Will discounts lead to dividends for cruise lines?

A panel of cruise experts speaking at the recent World Travel Market exhibition and conference in London predicted that today’s first time cruise passenger, attracted by hefty discounts, will become cruise regulars in the future.  The panel also agreed that the need to fill new ships by offering price-driven deals will reap dividends for the cruise industry when the recession ends.

Cruising has bucked the trend in the UK during the recession, with the number of UK cruise passengers set to reach 1.55m this year.  The panel argued that the extra 47,000 beds coming onto the cruise market in 2010 and 2011 will not be a problem. Yachts of Seabourn director, Europe, Middle East and Africa, Andrew Magowan said the cruise line would raise its 2010 capacity by 60%, but said it was not a concern, despite a need for discounting.

He said: ‘There will be some great opportunities for people to cruise on Seabourn. We are prepared to invest in the product because 50% of our clients repeat within 18 months.  I don’t buy the argument that if you discount in a difficult market you will never get it back.’

NCL’s UK and Ireland general manager Stephen Park said consumers ‘had never had it so good,’ and more people had been brought into the market. ‘At some stage the recession will finish and we will have more people coming into cruising,’ he said.

MSC Cruises’ UK and Ireland chairman Peter Pate said cheap headline prices where not necessarily what the consumer paid, adding: ‘Most clients’ trade up. Our per diem rates in the UK are up.’

RCCL associate vice president and general manager UK and Ireland, Jo Rzymowska, praised trade support for cruising and said: ‘We don’t have a capacity problem. Seven million people go to Spain and only 3% of the overseas holiday market is cruising.  The question people will ask is ‘do I go to Florida, do I climb the Himalayas, or do I go on a cruise?’  

Sphere: Related Content

Euroferries saga continues!

The question on many people’s lips on both sides of the English Channel at the moment is the following: will the long, long awaited Euroferries high speed passenger/vehicle service linking the UK and Northern France actually start this year?  The latest news from Euroferries is that the Fred Olsen chartered Incat wave-piercing catamaran Bonanza Express will start daily services between Ramsgate (UK) and Boulogne (France) on 13 November, although the company’s website is not taking bookings until sailings on 15 November. Interestingly, both ports are still not confirming that the new service will start on the November dates.  How can you possibly attract customers with so much uncertainty?

Sphere: Related Content

Comment: All change at LD Lines!

Observers of the cross-channel ferry scene between the UK and France will have been somewhat confused of late by major changes to the fleet and service patterns of relative newcomer LD Lines. A few weeks ago the French operator said that it would be transferring its conventional passenger freight ferry Norman Voyager from its Portsmouth-Le Havre service to a new service linking Cherbourg with Rosslare in Ireland. Almost immediately LD Lines then announced that it was chartering the vessel to rival operator Celtic Link Ferries for its new service between Portsmouth and Cherbourg during the week, and Cherbourg-Rosslare at weekends! But that’s not all. The French ferry operator’s conventional ferry Norman Spirit will switch from her regular Portsmouth-Le Havre run this November to operate between Dover and Boulogne because the brand new fast ferry Norman Arrow on the run can’t offer enough freight capacity. Norman Arrow, meanwhile, is to lay-up before starting a new six month seasonal service (Easter-September) between Portsmouth and Le Havre. All understood?

Meanwhile, still on the cross-channel ferry scene, UK operator Euroferries, which has been saying that it is to start a high speed passenger/vehicle ferry service across the Dover Straits for the past five years or so, claims that its new Ramsgate (UK)-Boulogne (France) service begins on 19 October. Don’t hold your breath! Sphere: Related Content

Seabourn takes the honours in Berlitz awards

Although Hapag Lloyd’s Europa has retained the title of ‘best cruise ship in the world’ in the latest Berlitz ‘Complete Guide to Cruising and Cruise Ships’, it’s the Yachts of Seabourn that must be the happiest operator with the results from the 25^th publication of what is known as the cruise industry’s bible – having its complete fleet of four vessels being awarded 5-star status.

New ship Seabourn Odyssey led the way with a total of 1,787 points out of a possible 2,000, voted the second best cruise ship in the world, with Seabourn Legend scoring 1,779, Seabourn Spirit 1,700 and Seabourn Pride 1,769.  Newbuilding Seabourn Sourjon, currently completing in Genoa should also joint this exclusive club in the next edition of the Guide.

It’s remarkable that Hapag Lloyd’s Europa still comes out as the world’s top ship, considering her age (built 1999) and the increasing competition from much newer ships.  However, the ship still looks almost new, thanks to the dedication of her crew and owners. There has been talk for a couple of years or so about a new Europa being ordered, but due to the currently global recession this is not likely in the short term.   

