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Perception of top cruise brands continues US decline post Carnival Triumph - poll

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 10 June 2013 10 June 2013

The US public’s perception of the cruise industry’s positive attributes has continued to decline after the immediate aftermath of the Carnival Triumph incident, a Harris Interactive poll conducted in May has shown

“A March Harris Poll found that Quality, Trust and Purchase Intent scores recorded in the week immediately following the Carnival Triumph's return to shore ("Post") showed notable drops when compared to scores recorded prior to the incident ("Pre") - not just for Carnival, but across many top cruise brands,” the company said in a statement.

“Many suggested at the time that these drops were likely a temporary setback, and that perceptions would soon bounce back. However, a recent Harris Poll of 2,052 U.S. adults surveyed online between May 14 and 16, 2013 (prior to the recent fire aboard Royal Caribbean's Grandeur of the Seas) by Harris Interactive, finds that perceptions for the top cruise industry brands have not only remained below their pre incident levels, but have continued to decline,” it said

Results are compared, where applicable, to Harris Poll EquiTrend data collected from January 11, 2013 to February 8, 2013 (the Carnival Triumph incident lasted from February 10-14, 2013) and a Harris Poll of 2,230 U.S. adults surveyed online between February 19 and 21, 2013.

Looking at specific perceptual measures, the average perceived Quality score across the seven brands tested is down by 13% vs. its pre incident level and 6% compared to the post incident wave of testing. While Carnival's Quality score shows the steepest declines (down 28% vs. pre and 12% vs. post), all of the other brands tested ranged individually from 8%-11% below pre levels.

The average Trust score across the seven brands tested is also down in comparison to both pre (down 12%) and post (down 5%) incident; as with Quality, Trust shows the steepest decline for Carnival Cruise Lines (down 26% vs. pre, 11% vs. post). However, the six other brands tested remain between 8%-12% below pre incident Trust levels.

Purchase Intent has declined, on average, 11% from its pre incident level (and 5% from its post incident level). While this again affects most of the brands tested (with most down between 7%-15% vs. pre levels), it is worth noting that Holland America's Purchase Intent score has largely weathered this perceptual storm, holding at just 2% below its pre level. Carnival is again hardest hit, down 20% vs. pre, 8% vs. post, Harris Interactive said.

UPDATE: Bob Dickinson returns to Carnival

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 10 June 2013 10 June 2013

Carnival Corporation is expected to make a major announcement today that former Carnival Cruise Lines' President and CEO is going to re-join the company for an advisory role specialized in sales and marketing. Stay tuned as we will post more information when available.

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Bob Dickinson at first will focus on strategies in North America for marketing and distribution across the company’s brands. In addition to Carnival Cruise Lines and several brands that operate in Europe, the portfolio includes Princess Cruises, Holland America Line and Seabourn Cruise Line, the Miami Herald reports.

Dickinson, who will report to Carnival Corp. & plc Vice Chairman and Chief Operating Officer Howard Frank, served on the corporate board from 1987 until this April.

The group’s Carnival Cruise Lines US focused mass market business was hit by bad publicity in the winter after Carnival Triumph lost power on a Caribbean cruise that forced the ship to be towed to port, while those on board had e.g. no working toilets or air conditioning. Carnival Corp & plc issued a profit warning after the incident that sent, initially, its share price sharply lower.

The company’s woes, while hitting Carnival the hardest, appear to be affecting the public’s perception of the entire industry. An online Harris Poll conducted in May showed that perceived quality, trust and purchase intent had declined compared to a post-Triumph poll.

Compared to results of a survey taken between 19 and 21 February perceived quality across seven brands has dropped 6%, while trust declined 5% and purchase intent is down 5%.

The poll showed that perceived quality of Carnival dropped 12% from the February survey, trust dropped 11% and purchase intent declined 8%, the report said.

UPDATE: Cunard Line and P&O Cruises' managing directors to leave - report

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 June 2013 04 June 2013

The report has now been confirmed by the Carnival group.

Managing directors of P&O Cruises and Cunard Line are to leave at the beginning of September and a new organisation structure will take effect after that, Travel weekly reports in a newsflash emailed to Cruise Business in the UK.

P&O Cruises' Carol Marlow and Cunard Line's Peter Shanks would not be replaced. Instead, each of the Carnival UK brands would have a marketing director, but a new insight director would be appointed to oversee both brands. The new directors would report to Gerard Tempest who was appointed as chief commercial officer recently. David Dingle, chief executive officer of Carnival UK, would assume the same role in P&O Cruises and Cunard Line as well, the report said.

Cruise Business Online has not been able to obtain a comment from Carnival UK as yet.

Headquarters of both Cunard Line and P&O Cruises are in Carnival House in Southampton, England.

Tallink raises NOK900 million in private placement of five year notes

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 June 2013 04 June 2013

Tallink Grupp, the Estonian cruise ferry company, has completed a private placement of a NOK 900 million (€118 million) of senior unsecured notes. The maturity date of the notes is 18 October 2018 and they they carry a floating rate coupon of three month NIBOR (Norwegian Inter-Bank Offered Rate) +5%

Settlement date of the offering is estimated to be on 18th of June 2013. The proceeds of the issue will be used for the refinancing and strengthening of AS Tallink Grupp financial position.The accompanying currency risk will be hedged with a cross currency swap, the company said in a statement.

The company will seek listing of the notes on the Oslo Stock Exchange. Oslo is a major market for debt and equity issues by shipping and offshore companies, with both domestic and international investors on the market. DFDS, the Copenhagen based ferry company, has issued dent on the Oslo market in the recent past.

RCCL orders third Quantum class newbuilding from Meyer

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 May 2013 30 May 2013

Royal Caribbean Cruises Ltd. (RCCL) announced today that it has signed a contract with the Meyer Werft shipyard to construct a third Quantum-class cruise ship for delivery in mid-2016. The price and terms of the new ship are similar to the price and terms of the first two Quantum-class ships and the contract is subject to financing conditions.

The company recently unveiled details of this new class of ship and was gratified by the public response to the design innovations. It also said that the new design included an advantageous configuration which includes a greater proportion of higher priced staterooms and that it achieves some of the greatest energy efficiencies at sea.

“We are creating a compelling experience for vacationers with innovative design, winning service, and appealing destinations around the world,” said Richard D. Fain, chairman and chief executive officer of RCCL. Brian J. Rice, vice chairman added, "This order follows our stated goals of moderate growth, driving improved returns and leading to an investment grade rating."

“We are encouraged by the very positive response we received from travel agents and consumers when we first announced some of the unprecedented offerings on Quantum Class last month,” said Adam Goldstein, president and chief executive officer of Royal Caribbean International, the contemporary market unit of the RCCL group that will operate the ship.

The yet-unnamed Quantum-class vessel will join the Royal Caribbean International fleet, alongside Quantum of the Seas, which will make its maiden voyage in 2014, and Anthem of the Seas, scheduled to debut in 2015."

Including today's contract and existing ship orders, projected capital expenditures for 2013, 2014, 2015 and 2016 are $700 million, $1.2 billion, $1.2 billion and $2.1 billion, respectively. Including Quantum III, the company's capacity growth rate from 2012 to 2017 will be approximately 4% per annum.