Top Headlines
Carnival Corporation expands presence in the Caribbean with $85 million port in Dominican Republic
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 18 February 2015 18 February 2015
Carnival Corporation & plc, the world's largest travel and leisure company, today announced it will begin welcoming guests at its newly developed Amber Cove port in the Dominican Republic beginning October 2015. Six of Carnival Corporation’s nine brands will call on Amber Cove along the country’s Amber Coast – a partial filming location for the original Jurassic Park movie – to give cruise passengers another exotic location to explore as part of their vacation experience.
With the opening of the new Amber Cove port, passengers will be able to make stops along the Dominican Republic’s north Amber Coast, which has not been regularly visited on cruise itineraries since the 1980s. It will open expanded itinerary options in the Caribbean, the world’s most popular region for cruise vacations[1], and will pair with the company’s Grand Turk Cruise Center only 100 miles to the north to anchor new central Caribbean itineraries for Carnival’s nine global brands. In looking to the future, the port is strategically located to be incorporated into itineraries featuring potential stops in Cuba.
The new $85 million facility represents the largest cruise industry investment ever made in the Dominican Republic, and will feature a two-berth port able to accommodate the largest cruise vessels in operation today. Carnival Corporation has monitored the various stages of the port's construction progress with the use of drones, an innovative development that is being used for the first time as part of the company’s port development process. The facility, a joint project between Carnival Corporation and the Rannik family of Grupo B&R, is expected to host more than 250,000 cruise passengers in its first year of operation. It will provide approximately 430 local jobs.
“The construction of the cruise port at Amber Cove has been an incredible project for our entire country, as well as the Caribbean region as a whole,” said Francisco Javier, tourism director of the Dominican Republic. “Carnival Corporation’s investment in Amber Cove has already proven beneficial to the economy, and we expect the investment to have a positive long-lasting economic impact. The new port will also give cruise passengers an opportunity to see another part of the Dominican Republic, our Amber Coast, which hasn’t been available as part of cruise itineraries in nearly 30 years. This is a very exciting development.”
The port will open with a visit from Carnival Victory from the company’s Carnival Cruise Line brand on October 6, 2015. Following this inaugural visit, five additional Carnival Corporation brands are scheduled to make calls on Amber Cove -- including Cunard’s Queen Mary 2 on November 22, P&O Cruises’ (UK) Azura on December 5, AIDA Cruises’ AIDAvita onDecember 11, Costa Cruises’ Costa Deliziosa on December 31 and Holland America Line’s ms Eurodam on January 19.
Additional ships from the company’s brands are scheduled to call on the port in late 2015 and through 2016 including Carnival Cruise Line’s Fantasy, Splendor, Valor, Sunshine, Conquest and Breeze and Holland America Line’s Nieuw Amsterdam. These visits will consist of 57 calls by 13 different ships across the six brands taking place between October 2015 and April 2016, accounting for more than 155,000 guests during this period.
As the world’s largest cruising market – representing more than 37 percent of the global cruise business[2] – the Caribbean is a strategic geographic region for Carnival Corporation and the overall cruise industry and is highly popular for vacationers.
This new port facility in the Dominican Republic underscores the company’s focus on creating great vacation experiences, as passengers sailing the Caribbean will have an exciting new destination to visit. It will also give Carnival Corporation’s nine global cruise brands the ability to create more diverse itineraries, another important part of the cruise experience. More than 60 percent of cruisers are repeat passengers, and offering robust itineraries keeps the experience fresh and engaging for them.
“There are several markets that are becoming increasingly important to the cruise industry, but today the Caribbean is the single largest share of our business,” said Giora Israel, senior vice president of global port and destination development for Carnival Corporation. “We are constantly looking for new ways for our guests to enjoy their cruise experience, and it is always exciting to add new destinations to our itineraries, especially in the Caribbean where many of our passengers have been before. We are confident that our guests will love visiting Amber Cove, which we believe will quickly become a very popular port of call for our guests. And because Amber Cove is easily accessible, it will give our guests a convenient gateway to the Puerto Plata region, which is spectacular. And importantly, Amber Cove will allow us to offer our guests a new option in our Caribbean itineraries.”
