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TUI AG’s cruise operations reach EBIT break even in first quarter

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 14 February 2023 14 February 2023

The cruise operations of TUI AG, the German tour operator, have reached a break even level in EBIT terms in the first quarter of its financial year that runs to 31 December, the company said in a statement.

The cruise operations comprise the joint venture TUI Cruises with Royal CaribbeanGroup in Germany, which operates cruise ships under the brands Mein Schiff and Hapag-Lloyd Cruises, and Marella Cruises in UK that is fully owned by TUI AG.

Underlying EBIT for the 16 ships that these operations entail rose to positive by €0.2 million in the review period from being negative by €31.7 million in the same period a year earlier.

The segment operated a full fleet of 16 ships in the first quarter (Q1 2022: 14 ships operated due to a more restrictive travel environment).

Q1 2023 Cruises revenue, reflecting Marella Cruises solely (TUI Cruises is accounted for using the equity method) grew to €115.2m, with both TUI Cruises and Marella contributing to the positive development and highlight the continued improvement across all brands supported by higher volumes as well as improved occupancies.

“This is the third consecutive positive quarter for our Cruises business with TUI Cruises achieving Q1 2023 EAT (earnings after tax) at €8 million,” TUI said.

The Germany focused contemporary market unit Mein Schiff operated their full fleet of seven ships against six ships in the previous year, offering itin eraries to the Canaries, the Caribbean and around the world with Asian itineraries resuming in the quarter for the first time since the pandemic.

“Occupancy of the operated fleet in Q1 2023 was 88% as a result (Q1 2022: 53%) demonstrating the strong demand for our German language, premium all-inclusive product. At €139, the average daily rate was close to pre-pandemic levels (Q1 2019: 149€) but -10% lower versus prior year (Q1 2022: €155) due to a higher mix of premium cabins with overall lower occupancies and capacity in the prior year,” TUI said.

The luxury and expedition market unit Hapag-Lloyd Cruises operated itineraries around the world as well as voyages to Antarctica with, as in Q1 2022, their full fleet of five ships in Q1 2023. “Q1 average daily rate was €669, well above pre-pandemic levels (Q1 2019: €591), an increase of 7% on prior year (Q1 2022: €624). Q1 occupancy of the fleet was 65% (Q1 2022: 50%), underlining the increased demand for these cruises,” TUI noted.

Marella Cruises had all four ships in operation against three in Q1 2022, and it offered itineraries to the Caribbean and the Canaries. “The business achieved an average daily rate of £157 up 10.7 % (Q1 2022: £142) and above the pre-pandemic level of £137 with occupancy at 91%, versus a previous Q1 of 48% supported by an improved trading environment,” TUI said.

RCCL closes $700 million note offering

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 14 February 2023 14 February 2023

Royal Caribbean Cruises Ltd. (RCCL) has announced that it has closed its private offering of $700 million aggregate principal amount of 7.250% Senior Notes due 2030. “The Notes will mature on January 15, 2030, unless earlier redeemed or repurchased,” the company said in a statement.

The company intends to use the proceeds from the sale of the Notes to repay principal payments on debt maturing in 2023 and/or 2024.

“The Notes will be guaranteed on a senior unsecured basis by RCI Holdings LLC, which owns 100% of the equity interests of certain of the Company's wholly-owned vessel-owning subsidiaries,” RCCL said.

Windstar Cruises to launch high-speed Starlink internet across global fleet

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 13 February 2023 13 February 2023

Windstar Cruises has announced the launch of its Starlink Maritime high-speed, advanced broadband satellite internet capabilities. Already connecting the world by sea, Windstar Cruises will provide guests one of the most developed high-speed connections in the world both while sailing and when in port.

Windstar launched the new Wi-Fi technology on Star Pride during a recent Caribbean voyage and plans to implement Starlink across most of its global fleet by mid-2023. Star Legend will offer the service this spring, followed by Wind Surf, Wind Star, and Star Breeze. Wind Spirit will activate the new technology as soon as it’s available in French Polynesia.

Currently, all Windstar Cruises use geostationary satellite service, Anuvu, for internet services. The addition of Starlink technology will amplify Anuvu, delivering more reliable and faster internet to Windstar’s guests. Starlink is the world's first and largest satellite constellation with a low Earth orbit using lasers so communication can happen further away from ground based stations.

“I am thrilled to be working with Anuvu and Starlink to offer our guests the latest in satellite technology," said Gregg Wagner, technology director, Windstar Cruises. “When the ships are inside the service area, faster speeds will alleviate much of the frustration felt at peak use times.”

“Starlink is yet to be available worldwide, but Windstar Cruises is excited to be among the first in the cruise industry to offer this cutting-edge technology. The addition of high-speed internet service with our current geostationary satellite service will enable guests to stay connected to family and friends.”

