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Viking doubles capacity for second season in North America's Great Lakes

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 03 May 2023 03 May 2023

Viking today is celebrating the start of its second season in the Great Lakes, as the new purpose-built Viking Polaris arrived in Toronto for her first port of call in the region. The Viking Polaris joins her identical sister ship, the Viking Octantis, which began sailing in the Great Lakes for the 2022 season and returned to the region in April 2023. With two 378-guest expedition vessels now in the region, Viking has doubled its capacity in the Great Lakes for 2023. The ships will remain in the Great Lakes through September 2023, sailing all five lakes and a variety of itineraries that operate between Toronto and Duluth.

“We are proud to welcome both of our expedition ships to the Great Lakes. With historic canals that are engineering marvels, cities with thriving arts and culture and unmatched wilderness, this is a phenomenal region of North America that may be familiar to many – but few have had the opportunity to explore,” said Torstein Hagen, Chairman of Viking. “After our first full season of Great Lakes voyages in 2022, we are grateful for the warm welcome we received from each destination and look forward to introducing even more curious travelers to the region this season and in the years to come.”

Designed specifically to reach the Great Lakes, Viking’s expedition fleet brings the newest and most modern vessels ever to explore this region of North America, as well as a significant commitment to local tourism and economic development for the states of Michigan, Minnesota, Wisconsin, and the Canadian province of Ontario. Beginning this season, Viking will also call on the new port of Cleveland, Ohio, during the new 15-day itinerary, Great Lakes Collection.

To further develop the scientific enrichment program for its Great Lakes voyages, Viking has partnered with the National Oceanic and Atmospheric Administration (NOAA) Great Lakes Environmental Research Laboratory (GLERL), which conducts innovative research on the dynamic environments and ecosystems of the Great Lakes and coastal regions to provide information for resource use and management decisions that lead to safe and sustainable ecosystems, ecosystem services, and human communities. Viking’s expedition ships have also been designated official NOAA / U.S. National Weather Service weather balloon stations, from which regular launches are undertaken.

Cunard and Fincantieri celebrate Queen Anne milestone

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 03 May 2023 03 May 2023

Today, the world's most iconic luxury cruise brand celebrated a momentous construction milestone with the float out of their fourth ship

The 249th ship to sail under the Cunard flag, Queen Anne officially touched water for the first time exactly 365 days before she will set sail on her maiden voyage to Lisbon on 3 May 2024.

Steeped in tradition, the float out is marked by a special ceremony where a ‘Madrina’ is named to offer blessings and best wishes for the ship, celebrating the flow of water into the ship's dry dock.

Carnival UK President, Sture Myrmell, said: “We are delighted to celebrate this important milestone in the construction of Queen Anne. The float out ceremony marks the ship’s transition from her building dock to where she truly belongs – in the water. Today marks a significant moment for Queen Anne as we recognize the dedication by the master ship builders at Fincantieri to build a ship that reinforces our position as a world-famous luxury brand.”

Luigi Matarazzo, General Manager Merchant Ships Division of Fincantieri, stated: “Queen Anne is the third ship we have the pleasure to build for Cunard, a pillar in the history of British seafaring, with whom we share a real commitment to excellence. Building a liner for this shipowner takes us back to our roots yet, at the same time, spurs us forward to the future in a spirit of determination to bring together tradition and innovation and further strengthen our longstanding relationship”.

The float out, completes the first comprehensive phase of construction for Queen Anne, which now transitions to focus on building the luxury ship's interiors.

Queen Anne

The design concepts for Cunard’s newest ship have been founded on heritage, craftmanship, style, storytelling, and innovation, and the 113,000 gross ton, 3,000-guest Queen Anne, which spans 14 decks, will offer travelers several breath-taking moments, including the largest curated art collection at sea.

For more than 180 years, Cunard has constantly refined the definitive experience of ocean travel, and Queen Anne will be bursting with Cunard’s signature experiences, including world-class dining, exceptional entertainment, and luxurious accommodation.

