RCCL enters partnership deal with Ctrip’s rival

After finalising its partnership deal with Ctrip, Royal Caribbean Cruises Ltd. (RCCL) has entered an exclusive cooperation agreement with another Chinese online distributor, JD.com. Alan Lam reports.

 

Meanwhile JD.com or Jingdong (), a NASDAQ-listed, Beijing-headquartered Chinese electronic commercial company, one of the largest B2C online retailers in China, has also signed a cooperation agreement with the NASDAQ-listed Tuniu Corp. (tuniu.com), a Chinese online travel agency, a rival of Ctrip, to jointly develop cruise business

 

JD.com launched its cruise travel service, Jingdong Cruise, in June 2014.

 

While the deal with Ctrip is to operate Celebrity Century, RCCL’s agreement with JD.com has been based on operating another Celebrity Cruises ship, Celebrity Millennium, which will be undertaking four cruises from Shanghai to Hong Kong, Japan and South Korea in the coming season. The marketing operation has already started in earnest.

 

This latest development is another suggestion that China’s cruise sales network is maturing and expanding fast. It may soon be a world leader, if not already, in online cruise product distribution. RCCL may be in the enviable position to reap the benefit. The group is certainly ahead of its peers in penetrating the Chinese market.

 

China is already a world leader in online retail sales.

 

Updated: Engine room fire on Insignia brought under control - report

One crew member and two contractors were killed after an engine room fire onboard Oceania Cruises' Insignia, the line has confirmed to Cruise Critic. 

"Three crew members and two contractors who were working onboard were transferred to a local medical facility. We are deeply saddened to learn that two contractors and one crew member did not survive. We extend our deepest condolences to their families during this very difficult time," the company was quoted as saying.

Also according to Oceania, the fire was contained to the engine room and all passengers are safe and have disembarked.

"Arrangements are being made for guests and crew to be accommodated at local hotels until transportation to Miami is arranged," the line said. A Guest and Crew Support team, along with a technical team, is en route from Miami to St. Lucia.

Insignia was on a 10-night cruise, which departed San Juan on December 7 and was scheduled to arrive in Miami on December 17, the report said.

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A fire that broke out in the engine room of Oceania Cruises' 30,000 gross ton Insignia at about 0930am local time, when the ship was docked at Castries in St Lucia, has been brought under control, a report on Cruise Critic said.

"According to St. Lucia News Online, fire officials in Port Castries received a call at 9:25 a.m. that a fire had broken out in the ship's engine room. The St. Lucia Air and Sea Ports Authority and the St. Lucia Fire Service told the news site the situation is under control, and confirmed that three people have been hospitalized, one for smoke inhalation and mild respiratory distress. Fire officials said the incident was contained within Berth 5 at Port Castries," the report said.

A member of Cruise Critic said that all passengers had been called to muster stations and disembarked from the vessel.

Oceania Cruises is part of Prestige Cruise Holdings, which was acquired earlier this year by Norwegian Cruise Line Holdings Ltd. Insignia was built in France in 1998 as R One for the now defunct Renaissance Cruises. Oceania acquired the ship in 2004.

Tallink and Meyer Turku signs letter of intent for new generation LNG powered fast ferry

AS Tallink Grupp and Meyer Turku Oy signed a Letter of Intent for the construction of an environmentally friendly car-passenger ferry for Tallinn-Helsinki route shuttle operations. The ship will cost around 230 million euros and will be built at Turku shipyard for delivery in the beginning of 2017. The project will provide approximately 2000 man-years employment for the shipyard.

The new ferry will be about 212 metres in length with a gross tonnage of 49 000. The ship will operate on the route between Helsinki and Tallinn and she is planned to carry 2800 passengers.

The ship will bring significant improvement in energy efficiency which is achieved by applying numerous innovations and new technical solutions. Green values, reduction of all emissions, minimizing the amount of waste and increasing recycling utilization, have been very carefully taken into account in the design of the ferry. The ship uses LNG as fuel and she complies with the new and stricter emission regulations for the ECA areas including the Baltic Sea.

Management Board Member of AS Tallink Grupp, Janek Stalmeister said that with the new ferry Tallink aims for an upgrade of the Tallinn-Helsinki route ferry service. “As the market leader and a long time operator on the route we have a good understanding of customer expectations and know what needs improvement. I am confident that the world-class experience of Meyer Turku will be once again a valuable asset for us to deliver a high quality new ferry, which will strengthen our competitive advantages," he added.

“A series of six ferries between years 2002-2009 has been delivered to Tallink and this ship will be the 7th newbuilding for the same shipowner. I ́m very happy that Meyer Turku will continue the excellent and trusting cooperation with Tallink. This new ferry prototype gives us an excellent opportunity to apply improved design & building methods. For all these reasons this Letter of Intent signed today is very important to Meyer Turku and to the entire Finnish shipbuilding cluster," says Jan Meyer, CEO of Meyer Turku Oy.

