Top Headlines

RCCL third quarter net profit rises 8.6% to $752.8 million

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 November 2017 07 November 2017

Royal Caribbean Cruises, Limited (RCCL), the world’s second largest cruise shipping group, has reported record earnings for the third quarter on strong demand and cost discipline.

Net profit rose to $752.8 million from $693.3 million in the same period last year as revenues rose to $2.57 billion from $2.56 billion. Operating profit (EBIT) rose a fraction, to $737.5 million from $734.9 million.

Earnings per share rose to $3.49 from $3.21.

In the first nine months of the year, RCCL’s net profit rose to $1.34 billion from $10.2 billion as revenues increased to $6.77 billion from $6.59 billion. Operating profit rose to $1.46 billion from $1.18 billion.

"Delivering record earnings during a period of such unprecedented disruption is a testament to the strength in demand for cruising and for our brands," said Jason T. Liberty, executive vice president and CFO.

"Strong demand trends coupled with our continued cost discipline have put us in a strong position to successfully complete our Double-Double program. As a matter of fact, I am pleased to report that we have already achieved our Double-Double targets on a trailing twelve month basis through September 2017,” he said in a statement.

Gross yields were up 5.6% on a Constant-Currency basis. Net yields increased 5.3% on a Constant-Currency basis. “This was better than previous guidance due to strong close in booking and pricing trends on China, Europe, and North American itineraries. While the hurricanes had a negative impact on overall revenue, they were neutral to Net Yields in the third quarter,” the company said in a statement.

Gross cruise costs per available passenger capacity day (APCD) increased 5.2% on a Constant-Currency basis. Net cruise costs (NCC) Excluding Fuel per APCDs were up 5.7% on a Constant-Currency basis. “The reduction in capacity due to the hurricanes mainly drove the increase in the cost metric relative to guidance. Absolute costs for the quarter were better than expected, mainly due to timing,” RCCL said.

Favourable trends in fuel, in both price and consumption, also provided a benefit to the quarter. Bunker pricing net of hedging for the third quarter was $498.55 per metric ton and consumption was 322.4 metric tons.

Lindblad orders 69 cabin expedition ship from Ulstein Verft, has two options

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 November 2017 07 November 2017

Lindblad Expedition Holdings, the US based and listed expedition cruise specialist, said it has ordered a 69 cabin newbuilding from Ulstein Verft in Norway.

The ship, which will feature the X-Bow that Ulstein has develop to provide superior seakeeping qualities, would be delivered in 2020. There is an option for two additional ships to be delivered in subsequent years.

The state-of-the-art polar vessel has been designed as the ultimate expedition platform with a focus on safety and comfort, as well as incorporating innovative sustainability solutions to reduce its environmental impact.

A core feature is Ulstein’s signature X-BOW®, a distinctive bow that provides fuel efficiency while significantly improving guest comfort in rough seas; and a very high ice class for access deep into polar regions. The ship’s expanded fuel and water tanks provide for extended operations in remote areas; while the zero-speed stabilizers will ensure stability underway, whether at zero speed when stopped for wildlife observation, or embarking/disembarking the ship.

“We are incredibly excited to be working with Ulstein and their brilliant team of engineers and designers on this state-of-the-art vessel as we continue expansion of our fleet. It is the next step in the long-term growth of the company, and will be the most extraordinary global expedition ship in the world on a multitude of levels,” said Sven Lindblad, President and CEO of Lindblad.

“The launch of this ship will mark the 50th anniversary year of the first-ever purpose-built expedition ship, Lindblad Explorer, which was built by my father, Lars-Eric Lindblad, and will set another important milestone in the company’s commitment to deliver expedition travel at its best,” added Lindblad.

In keeping with the Lindblad Expeditions-National Geographic ethos to connect guests with the environment being explored, the ship will be designed to access the outside environment from anywhere on the ship. With 75% of the cabins featuring balconies for private viewing; multiple observation decks inside and outside, and new “observation wings,” the surrounding environs will always be accessible.

Off-ship exploring will be greatly enhanced with an innovative Zodiac loading system which will allow everyone to get ashore quickly and safely, ensuring quick access to every destination. The ship’s complement of expedition tools for exploration will include kayaks, cross-country skis, a remotely operated vehicle (ROV), hydrophones, a video microscope, underwater video cameras, a helicopter landing platform, and more to be announced in the coming months.