Sphere: Related Content

Is Celtic Link’s new Portsmouth-Cherbourg ferry service just Scotch Mist?

Low cost Irish ferry operator Celtic Link Ferries says that it is about to start a new cross-channel service linking the south coast UK port of Portsmouth with Cherbourg in northern France. Good news for travellers and both ports, but only if its actually happens! This is not the first time that the Irish operator has announced the start-up of this new service. Back in October 2006 it bought a former Baltic train ferry and carried out a quick ‘conversion’ in Greece to ready the 1987-built vessel former her new service. However, following the arrival of the ferry in Portsmouth and inspection by the UK’s MCA the vessel was not allowed to sail with passengers until ‘a large number of deficiencies’ had been put right. They weren’t and the new service failed to start. In fact one surveyor said that the vessel ‘was a death trap – one of the worst ships I’ve ever seen.’ It will be interesting to see what is the history of Celtic Link’s newly acquired vessel for the service – something that they quietly forgot to elaborate on in their announcement about the start-up of the new service!  Sphere: Related Content

Can Celebrity take on Cunard out of the UK?

Up-market brand Celebrity Cruises is currently making a major push to increase its share of the growing UK cruise market. In 2010 the line will be homeporting its latest vessel, Celebrity Eclipse, in Southampton for the summer season. Celebrity is after the discerning British cruiser. The company openly says that it is after the top third of passengers who regularly cruise with P&O Cruises, i.e. those passengers who take the top priced cabins. Robin Shaw, Vice President and Managing Director, UK & Ireland, RCI, Celebrity Cruises and Azamara Cruises believes that there is ‘no direct competition for this ship (Celebrity Eclipse) in the UK market from Southampton,’ and ‘expects 90% of the passengers cruising on the new vessel from Southampton to be British.’ Dan Hanrahan, President & CEO of Celebrity went one further a said that ‘Celebrity Eclipse will give Cunard and run for its money,’ something outgoing Cunard president Carol Marlow dismissed totally when I put Hanrahan’s statement to her onboard Celebrity Equinox. We shall have to wait until April 2010 to see! Sphere: Related Content

QE2 to sail again and again!

After all the hype about QE2’s final voyage from Southampton to Dubai before ending her days at a ultra luxury floating hotel in the Palm Jumeirah leisure complex in the Emirate, it is now almost certain that the most famous passenger ship in the world will undertake another ‘final’ voyage – this time from Dubai to Cape Town. Troubled Dubai-based property and leisure company Nakheel is believed to have received permission from South Africa’s Minister for Environment & Tourism to berth the vessel in the commercial docks in Cape Town, next door to the Victoria & Albert Waterfront development. The latest excuse from Nakheel, sorry reason, for not going ahead with its ambitious conversion plans for QE2 in the Gulf and moving the liner from the Arabian Gulf to the southern hemisphere is that Cape Town, with its ready-made berthing facilities, provides the best opportunity to open the vessel to visitors as quickly as possible. Nakheel says that QE2 could stay in Cape Town for 18 months and that one reason for moving the ship south was the business opportunities provided by up coming 2010 Football World Cup in South Africa. It remains to be seen what the next ‘final’ voyage is for QE2 – Cape Town back to Dubai or anywhere else that Nakheel can find a berth for her!  Sphere: Related Content

Cape Town home for QE2?

The future of arguably the world’s most famous passenger ship, the former Cunarder QE2, remain in doubt for the global economic crisis impacting hard on the business plans of her new owners, Dubai World. Dubai World’s hotels and leisure operation Nakheel is scaling down its ambitious plans to transform the former Transatlantic liner into a seven-star hotel and leisure/tourism complex based at the Palm Jumeirah complex in Dubai and is now looking to use the vessel as a more modest hotel in Cape Town, South Africa!

Having bought QE2 for £50m and announcing plans to cut the vessel in two and lengthen her, things started going wrong when the vessel arrived in Port Rashid, Dubai at the end of her last passenger carrying voyage. However, the global credit crunch has seriously affected Nakheel’s business plans, not just for QE2, but also other ambitious land-based construction plans in Dubai. At the end of 2008 Nakheel laid off a total of 500 workers and a further 400 in recent weeks.

Dubai World has applied for permission from South Africa’s National Ports Authority of Cape Town to berth QE2 in the commercial port. A decision is expected any day now. 

