $0.3 billion decline in the third quarter of 2022 compared to a $1.1 billion decline for the same period in 2019).

Guest Cruise Operations

Weinstein said: "With our return to guest cruise operations essentially complete, we are now relentlessly focused on driving top line growth and returning to strong profitability. We believe the strategic changes we have already made to our fleet resulting in a younger and more efficient fleet, coupled with our recent portfolio optimization efforts including COSTA by CARNIVAL, will provide strong tailwinds along our path to profitability."

As of September 30, 2022, approximately 95 per cent of the company's capacity is serving guests. The company expects eight of its nine brands will have their entire fleet serving guests by the end of the fourth quarter of 2022.

According to a press release, given Costa Cruises' significant presence in Asia, particularly China, which remains closed to cruising, the brand continues to evaluate deployment options and fleet optimization alternatives beyond the previously announced transfers of Costa Luminosa to Carnival Cruise Line as well as Costa Venezia and Costa Firenze to the COSTA by CARNIVAL concept.

The company's brands continue to responsibly relax their COVID-19-related protocols aligning the company towards land-based vacation alternatives.

This generally includes greatly reduced or eliminated testing requirements and significantly broadens the demand pool by welcoming unvaccinated guests. These relaxed protocols generally became effective throughout September and are subject to local destination regulations.

The company saw a continuation of its 2022 sequential improvement in adjusted cruise costs excluding fuel per ALBD in constant currency in the third quarter of 2022 and said it expects to see continued improvement in the fourth quarter of 2022 with a low double-digit increase as compared to the fourth quarter of 2019 driven in part by higher advertising expense to drive 2023 revenue.

While the company's year-to-date adjusted cruise costs excluding fuel per ALBD during 2022 have benefited from the sale of smaller-less efficient ships and the delivery of larger-more efficient ships, this benefit is offset by a portion of its fleet being in pause status for part of the year, restart related expenses, an increase in the number of dry dock days, the cost of maintaining enhanced health and safety protocols, inflation and supply chain disruptions. The company anticipates that many of these costs and expenses will end in 2022.

Given the seasonality of its business, the company expects a net loss and breakeven to slightly negative adjusted EBITDA for the fourth quarter ending November 30, 2022. Having achieved over $300 million in adjusted EBITDA in the third quarter, the company anticipates positive adjusted EBITDA for the second half of 2022 despite the seasonality of its business and the increasing investment in advertising to drive yields in 2023. Additionally, on a year-over-year basis, the company expects an improvement in adjusted EBITDA and occupancy, with occupancy returning to historical levels during 2023.

Bookings

Booking volumes for all future sailings during the third quarter of 2022 saw a continuation of the accelerated booking volumes during the second quarter of 2022, closing the gap to strong 2019 levels. Since the announcement of the company's relaxed protocols in mid-August, aligning the company towards land-based vacation alternatives, booking volumes for all future sailings are considerably higher than strong 2019 levels. (The company's current booking trends will be compared to booking trends for 2019 sailings as it is the most recent full year of guest cruise operations.)

Cumulative advance bookings for the fourth quarter of 2022 are below the historical range and at lower prices, primarily due to future cruise credits ("FCCs"), as compared to 2019 sailings.

Cumulative advance bookings for the full year 2023 are slightly above the historical average and at considerably higher prices, as compared to 2019 sailings, normalized for FCCs.

Financing and Capital Activity 

During the third quarter of 2022, the company completed a $1.15 billion public equity offering of its common stock. The company expects to use the net proceeds from the offering for general corporate purposes, which could include addressing 2023 debt maturities. In addition, the company invested $0.5 billion in capital expenditures, repaid $0.4 billion of debt principal and incurred $0.4 billion of interest expense, net during the quarter. The company ended the third quarter of 2022 with $7.4 billion of liquidity, including cash and borrowings available under the revolving credit facility.

Additionally, the company exchanged $339 million in aggregate principal amount of its outstanding Convertible Senior Notes due 2023 (the "Existing Notes") for the same amount of Convertible Senior Notes due 2024, extending maturities at the existing rate of 5.75%. The New Notes have the same initial conversion price as the Existing Notes, representing no dilution to shareholders at scheduled maturity versus the Existing Notes, the same coupon and no upfront cost to the company.