Entering service in May 2024, Queen Anne will make up a remarkable quartet for Cunard alongside Queen Mary 2, Queen Victoria, and Queen Elizabeth. It will be the first time since 1999 that Cunard will have four ships in simultaneous service.

The float out ceremony follows September’s iconic keel laying, in which a coin was embedded into the ship’s keel by Captain Inger Thorhauge, alongside an original coin from the ship’s namesake’s reign, to mark the formal start of her construction.

UK and Ireland market generated 1.7 million passengers 2022

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 02 May 2023 02 May 2023

Cruise Lines International Association (CLIA) has published its statistics for the UK and Ireland market, which shows that the market generated around 1.7 million cruise passengers, nearing pre-pandemic demand levels.

The figure stood at 1.99 million passengers in 2019, but, this was a slight decrease from 2.01 million in the previous year.

In data published CLIA said that:

* In 2022 British and Irish holidaymakers took around 1.7 million cruises, up from 479,000 the previous year.

* The Mediterranean remains the number one destination for cruise travellers from the UK and Ireland.

* Of the top three destinations in 2022, 38.4% of passengers travelled to the Mediterranean, 29% to Northern Europe and 10.6% to the Caribbean.

* The UK and Ireland markets accounted for 29% of all European source passengers.

* Globally, over a quarter (27%) of those who sailed for two or more nights in the last 12 months travelled in a party consisting of three or more generations, a sign that cruise holidays offer a great experience for all ages.

* The average age of UK & Ireland cruise guests last year was 55.8 years, as cruising continues to diversify and attract holidaymakers of all ages.

* The average length of a cruise by British or Irish holidaymakers in 2022 was 9.7 days (down slightly on 2019).

* Intent to cruise is stronger than ever. 85% of cruise passengers from the UK and Ireland say they intend to take a holiday at sea again (a 6% increase from 2019) and 60% will do so in the next two years (up from 53% in 2022).

* Strikingly, 70% of those who have never cruised before would consider a cruise in the next few years (up from 68% in March 2022), showing more people are open to trying a cruise than ever before.

NCLH cuts first quarter net loss and reports small operating profit

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 01 May 2023 01 May 2023

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest listed cruise shipping company, has reduced its net loss and reported a small operating profit for the first quarter of 2023.

Net loss narrowed to $159.3 million from $982.7 million a year earlier, while operating result showed a profit of $10.7 million compared to a loss of $688.7 million. Revenues increased to $1,821.9 million from $521.9 million.

The company said it had continued its phased occupancy ramp-up in the first quarter, achieving a 15-point sequential improvement to approximately 101.5%, exceeding guidance of approximately 100%.

“The phased Occupancy ramp-up is expected to be complete in the second quarter at approximately 105%. As planned, this is slightly lower than the second quarter of 2019, reflecting the Company’s strategic shift to longer, more immersive itineraries. Full year 2023 Occupancy, which reflects the phased voyage ramp-up, is expected to average 103.5%, consistent with prior guidance,” NCLH said in a statement.

On the heels of a very strong WAVE season, NCLH continues to experience strong consumer demand. Cumulative booked position for the remainder of 2023 is ahead of 2019 levels inclusive of the company’s approximately 18% increase in capacity, at continued higher pricing.

Advance ticket sales well ahead of 2019

“As of March 31, 2023, the Company’s advance ticket sales balance, including the long-term portion, was a record $3.4 billion, approximately 26% higher than the prior quarter and approximately 60% higher than the first quarter of 2019. Onboard revenue generation remains robust, and the Company continues to focus on increasing its pre-sold revenue from guests prior to voyage sailing, as this typically results in higher overall spend throughout the cruise journey,” NCLH said.