The ship will afford gracious comfort and an unparalleled level of service, with the highest comfort class for guests to ensure a quiet and peaceful environment onboard. The 69 spacious guest cabins and suites will include 12 cabins for solo travellers. The spa and fitness area will include treatment rooms, saunas, a fitness room, a relaxation area and yoga room; and there will be two infinity Jacuzzis for the utmost relaxation in pristine environments. Dining offerings include a main restaurant with outstanding views to the surroundings, and an outdoor barbeque and bistro area.

"Our expedition cruises, operated through our alliance with Lindblad Expeditions, have delivered remarkable experiences to our guests for the past 13 years," said Nancy Schumacher, head of Travel and Tour Operations for National Geographic. "The expansion of the Lindblad-National Geographic fleet is truly terrific news, as it allows us to offer these unforgettable trips to even more travellers in the future. We look forward to joining our partner Lindblad Expeditions in celebrating the launch of the latest addition to the Lindblad-National Geographic fleet."

“We are pleased to have been chosen as a partner for this exciting project. Lindblad is an innovative company and a frontrunner in the exploration cruise industry. We look forward to turning this project into reality together with Lindblad and their partners,“ stated Gunvor Ulstein, CEO at Ulstein Group.

CCS 12 on Belt and Road Initiatives and serious problems in China’s cruise business

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 06 November 2017 06 November 2017

Alan Lam reporting from Sanya, China

The 12^th China Cruise Shipping Conference and International Cruise Expo (CCS 12) is currently under way in the Chinese resort city of Sanya, on the island of Hainan. This year’s focus has been on how the Chinese and international cruise industry might respond to the government Belt and Road Initiatives and the problems occurring in the Chinese cruise market.

China’s cruise industry has arrived in yet another new era, an era when the growth has slowed and the industry is confronted with a few problems. Persistent price pressure and the rising cost have eroded the profitability of cruise lines, forcing them to take a longer-term view and rethink their strategies if they are to remain in the Chinese market.

At present cruise products on offer in China are singularly monotonous, consisted primarily of short itineraries to South Korea and Japan. The Chinese consumers have now much stronger spending powers and enjoy comparable lengths of leisure times to those of their counterparts in the developed countries. The demand has therefore not met by the supply. Cruise lines are urged to re-configure their itineraries for the coming years. They need to plan longer itineraries and develop other destinations.

These are just examples of the mounting challenges the industry is facing in this expanding market. The expansion of the last two years has not been translated into net incomes for cruise lines – unlike in North America and Europe - largely because of the discount-based distribution system, which serves to degrade the value of cruising and suppress cruise lines’ earnings.

Yet under the Belt and Road Initiatives, the expansion of the industry has taken on a new meaning; it has gone up several gears. The nascent Chinese cruise industry is now encouraged to go global in cruise operations, shipbuilding and port infrastructure development.

As the discussions continue, the questions are asked concerning how much longer can cruise lines can endure losses in this market if the situation does not improve. However the confidence in China’s future cruise business potential appears to remain intact.

Cruise Business Review is a media partner of CCS 12. An in-depth report on the conference topics will be published in the winter issue.

Carnival Corporation brands return to Grand Turk, St. Thomas, San Juan

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 05 November 2017 05 November 2017

With the vast majority of the Caribbean untouched by recent storms and open for business, the region's momentum continues as cruise line brands from Carnival Corporation & plc, the world's largest cruise company, begin returning this month to Grand Turk, St. Thomas and San Juan, Puerto Rico.

Most of the nearly 100 destinations in the Caribbean have been fully operational since the storms, and the Florida-Caribbean Cruise Association (FCCA) reports that nearly 90% of the region is open for business.

Carnival Corporation brands have operated normal schedules in the aftermath of the September storms, modifying itineraries for only a handful of impacted destinations. Vigorous recovery efforts to restore cruise travel to those affected destinations have led to the re-opening of cruise ports in Grand Turk, St. Thomas and San Juan.

Below is a summary of when Carnival Corporation brands return to these three popular destinations:

– Carnival Cruise Line returned to Grand Turk on November 1, and will return to San Juan on November 30 and St. Thomas on January 9.
– Seabourn visited St. Thomas November 3 and will return to San Juan starting on December 18.
– Holland America Line will return to Grand Turk on November 6, St. Thomas starting on November 8 and San Juan starting on December 7.
– AIDA Cruises will return to Grand Turk beginning November 9.
– Princess Cruises will return to St. Thomas starting on November 12, Grand Turk starting on December 15 and San Juan starting on December 20.
– Costa Cruises will return to San Juan starting on December 17 and Grand Turk on December 23.
– P&O Cruises UK will return to Grand Turk on December 20.