 

Princess Cruises unveils next-generation ship

Princess Cruises has revealed the brand’s largest ship, a bespoke ship platform that will run on dual-fuel LNG and accommodate more than 4,000 guests

Currently under construction at the Fincantieri shipyard and scheduled to debut in early 2024, the 175,500-tonne vessel is the largest Princess ship ever constructed and embraces Italian heritage by featuring a next-level Piazza and The Dome, an entertainment space inspired by the terraces of Santorini. Sun Princess will also feature Princess Medallion, extending Princess’s position in delivering personalised experiences.

"Sun Princess is a new and bespoke ship platform, designed to simultaneously embrace Princess heritage while boldly pressing into the future with iconic, elegant and pure lines unique to our brand," said Princess Cruises president John Padgett. "A show-stopping, first-of-its-kind Dome on the top deck and suspended glass Piazza in the centre of Sun Princess offer innovative designs showcasing expansive ocean views for incredible opportunities to connect with the sea."

The cruise line also announced Sun Princess will sail an inaugural spring/summer season of Mediterranean cruises followed by western and eastern Caribbean voyages out of Port Everglades, Florida in Q3 2024.

The line’s Piazza spans three stories, forming an architectural feature offering guests an outward-looking suspended space with comfortable seating and areas to enjoy the ocean views in every direction. An LED screen is also showcased in the centre of the Piazza that can be moved and configured to deliver live entertainment. Adjacent to the Piazza Atrium will be Coffee Currents coffee shop, Bellini’s Cocktail Bar, along with Princess favourites like Crooners’ Bar and Alfredo’s Pizzeria.

The other stand-out structure onboard Sun Princess is The Dome. Princess Cruises said, “Inspired by the terraces of Santorini, it is a multi-level covered deck and the first true glass-enclosed dome ever constructed on a cruise ship. During the day, the Dome features an indoor/outdoor pool and unique water features in a comfortable and relaxed space. At night, the pool becomes a stage, and the Dome transforms into an entertainment venue with a South Beach vibe, state-of-the-art lighting effects and the ability to deliver stunning aerial performances.”

With 2,157 staterooms, including 50 suites and 100 connecting rooms, 21-deck Sun Princess features more outdoor balcony space and all-balcony accommodations feature an in-room sofa.

Also launching exclusively on Sun Princess will be a new level of suite accommodations, the Signature Collection. In addition to premium stateroom amenities, Signature Collection suites include access to the Signature Restaurant, Signature Lounge and Signature Sun Deck, a private area of the Sanctuary.

With Sun Princess, Club Class accommodations on board this ship, and all Princess ships will now be called Reserve Collection, which is the best-located mini-suite staterooms. Within the Reserve, Collection will be Reserve Collection Cabana rooms, resort-style staterooms that offer a balcony and private cabana, and extra-large outdoor lounge space. These premium accommodations also include access to the Reserve Collection Restaurant.

Sun Princess is part of Carnival Corp’s green cruising focus and is one of 11 new ships in the corporate fleet powered by LNG fuel technology.

A second, next-generation Sphere-class ship is also on order, slated to be delivered by Fincantieri in Q2 2025.

Next Princess Ship Set to Be Named Sun Princess, Debut Spring 2024

Next Princess Ship Set to Be Named Sun Princess, Debut Spring 2024

Princess Cruises today revealed the new Sun Princess, which will debut in early 2024.

"Sun Princess is a new and bespoke ship platform, designed to simultaneously embrace Princess heritage while boldly pressing into the future with iconic, elegant and pure lines unique to our brand," said John Padgett, Princess Cruises president. "A show-stopping, first-of-its-kind Dome on the top deck and suspended glass Piazza in the centre of Sun Princess offer innovative designs showcasing expansive ocean views for incredible opportunities to connect with the sea."

Currently under construction at the Fincantieri shipyard and scheduled to debut in early 2024, the 175,500-ton vessel is the largest Princess ship ever constructed and embraces Italian heritage by featuring a next-level, brand-iconic Piazza and The Dome, a cutting-edge entertainment space inspired by the terraces of Santorini. Sun Princess will also feature the exclusive Princess Medallion, the company said.

The 4,300-guest ship will feature innovative entertainment venues, multi-story dining rooms and next-level stateroom accommodations while remaining true to the smooth clean lines and design aesthetics inspired by the Seawitch icon and popularized in the original "Love Boat" TV series and returning to the venerable "Sun Princess" name back into operation.

The cruise line also announced that Sun Princess will sail an inaugural spring/summer season of Mediterranean cruises followed by Western and Eastern Caribbean voyages out of Port Everglades, Florida in the fall of 2024.