YSA Design adds momentum to zero emission Northern Xplorer

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 13 February 2023 13 February 2023

YSA Design has become a key member of the team planning to build the world’s first zero-emission cruise ship, following a formal invitation to join the consortium behind the Northern Xplorer venture. The Oslo-based design firm will take oversight of key aspects of project development, helping to convert the visionary concept into reality.

NX has already signed a Letter of Intent with Portugal’s West Sea shipyard to build a first 140 meter length, 250-guest capacity ship with 125 luxury cabins for the 2026 cruise season, powered by hydrogen fuel cells and batteries. With original interior concepts by Axel Brox, its design has been developed for stability and performance by Multi Maritime, which also provided the eye-catching side view.

“As coordinating architect, YSA Design is developing the GA, and offering layouts and renderings in close cooperation with designer Axel Brox,” said Trond Sigurdsen, Senior Architect, YSA Design. “With his out- of-the-box thinking on designing for hospitality, he is a breath of fresh air. Drawing on nearly 40 years of cruise experience, we are also developing the quality assurance for future construction plans.”

Underpinning all of YSA Design’s work will be the ship’s ‘Destination Discovery’ ethos, added Sigurdsen. “The Northern Xplorer project is exciting on many levels. The thinking behind its Net Zero operations extends to the sustainable relationships this ship will develop with its destination communities.”

Northern Xplorer’s profile ties the vessel closely to destinations, with its scale, itineraries and shipboard facilities reflecting the small harbours and communities which it visits. “The ship will be catering to the thinking traveller, who is mindful that sustainability is increasingly central to the cruise experience,” said Sigurdsen.

Designers have been tasked with specifying reusable materials from Scandinavia, where possible, which should also be recyclable. Life cycle planning for key materials is also considered an important element in the building process.

Other standout features will include YSA Design’s solution for the observation deck and lounge, where attention has been given to maximise dramatic panoramic views, even when the ship is close to steep mountains in narrow fjords.

Invitation to our readers to contribute to an R&D project to improve future cruise experience

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 10 February 2023 10 February 2023

NavisSpace – Improving the future cruise experience

Our readers are invited to give their input to a Finnish R & D project on how to improve the cruise experience in the future. Below is a letter that explains the goals of the work and at the bottom of it there is a link to a website where you may give your views. Thank you for your contribution!

The mission of the NavisSpace project is to make a positive contribution to the future cruise experience. This is done by creating new solutions in specific areas, providing new research on cruise vacation sustainability and trying to put the gathered knowledge into work in cruise ship design. The partners of the project are two universities with long traditions in shipping research, Åbo Akademi and Aalto, and a handful of companies serving the cruise industry; the shipyard Meyer, the elevator company Kone, the marine catering supplier Seaking and the Kudos architects specializing in interior design of cruise ships. PBI Research Institute is coordinating the project which will go on until the Summer of 2024.

Our main focus is on finding solutions improving the cruise experience in the fields where the partners in the project have potential to develop value enhancing solutions. These spheres are the public spaces of the ship, the restaurant service as well as the people and goods flow. We will read literature, interview industry participants and crew along searching clues from social media sources, to get a grasp how to add value in our chosen fields. An important source of information will be a survey (link below) that we hope will generate answers from cruise passengers or persons thinking about going on a cruise in the future. With the information gathered, combined with the expertise of our partners, we think that we can create solutions valued by customers and crew and which, in the end, also will benefit the cruise liners.

Sustainability is one thing which can not be discarded when thinking about the world today. Cruise tourism may have sustainability issues, and if these are too severe, they may affect the cruise experience for conscious travelers. Cruise ships are in several sources pointed out to be unsustainable. This conclusion is easily drawn if measures such as emissions per passenger kilometer or mile is used and then compared, for example, to flying. We think this is the wrong comparison, cruising is not so much about moving from one place to another but a destination in itself. Therefore, one task in our project is to investigate how a cruise vacation compares in terms of sustainability issues to other forms of vacations.

Our ultimate goal in NavisSpace is to get the information collected and the developed solutions to be put in to use in ship building. Being a very complex and big endeavor involving high risks, ship building for sure has a long history. How can new ideas and better solutions be incorporated at the early concept and design phases of a new ship is challenge. We will try to alter the process so that it is easier to get the best solutions adopted. This is not an easy task and requires self-interest to be put on hold and trust to be built, but if we are able to create collaborative contracting and incentive structures, there can be much to gain -and not only a better and more sustainable ship but a cheaper one too.

You can be part on this journey by answering the survey on the following link:

https://pbiresearch.eu.qualtrics.com/jfe/form/SV_6M4sTPAGGfP7KJ0