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Cruise Business Commentary – Eastern Pacific region developing to third strategic source market of cruise industry

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 May 2014 20 May 2014

The news that P&O Cruises Australia will receive the 55,000 gross ton Statendam and Ryndam from sister brand Holland America Line in 2015 highlights a trend whereby Eastern Pacific source markets are becoming a third strategic leg for the cruise industry, in addition to North America and Europe.

Only a short while before that, Costa Crociere, another brand of Carnival Corp & plc group, had unveiled a decision to base the 114,000 gross ton Costa Serena year round in China as the third ship of the company to operate from there on a year round basis. This again was a counter-attack to Royal Caribbean group’s substantial increase of foothold to take place in China next year, but also Star Cruises’ fleet expansion.

The positive news is that Asia-Pacific source markets, with China and Australia in particular, are becoming a third stratetic leg for the cruise industry. China is forecast to overtake the UK in2017 by Carnival to become the world’s second largest source market for cruises, while Australia is likely to reach 1.0 million passenger mark by 2016, three years earlier than forecast so far, according to Ann Sherry, head of Carnival Australia.

With capacity moving to the eastern Pacific, there will be more room for attempts to drive up yields in Europe and North America, which remain well below their 10 year highs for both Carnival and Royal Caribbean groups.

Although these source markets increasingly absorb new ships, at least in the case of Australia, there is still room to employ older tonnage as well: the two ships to be transferred to P&O Cruises Australia both date from the early 1990s. With the second hand market virtually extinct, this allows profitable use of ships that might be difficult to trade profitably on other markets, yet which still have a good number of service life left from technical point of view.

The bad news is that Australia, which had a population of 22.7 million in 2012, cannot be expected to sustain double digit growth of its cruise passenger numbers is all eternity. However, it may still take a good many years until a ceiling will be reached.

Also, it seems that Japan remains a tough nut to crack for western cruise operators, at least for as long as higher returns appesr to be available in China and Australia.

Holland America's Statendam and Ryndam to join P&O Cruises Australia

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 20 May 2014 20 May 2014

In its biggest ever single fleet expansion, P&O Cruises will welcome two more ships next year to make it the largest fleet of cruise ships home-ported year round in Australia.

Today’s announcement is an emphatic statement about Carnival Australia’s confidence and leadership in the Australian cruise market and reaffirmation of P&O Cruises’ status as Australia's iconic 'home brand' cruise line.

The additional ships, which will transfer to P&O Cruises from Holland America Line, will deliver much needed capacity in the world's fastest growing cruise market.

"This is a very exciting development for the Carnival Group, P&O Cruises and for our shipside and shoreside teams who have worked so passionately and effectively to build the business and the cruise category," said Ann Sherry, CEO of Carnival Australia which operates P&O Cruises.

"The P&O brand set the foundation for the resurgence of cruising in this region making it the most successful sector of Australian tourism. Adding two more ships to the fleet is a signal that the next generation of P&O Cruises is about to commence. It will also accelerate progress in reaching the industry goal of a million passengers a year by 2016 – four years earlier than forecast.

“With the P&O expansion, Carnival Group will have 12 ships home-ported in Australia with fleets from P&O Cruises, Carnival Cruise Lines and Princess Cruises calling Australia home.”

The two ships will join P&O Cruises in November 2015. Work is already underway to develop itineraries and home-porting arrangements for the expanded fleet.

Both ships are of a similar mid-range size to the three existing P&O Cruises ships, Pacific Dawn, Pacific Jewel and Pacific Pearl with a range of onboard features that will be tailored for Australian and New Zealand cruise customers.

"The ships are a perfect size for the Australian market. They are intimate, offering space, comfort and style, giving passengers more destinations to choose from, more onboard experiences to indulge in and more reasons to cruise," said Senior Vice President P&O Cruises Tammy Marshall.

"We face a very busy time in preparing for the arrival of the two ships and their integration into the existing P&O Cruises fleet and look forward to announcing the exciting new itineraries, onboard features and other great additions over the coming months.”