The opening of Amber Cove adds to the portfolio of cruise destinations Carnival Corporation has developed in the Caribbean. This includes the Grand Turk Cruise Center in the Turks & Caicos Islands, Puerta Maya on the Island of Cozumel, Mexico, and Mahogany Bay on the island of Roatan, Honduras. It is one of roughly 60 ports Carnival Corporation’s brands visit in the region.
The Amber Cove port is located in the heart of the Dominican Republic’s North Coast just outside the historical town of Puerto Plata, which was discovered by Christopher Columbus in the 1490s and was recently named by Travel + Leisure magazine as one of the “Best Places to Travel in 2015.” This newest Caribbean destination was developed to re-establish the Dominican Republic’s North Coast as a popular cruise destination – the last cruise ship to call at Puerto Plata was nearly 30 years ago.
Amber Cove will feature a waterfront welcome center with a variety of retail offerings, including a marketplace for Dominican crafts and souvenirs, as well as a wide range of unique food and beverage establishments. The port will also include a recreational area featuring amenities such as a pool, splash zone and green space areas. The transportation hub -- the single largest component of the port -- will provide visitors easy access by land and sea to the surrounding destinations and attractions.
The new port will host one of the most extensive shore excursion programs available in the Caribbean, offering roughly 40 different landside experiences including beaches, water sports and special culinary, cultural and adventure options. Many of these excursion offerings will come from well-established local operators. Nearby Ocean World, one of the region’s largest marine adventure parks, offers guests popular ways to experience and interact with a variety of marine animals.
Norwegian enjoys highest booked revenue and highest yields ever
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 18 February 2015 18 February 2015
Norwegian Cruise Line Holdings, the Miami based company that acquired Prestige cruise Holdings last year, is optimistic about the future and says it enjoys record booked revenue and yields, despite softness in the Caribbean for the start of the year.
“Looking to the balance of the year, the outlook is much more encouraging with solid pricing and booking trends across all markets. While 2015 is primarily an organic year, we expect to deliver robust Adjusted EPS growth of approximately 23%,” said Frank Del Rio, president and CEO, in a statement.
“Until recently, our booked revenue had been on par with prior year; however, the last three weeks of this Wave season has seen a significant acceleration in booking volume. Norwegian Escape is in a better booked position than her last two predecessor sister ships, Norwegian Breakaway and Getaway, and Seven Seas Explorer has set both single day and single week booking records at the Regent brand.”
“At year end, and as of today, the company has more booked revenue and the highest net yields on future sailings than ever before, including full year 2015 and 2016,” said Del Rio.
“As anticipated, the combined impacts of the challenging Caribbean capacity and pricing environment along with a normalized winter season for the Norwegian brand, which last year included an extended bareboat charter of Norwegian Jade for the Sochi Olympics, results in tempered expectations for the first quarter.”
Norwegian group reports final quarter loss as expenses soar
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 18 February 2015 18 February 2015
Norwegian Cruise Line Holdings, which acquired Prestige cruise Holdings last year, has reported a final quarter loss on sharply increased operating costs.
The company reported a final quarter net loss of 25.6 million compared to a profit of $36.0 million in the same period in 2013, as cruise operating expenses increased by 24% to $518.6 million and other operating expenses doubled to $223.8 million. Revenues rose to 788.9 million from 600.3 million.
For the full year 2014, the group reported net profit of $338.5 million, markedly higher than the $101.7 million figure it reached in the year before. Revenues increased to 3.12 billion from $2.57 billion.
“Looking back at our accomplishments over the past year, it is clear that 2014 will be remembered as one of solid growth and game-changing expansion for the company,” Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd, said in a statement.
“Strong results are a testament to the hard work and dedication of our team members who, despite operating in a challenging environment, kept a keen eye on optimizing pricing and managing expenses while delivering exceptional vacation experiences to our guests.”
Looking ahead, the acquisition of Prestige has created the cruise industry’s most dynamic and diversified operator, one that is well-positioned to realize meaningful synergies and deliver superior results. I look forward to leading this exciting organization, which mixes a deep history in the industry with an entrepreneurial spirit that is unique among cruise operators,” continued Del Rio.
Adjusted Net Revenue, for the period, which excludes the aforementioned deferred revenue fair value adjustment, increased 37.5% to $618.7 million on 23.8% growth in Capacity Days from the addition of Norwegian Getaway and the Prestige fleet as well as an 11.1% improvement in Adjusted Net Yield resulting from the addition of the Prestige fleet and a 3.9% increase on a Norwegian Stand-alone basis (4.5% on a Constant Currency basis).
