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Crystal launches new 'All Exclusive' brand campaign and announces private charter air service

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 22 December 2015 22 December 2015

Aboard the newly christened Crystal Esprit, Crystal Cruises’ ultra-luxury yacht, CEO and President Edie Rodriguez unveiled to special guests and distinguished travel partners the line’s new brand campaign – All Exclusive™ – heralding the debut of the new Crystal as the company embarks on the most significant brand expansion in luxury travel and hospitality.

In addition to sharing Crystal’s new advertising campaign, Rodriguez announced the company’s plan to expand Crystal Luxury Air that currently includes a Boeing 777-200LR and Boeing 787 Dreamliner, with the addition of two ultra-long-range aircrafts in an elegant Airbus CJ319 jet and a Bombardier Global Express XRS. The new planes will service private charters and transport guests to their Crystal destinations for ocean, river or yacht voyages from any point in the United States to the Mediterranean, Indian Ocean and the Pacific.

A play on the all-inclusive platform the line adopted in 2013, which offers travelers a world-class luxury vacation that includes fine wines and spirits, pre-paid gratuities and enriching onboard experiences, Crystal’s All Exclusive™ embodies the world’s most luxurious travel portfolio. The campaign highlights a revolutionary collection of experiences that go far beyond all inclusive luxury to offer the most elegant journeys around the globe – by ocean, yacht, river and air.

“In a single phrase, ‘All Exclusive’ takes the common industry term of ‘all inclusive’ and reshapes it into something bigger, bolder and unprecedented, where all inclusive is all exclusive,” said Rodriguez. “Since my arrival at Crystal, it has been my vision to grow this brand into something even more magical. Today, we are reinventing travel in a class all by itself, and All Exclusive is the perfect representation of that. Whether it is by ocean, river or air, everything we do is designed to take our guests to a new level of luxury, service and adventure.”

Crystal’s private charter jet service, which takes flight in March 2016, will provide the luxury line’s superior guest service, catering to corporate executives, small groups and discerning travelers with a preference for flexible and individual travel. Recognized in the private jet industry as the epitome of luxury and comfort, the Bombardier Global Express XRS will feature a spacious two-cabin configuration, accommodating up to 13 guests, four executive wide club seats with foldout tables, a four-place conference space opposite a single seat workstation and cabinet, laptop imagery on cabin monitors, surround sound, high temperature oven and an aft entertainment cabin with a 31.5 inch LCD.

The ACJ319 jet will accommodate just 30 travelers in the utmost luxury, including 16 lay-flat seats, and beginning summer 2016 it will transport guests to their desired Crystal destination, including to ocean, river and yacht voyages. “With our vast choice of aircrafts, we are confident Crystal Luxury Air will deliver the fast and hassle-free requirements our guests and discerning travelers have been wanting with global air travel,” said Rodriguez.

The comprehensive, 360-degree brand campaign roll-out will encompass all elements of Crystal’s marketing and sales – advertising, brochures, website, direct mail and more. Leveraging high-end, stunning and stylish photography to evoke the feelings and sensations unique to the award-winning Crystal Experience, the imagery portrays a dreamlike state where imaginations are brought to life, where anything you want in travel is available to you, any time, all the time, creating the memories of a lifetime.

Royal Caribbean's Empress of the Seas returns to Miami

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 21 December 2015 21 December 2015

Royal Caribbean International re-introduces newly-enhanced Empress of the Seas to the fleet in March 2016. Following a stint with sister brand Pullmantur, Empress will head to Miami giving guests the chance to get away from it all and enjoy a lively, casual, laid-back atmosphere while visiting some of the Caribbean’s most popular islands.

Guests can languish over daily ‘Sunday’ brunches served with a complimentary mimosa or Bloody Mary, enjoy the flexible “My Time Dining” with no formal nights, take in the new Las Vegas-style “Sequins & Feathers” show and then party all night long in the newly reimagined Boleros Latin Lounge. Empress of the Seas also will offer fast pier-to-ship boarding with earlier boarding times of 11:00 a.m. to help guests maximize their vacation time even further.

“We’re excited to welcome Empress of the Seas back to the family, and back to the Caribbean,” said Michael Bayley, President and CEO, Royal Caribbean International. “Empress’s short Caribbean getaways will give adventure-seekers the opportunity to party, chill and repeat. They will feel like it’s the weekend every day on Empress.”

As Miami’s newest hometown ship, Empress of the Seas will offer short 4- and 5-night getaways from Miami to Nassau, The Bahamas; Cozumel and Costa Maya, Mexico; Grand Cayman and Key West, Florida. With longer stays in every port guests will be able to experience spectacular golden sunsets in the Caribbean. Plus, on select 5-night itineraries guest can experience the authentic Mexican culture and cuisine during overnight stays in Cozumel, Mexico. Reservations are available for booking today.