Total revenue per Passenger Cruise Day was up approximately 17.5% as-reported and approximately 18.3% in constant currency in the first quarter of 2023 versus 2019. Looking ahead, full year guidance remains unchanged at Net Per Diem growth in the range of 9.0 to 10.5% and Net Yield growth in the range of 5.0 to 6.5%, both on a constant currency basis and compared to 2019.

Total cruise operating expense increased in 2023 compared to 2022, due to the full resumption of voyages, which resulted in higher payroll, fuel, and direct variable costs of fully operating ships.

Costs for certain items were also impacted by lagging inflationary pressures. Gross Cruise Costs per Capacity Day was approximately $298 in the quarter as-reported and $301 in constant currency.

Adjusted Net Cruise Costs excluding Fuel per Capacity Day in constant currency was approximately $161, reflecting an approximately 14% decrease compared to the second half of 2022 as benefits from the company’s ongoing margin enhancement initiative are taking effect.

Fuel costs, interest expenses minus one- off items increase

Fuel price per metric ton, net of hedges, increased to $779 from $724 in 2022. The Company reported fuel expense of $194.9 million in the period.

Interest expense, net was $171.3 million in 2023 compared to $327.7 million in 2022. The fresh figure included lower extinguishment of debt and debt modification costs, which were $2.4 million in 2023 compared to $188.4 million in 2022. "Excluding this, interest expense increased primarily as a result of higher rates," the company said.

“Other income (expense), net was expense of $(9.0) million in 2023 compared to income of $38.1 million in 2022. In 2023, the expense primarily related to losses on foreign currency remeasurements. In 2022, the income primarily related to gains on fuel swaps not designated as hedges and foreign currency remeasurements,” NCLH said.

The company did not provide a GAAP based guidance for the rest of 2023.

Havila Voyages receives license from Central Bank of Ireland

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 01 May 2023 01 May 2023

Havila Voyages has received a license from the Central Bank of Ireland to enable the financing and delivery of its coastal cruise ships Havila Polaris and Havila Pollux to proceed. The license also allows the company to settle its debts with the original lenders.

"The situation we are in is very complex and demanding. The licenses are required for us to legally implement our financing solutions. Despite good assistance from the Norwegian authorities the process has taken longer than we would like. Fortunately, the license from Ireland is now in place, which enables us to legally finance our ships," says CEO Bent Martini of Havila Voyages.

Havila Voyages has also applied for licenses in the UK and the USA, to ensure both British and American investors can participate in the financing. The license from Ireland, and a previously received license from the Norwegian Ministry of Foreign Affairs, ensure legal financing from EU countries and Scandinavia.

Havila Voyages has engaged Arctic Securities AS and Fearnley Securities AS as facilitators to assist in the financing process.

"The licenses are crucial for our facilitators to be able to work freely in relevant markets for us to settle our debts to the original lender to a frozen account according to the sanction regulations and releasing the security in the vessels," explains Martini.

"The ships will be ready for delivery as soon as we have completed the financing process, and we apologize to all affected parties for having to postpone once again," he continues.

Due to the time-consuming processes, the start-up of operations for Havila Polaris and Havila Pollux will be further delayed. The start-up date for Havila Polaris is set for 12th of June while Havila Pollux will commence operations on 18th June.

Good sales figures

Despite the uncertainty that Havila Voyages is experiencing, the company sees significant interest in the latest additions to the historic coastal route Bergen-Kirkenes-Bergen and is reporting strong sales figures.

"We have a high volume of traffic, both to our customer center and via our website, and had close to 70% occupancy in the first quarter, with 50% of all capacity for all four ships sold out for the year. This is ahead of what we expected for the year," says Martini.

"For us, it will be crucial to capitalize on the interest and get all four ships in operation. We have a societal mission to deliver, and we depend on running the company in an economically sustainable way. It is challenging when we constantly face setbacks and situations far beyond our control, but we look forward to soon being able to focus on delivering a top quality, modern product along the Norwegian coast in accordance with the agreement with Norwegian authorities," he concludes.

Photo credit: Ronny M. Olsen