Marella Cruises to build two new cruise ships

UK cruise ship operator moves into newbuilding for the first time as part of company’s refleeting

Fincantieri and TUI AG have signed a memorandum of agreement for the design and construction of two new cruise ships for the Marella Cruises brand. This agreement represents a major step for Marella Cruises, which is venturing into newbuilding for the first time and has chosen Fincantieri as its strategic partner for this transformation.

A statement said the ships would be designed specifically for the English market and have a focus on environmental sustainability. They will redefine premium cruising through refined design, high-quality materials and spacious accommodations.

The two vessels will be delivered in 2030 and 2032.

Fincantieri chief executive and managing director Pierroberto Folgiero commented, “We are proud to welcome Marella Cruises as a new customer and to support its vision as it enters the newbuild segment. The project will bring together our expertise in ship design, innovation and sustainability to deliver vessels that meet the evolving expectations of modern cruise passengers."

Fincantieri has built a solid and successful relationship with TUI Cruises, the joint venture between TUI AG and Royal Caribbean Cruises. In February, the Group delivered the cruise ship Mein Schiff Relax, the first of two InTUItion-class concept cruise ships which is dual-fuel powered, while the second unit, Mein Schiff Flow, is under construction at the Monfalcone shipyard, with delivery scheduled for 2026.

Marella Cruises said in a statement, “The UK cruise market, in which Marella holds a leading position, continues to prove an attractive investment proposition and is expected to grow by 9% per annum until 2030. The project is anticipated to enhance Marella’s competitive position in the UK market, ensuring a long-term cruise product proposition.”

New Mein Schiff Relax Launched at Fincantieri

New Mein Schiff Relax Launched at Fincantieri

The launch of Mein Schiff Relax, the first of two InTUItion class new concept cruise ships that are dual-fuel powered (LNG and MGO) that Fincantieri is building for TUI Cruises, a joint venture between TUI AG and Royal Caribbean Cruises, took place at the Monfalcone shipyard.

The godmother of the ship was Elena Sperti, an employee of the shipyard.

At 160,000 tons the ship is a new prototype for the TUI fleet developed by Fincantieri and due to enter service in early 2025.

The vessels will be future-proof thanks to their ability to also burn low-emission fuels such as bio- or e-LNG: an important step towards climate-neutral cruising.

Quantum to Join Ovation in Australia for Royal Caribbean

Royal Caribbean International is boosting its Australian presence in 2021-2022 according to local reports.

The Quantum of the Seas will move from Singapore to the Down Under market, joining the Ovation and giving the brand two Quantum-class ships in the market sailing from Sydney. 

Those two ships are expected to be joined by the Radiance, sailing from Brisbane.

Originally debuting in North America and then moving to the Chinese market, the Quantum was based year-round in China before Royal Caribbean split her season between China and Singapore. Now, the ship will sail in Alaska for the 2021 summer and then move to Australia, moving tonnage out of the Chinese and Asian markets.

Royal Caribbean puts up 28 ships as collateral for $3.2bn bond

Royal Caribbean puts up 28 ships as collateral for $3.2bn bond

Royal Caribbean fleet fact sheet.

Royal Caribbean Cruises has launched a $3.2 billion bond offering while pledging 28 of its ships and “material intellectual property” as collateral.

The move followed the world’s second-largest cruise group forecasting heavy losses for the first quarter of the year as Covid-19 brought global sailings to a standstill.

The company expects to report a preliminary first-quarter net loss of $1.44 billion compared to a profit of $249.7 million a year earlier.

Royal Caribbean, which was forced to suspend its cruises globally and cut about 23% of its US workforce, said the health crisis has dented its quarterly net income by about $453 million.

Preliminary total revenue for the three months ended March 31 fell 16.7% to $2 billion against the same period last year.

Royal Caribbean declined to specify which ships it had pledged for its debt offering. It had vessels with a net book value of about $22.7 billion as of December 31, including Symphony of the Seas, the world’s largest cruise ship.

The net proceeds from the offering of the $3.3 billion notes will be used to repay a $2.35 billion 364-day loan.

The remainder will be used for “general corporate purposes, which may include repayment of additional indebtedness”.

The parent company of Royal Caribbean International, Celebrity Cruises, Azamara and Silversea, estimates its cash burn to be about $250 million to $275 million a month during a prolonged suspension of operations.

Carnival Cruise bookings up 600 PERCENT

Carnival Cruise bookings up 600 PERCENT

• Carnival Cruise Line bookings rose 600 per cent after the company said it will resume some of its cruises in August
• That's 200 per cent more bookings than this same time last year, reports a travel industry representative
• Customers were primarily focused on locking down reservations and getting premium deals, says an American Express travel agent 
• Most of the travellers calling are described as young, healthy and eager to travel after being forced to stay home during COVID-19 lockdowns
• The customers are 'not a bit concerned about travelling at this time,' says the representative

Carnival Cruise Line bookings rose 600 per cent after the company said it will resume some of its cruises in August, says a member of the travel industry.

The sharp rise in bookings is 200 per cent higher than this same time last year, reports an American Express travel agent.