“Miami welcomes Royal Caribbean’s Empress of the Seas to the Cruise Capital of the World,” said Miami-Dade County Mayor Carlos A. Gimenez. “We thank Royal Caribbean for expanding their cruise business at PortMiami. This new deployment further demonstrates the cruise line’s commitment to growing their business in Miami-Dade County. It represents continued economic growth and more job opportunities for our world-class community.”

Empress of the Seas will offer signature amenities including a thrilling rock-climbing wall for adrenaline seekers; new pools and whirlpools, including an adults-only Solarium; a spa with an extensive treatment menu; and a complimentary Adventure Ocean youth program. Empress also will offer a variety of dining options, including the casual atmosphere of the Windjammer Café and fine dining at the brand’s signature steakhouse Chops Grille. In addition, the ship will offer Voom, the fastest internet at sea.

Originally launched as Nordic Empress in June 1990, the ship was the first to set sail from Cape Liberty Cruise Port in Bayonne, New Jersey in 2004. Built in Chantiers de L’Atlantique, St. Nazaire, France, the ship spans nine decks, encompassing 48,563 gross tons, and has a double-occupancy capacity of 1,602 guests.

Crystal Esprit christened in the Seychelles, ready to set sail

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 20 December 2015 20 December 2015

Crystal Cruises officially welcomed Crystal Esprit to its fleet of ultra-luxury vessels Sunday, as the yacht was christened in an elegant ceremony held at Eden Island Marina in Mahé, Victoria, Seychelles. Crystal’s president and CEO, Edie Rodriguez, welcomed a distinguished audience of local dignitaries, yacht guests, travel partners and professionals and executives from the line’s new parent company, Genting Hong Kong (GHK), for a day of celebration, as Crystal Esprit marks the beginning of one of the most significant brand expansions in luxury travel and hospitality history.

On hand to christen Crystal Esprit was the yacht’s godmother, Lady Gaenor Anne Meakes, fiancée of Mark Richards, one of the world’s most awarded and recognized yachtsmen. Richards serves as chief executive of Grand Banks yachts, based in Australia, and is an eight-time champion skipper of the 628-mile Sydney-to-Hobart yacht race. Lady Meakes christened the yacht with the traditional breaking of Champagne against the hull – specifically a bottle of Louis Roederer, Cristal Brut, 2004. The evening culminated with an elaborate fireworks display at sea.

“To say today is a special day is an understatement,” said Rodriguez. “Since joining Crystal just over two years ago, a personal goal of mine has been to see Crystal realize the next step in continuing to pioneer luxury travel and hospitality; and today I am seeing that dream fulfilled.” She went on to personally thank GHK Chairman and CEO, Tan Sri Lim Kok Thay, for his and his company’s support of her vision for Crystal’s future.

Crystal will, indeed, pioneer the luxury travel and hospitality industry far beyond the reaches of ocean cruising, as the line is poised to launch Crystal River Cruises in 2016 and 2017, with five luxury river yachts – more than double the originally planned number – gracing the waterways of Europe include the Rhine, Seine, Danube, Main, Garonne, and Dordogne Rivers. Crystal Luxury Air will take off with all-first-class outfitted Boeing 777-200LR and Boeing 787 Dreamliner taking guests on multi-week journeys to far-off destinations not typically served non-stop by major airlines.

Read more on Crystal's massive expansion program from the next issue of Cruise Business Review.

Carnival Corporation & plc reports a 40 percent increase in full year earnings

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 18 December 2015 18 December 2015

Carnival Corporation & plc announced adjusted net income for the full year 2015 of $2.1 billion, or $2.70 diluted EPS, compared to $1.5 billion, or $1.93 diluted EPS, for the prior year. Full year 2015 U.S. GAAP net income was $1.8 billion, or $2.26 diluted EPS, which included unrealized losses (non-cash) on fuel derivatives of $332 million and other net charges of $17 million. Full year 2014 U.S. GAAP net income was $1.2 billion, or $1.56 diluted EPS, which included unrealized losses (non-cash) on fuel derivatives of $268 million and other net charges of $20 million. Revenues for the full year 2015 were $15.7 billion compared to $15.9 billion for the prior year due to the unfavorable impact from currency exchange rates of over $800 million.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted, “We nearly doubled our fourth quarter results and ended the year with 40 percent higher earnings. Strong operational execution delivered $0.25 per share higher earnings than the mid-point of our full year 2015 December guidance, despite a $0.10 drag from the net impact of currency and fuel prices. This year we achieved a 4.3 percent improvement (constant currency) in revenue yields compared to the prior year due to higher onboard revenues and increased ticket prices as we have driven demand in excess of capacity growth, while our ongoing efforts to leverage our industry-leading scale helped to contain costs. Our strong performance led to record operating cash flow of well over $4 billion versus $3.4 billion last year,” Donald stated.

