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Genting Hong Kong signs contract for second newbuilding with Meyer Werft

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 10 February 2014 10 February 2014

Genting Hong Kong has signed a preliminary agreement to build a second cruise ship at Meyer Werft in Germany for its Star Cruises brand, the company said in a statement.

The second vessel will cost €697.2 million and final contract is subject to settlement of certain terms and conditions. On 7 October, Meyer Werft said it would build a 150,000 gross ton vessel for Star Cruises that will have 1,680 cabins and which is scheduled for delivery in autumn of 2016.

"For the further development of its cruise and cruise related business, the Group reviews its fleet portfolio and deployment options from time to time. Construction of the First Vessel and the Second Vessel is in line with the Group’s long-term strategy in modernising and expanding its fleet for continuing business development and also to strengthen the Group’s market penetration in the Asia Pacific Region. It is our present intention that the Second Vessel will be designed to cater for the unique demands of Asian clientele, in particular, Singapore, Malaysia and Thailand," Genting Hong Kong said.

"The Board believes that the First Vessel and the Second Vessel, upon delivery and operation, will further strengthen the Group’s cruise brand, enable the Group to compete more effectively in the cruise industry, and enable the Group to take advantage of growing demand for cruise business in the Asia Pacific market and further improve on its operating efficiency and revenue potential.'

'The Board considers the terms and conditions of the Second Shipbuilding Contract (including the Contract Price) to be determined on normal commercial terms and to be fair and reasonable and in the interests of the Company and its Shareholders,'' Genting Hong Kong said.

CLIA announces development of Global Ports Committee

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 08 February 2014 08 February 2014

Cruise Lines International Association (CLIA) has announced the establishment of a Global Ports Committee as well as new regional committees in the Americas, Australasia and Asia in addition to the regional committee already operating in Europe. CLIA is now focusing more on engaging directly with port communities around the world both on operational and strategic issues. Port partners will now have increased opportunities to engage with CLIA member lines through this newly established Committee structure.

The Global Ports Committee, chaired by Giora Israel of Carnival Corporation includes Tom Spina of Norwegian Cruise Line, Gianluca Suprani of MSC Cruises, and John Tercek of Royal Caribbean Cruises Ltd. This committee will serve as a forum where cruise lines and ports from around the world can come together to discuss port-related issues of interest and will help to more fully integrate port development and operations within the larger cruise industry.

"I am honored to serve as chair of the Global Ports Committee, which will play an integral role in strengthening the relationships between cruise lines and port communities," said Israel. "Both cruise lines and destinations can benefit significantly by providing excellent service to passengers who embark and disembark cruise ships — and establishing this committee together with my colleagues from the other cruise companies will further our mutual goals of maximizing the positive impact of cruise tourism."

As part of its globalization, CLIA redesigned its Executive Partner program, which is comprised of 250 port authorities, destinations and maritime and industry suppliers who are important partners to the cruise lines and  play a major role in the successful operation of cruising. As part of this effort, CLIA today also announced that it has named Bo Larsen to the position of Director of Port Engagement and Business Development. In this role, Bo will initially have responsibility as the staff liaison to the regional ports committee in Europe and Executive Partner business development for Northern Europe. Bo will support Didier Scaillet, CLIA Global Vice President of Business Development, who serves as the staff liaison to the Global Ports Committee and leads CLIA’s global business development activities.

"Bo’s strong background in cruise port development, international sales and marketing expertise, strong relationships with port representatives, and success growing the cruise industry’s presence in Copenhagen and the Baltic region make him an ideal fit to represent CLIA in this important new position," said Pierfrancesco Vago, Chairman of CLIA Europe and Executive Chairman of MSC Cruises.

Prior to joining CLIA, Larsen served as director of the Cruise Copenhagen Network and Cruise Baltic, where he oversaw the significant growth of the cruise industry in the region and had responsibility for sales, marketing, business development and branding. Larsen joins CLIA on March 1, 2014.

Cruise Business Commentary: Allure's European season makes sense - to a point

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 05 February 2014 05 February 2014

Royal Caribbean International this morning said it would base its 226,000 gross ton Allure of the Seas in Barcelona for a series of seven night cruises through the summer of 2015. This follows a "mini season" by its sister ship, Oasis of the Seas, later this year.

The move to base Allure of the Seas in Barcelona is a sensible move. Both Royal Caribbean Cruises Ltd (RCCL), the parent company of Royal Caribbean International, and its competitor Carnival Corp & plc group, have stated that the demand for European itineraries is firming after a fall in the aftermath of the financial crisis and subsequent cuts in capacity in Europe.

Royal Caribbean's competitors are bringing new capacity online in 2015: AIDAPrima of Carnival's German unit AIDA Cruises and Britannia of its UK based P&O Cruises will both enter service in the spring of 2015.