Customers were primarily focused on locking down reservations and getting premium deals, says the agent.

Most of the travellers calling in at the moment were described as young, healthy and eager to travel after being forced to stay home during nationwide coronavirus quarantines, TMZ reports.

The customers are 'not a bit concerned about travelling at this time,' the representative told the news outlet.

So far, there have been 1,366,962 confirmed cases in the US of the coronavirus, which has been blamed for 80,696 deaths. 

An Instagram post from Carnival explains that 'enhanced protocols and social gathering guidelines will be put in place' once the company starts sailing again.

While Carnival says it hopes to get back on the high seas by August, the company warns that plans could change and that there are no guarantees because of the potential for further delays due to the coronavirus pandemic.

'We continue to work with various government agencies, including the CDC, as we introduce new onboard protocols, but there is no assurance of a return on August 1,' Carnival wrote in its announcement.

Carnival had previously hoped to return in April or May after it first suspended its voyages in March. The date was later pushed to June 26 and now August 1. 

One-fifth of all global ocean cruise ships were infected with the coronavirus after the outbreak began, leaving at least 2,592 crew and passengers infected and killing at least 65, according to research compiled last month detailing the pandemic's impact on the cruise ship industry.

The data revealed that cases of the deadly virus were directly linked to at least 54 cruise ships, as they continued to travel the waters while the pandemic ravaged communities on land.

All four of the world's largest cruise lines - Carnival, Royal Caribbean Cruises, Norwegian Cruise Line Holdings and MSC Cruises - were struck by outbreaks, as well as several smaller lines.

At least 922 of those infected and 11 who died were crew members working on the ships.

The stark findings, collated into a study by the Miami Herald using data from the CDC, cruise companies and passenger testimonies, show that the situation on board ships was far worse than official figures revealed. 

Norwegian Cruise Line Flags ‘Going Concern’ Over Ability to Stay Afloat

Norwegian Jade photo credit Dave Jones

Norwegian Cruise Line Holdings Ltd., the world’s third-largest cruise operator, raised doubts about its ability to keep running as a business on Tuesday, the first in the sector to signal it may succumb to the coronavirus crisis.

The company’s shares slumped about 20% as it also launched a $1.6 billion offering of shares and bonds in a scramble to raise money, and announced a $400 million investment in a subsidiary from a private equity firm.

Norwegian Cruise and rivals Carnival Corp and Royal Caribbean Cruises have been among the most high-profile victims of the pandemic after deadly outbreaks on some cruise ships led to extended port quarantines in Japan and California.

Norwegian, which has suspended its sailings through June 30, has not yet announced a relaunch date. On Monday Carnival said it plans to resume some cruises beginning Aug. 1, pending continued efforts to coordinate with government officials.

The cruise industry was left out of a $2.3 trillion U.S. stimulus package for troubled companies as the major players are all incorporated outside the United States.

“COVID-19 has had, and is expected to continue to have, a significant impact on our financial condition and operations, which adversely affects our ability to obtain acceptable financing,” Norwegian said, also flagging substantial doubt about its ability to continue as a “going concern.”

The company said that as of April 24, advanced bookings for the remainder of the year were “meaningfully lower than the prior year, with pricing down mid-single digits.” Norwegian’s shares have lost almost 80% of their market value this year.

The Miami-headquartered company faces class-action lawsuits alleging that it made false and misleading statements to the market and customers about COVID-19 and its impact on its business – allegations it says are without merit.

In March, the Florida Attorney General announced an investigation related to Norwegian’s marketing to customers during the coronavirus outbreak, based on allegations it downplayed the severity and highly contagious nature of the virus in an effort to sell cruises.

Other attorneys general and governmental agencies are conducting similar investigations, according to the company.

Norwegian said it does not have sufficient liquidity to meet its obligations over the next 12 months.

Since the start of the crisis, the company has borrowed $1.55 billion under credit facilities. At the end of last year, it had about $6 billion of total long-term debt obligations and cash and cash equivalents of $252.9 million.

A subsidiary of Norwegian Cruise got a $400 million investment from consumer-focused private equity firm L Catterton on Tuesday. It had been in talks with several private equity firms.

Shares of Carnival were down 4.3% and shares of Royal Caribbean were down 5.6% on Tuesday. (Reporting by Helen Coster in New York and Ankur Banerjee and Nivedita Balu in Bengaluru; Editing by Saumyadeb Chakrabarty, Sweta Singh and Tom Brown)

Coronavirus Could Pose Threat to Cruise Ship Credit Ratings

The cruise ship Diamond Princess is docked at the port of Yokohama, south of Tokyo, in this photo taken by Kyodo February 7, 2020. Mandatory credit Kyodo/via REUTERS

The impact on cruise companies’ earnings from cancelled trips, steep discounts and ships quarantined over coronavirus concerns could pose credit risks, said rating agencies Moody’s Investors Service and S&P Global Ratings.

Carnival Corp and Royal Caribbean Cruises said last week that scrapped itineraries in Asia due to the outbreak would affect their earnings per share more than expected. Norwegian Cruise Line Holdings on Thursday forecast an impact of 75 cents per share on full-year adjusted earnings, citing virus-linked fallout.