The arrival of Australia’s first superliner Pacific Dawn in 2007 set the scene for P&O Cruises’ leadership in building the cruise category in Australia to record levels.

Pacific Dawn was quickly followed by two more P&O Cruises’ superliners, Pacific Jewel and Pacific Pearl, in 2009 and 2010 respectively.

“This further fleet expansion is entirely appropriate for P&O Cruises, the shipping line that pioneered cruising from Australia more than 80 years ago and has set the pace for the industry ever since,” Ms Marshall said.

Having a five-ship fleet will give P&O Cruises greater flexibility in its increased offering of short break cruises, traditional cruises to the South Pacific and cruises to new destinations such as Papua New Guinea and Asia.

More than 800,000 Australians cruised last year with a majority travelling with P&O Cruises. Over a five year period between 2007 and 2012, Australian cruise passenger numbers increased 130 per cent.

Carnival Australia accounts for most of the cruise ships that cruise to or from Australia and New Zealand. Carnival Australia’s ‘House of Brands’ comprises P&O Cruises Australia, Princess Cruises, Carnival Cruise Lines, Cunard Line, P&O Cruises World Cruising, Holland America Line and Seabourn.

Disney Cruise Line returning to Hawaii, West Coast and Galveston in 2015

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 19 May 2014 19 May 2014

In the fall of 2015, Disney Cruise Line is returning to popular destinations and home ports for limited-time engagements. Two Hawaii cruises, a return to the West Coast with departures from San Diego and a Galveston, Texas homecoming make up a season of special sailings.

Bookings open to the public on May 21, 2014. More details on 2015 itineraries can be found on the Itineraries and Ports for 2015 section of disneycruise.com.

Hawaii sailings

Disney Cruise Line will explore the Hawaiian Islands with two special 10-night cruises in September. The Disney Wonder will sail through the Hawaiian Islands, where guests can experience the famous beaches of Waikiki on Oahu, see the views from high atop the summit of Haleakala Crater on Maui, take in the lush tropical gardens and waterfalls of Kauai and, on Hawaii Island — the Big Island, explore the natural wonders of the world’s most active volcano.

10-night Hawaii with two days in Honolulu – Vancouver to Honolulu

Ports: Vancouver; Hilo (Hawaii Island); Nawiliwili (Kauai); Kahului (Maui) and Honolulu (Oahu) Departure date: Sept. 7 10-night Hawaii with two days in Kahului – Honolulu to Vancouver Ports: Honolulu (Oahu); Kahului (Maui); Hilo (Hawaii Island); Nawiliwili (Kauai) and Vancouver Departure date: Sept. 17

Rates start at $1,650 per person for 10-night Hawaii cruises for a standard inside stateroom, based on double occupancy.

Galveston to the Bahamas

Starting in November, Disney Cruise Line will return to Galveston for the holiday season, offering a seven-night itinerary aboard the Disney Wonder to Key West; Nassau, Bahamas and Disney’s private island, Castaway Cay. These sailings depart Nov. 13, 20, 27, Dec. 4, 11 and 28 (New Year’s cruise).

One seven-night western Caribbean cruise on Nov. 6 will visit Cozumel, Mexico; Grand Cayman, Cayman Islands and Falmouth, Jamaica.

Two additional cruises are included in the Galveston season: a six-night sailing departing on Dec. 18 that stops at Key West and Castaway Cay and a four-night Christmas sailing that departs on Dec. 24 and stops at Cozumel.

Rates start at $948 per person for four-night cruises, $1,116 per person for six-night cruises and $945 per person for seven-night cruises departing from Galveston for a standard inside stateroom, based on double occupancy.

San Diego to Baja

Disney Cruise Line will return to the West Coast for a limited time, offering six cruises from San Diego aboard the Disney Wonder. The five-night Baja sailings depart Oct. 4, 11 and 18, stopping at Cabo San Lucas and Ensenada, Mexico. A three-night cruise on Oct. 1 stops at Ensenada. Two-night Weekend Getaway voyages depart Oct. 9 and 16, giving guests the perfect weekend retreat aboard their Disney ship.