Dubai World, with other investors, bought the Victoria & Albert Waterfront development in Cape Town in 2006 and during the past two years Dubai World Africa and Nakheel Hotels & Resorts have been working to re-design the area. QE2 can’t berth at the Victoria & Alfred Waterfront complex because of her draught, so the plan is the berth her next door in the commercial port as a hotel. So much so for QE2 being the jewel of Dubai as previously planned! Sphere: Related Content

No such thing as a free lunch on Oasis of the Seas!

Passengers wishing to experience a cruise aboard the world’s largest cruise ship, RCI’s Oasis of the Seas, when she comes into service at the end of this year will be offered an unrivalled array of facilities and dining options. The dining options are many and varied. However, if passengers think that they are in for an all-inclusive culinary experience then they are in for a shock. Although many of Oasis of the Seas’ dining options are included in the cruise ticket price, many of the more alluring venues will have cover charges, while other dining options will have a la carte pricing. Cover charges will range from $3.95 for breakfast at the Johnny Rockets diner, $10/$15 for lunch/dinner at the Tuscan trattoria Giovanni’s Table to $35 for dinner at the ship’s most exclusive dining venue, 150 Central Park.  Sphere: Related Content

A tale of two fast ferries!

The cross-channel ferry route between England and France is fast becoming popular again by operators of high speed ferries. In a week which saw the 50th anniversary of the entering into passenger service of the hovercraft and the 40th anniversary of the entering into service of the largest passenger carrying hovercrafts ever built, French ferry operator LD Lines started operations between Dover and Boulogne using the brand new 112m Incat wave-piercing catamaran Norman Arrow. LD Lines moved quickly into the fast ferry sector following the collapse of low-cost operator SpeedFerries on the same route. The difference between the vessel used by SpeedFerries and LD Lines craft is in size, passenger ride and comfort, and, most important of all, the fact that Norman Arrow can carry freight. The French operator is seriously considering investing in a second 112m Incat for this route and is also looking at starting a fast ferry service linking Portsmouth and Le Havre.

Meanwhile, there is further news about the proposed fast ferry service between the UK port of Ramsgate and Boulogne by UK operator Euroferries. After many false dawns over the past five years, it looks like the service will, at long last start in mid July. Some cynics have said which year! 

Euroferries will be using Fred Olsen’s SA’s Bonanza Express on the run. I have been reliably informed that the 96m Incat has been repainted in the Canary Islands and named Euroferries Express, and is ready to make the journey north any day now. Senior port officials from Boulogne have just had a meeting with Euroferries to finalise plans. But as one senior port official told me this week, ‘I’ll believe the service will start when I see the ferry sail into Boulogne.’ There are many on both sides of the channel with the same opinion. When you compare the professionalism of LD Lines with that of Euroferries, who have been telling anyone who will listen over the past three-four years that their service start-up date is ‘imminent’, there is no comparison!   Sphere: Related Content

Where have all the new orders gone?

Cruise shipbuilders worldwide are anxiously awaiting decisions being made by major cruise lines with regard to the latest trance of newbuildings. However, the global credit crunch seems to have seriously affected certain operators plans, with some yard’s also having to renegotiate on the price of existing contracts. It seems that a number of operators are considering major refits/upgrades as opposed to new ships, good for certain yards, but not the established cruise ship builders. There is some talks that there is a multi-ship order in the offing from Carnival, but the only recent cruise ship order of late has been the six river cruise vessels ordered in Germany by Munich’s Premicon. The short term future for a number of shipyard’s who reply on cruise ship orders looks somewhat bleak! Sphere: Related Content

Building ships at untried shipyards is not a good move!

You would think that if you were a newcomer to the cruise market and were also entering the luxury sector, your choice of shipyard to build your new vessels would be of paramount importance. You would naturally look at shipyards that have a good track record in building quality, luxury vessels; yards with an impressive portfolio. You wouldn’t risk having your new ships built by a shipyard that has never built a cruise ship would you? No, that would be just asking for trouble. Well that’s exactly what newcomer Pearl Seas Cruises did and the company is now paying the price. The US line was so eager to enter the luxury small ship cruise market that it couldn’t wait for newbuilding slots at a tried and tested cruise ship yard; instead it placed a contract for two vessels with a Canadian shipyard which had never built a cruise ship before. The deal didn’t get off to the best of starts, with the first vessel being cancelled. The second vessel was supposed to have been delivered in the first quarter of this year, but deficiencies recently discovered during sea trials, along with quality issues and construction delays have resulted in Pearl Seas having to cancel the vessel’s inaugural summer season. When the Canadian shipyard secured this order a spokesman for the yard, Halifax Shipyard, said: ‘we don’t see a problem in building cruise ships for the first time as we have recently completed a number of vessels for the offshore oil and gas industries which have required extensive accommodation outfitting to a very high standard.’ I wonder what Peter Williams would say now! Sphere: Related Content