“It reduces the flexibility that these companies have in their rating categories,” said Moody’s analyst Peter Trombetta. “It removes some of their cushions.”The earnings impact on both Carnival and Royal Caribbean were deemed “credit negative” by Moody’s although neither company’s credit ratings were immediately affected.

In a note published on Wednesday, S&P Global analysts wrote that the impact on Carnival’s cash flow from the coronavirus outbreak is expected to drive leverage above the 2.5 debt to EBITDA ratio is 2020, the threshold that would normally warrant a downgrade if breached. However, if the analysts believe the impact on Carnival to be temporary and that leverage could be lowered within a year or two, they do not expect to downgrade the rating.

Financially, “Carnival would be impacted the most. They also have the most capacity in China. So they would probably see the biggest hit to earnings,” said Trombetta.

In response to a request for comment, a Carnival spokesman said, “The primary impact on the cruise industry is focused mostly on China, which is an emerging market for the cruise industry, so the impact is relatively small.” Neither Royal Caribbean nor Norwegian responded to a request for comment.

While the outbreak casts a shadow on the cruise industry in the short-term, credit analysts said they did not expect the effect to be lasting.

“We have very short memories,” said Trombetta, citing disasters like the wreck of the Costa Concordia ship in 2012, which killed 32 people. “People want to go on cruises. Once some time passes, that demand – so far – seems to keep coming back.”

Fitch Ratings, the third of the three largest credit rating agencies do not publicly rate the cruise companies, but analyst Colin Mansfield, who covers the gaming, lodging and leisure sectors, said he expected the consequences of the epidemic to be temporary.

And yet, Norwegian Cruise Line Chief Executive Frank Del Rio noted on a call with investors on Thursday that the coronavirus in particular “has caused near panic in the travelling public.”

“The decrease in bookings is similar to what we see – we have seen in past similar events, whether they be geopolitical during the financial crisis, et cetera. What’s a little bit different about this one is the increase in cancellations.”

That bias could create longer-term problems for the industry. There is some potential for “a softer demand picture in general if cruise gets some bad PR from this that sticks in peoples’ minds for any period of time,” said Paul Golding, an analyst at Macquarie Capital. (Reporting by Kate Duguid; Editing by Megan Davies, Steve Orlofsky and Daniel Wallis)(c) Copyright Thomson Reuters 2019.

Celebrity Edge to Feature All-Female Leadership Team

Celebrity Cruises has announced that that the Celebrity Edge will feature an all-female leadership team for a March 8, 2020 departure, marking International Women’s Day.

Celebrity Captain Kate McCue will be at the helm of the 2018-launched ship for the week-long sailing from Port Everglades. Port calls include San Juan, Tortola and St. Maarten.

Celebrity is curating unique speciality programming, including evening gallery exhibitions and art auctions featuring female artists, celebrating the female form; collaborating on an exclusive design with luxury jewellery designer Reout Kallati; hosting special events, such as a cinema series featuring iconic and impactful female directors, leads and inspirational narratives; and other dedicated onboard programming, including Women of the World-themed trivia challenges, Fearless Female Officers vs. Guests Pool Volleyball tournament, and a Q&A panel with the ship’s inspiring female leadership team.

Additional speciality programming is still to be announced, including a moderated discussion panel with current confirmed special guests including artist and child prodigy Autumn de Forest and fashion designer Mary Frances; unique networking opportunities and more, all with the goal of inspiring a new generation of young girls and women to continue pushing boundaries and breaking barriers, according to a company statement.

Captain Kate McCue.

“We are all passionate about closing the gender gap,” said Celebrity Cruises President and CEO Lisa Lutoff-Perlo. “Over the last few years, we have worked hard to diversify the crew on board and bring more women than ever into our industry. None of this could have been possible without the leadership and shared the vision of the extraordinary men and women I work with every day, led by Patrik Dahlgren and Brian Abel – who take this challenge to heart and have made it possible. We are fortunate to have many incredible, experienced and beyond-qualified women who have worked tirelessly to achieve these positions. And we also celebrate the many men who continue to support them and help champion having more women crew on board.”

Senior Vice President of Global Marine Operations for Royal Caribbean Cruises Patrik Dahlgren, who has spearheaded Celebrity’s bridge diversification efforts under the leadership of Lutoff-Perlo, added: “Since 2015, we have raised the percentage of qualified women on our navigational bridges from 3% to 22%. Now, we hope this all-time industry-high will continue to grow; we just need more women to raise their hands for careers at sea, especially in engineering.”

“Excitement does not even begin to describe how I’m feeling about working alongside these incredible, barrier-breaking women on Celebrity Edge for this truly historic sailing,” added Captain McCue. “I am inspired every day by the amazing women we have working throughout this organization – both on land and at sea. They’re proof that there’s power in diversity.”

Among the officers are Captain McCue, First Officer Rachel Arnold and Second Officer Nicholine Tifuh Azirh.