Rates start at $404 per person for two-night cruises, $435 per person for three-night cruises and $625 per person for five-night cruises departing from San Diego for a standard inside stateroom, based on double occupancy.

Port Canaveral and Miami to the Bahamas and Caribbean

In 2015, Disney Cruise Line will sail from Port Canaveral and Miami to the Bahamas and Caribbean on a variety of itineraries. All of these cruises include a stop at Disney’s private island, Castaway Cay.

From Port Canaveral, rates start at $480 per person for three-night cruises, $640 per person for four-night cruises, $1,465 per person for five-night cruises and $1,150 per person for seven-night cruises for a standard inside stateroom, based on double occupancy.
From Miami, rates start at $480 per person for four-night cruises and $600 per person for five-night cruises for a standard inside stateroom, based on double occupancy.

All pricing reflects a category 11C standard inside stateroom. Government taxes and fees, gratuities and Port Adventures are not included.

FCCA Conference and Trade Show to be hosted at the Port of St. Maarten

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 16 May 2014 16 May 2014

The FCCA has announced the site of its 2014 Conference & Trade Show, taking place in St. Maarten from October 6-10. The Port of St. Maarten has commissioned Eventstar to develop a state-of-the-art convention center at the port.

With a backdrop of visiting cruise ships, attendees will have a stunning view and a convenient hub for the event's business sessions, private meetings, workshops and registration. Plus Trade Show exhibitors will be front and center in the facility's largest exhibit hall, providing ample space for the unique destination pavilions and guaranteed traffic from attendees and FCCA Member Line cruise executives, presidents and CEOs, as all must enter and go through the Trade Show to access any of the Conference's functions.

"We are honored and excited to again host the FCCA Conference & Trade Show," told Mark Mingo, CEO, Port of St. Maarten. "In 2003 we saw the benefits for all involved, and we used this understanding to further integrate the event's business and social functions with St. Maarten's WOW factor for cruise executives and attendees to experience why so many passengers visit our port and destination."

"The FCCA appreciates St. Maarten's efforts and commitment to making the 21st Conference & Trade Shows one of the best events yet," said Michele Paige, president, FCCA. "It has pulled out all the stops to woo the cruise executives and Conference delegates, and hosting for a second time allows all to see the progress made over the last decade because of its dedication to cruise tourism."

"We are thrilled to be bringing the FCCA's 21st Conference and Trade Show back to St. Maarten to showcase all that they have achieved in creating a world-class cruise destination," stated Kevin Sheehan, FCCA chairman and Norwegian Cruise Line CEO.

Once again, St. Maarten leads the way in providing the necessary infrastructure to support the cruise industry. The cutting-edge facility will serve as an epicenter for the Conference & Trade Show and further showcase St. Maarten's innovations for cruise tourism. St. Maarten and the Port of St. Maarten-the "Port to Remember"-continue to show that the 21st annual FCCA Conference & Trade Show will surely be a Conference to remember.

To register and/or learn more about the FCCA Conference & Trade Show, please visit: https://www.regonline.com/fccastmaarten.

Fred. Olsen Cruise Lines’ first quarter revenue, EBITDA improve but losses prevail

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 15 May 2014 15 May 2014

Fred. Olsen Cruise Lines, the UK based destinational cruise operator jointly owned by the Olsen family’s two Oslo listed holding companies Ganger Rolf and Bonheur, has reported a rise in revenues and operating result, but net losses remained unchanged from year on in the first three months of 2014, Bonheur said in a statement.

Revenues rose to NOK419 million from NOK386 million, while EBITDA increased to NK124 million from NK1 million. Net loss of MNK46 million was unchanged from a year ago.

“The UK cruise market’s weak economic conditions and overcapacity continued to result in lower sale. The number of passenger days totaled 300 343 (296 800) for the quarter. Net ticket income per diem was 5 % lower compared to the corresponding quarter last year. The average spot price of fuel oil in the quarter was 4% lower than in 1 quarter 2013,” Bonheur said.