The RCCL group is responding by raising the stakes: 2015 will see the entry into service of Mein Schiff 4, the second of two 99,300 gross ton newbuldings of TUI Cruises, in which RCCL has a 50% stake. In the UK, the new 167,800 Anthem of the Seas is due to replace the 158,400 gross ton Independence of the Seas. In the Mediterranean, Norwegian Cruise Line will keep the 155,800 gross ton Norwegian Epic year round in Barcelona from the summer of 2015.

Furthermore, the summer is peak season in Europe, it is not in the Caribbean.

By brining the Allure of the Seas to Europe, Royal Caribbean International will make sure that it has the assets in place to claim its place in the sun at a time when the European cruise market is due to receive lots of new capacity, which the lines hope will bring them lots of attention in the media and lots of business.

And it is here that the caveat lies: the move to bring Allure of the Seas makes sense to the company, but it may not be equally positive to the overall market. The question is whether the European market will be able to absorb all that new supply or not. With only the British and German economies firing on all cylinders, the local demand may not keep up with the increase. The interest of Americans to cruise in Europe may, therefore, play a crucial role in what the outcome will be.

Allure of the Seas to be based in Barcelona summer 2015

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 05 February 2014 05 February 2014

Royal Caribbean International says it will base Allure of the Seas, of of the two 226,000 gross ton Oasis class ships in its fleet, to Barcelona in the summer of 2015. The move comes after the Royal Caribbean Cruises Ltd (RCCL) group contemporary market unit said in the autumn that it would strengthen its presence in the UK.

"Offering a full season of seven-night cruises, Allure of the Seas will arrive in Barcelona on 3 May 2015 and will offer cruises from the Spanish port until October 2015," Royal Caribbean said in a statement.

"For the first time ever, the exciting ship will be in Europe, following a Mediterranean micro-season from sister ship Oasis of the Seas during late summer 2014. Both Oasis of the Seas and Allure of the Seas will introduce the pioneering Royal Caribbean International holiday experience which features real outdoor parks, zip lines and an awe inspiring aquatheatre to European families and holiday makers,' the company said.

Stuart Leven, managing director, Royal Caribbean International, UK and Ireland explains: “At Royal Caribbean International we have always delivered the unexpected and enjoyed behaving in a way that no other cruise line can. Not only are we increasing our European deployment, but we are doing it in impressive style. News that Allure of the Seas will enjoy a full season based in the popular Mediterranean port of Barcelona is brilliant for agents – they have the opportunity to sell cruises on the world’s most high profile ship closer to home.

“We will be supporting our agent partners extensively in ensuring that they get to learn more about this ship when sister-ship Oasis of Seas calls into Southampton later this year. We’re urging agents to forget what they think they know about European cruises – Allure of the Seas will change the face of selling Mediterranean cruises, especially for a family audience.”

The news also comes ahead of the announcement that new ship, Anthem of the Seas joining the Royal Caribbean International fleet in spring 2015, will be based in Southampton. The addition of Allure of the Seas to the European deployment reflects the strength of support and continued commitment for the Royal Caribbean International offering from agents. It also means that some of the company's newest and innovative ships will be in the Mediterranean during peak holiday seasons, showcasing the breadth of attractions available on board, ranging from dodgems and sky diving, world class spas and cuisine, to ice skating and zip lining in 2015.

In summer 2015 Allure of the Seas will offer seven night cruises from Barcelona calling at Palma de Mallorca, Marseilles for Provence, La Spezia for Florence and Pisa, Civitavecchia for Rome and Naples. Guests will also have the option to travel to Rome and join the ship in Civitavecchia for a week long cruise starting and ending in the Italian port. Offering more flexibility for agents and their clients, the choice of embarkation ports is expected to be a popular addition.

To support the news, agents can look forward to a mini brochure specific to Allure of the Seas. Plus, a dedicated marketing toolkit that includes videos, campaign assets, top offers and fantastic images, as well as much more, to aid selling the new itineraries. Agents should look out for the trade packs that will drop from 12 February 2014 as they feature the opportunity for ten lucky agents to receive at random a special golden ticket to win a VIP weekend in Barcelona as one of the first to see the ship arrive in the Mediterranean. A further ten agents will win the exclusive golden ticket and Barcelona prize by making a booking and registering it at cruisingpower.co.uk.

The new 2015 cruises from Allure of the Seas – the first time the ship has offered cruises outside of the Caribbean – go on sale for Crown & Anchor Society members on Wednesday 12 February 2014 and general sale from 18 February 2014. From today agents can register interest from their clients who will enjoy priority booking as soon as the ship goes on sale. More details on booking and further announcements can be found on cruisingpower.co.uk.