Celebrity Edge March 8, 2020, Sailing Leadership Team

• Captain Kate McCue – USA
• Staff Captain Maria Gotor – Spain
• Hotel Director Niina Hautaniemi – Finland
• Guest Relations Director Julie Sherrington – United Kingdom
• F&B Director Byliana Velikova – Bulgaria
• Senior Doctor Jennifer Bernardo – Philippines
• Cruise Director Sue Denning – United Kingdom
• Safety Officer Ionela Burduja – Romania
• Associate Hotel Director Milana Dortangs – Netherlands
• Revenue and Marketing Director Sarah Guinot – France
• HR Manager Angel George – USA
• Financial Controller Teresa de Guzman – Philippines
• Chief Housekeeper Lyudmyla Miroshnychenko – Ukraine
• Safety Investigation Officer Alexandra Villarreal – USA
• Environmental Officer Maria Karoutsou – Greece
• Chief Security Officer Mor Segev – Israel
• Chief Officer Maria Koliou – Greece
• Chief Officer Maria Agius – Malta
• Doctor Sumaya Guffar – South Africa
• First Officer Rachel Arnold – United Kingdom
• First Officer Despoina Tsairi – Greece
• Third Engineer Anna Avgoustaki – Greece
• Second Officer Nicholine Tifuh Azirh, who was the first West African woman to ever work on the bridge of a cruise ship when hired in 2017 – Cameroon
• Second Officer Ioana Tzovara – Greece
• Third Officer Esperanza Romero – Spain
• Third Officer Cassandra May Mead – New Zealand
• Apprentice Officer Gifty Adu Gyami – Ghana

Carnival and Royal Caribbean join forces to develop St Lucia cruise facilities

Carnival and Royal Caribbean join forces to develop St Lucia cruise facilities

Carnival Corporation and Royal Caribbean Cruises have signed an agreement to construct a new cruise terminal on the island and manage its existing facility.

The cruise giants signed a memorandum of understanding with the Saint Lucian government on Tuesday to form a joint venture for the project.

The cruise line brands account for 75% of all cruise ship deployment to the island.

The joint venture will manage and operate the current cruise pier and terminal facilities at the Port of Castries and design, finance, build and operate a new cruise port in Vieux Fort on the southern part of the island.

Prime minister of Saint Lucia Allen Chastanet said the agreement marked “a major step towards enhancing” the country’s tourism offering.

He said: “Saint Lucia has had record-breaking cruise arrivals over the past few years and we thank our partners Carnival Corporation and Royal Caribbean for their continued confidence in our amazing destination.

“It is essential that we continue to diversify what we have to offer, grow our brand and ensure that different sectors in our island’s economy benefit from the growth in cruise tourism and that Saint Lucians can benefit from the opportunities which arise from the increased numbers; which means we have to improve our capacity.

“This signing is historic, as this project will have a major impact on the sustainability of the cruise sector and the reach of cruise tourism to the south of the island. This will also mean employment at several phases of the project, the expansion of existing businesses and the formation of new enterprises.”

Giora Israel, senior vice president of global port and destination development for Carnival Corporation said: “This is an exciting day for our guests who already love the beauty and deep culture of Saint Lucia and an important step in sustaining cruise tourism growth for the island.”

Michael Bayley, president and chief executive of Royal Caribbean International said the cruise market is the fastest-growing sector of tourism and in the next decade cruising in the Caribbean is anticipated to grow by 40%.

Celebrity Edge Delivered

After four years of planning and a 23 month construction period, the 2,900-guest Celebrity Edge was delivered today at Chantiers de l'Atlantique shipyard in Saint-Nazaire, France. At the same time, the yard laid the keep for the next Edge-class ship in the Celebrity Apex.

Royal Caribbean Cruises Ltd.'s Chairman and CEO Richard D. Fain and Celebrity's President and CEO Lisa Lutoff-Perlo hosted a ceremony aboard Celebrity Edge, while docked in the Chantiers de l'Atlantique shipyard in Saint-Nazaire, France. The Celebrity Executive Team were also in attendance along with shipyard officials, including General Manager Laurent Castaing, and 1,377 crew members from 72 different countries.

"The Celebrity team has done an outstanding job and I cannot thank the Chantiers de l'Atlantique team enough for delivering this game-changing ship and for their ongoing partnership," said Fain. "Their work continues to transform the way our guests experience the world."

"Today is a very special day for all of us as we have been eagerly anticipating this moment for more than four years," said Lutoff-Perlo. "There are so many aspects of Celebrity Edge that are more groundbreaking than we could have ever imagined, and it is all a testament to the hard work, creativity and talent of everyone who helped bring this magnificent ship to life."

"Thanks to the confidence Celebrity Cruises granted us and to the exceptional level of cooperation between our respective teams, we are proud to have designed and built one of the most innovative cruise ships ever," added Castaing. "This achievement demonstrates once again our capacity to deliver right on time ships of the highest quality to our most demanding customers."

Following the Celebrity Edge check-signing and delivery ceremony, attendees made their way across the Chantiers de l'Atlantique shipyard for the ceremonial keel laying of Celebrity Apex, where a 762-ton block was lifted in the air and a lucky coin was placed on the dock before the block was lowered into position.