According to Princess, infused with light, the ship connects guests with dynamic views of the world and innovative experiences, from service to food to entertainment. The line's Piazza spans three stories, forming an iconic architectural feature offering guests an outward-looking suspended space with comfortable seating and areas to enjoy the ocean views in every direction. An impressive LED screen is also showcased in the centre of the Piazza that can be moved and configured to deliver live entertainment programming. Adjacent to the Piazza Atrium will be a new coffee shop, Coffee Currents, Bellini's Cocktail Bar, along with Princess favourites like Crooners Bar and Alfredo's Pizzeria.

The other stand-out structure onboard Sun Princess is The Dome. Inspired by the terraces of Santorini, it is a multi-level covered deck and first-of-its-kind true glass-enclosed dome ever constructed on a cruise ship. During the day, the Dome features an indoor/outdoor pool, and unique water feature, in a comfortable and relaxed space. At night, the pool becomes a stage, and the Dome completely transforms into an entertainment venue with a South Beach vibe, state-of-the-art lighting effects and the ability to deliver aerial performances.

The company said that with 2,157 total staterooms, including 50 suites and 100 connecting rooms, the 21-deck Sun Princess features more outdoor balcony space and all-balcony accommodations feature an in-room sofa.

Also launching exclusively on Sun Princess will be a new level of suite accommodations, the Signature Collection. In addition to premium stateroom amenities, Signature Collection suites include access to the Signature Restaurant, Signature Lounge, and Signature Sun Deck, a private area of the Sanctuary.

With Sun Princess, Club Class accommodations onboard this ship, and all Princess ships will now be called Reserve Collection, which is the best-located mini-suite staterooms. Within the Reserve, Collection will be Reserve Collection Cabana rooms, resort-style staterooms that offer a balcony and private cabana, and an extra-large outdoor lounge space. These premium accommodations also include access to the Reserve Collection Restaurant.

 

Where Are the Cruise Ships Originally Built for the Chinese Market?

Where Are the Cruise Ships Originally Built for the Chinese Market?

Several cruise ships were specifically built to serve the booming Chinese market in the last decade.

Too much capacity followed by COVID-19, in addition to other factors, changing the course of the local business, all of the vessels are now sailing elsewhere.

Here’s what happened to all of the former China-bound newbuilds:

Ovation of the Seas
Company: Royal Caribbean International
Built: 2016
Capacity: 4,100 guests
Tonnage: 158,000
Current Sailing Region: North America

The Ovation of the Seas became the first Royal Caribbean International new build to debut in China when it arrived in Tianjin in 2016.

With several custom-designed features, the Quantum-class ship continued to serve the local market until 2018.

Beginning in 2019, the ship started to alternate summer seasons in North America – where it is currently sailing – and winter seasons in Australia.

Genting Dream
Company: Dream Cruises (Genting Cruise Lines)
Built: 2016
Capacity: 3,400 guests
Tonnage: 150,000
Current Sailing Region: Southeast Asia

As the first cruise ship to enter service for Dream Cruises, the Genting Dream originally served the Chinese market.

With several features to cater to Chinese guests, the Genting-owned cruise ship had already been repositioned out of China when the pandemic broke in 2020.

The health crisis, however, led to the collapse of Genting Cruise Lines and Dream Cruises. After a few months laid up waiting for a new operator, the 2016-built vessel was chartered by Resorts World Cruises in mid-2022.

Norwegian Joy
Company: Norwegian Cruise Line
Built: 2017
Capacity: 4,200 guests
Tonnage: 163,000
Current Sailing Region: North America

Norwegian Cruise Line made a grand entrance into the Chinese market in 2017 with the Norwegian Joy.

Built at the Meyer Werft shipyard, the vessel was custom designed to serve the local market with exclusive features that include a virtual reality gaming centre, a tearoom and more.

The vessel was pulled out of China in early 2019. Following a refit – that removed all of the ship’s original purposely-designed features – the vessel repositioned to the North American market in time for a summer program in Alaska.

Majestic Princess
Company: Princess Cruises
Built: 2017
Capacity: 3,600 guests
Tonnage: 141,000
Current Sailing Region: North America

Following years of investment into the local market, Princess Cruises decided to send a custom-design new build to China with the Majestic Princess.

The 2017-built vessel was considered the first built specifically for Chinese guests, offering unique features such as a Cantonese restaurant, a VIP casino, a tea bar and karaoke rooms. 