Over the next few months Tallink Grupp and Meyer Turku will work on the final shipbuilding contract and financing.

TUI AG's cruise recovery exceeds forecast, Hapag-Lloyd to break even in current year

Cruise operations of TUI AG, the world's largest tour operator, have posted a recovery that exceeded the company's own forecast and the loss making Hapag-Lloyd Cruises unit should break even in the current financial year as planned, TUI said in a statement.

The business, which comprises the fully owned Hapag-Lloyd unit and 50% stake in TUI Cruises, increased revenues to €281.0 million in the 2013-14 financial year from €261.0 million in the same period a year earlier. EBITA turned positive by €24.2 million from being negative by €30.4 million in the previous 12 month period.

Cruises – turnaround target outperformed /Break-even for Hapag-Lloyd Cruises in the fiscal year 2014/2015 confirmed

Occupancy of the TUI Cruises' fleet, currently comprising three ships, was improved by 1 percentage point to 102% ; the average rate per day per passenger also rose to €171, up by 9% year-on-year. "With Mein Schiff 4, to be commissioned in June 2015, and the two newbuilds ordered, Mein Schiff 5 (2016) and Mein Schiff 6 (2017), TUI Cruises will consistently continue its growth path in the premium cruises market segment," TUI said.

Occupancy of the luxury and expedition cruise ships at Hapag-Lloyd Kreuzfahrten fell by 2 percentage points year-on-year to 68% . "However, overall the Sector recorded a positive development in the second half of the financial year, in particular in relation to the two expedition cruise ships and thanks to the amortisation of the start-up costs for the Europa 2 luxury cruise ship," TUI stated. The average rate per day per passenger in the period under review climbed by 7% to €450. "For the fiscal year 2014/2015 the Group has confirmed that Hapag-Lloyd will break-even," TUI said.

New CEOs for Royal Caribbean International and Celebrity Cruises

Recognizing the deep bench of internal talent that has powered its long-term success, Royal Caribbean Cruises Ltd named two senior company executives to chart the future course of the company’s two largest brands.

Michael Bayley, who worked his way up from an assistant purser’s position aboard the Nordic Prince, will serve as President and CEO of Royal Caribbean International, the world’s largest cruise brand. Lisa Lutoff-Perlo, whose career at the company began in the New England sales office, will serve as President and CEO of Celebrity Cruises, a leader in the premium market.

Both appointments are effective immediately.

Said Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises Ltd: “This is a happy day for Michael and Lisa, and a proud day for all of us at the company. To recognize these two incredibly talented people with these vital leadership positions after years of dedication, effort and innovative thinking is gratifying for everyone here. I am impressed with the skills they have demonstrated over the course of their careers, and I am excited to see where they take these powerful brands next.”

Bayley assumes Royal’s helm after a successful term as Celebrity’s President and CEO. At Celebrity, he delivered strong results while building the company’s “modern luxury” positioning, which resonated successfully with Celebrity’s sophisticated customer base. Before his Celebrity role, Bayley served in several senior roles at Royal Caribbean International, including Executive Vice President of Operations. He is credited for playing a key role in the company’s international expansion, helping launch company operations in markets around the world.

Said Bayley: “Royal Caribbean International is a brand with an incredible history – and unlimited potential. The ships, personified in the new Quantum class, are some of the best and most innovative in the world. And the crews that service Royal Caribbean International guests have a track record of delighting guests from every culture around the world. I look forward to an exciting future as we raise our game to an even higher level of performance.”

Lutoff-Perlo began her company career as a district sales manager in her native New England. She moves to her new role from her position as Executive Vice President, Operations at Royal Caribbean, where she played a critical role in the recent successful launch of Quantum of the Seas, the first in the company’s newest class of ships. After a successful sales career, Lutoff-Perlo made her mark as a specialist at bringing new ships to market for both Royal Caribbean International and Celebrity. In addition to the Quantum class, she played a key role in the launch of Royal Caribbean International’s Voyager and Radiance classes, as well as Celebrity’s Solstice Class.

Said Lutoff-Perlo: “Celebrity Cruises has done a remarkable job differentiating itself in a crowded and competitive premium marketplace, and with its newly announced Edge class ships, the brand has the opportunity to push its leadership position even farther. I’m excited to tackle that challenge with a team of men and women I know well, including crews that consistently exceed our guests’ highest expectations.”

Fain said: “No one who has seen either of these two exceptional executives in action can be surprised by their continuing growth as leaders. As a company, we have a mantra of continuous improvement; in Michael and Lisa, we have two talented leaders who will help us continue to deliver on that commitment to our shareholders, employees and guests.”