On November 6, 2018, Celebrity Edge will begin her transatlantic voyage to her home port at T25 at Port Everglades in Fort Lauderdale, Fla. Her inaugural season will be spent sailing alternating seven-night eastern and western Caribbean cruise itineraries.

Major emergency at sea as Navigator of Seas cruise liner takes on water after leaving UK

Major emergency at sea as Navigator of Seas cruise liner takes on water after leaving UK

Photo of the Navigator of the Seas leaving Southampton, by Dave Jones

PANIC engulfed a cruise liner when staff wearing life jackets rushed to deal with a flood after the ship began taking on the water in the Atlantic Ocean.

Passengers onboard the Navigator of the Seas vessel, part of the Royal Caribbean International company, described hearing a “loud bang” at about 3am on Sunday before the ship began to take on water.

A crew member onboard said a "Bravo code" was used, which many cruise lines use to alert the crew to a fire or other serious incident on board without alarming passengers.

The crew member told site Crew Centre: “Captain announced bravo code at night, the crew bar was full and suddenly everyone started running.

“One of the stabilisers on the Navigator of the Seas broke and made a hole at the hull, they had to close an entire fire zone because it was leaking water like crazy.

“They sounded the alarm and there was crew walking around with life jackets.”

The ship, which had set sail from Southampton on October 26 for a 10-night tour to the Canary Islands, was forced to make an emergency stop at the nearest port.

Crew members had managed to make a temporary repair until it arrived at the port of Vigo, north-west Spain.

Passenger Paul Edwards from Worcestershire said: “We were experiencing rough sea last night, and then in the early hours last night we heard a bang.

“We were told there was a minor technical fault with the stabilisers and we had to dock in the Port of Vigo, Spain for 24 hours while they fixed it.


Passengers onboard described hearing a “loud bang” (Image: Paul Edwards – GETTY


Passengers onboard described hearing a “loud bang” (Image: Paul Edwards – GETTY)
cruise Southampton canary islands Navigator of the Seas floods Royal Caribbean

Crews pump water out of the Navigator of the Seas (Image: Paul Edwards)

“But, it was a major problem and we were on a ship hundreds of miles from land taking on water.

“But what I am really angry about is that they are trying to keep it hush, hush.”

The vessel was due to arrive in Vigo on November 3 as a final port of call before heading back to the UK.

Guests onboard were told the Captain is due to make an announcement about the rest of the scheduled cruise.

cruise Southampton canary islands Navigator of the Seas floods Royal Caribbean

Guests onboard were told the Captain is due to make an announcement about the rest of the scheduled (Image: GETTY)
The ship is still docked in Vigo with passengers offered only a 25 per cent of their fare to spend on board the ship and 25 per cent off any future fare with the company as compensation.

Some fear they could be charged for extra days, with passenger Tina blasting on Twitter: “Currently on Navigator of the Seas, can totally appreciate the ‘technical problems’ but this change of itinerary is a joke!

“Just seems like a money maker for Royal Caribbean to me with the extra days at sea. 25 per cent onboard credit?!”

Mr Edwards added: “It feels like being in prison. Can’t do anything, can’t go anywhere.”

Royal Caribbean said in a statement: “Navigator of the Seas is making repairs to resolve a technical issue. The ship is fully operational with no impact on its manoeuvrability or the safety of our guests and crew. However, because of time needed to make the repair, it was necessary to modify her current itinerary.

“Navigator will now call on Vigo, Spain for an overnight stay on Sunday, October 28. It will then sail on to Gran Canaria, the Canary Islands on Wednesday, Oct 31 and Tenerife, the Canary Islands on Thursday, November 1. The ship will return to Southampton, England on Monday, November 5 as scheduled.”

Celebrity Edge Booking At ‘Significant Premiums’

Just weeks ahead of the Celebrity Edge’s delivery, the new Celebrity Cruises vessel continues to drive earnings growth for Royal Caribbean Cruises.

The first new Celebrity ship in six years following the 2012 introduction of the Celebrity Reflection, the Edge represents the first of four in a new class of Celebrity vessels, at 129,500 tons with capacity for 2,900 guests.

“Demand for cruising is booming, and guests are willing to pay for innovation, quality, and design. The timing of (the Celebrity Edge) could not be better,” said Richard Fain, chairman and CEO of Royal Caribbean Cruises, speaking on the company’s third-quarter earnings call on Thursday, October 25.

“She's clearly worth the wait. The Edge has been booking at significant premiums for the winter Caribbean season and for our European season next year,” said Jason Liberty, CFO of Royal Caribbean Cruises.

“The demand for our new hardware, especially for Edge, which has really come high on at a premium, has been very strong and encouraging,” Liberty added

The Edge will debut at the state-of-the-art Terminal 25 at Port Everglades later this month. The terminal is just days away from being finished and will be the homeport for the Edge for her inaugural season of seven-day winter Caribbean itineraries from Ft. Lauderdale.