More gloom for Antarctic cruises

Following the recent decision by those countries signatory to the Antarctic Treaty to ban cruise ships carrying more than 500 passengers entering the waters of Antarctica and limiting the number of passengers ashore at any one time to just 100, comes further bad news for cruise lines with the region on their schedules. There is currently a new proposal to ban cruise ships sailing in Antarctic waters from carrying and burning heavy fuel oil in their main and auxiliary diesel engines. This would mean that the ships would have to burn the more expensive marine diesel or marine gas oil, thereby increasing their operating costs significantly. A number of operators have decided to drop Antarctic cruise scheduled from the end of this year due to this looming problem, which is expected to be brought in under MARPOL regulations from 2011, and other larger operators are expected to follow! Sphere: Related Content

All eyes on Antarctica!

A bit of a chilly flavour to this week’s issue with a number of stories concerning cruise ship operations in Antarctica. Following a number of incidents in the region, new restrictions regarding the number of passengers aboard cruise ships visiting Antarctica and going ashore have just been agreed at a meeting in Baltimore. At the se time a report into the loss of the small expedition cruise vessel Explorer 25 miles south east of Penguin Island in the Bransfield Strait towards the end of 2007 has laid the blame at the feet of the ship’s Master. Meanwhile, the replacement vessel for Explorer has just sailed on her first cruise for G.A.P. Adventures following a major refit in Finland. The Canadian operator claims that Expedition is one of the first polar vessels to be fully 2010 compliant with the new International Association of Antarctic Tour Operators (IAATO) environmental recommendations. Let’s hope that the officers and crew are up to the job!

Sphere: Related Content

Another one bites the dust!

The global economic crisis has claimed yet another cruise line, with the unexpected news that small British luxury operator Hebridean International has gone into administration. One of the two vessels in this operators fleet has already been sold, and is expected to be converted into a Super Yacht. The Skipton, Yorkshire-based operators’ remaining vessel, Hebridean Princess, remains in service for the time being and will operate her summer season on the Scottish west coast, while a buyer is sought. I wonder just how many more luxury operators are in a similar boat to Hebridean? Sphere: Related Content

Almost 80% Brits say its ‘spend, spend, spend’ on this year’s holiday

In a survey produced by Yougov, on behalf of Carnival UK for its annual Cruise Report, it was found that even during the ‘credit crunch’, 78% of British holidaymakers (45-54 year olds) were still planning on spending the same amount on a holiday as they did in 2008; in fact nearly a third are planning to spend more.

When asked what they would be willing to forgo to fund their annual holiday consumers only put buying quality food and saving ahead of the all-important two weeks away.

One of the biggest surprises from the survey came when holidaymakers claimed that whilst away they missed the comfort of their own bed – over friends, pets and even their family.

The report also highlights:

• The introduction of Ventura for P&O Cruises and the first full year’s operation of Cunard’s Queen Victoria, combined with strong performances from its other lines to secure 20% growth for Carnival UK brands in 2008
• With the British providing up to 30% of passengers sailing on Carnival Cruise Lines’ brand new Carnival Splendour last year, CCL successfully adapted its entertainment onboard and even made sure that it offered a proper cup of English tea
• The UK market exceeded expectations for Costa Cruises in 2008 and the British have proved the largest single market for Costa’s Asia cruises – ahead of the Italians and other Europeans who usually provide the majority of Costa’s passengers
• 30% of Cunard’s QE2 farewell passengers were new to Cunard and the final voyage to Dubai sold out in just 36 minutes. Those who had never sailed on QE2 were desperate to do so while they still had a chance!
• By the end of 2010, Holland America Lines will have spent about £300m on upgrading its fleet since 2003
• Ocean Village is now carrying 44% first-time cruise passengers (56% repeat cruisers) and has introduced the first activities specifically aimed at the 13-17 age group: the self-explanatory How to be a TV Presenter course and the Girls Night-In Spa pampering package
• P&O Cruises research has found that people go online to do most of their pre-booking research and that the brochure is becoming almost just a timetable
• 95% of those travelling with Princess Cruises say they would recommend the cruise to their friends
• With the informality and al fresco dining emphasised on Yachts of Seabourn cruises, the average age has lowered with many passengers in their 40s

Commenting on the survey, Carnival UK CEO David Dingle said:

‘The findings from YouGov have confirmed for us that there are still plenty of holidaymakers out there planning a holiday for 2009 despite the current economic situation. Considering a cruise holiday today includes accommodation, almost all food, entertainment and flights, it really does provide exceptional value at a time when the credit crunch is hitting out wallets in every aspect of our daily life – and our beds are very comfortable.’ Sphere: Related Content

No Dubai conversion for QE2?