Key metrics for the fourth quarter 2015 compared to the prior year were as follows:
– Net revenue yields (net revenue per available lower berth day or “ALBD”) increased 4.1 percent in constant currency, which was better than the company’s September guidance, up 3 percent. Gross revenue yields decreased 2.5 percent in current dollars due to changes in currency exchange rates.
– Net cruise costs excluding fuel per ALBD increased 3.2 percent in constant currency, which was in line with September guidance, up 3 percent. Gross cruise costs including fuel per ALBD decreased 10.7 percent in current dollars.
– Fuel prices declined 46 percent to $316 per metric ton for 4Q 2015 from $584 per metric ton in 4Q 2014 and were better than September guidance of $366 per metric ton.
– Changes in currency exchange rates reduced earnings by $0.08 per share.
– Adjusted net income was $389 million, or $0.50 diluted EPS, before U.S. GAAP unrealized losses (non-cash) on fuel derivatives of $117 million, or $0.15 diluted EPS. U.S. GAAP net income was $270 million, or $0.35 diluted EPS.
– The company repurchased approximately 8 million shares under its $1 billion stock repurchase program.

Highlights during the fourth quarter included the grand opening of Amber Cove, a new Carnival Corporation cruise facility on the northern coast of the Dominican Republic, and the launch of P&O Cruises (Australia’s) Pacific Aria and Pacific Eden, which have been impeccably appointed to suit Australian guests. In October, Carnival Cruise Line and AIDA Cruises announced they will each enter the China market in 2017 with a second Carnival Cruise Line ship to be positioned there in 2018. In 2016, there is already a combined fleet of six ships from the Costa Cruises and Princess Cruises brands scheduled to operate in China. Also, Princess Cruises will introduce the Majestic Princess to the Chinese market in 2017. That ship is currently under construction and will be the first vessel built specifically for Chinese guests incorporating a unique blend of international and Chinese features. Carnival Corporation also recently announced the formation of a joint venture with the China State Shipbuilding Corporation and the China Investment Corporation aimed at accelerating the development and growth of the overall cruise industry in China including the planned launch of the first world-class, multi-ship domestic cruise brand in the Chinese market. These latest developments further strengthen the company’s leading position in China, which is expected to, over time, surpass North America as the world’s largest cruising region.

2016 outlook

At this time, cumulative advance bookings for the first three quarters of 2016 are well ahead of the prior year at slightly higher constant currency prices. Since September, booking volumes for the first three quarters of 2016 are in line with last year’s levels at higher prices.

Donald noted, “As we had anticipated, with less inventory remaining for sale, we have begun to sell at higher prices than the same time last year, particularly close to departure, affirming our expectation of continued yield improvement in 2016.”

Based on current booking trends, the company forecasts full year 2016 net revenue yields in constant currency to be up approximately 3 percent compared to the prior year, of which approximately 1 percent is due to an accounting reclassification for the Europe, Australia and Asia segment. The company expects net cruise costs excluding fuel per ALBD in constant currency for full year 2016 to be up approximately 2 percent, of which approximately 1.5 percent is also due to the reclassification. The reclassification has no impact on operating income.

Current currency exchange rates and fuel prices, net of fuel derivatives, are $0.22 per share favorable compared to the prior year. Taking the above factors into consideration, the company forecasts full year 2016 adjusted earnings per share to be in the range of $3.10 to $3.40, compared to 2015 adjusted earnings of $2.70 per share.

Looking forward, Donald stated, “We have accelerated progress toward and remain well positioned to achieve our double digit return on invested capital threshold in the next two to three years. Over time, we expect to continue to return excess cash to shareholders as demonstrated by our recent 20 percent increase in quarterly dividends and more than $400 million in share repurchases.”

Donald also noted that four new ships are scheduled to enter service for Carnival Corporation brands in 2016. Holland America Line’s Koningsdam and AIDAprima will debut in April, Carnival Vista will enter service in May, and Seabourn Encore in December. Each vessel has a wide variety of exciting and innovative new features that will generate consumer buzz for those brands.

First quarter 2016 outlook

First quarter constant currency net revenue yields are expected to be up 3.5 to 4.5 percent compared to the prior year. Net cruise costs excluding fuel per ALBD for the first quarter are expected to be 2.5 to 3.5 percent higher in constant currency compared to the prior year. Based on the above factors, the company expects adjusted earnings for the first quarter 2016 to be in the range of $0.28 to $0.32 per share, compared to 2015 adjusted earnings of $0.20 per share.