Next summer the ship will transition to the European cruise market, with a crossing to Southampton where she arrives in the middle of May. From there, a repositioning voyage moves the ship to the Mediterranean for the summer season, where the Edge sails out Civitavecchia.

MSC To Be Third Biggest Luxury Player

With MSC Cruises entering the luxury market with dedicated 1,000-guest ships, the family-owned company will be the third biggest luxury operator by 2027, according to Cruise Industry News estimates.

Viking Ocean will control most of the market pie, with 18 ships and an estimated market share of 35.7 per cent based on passenger capacity.

Silversea, with an aggressive newbuilding program and a new owner in Royal Caribbean Cruises, will be the second largest luxury line, with 12 ships and 13 per cent of the market come 2027, based on the existing cruise ship orderbook.

MSC Cruises is next, as the Italian brand will have four 64,000-ton luxury ships, 4,000 berths and just under 10 per cent of the luxury market, not including the company’s Yacht Club berths on its quickly-expanding fleet of megaships.

Crystal and Seabourn round out the top five, as both are expanding into the expedition market with new ships and Crystal has also committed to a new class of larger ocean-going vessels.

Ovation of the Seas Drydocks in Zhoushan

The Ovation of the Seas is in Zhoushan, China, for an unscheduled drydock at a COSCO-run facility, prompting the cancellation of the ship's the Sept. 21 and Sept. 26 cruises from Tianjin, China.

"We must conduct unscheduled maintenance on Ovation of the Seas," Royal Caribbean said in a statement released to Cruise Industry News.

"Unfortunately, this means our September 21 and September 26 cruises from Beijing, China must be cancelled," the company said. "Our booked guests will have the option to choose another sailing date on Quantum of the Seas or request a full refund of their cruise fare. The unscheduled work will help ensure guests continue to enjoy their time on board Ovation; there is no issue or concern with the seaworthiness of the ship. The decision was not taken lightly, and Royal Caribbean apologizes for the effect this adjustment will have on our guests’ vacation plans."

In April of 2017, Royal Caribbean was also forced to cancel sailings on the ship for “maintenance on components of the ship's propulsion system."

Tiki culture takes a cruise on Mariner of the Seas

Tiki culture takes a cruise on Mariner of the Seas

Tiki culture takes cruise Mariner of the Seas

Royal Caribbean International's latest bar concept, the Bamboo Room, is a throw-back to the tiki bars that were popular after WWII. The bar, which seats 49 and has a Polynesian theme, was added to the Mariner of the Seas and will be retrofitted to most of the ships getting the Royal Amplified upgrade package, including the Navigator, Oasis and Allure of the Seas. Photo Credit: TW photo by Tom Stieghorst

Celebrity building the Flora, a small ship for Galapagos cruises

The Celebrity Flora will debut in May 2019.

FORT LAUDERDALE -- Celebrity Cruises has designed a new ship for use in the Galapagos, a rare newbuild in the market and at 100 passengers the smallest ship parent company Royal Caribbean Cruises Ltd. has ever built.

Celebrity president Lisa Lutoff-Perlo said that only in a market with such high demand and limited supply would the economics of building a ship of that size make sense for a brand like Celebrity.

"On a per-berth basis, it's really hard to get a return on these ships," Lutoff-Perlo said. "The Galapagos is different."

The Vista will be Flora's top-deck area.

The number of ships that can operate in the Galapagos is restricted by the Ecuadoran government and the size is limited to 100 passengers or less, so prices tend to be relatively high.

A seven-night Galapagos cruises on the Celebrity Xpedition is listed on Celebrity's website starting at $4,399 per person.,

The news was announced at CruiseWorld, Travel Weekly's conference here.

The new ship, named Celebrity Flora, will be built in a Dutch shipyard and debut in May 2019. Lutoff-Perlo declined to say how much it will cost but said it is a fraction of Celebrity's bigger ships.

The Celebrity Flora will take over itineraries now offered on the 100-passenger Xpedition, which will take on itineraries of two smaller ships, the 48-passenger Celebrity Xperience and the 16-passenger Celebrity Xploration. The two small ships will likely be sold, Lutoff-Perlo said.

A rendering of the Darwin Deck Bar on the Celebrity Flora.

Although it will carry the same number of passengers, the Flora will be twice the size of the Xpedition, allowing for more features. "We're able to do more outdoor spaces and more public space for our guests," Lutoff-Perlo said.

It will have a small pool, which Xpedition does not, and two restaurants and two lounges, where Xpedition has one each. There will be more crew space so the Flora will have one naturalist for every 12 guests, up from a 1:16 ratio on Xpedition.

Opting for a new ship enabled Celebrity to design storage space in the hull for three Zodiac boats that are stored on deck on the Xpedition. The Flora's two 1,288-square-foot Penthouse suites will be the largest in the Galapagos.

The design of the ship will be consistent with the new Celebrity Edge and other larger Celebrity ships, but with an emphasis on the neutral, natural and organic, Lutoff-Perlo said. Lounges, suites and restaurants will have floor-to-ceiling windows to facilitate wildlife viewing.