There are a number of rumours circulating in Dubai that the massive conversion plans to transform the former Cunard cruise ship QE2 into a floating hotel/conference/leisure centre have fallen through, due to the immense costs and the global credit crisis. However, owners Nakheel deny such suggestions. Manfred Ursprunger, CEO of QE2 Enterprises, the Nakheel company set up to run the QE2 project said that plans for the conversion of the ship are still going ahead. ‘We are not selling the ship. We are still in the planning stage and we are looking at the best way we can use this magnificent ship,’ he said. But why is it taking so long to finalise details of the ship’s conversion? Nakheel’s had plenty of time and is using some of the industry’s best in this business, such as V.Ships Leisure. It’s well known that Nakheel is putting a number of construction projects in the Emirate on hold for the time being, including the much hyped Trump Towers. Mr Ursprunger said that ‘no definite designs for the QE2 have been so far Okayed.’ I wonder if they ever will! Sphere: Related Content

Brits don’t go a lot on Italian ships!

I don’t usually comment on readership poles in cruise publications, they are biased on some way or another, usually with regard to just how much a cruise line spends with the publication on advertising! However, a recent passenger survey carried out by the UK’s largest online supplier of cruise holidays, Cruise.co.uk, makes interesting reading, but not if you are Italian!

In a recent passenger pole the three worst performing cruise lines were Costa, NCL and MSC. The independent cruise agency encourages passengers to review their holidays upon their return and has collated the results from more than 12,000 assessments. Passengers rated their cruise under seven categories: food, entertainment, shore excursions, staff, provision for children, activities and cabins – giving each a mark out of five. 

Of the major cruise lines, MSC was voted the worst, achieving an average of 2.83 from a total of 241 reviews, with a lack of activities and children’s entertainment being the main complaints. Costa, meanwhile, scored an average rating of 3.25 from 300 reviews. Main passenger hate was lack of onboard activities. However, top of the pole Cunard and Royal Caribbean, each scoring 4.36 and 4.15 respectively. Sphere: Related Content

Brits don’t go a lot on Italian ships!

I don’t usually comment on readership poles in cruise publications, they are biased on some way or another, usually with regard to just how much a cruise line spends with the publication on advertising! However, a recent passenger survey carried out by the UK’s largest online supplier of cruise holidays, Cruise.co.uk, makes interesting reading, but not if you are Italian!

In a recent passenger pole the three worst performing cruise lines were Costa, NCL and MSC. The independent cruise agency encourages passengers to review their holidays upon their return and has collated the results from more than 12,000 assessments. Passengers rated their cruise under seven categories: food, entertainment, shore excursions, staff, provision for children, activities and cabins – giving each a mark out of five. 

Of the major cruise lines, MSC was voted the worst, achieving an average of 2.83 from a total of 241 reviews, with a lack of activities and children’s entertainment being the main complaints. Costa, meanwhile, scored an average rating of 3.25 from 300 reviews. Main passenger hate was lack of onboard activities. However, top of the pole Cunard and Royal Caribbean, each scoring 4.36 and 4.15 respectively. Sphere: Related Content

Scilly ferry ideas!

A major investment project is currently underway in the UK to provide maintain the vital ship link between the UK mainland and the Isles of Scilly, off the south west coast of the UK. A new £20m state-of-the-art passenger/cargoship is about to be ordered, for year-round service, replacing two ageing passenger and freight vessels, along with major port infrastructure developments at the mainland port of Penzance and the island’s hub, St. Mary’s. However, there are some objections to the proposals, especially with regard to the harbour developments in Penzance. Meanwhile, an alternative vessel proposal has been introduced: using a SWATH-type passenger-only fast ferry during the summer months only. This vessel, however, is gas-turbine powered and can’t take to the ground in St. Mary’s. At the same time, a separate new freight-only vessel would also be required, thereby adding to the costs. Discussions on the new ship are currently being finalised, with the most likely outcome being that on a combined passenger/cargoship for year-round operations. Scilly fast ferry ideas seem to be just that! Sphere: Related Content