"The Caribbean covers a far-reaching region of more than one million square miles, so it is important to know the vast majority of its islands realized little or no impact from the September storms, and we have been sailing thousands of guests to the Caribbean for great vacations," said Roger Frizzell, chief communications officer for Carnival Corporation. "The Caribbean is the world's most popular region for cruise vacations – and its people and businesses are not only great hosts to our guests, but they also have a strong spirit and resilience. So, for those few islands that were impacted, we applaud them for their tireless efforts to recover and rebound, stronger than ever. We are thrilled to have our brands beginning to return to renowned destinations such as Grand Turk, St. Thomas and San Juan, and we know our guests will also be happy to have those ports as part of their cruise vacation."

In October, the FCCA announced it launched www.CaribbeanIsOpen.com, a website that is part of its multifaceted, million-dollar campaign to generate awareness that the majority of Caribbean destinations are operating normally, unhindered by Hurricanes Irma and Maria, and have been welcoming and continue to welcome tens of thousands of travelers every day.

"The landing site is an invaluable resource for destinations and cruise lines to spread information about and footage of the beautiful destinations awaiting guests," said Michele Paige, president of FCCA. "It is crucial to connect with potential travelers and show them that most of the unparalleled experiences in the Caribbean are fully available to them as they plan upcoming vacations, and also to let them know that the best way to show support is to travel to the Caribbean, as the entire region greatly benefits from tourism."

The website – CaribbeanIsOpen – features footage of and updates from destinations, a map showing that nearly 90 percent of the region's ports are open and welcoming guests, a Q&A broaching potential travelers' questions about visiting the Caribbean, testimonials from travelers that recently visited the Caribbean and more.

Costa Cruises holds coin ceremony for new ship built for Chinese consumers

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 01 November 2017 01 November 2017

Costa Cruises – the Italian cultural brand of Carnival Corporation & plc, the world’s largest leisure travel company – today held the traditional coin ceremony for its newest ship, the Costa Venezia, named after Venice, one of the world’s most beautiful and legendary cities.

As the first Vista-class ship specifically designed and built for China, Costa Venezia in 2019 will bring the rich culture, history and romance of Venice to its Chinese guests.

During the coin ceremony, one newly minted commemorative coin was officially placed in the ship’s keel as a symbol of good luck and blessings for the crew and passengers onboard the ship and her future journeys. The event connected Italy and China to mark this milestone, which was attended by government officials, trade partners and senior executives from Costa Cruises.

“Costa Cruises is thrilled to have a new ship that is built to offer the best experience to Chinese consumers,” said Michael Thamm, CEO of Costa Group and Carnival Asia. “The Costa Venezia demonstrates our strong commitment and confidence in the world’s fastest growing cruise market. Her arrival in 2019 will further enhance our offerings for Chinese guests to reinforce our leading position in China.”

To be built by the Italy-based Fincantieri shipbuilding company, the 135,500 gross ton Costa Venezia will feature 2,116 passenger cabins and a capacity of 5,260 total passengers.

It is the first ship in the world that features a design that entirely reflects her name and the city where she was built. Guests may go onboard to have once-in-a-lifetime experience of Venetians, immersing themselves in a multi-sensory trip featuring food, art, music and entertainment. Come nightfall, guests can participate in an onboard version of the Carnival of Venice, the city’s famous festival known for its elaborate masks.

“With the Costa Venezia, Costa Cruises is proud to showcase the allure of one of Italy’s most famous and culturally rich cities and regions to Chinese consumers,” said Mario Zanetti, President of Costa Group Asia. “The planned addition of the ship to our Asia fleet is part of our continued efforts to innovate and consistently exceed our guests’ expectations by providing authentic and memorable Italian experiences to everyone who sails with us.”

An inaugural world cruise has been planned following the completion of the Costa Venezia that will begin in Trieste, Italy, and end in Shanghai. Along the way, the ship will call in countries such as Greece, Israel, the United Arab Emirates, Malaysia, Vietnam and Japan, following Marco Polo’s famous journeys between Italy and China.

Tickets for the world cruise will be available soon. The ship will depart from Italy in early March 2019, inviting guests to experience the Carnival of Venice and become fully immersed in the magic of Italy.

Costa Cruises was the first international cruise company to enter China in 2006, and has established a leading presence in the market. With the kick off of “Costa New Decade” in China, it will strive relentlessly to exceed guest expectations by continuously innovating to deliver the most delightful onboard experiences – with a touch of Italy.

Costa Venezia’s addition to Costa Asia fleet in 2019 will be followed by an additional ship in 2020, which will also be specially designed for Chinese consumers.