The Flora will be the smallest ship ever built by Celebrity parent RCCL.

About 50% of the accommodations will incorporate the virtual balcony concept that will debut on the Celebrity Edge.

Celebrity's emphasis on facing out toward the ocean will be reflected in all beds being positioned to face a window.

The top deck will have four stick-style cabanas that will be available for day rental and for sleeping out on deck under the stars.

Celebrity Flora will sail year-round from Baltra Island. Bookings open today.

NCL moving final-payment deadline to 120 days before departure

Artists impression of the Norwegian Bliss.

FORT LAUDERDALE -- Norwegian Cruise Line will advance the deadline for final payment on its cruises from 90 days to 120 days before departure, said Frank Del Rio, CEO of Norwegian Cruise Line Holdings.

Details about which cruises would be subject to the 120-day deadline and when the policy will be implemented are forthcoming.

The move means consumers will have to pay in full faster and is likely a reflection of the strong seller's market for cruising that developed in 2017. The 120-day deadline already applies to Garden Villa and Haven accommodations.

Del Rio, who revealed the news at Travel Weekly's CruiseWorld on Wednesday, told hundreds of travel agents that they will benefit directly from the decision.

"It's great for both of us," Del Rio said. "It locks in the customer early. You get your payment 30 days earlier, and it helps you with your cash flow. We think it's wonderful for our agent community that you get to collect on your hard work 30 days earlier."

Norwegian Cruise Line established the 90-day deadline in January 2016.

In a Q&A with Travel Weekly editor in chief Arnie Weissmann, Del Rio was asked if he wants to acquire any more of the eight former Renaissance Cruises ships for Oceania Cruises, which already has four (Insignia, Regatta, Nautica and Sirena).

Azamara Club Cruises, a competitor owned by Royal Caribbean Cruises Ltd., recently acquired a third former Renaissance ship (P&O Cruises' Adonia, to be renamed Azamara Pursuit). Del Rio said he hopes Azamara gets the one remaining (currently sailing for Princess Cruises as the Pacific Princess).

"It won't be us," he said. "We're happy with our four and we're happy with our Riviera and Marina ships. But the next introduction for Oceania will likely be a whole new concept we're working on."

Turning to Cuba, Del Rio said there's no doubt that the market has rewarded Norwegian's decision to use its four-day cruise from Miami to provide two full days and an overnight in Havana.

"The booking curve for a four-day cruise now looks more like a seven-day cruise to Alaska or to Europe. People are booking it way in advance, and therefore the prices have risen. It is now profitable for you to sell four-day cruises where it wasn't before," Del Rio said.

Norwegian next year will devote a second ship, the Norwegian Sun sailing from Port Canaveral, to a Havana itinerary. "That gives you an idea of how important, how profitable, Cuba is to us," he said.

Royal Caribbean chief warns Brexit could increase cruise prices

Royal Caribbean chief warns Brexit could increase cruise prices

by Natasha Salmon  May 26th 2017, 17:36
Gallery: Clia Conference 2017

Brexit could affect freedom of movement and prices of cruises, Clia chairman Stuart Leven has said.

Speaking at the annual Clia Conference in Southampton Leven, Royal Caribbean International’s vice president for Europe, Middle East and Africa, said Brexit would impact cruise in three ways.

“Firstly it could impact the freedom of our guests and passengers to cross borders, the second is freedom of our staff and our crew to cross borders.

“The third is the impact it has in what we charge because there is the customs union that allows us to take goods on ships from one country to the next without charge or taxation. And they are the three main areas which could see change due to Brexit.”

Leven said the main risk from the changes by Brexit will also come when customers book their holidays during the process until 2019 but it was down to agents to maintain confidence in cruise and travel market.

“At some point next year people will be booking their holidays for 2019 and in doing so there will be a lot of uncertainty around whether people will need visas to go to Europe.

“You as travel agents need to reassure them that it is business as usual, it is alright and make sure we don’t get a short turnover on the bookings which none of us want.”

In his role as chairman for Clia in UK and Ireland Leven said he was working with the Abta committee in making sure ‘the cruise industry is represented’ in government negotiations.

Pandas and Beauty Queens Lure Chinese Groups to Cruise Ships

Ovation of the Seas arrives in Hong Kong in June 2016. Photo: Royal Caribbean International

By Bloomberg News (Bloomberg) — Liu Jing wakes at 7, feeds her 84-year-old mother and two-year-old grandson and then spends the day watching the boy play in the playground, with breaks for meals and his afternoon nap and perhaps a little TV in the evening.

That’s not unusual for a Chinese retiree, many of whom play an instrumental role in raising grandkids, but Liu, 57, is on board the Costa Atlantica, a luxury cruise ship packed with activities and events that she largely ignores.

“I just don’t have time to do all these,” said Liu, 57, a Beijing resident who sailed with her husband, grandson and mother from Tianjin port late last year. “Everywhere you look on the cruise, you see middle-aged people like me, with small kids.”