On an as reported basis, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 3.5%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 1.0% on a Norwegian Stand-alone basis (0.8% on a Constant Currency basis) due to investments in conjunction with the Norwegian NEXT program as well as increased marketing expenses to drive demand and stimulate close-in bookings in the fourth quarter and to carry momentum into Wave season.
TUI to become “a leading cruise operator in Europe in the foreseeable future”
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 17 February 2015 17 February 2015
TUI AG, the world’s largest tour operator, says it wants to integrate closer its German and British cruise operations, with an aim to become a leading operator in Europe.
“The goal is to expand TUI’s cruise activities so as to become a leading cruise operator in Europe in the foreseeable future,” the company said in a statement.
“The five ships of the Thomson Cruises fleet, operating in the British market, are to be completely modernised in the next few years. At the same time, Thomson Cruises is to cooperate more closely with TUI Cruises,” it said.
TUI Cruises, which TUI AG owns jointly with Royal Caribbean Cruises Ltd. (RCCL) is to continue its strong growth. The second newbuild of the fleet, Mein Schiff 4, will be commissioned in June.
“It has been announced that Hapag-Lloyd Kreuzfahrten is expected to break even in the current financial year 2014/15. The Group expects to be able to operate Hapag-Lloyd at a very attractive earnings level in the long term, too. Contributing to this will be the acquisition of Europa 2 in January and the corresponding termination of the charter contract,” the company said.
CLIA study expects 6 of 10 cruise passengers to be repeaters
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 09 February 2015 09 February 2015
Cruise Lines International Association (CLIA), the industry’s ceiling organisation identified seven 2015 cruise industry outlooks, based on several studies, it said in a statement.
Travelers Will Continue to Set Sail – Cruise travelers intend to continue to set sail and are highly satisfied with prior cruise experiences. In fact, 62% are return cruisers and 69% ranked cruising as a better value than a land-based vacation.
Size Doesn't Matter – Five years ago, the largest cruise ship in the world was introduced with a 6,300-passenger capacity. With 22 new ocean, river and specialty cruise ships scheduled for debut this year, the focus is less on size and more on unique design and amenities.
Specialty Cruises Continue to Thrive – CLIA's specialty segments, which includes sophisticated ships, luxury yachts, elegant ocean liners and the newest river cruises, continue to experience double digit passenger growth. In fact, specialty cruises grew by 21%annually from 2009 to 2014 estimates.
Caribbean Continues to Be Queen – The Caribbean remains queen for the cruise industry with more than a third of the global deployment capacity market share in 2015. At the same time, cruise travelers are expanding horizons.
The Mediterranean continues to grow as a destination, as well as other regions including Asia and Australia. In 2015, 52 ships will provide 1,065 Asian cruises with capacity for 2.17 million passengers.
Oh, the New Places We Will Go – The cruise industry is seeing an increase in passengers looking for global experiences. As a result, cruising has made the world more accessible than ever. CLIA's member cruise lines offer nearly 1,000 ports around the globe, including many areas that fall within a UNESCO World Heritage Site.
Travel Agents Are Key to Cruise Travel – While the Internet and mobile devices have overtaken how consumers make purchases, travel agents continue to be the most popular and best way to book a cruise. In fact, seven out of ten cruise travelers (70%) use a travel agent to plan and book cruise vacations.
Passengers Are at the Helm – When it comes to travel, consumers are in control more than ever before. The cruise industry is excited, motivated and responding with key innovations that are meeting the needs of today's passengers, such as bow-to-stern Wi-Fi and phone connectivity, multigenerational appeal, themed cruises and "foodcations".
The Travel Agent Pulse Survey was conducted among 482 North American CLIA-certified travel agents via an online survey between November 7-23, 2014.
The 2014 North American Cruise Market Profile Survey was conducted in partnership with market research firm TNS and cruise industry consultancy Bob Sharak & Associates. Drawn from a panel of more than 1 million households, an online survey was conducted between August 12-26, 2014, which collected cruise and travel opinion data among 1,600 U.S. and Canadian residents. This report presents data on travelers who are 25 or older with an annual household income of more than $40,000.
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