The Chinese venture, however, proved to be short with the brand dropping plans for a year-round deployment in the country just months after the debut of the 3,600-guest ship. Initially redeployed to Taiwan and Australia for most of the year, the Majestic Princess arrived in the North American market – where it’s currently sailing – in 2021.

World Dream
Company: Dream Cruises (Genting Cruise Lines)
Built: 2017
Capacity: 3,400 guests
Tonnage: 150,000
Current Sailing Region: Laid-up

The World Dream entered service for Dream Cruises in 2017. Sporting several features for the local market, the vessel originally offered an upscale product in China.

With Genting Cruise Lines collapsing earlier this year, the ship continues to wait for a decision regarding its future while laid up in Southeast Asia.

 Norwegian Encore
Company: Norwegian Cruise Line
Built: 2019
Capacity: 4,200 guests
Tonnage: 163,000
Current Sailing Region: North America

Norwegian Cruise Line originally planned to send the fourth Breakaway Plus-Class cruise ship to China.

The vessel, which later became the Norwegian Encore, would add capacity to the local market, which was already being serviced by the 2017-built Norwegian Joy.

The plans, however, were scrapped while the ship was still being built at the Meyer Werft shipyard. Instead of China, the Norwegian Encore debuted in the North American market, where it’s still sailing to this day.

The spectrum of the Seas
Company: Royal Caribbean International
Built: 2019
Capacity: 4,200 guests
Tonnage: 168,666
Current Sailing Region: Southeast Asia

Royal Caribbean International sent a second new build to China in 2019 with the Spectrum of the Seas.

As the first Quantum Ultra-Class vessel, the 4,200-guest ship was designed with new features to cater to the local market, including an expanded VIP suite enclave and a set of new Asian speciality restaurants.

With the COVID-19 hitting Asia first, the Spectrum was briefly redeployed to Australia in early 2020 before entering a long lay-up status. Currently, the ship is offering short cruises departing from Singapore’s Marina Bay Cruise Terminal.

Costa Venezia
Company: Costa Cruises
Built: 2019
Capacity: 4,232 guests
Tonnage: 135,500
Current Sailing Region: Mediterranean

The Costa Venezia entered service in 2019 as Costa Cruises’ first designed-for-China new build.

Built-in Italy, the 135,500-ton vessel offers custom-designed features, including a karaoke entertainment complex and larger casino and shopping areas.

With the pandemic, the ship spent most of the last three years laid up in Asia. Currently, in service for Costa Cruises in the Eastern Mediterranean, the ship will be positioned in North America starting in 2023, kicking off a series of cruises from New York City for the new Costa by Carnival concept.

Costa Firenze
Company: Costa Cruises
Built: 2020
Capacity: 4,232 guests
Tonnage: 135,500
Current Sailing Region: Mediterranean

A sister to the Costa Venezia, the Costa Firenze was set to debut in China in late 2020. Also, custom-designed to serve the local market, the 4,232-guest cruise ship was equipped with several unique features.

The pandemic, however, forced Costa Cruises to change plans for the vessel. Unable to sail to Asia, the Firenze debuted in Europe in 2021 and has been serving Western markets ever since.

After a winter season in Brazil, the vessel is now set to debut in the United States in 2024, offering West Coast cruises under the Costa by Carnival concept.

The wonder of the Seas
Company: Royal Caribbean International
Built: 2022
Capacity: 5,448 guests
Tonnage: 227,625
Current Sailing Region: Mediterranean

Currently, the world’s biggest cruise ship, the Wonder of the Seas was originally bound for year-round service in China.

Featuring interior designs and concepts to appeal to the local public, the Royal Caribbean International ship was set to debut in the Chinese market in mid-2021, offering a series of cruises departing from Shanghai.

The pandemic, however, led the company to deploy the Oasis-class vessel in the Western Hemisphere, with a series of Mediterranean and Caribbean itineraries.

Global Dream
Company: Dream Cruises (Genting Cruise Lines)
Built: 2022
Capacity: 5,000 guests
Tonnage: 208,000
Current Sailing Region: Unfinished

Previously set for a 2022 debut, the Global Dream was poised to become one of the biggest ships in the Chinese market.

With custom-designed features and attractions, the 5,000-guest ship was under construction in Germany when Dream Cruises collapsed earlier this year.

Now sitting unfinished at its building dock at the MV Werften, the vessel is looking for a new operator.