Lines including Royal Caribbean Cruises Ltd. and Carnival Corp. have sent an armada of luxury vessels to China to tap the world’s fastest-growing market, but they face turbulent waters. In addition to satisfying the tastes of Chinese passengers, they sail in the shadow of the region’s increasingly volatile politics. And soon, a new threat will emerge: Chinese companies are building their own big ships.

“Right now it’s a learning process,” said Ken Muskat, chief executive officer at SkySea Holding International Ltd., a Shanghai-based cruise operator. “Everybody is adapting and learning more about what the Chinese market is looking for.”

The number of passengers in China has risen tenfold in five years, to around 2 million in 2016, and the government expects 4.5 million by the end of the decade. Most make shorter trips — five days on average — and call in South Korea and Japan, the top two destinations in Asia outside of China, according to industry body Cruise Lines International Association.

With so much potential — China is still nowhere close to the 11 million plus Americans who cruise each year — companies are bringing bigger and better ships to the Yellow Sea, tailoring their offerings and seeking new destinations in an effort to persuade Chinese travelers that a cruise is more than just a form of transportation.

Royal Caribbean’s latest mega-ship, the 4,905-passenger “ Ovation of the Seas,” complete with indoor sky-diving and robot bartenders arrived at its new home port of Tianjin on May 4 for the summer season after being christened in China last year by actress Fan Bingbing. On deck, a sculpture of a mother panda reaches out to her cub on the deck below.

“We have still a huge challenge ahead of us to create more consumer awareness of what a cruise is, what that experience is like,” said Adam Goldstein, president of Royal Caribbean.

But before China’s newbie cruisers adapt to life on the ocean, the cruise lines first have to adapt to local tastes. And that starts in the kitchen.

“Whether it’s rice and congee for breakfast or different types of seafood for lunch or dinner, they’re sticklers for the authenticity of Chinese cooking,” Goldstein said.

Then there’s the entertainment. Out go the Broadway-style shows beloved in the Caribbean and in come flashy Chinese song-and-dance hits and local celebrities. SkySea invited candidates from the Voice of China reality TV singing contest to perform and staged the Miss World China Final beauty pageant on its ship Golden Era, which can carry 1,814 people.

Royal Caribbean in 2016 invited cross-talk artist Guo Degang to perform on “Ovation of the Seas” during the ship’s inaugural visit to China last year.

“There’s much more of an emphasis on shopping,” Goldstein said, adding that Chinese passengers spend two or three times as much in the on-board stores. “Plus we know that they’re shopping energetically in the ports of call.”

But perhaps the biggest difference in China is that cruises are often a mutigenerational holiday.

“Chinese cruise travelers are very family oriented” said Muskat at SkySea, which counts Royal Caribbean and Chinese online travel service Ctrip.com International Ltd. as major backers. “They like to spend a lot of time with their family whereas in North America you can put the kids in the youth program for seven days and not see them again.”

Liu said she barely tried any of the swimming pool, mahjong, shows, casino, bars and gym on her cruise ship, owned by Italy’s Costa Crociere SpA, because her grandson and 84-year-old mother required her constant attention. Costa said it invites local chefs for its China cruises and adds more extensive retail space. The company, which still keeps an Italian flavor to its voyages, said about 85 percent of its passenger accommodation is in family cabins for China cruises.

Tailoring ships to win over Chinese seafarers may provide an advantage to local cruise lines that can adapt quickly to the rapidly changing tastes of Chinese consumers, said Yu Dunde, CEO of Chinese online travel booking service Tuniu Corp.

China has “too many similar offerings,” said Yu. “To win the market, you’ll have to differentiate through activities, you have to give people something that other cruises can’t.”

Companies are trying to diversify, with more ships departing from southern ports like Guangzhou and Xiamen into the warmer waters of the South China Sea for the winter market.

China’s own operators and shipyards are also entering the market for big cruise ships. Shanghai Waigaoqiao Shipbuilding Co., a subsidiary of China State Shipbuilding Corp., is working with Italian cruise shipbuilder Fincantieri SpA to build two vessels, worth approximately $1.5 billion, according to a memorandum signed in February. The ships will be delivered to a new China-based joint venture between Carnival, CSSC and CIC Capital, and will be tailored for the Chinese market. The first, carrying about 4,000 passengers, is expected to be delivered around 2023 and the operator also has an option for four more.

The Shanghai shipyard said the order is a substantial step forward that brings local builders closer to their dream of having a cruise vessel made in China.

But for both local and foreign operators, the waters around China have become increasingly risky due to the region’s politics. Both Royal Caribbean Cruises and Costa scrapped calls to South Korean ports in March for their cruises departing from China amid escalating tensions between the two countries over the deployment of a U.S. Thaad missile defense system.

China has had similar brushes with Japan and its Southeast Asian neighbors over disputed islands.

Those risks aren’t deterring the expansion of the industry. Cruise lines are already looking to the largely untapped market of potential cruisers in China’s inland cities, a market that is becoming more accessible as the nation builds more airports and high-speed railways.

“They just can’t ignore a broader market beyond the coastal regions” Yu said. “If they can extend the market to the hinterland, then the number of cruise travelers could grow from millions to tens of millions.”