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Global Ocean Cruise Market Analysis & Forecast examines industry at watershed

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 01 June 2016 01 June 2016

The cruise industry has embarked on a path of unforeseen expansion: never before have cruise lines had so many ships on order and never before have they been as large as now. We think in our new report, which is out now that the industry is at a watershed

The newbuilding boom could change the industry’s strategic landscape as instead of the Big Three groups that currently dominate it, there may soon be Big Five or even Six.

Galloping demand in China is fuelling the expansion frenzy, but trading has been more challenging in Europe and in South America.

As increasingly large ships spread all over the world, the need for terminals to handle turn around calls is becoming global, but how good investments are such terminals themselves?

A lot of hype follows the launch of every new ship, and yet the industry’s market penetration rate remains very low in all key source markets. And while major parts of the travel industry have moved online in their distribution, the cruise industry continues overwhelmingly to rely on travel agents – as it did in the 1980s. Is this really the way to capture the hearts and minds of the Millennials?

The Second Edition of Global Ocean Cruise Market Analysis & Forecast by Odo Maritime Research, in association with Cruise Business Review, looks at the cruise industry that has reached a watershed. The enormous expansion of capacity that is due to enter service in the years to come will require a huge increase in the demand.

Yet a host of factors, from economic uncertainties to geopolitical threats, make the future more uncertain than what is has been for decades.

Global Ocean Cruise Market Analysis & Forecast by Odo Maritime Research is looking into the current state of the industry, the possibilities and threats that may lie ahead.

Extensive use of graphs, charts and tables in the 118 page report that is published in PDF format makes the information easy to absorb. The price of the report -£520, €650 or $860 – remains unchanged from two years ago, when we published our first issue.

To order your copy, please contract us on This email address is being protected from spambots. You need JavaScript enabled to view it.

Contents

Executive summary 8

Cruise industry in context 13

Tonnage supply 15

A bird’s eye view 15

Fleet capacity analysis 16

Space ratio analysis 17

Vessel size segmental analysis 21

Fleet age analysis 22

Small operators 25

Newbuilding prices analysis 26

Shipyards & newbuilding prices comparison 28

Orderbook 32

Newbuilding capacity delivery trend 37

Record orderbook & its implications 38

Deployment patterns 40

Cruise brands & market shares 45

Main ocean cruise brands 45

New & emerging brands 47

Mergers & acquisitions 48

Market shares 49

Port development & traffic analysis 55

Port development projects 55

Port traffic analysis 60

Source markets analysis 70

Business performances 76

The majors – Carnival Corp. & plc, RCCL, NCLH 76

Volume growth 76

Development of revenues 77

Development of net results 78

Development of revenue & net result per passenger 79

Development of total & onboard revenue 81

Development of onboard revenues’ share of total 82

Return on capital employed 83

Net yield & net cruise costs 85

Relative development of operating expenses – illustrations 87

Development of shareholders’ equity & debt 91

Earnings estimates by three listed majors 93

Smaller companies 94

Genting Hong Kong 94

Fred. Olsen Cruise Lines, Ltd. 96

Lindblad Expeditions Holdings, Inc. 97

Key observations on business performance 99

Risks & opportunities 100

Risks 100

Opportunities 102

Other considerations 102

Conclusion 104

Appendix 106

STX France major shareholder STX Offshore & Shipbuilding files for receivership

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 31 May 2016 31 May 2016

STX Offshore & Shipbuilding, the South Korean shipbuilder that has experienced financial problems for a long time, has filed for receivership in Seoul, media reports say.

The company owns 67% of the shares in STX France, the cruise ship builder. The French government owns the rest. STX France has a large orderbook of cruise ships from MSC Cruises and Royal Caribbean Cruises, Limited (RCCL).

In view of Cruise Business Online, the future of the French cruise ship builder should be secure despite the uncertain prospects that face its principal shareholder. There are at least two reasons for this.

The first one is that STX France has a healthy orderbook. By contrast, many of the businesses STX Offshore & Shipbuilding is engaged elsewhere have experienced a sharp fall in orders since the outbreak of the financial crisis.

Secondly, the STX France yard in St Nazaire is the only major shipbuilding facility left in the country that is capable of building large naval ships. The French government maintains a substantial navy that currently has e.g. one aircraft carrier and three helicopter carrier/ amphibious assault ships.

The government is currently facing violent opposition to planned new labour market laws and any concern around the future of STX France would only add to its problems.

Royal Caribbean orders more Oasis and Edge-class ships

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 May 2016 25 May 2016

Royal Caribbean Cruises Ltd. today announced that it has signed a memorandum of understanding with French Shipbuilder STX France to build a fifth Oasis-class ship for delivery in the Spring of 2021, and two additional Edge-class ships scheduled for delivery in the Fall of each of 2021 and 2022.

"The response to the arrival of Harmony of the Seas is staggering, eliciting excitement from eager cruisers from markets on both sides of the Atlantic," said Richard D. Fain, Chairman and CEO, Royal Caribbean Cruises Ltd. "And Edge-class is one of the most highly anticipated new projects, following the high bar of Modern Luxury design set by its predecessor, the Solstice-class."

"The Oasis-class ships have delivered beyond expectations each time," said Michael Bayley, President and CEO, Royal Caribbean International. "Harmony of the Seas' warm reception is evidence that growing this class of ship will continue to drive exceptional performance for the brand."

"Although our first Edge-class vessel is still over two years away from delivery, there has been a tremendous amount of interest around the new standard of style Edge-class will introduce," said Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises. "Solstice-class ushered in a new era of design for modern cruise ships, and Edge-class will not disappoint as the new generation of high style and design."

"We are extremely pleased with the recent success of Harmony of the Seas and take great pride in our partnership with Royal Caribbean," said Laurent Castaing, Managing Director of STX France. "It is especially exciting to collaborate on such diverse projects from Oasis to Edge, both marvels in their own space."

This order is contingent upon the completion of customary conditions, including documentation and financing. Final contracts, which include the definitive payment schedules, are expected to be completed within the quarter. Capacity increases for 2016 through 2020 remain unchanged.

Regent Seven Seas Cruises announces H.S.H. Princess Charlene of Monaco will serve as Godmother for Seven Seas Explorer

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 May 2016 25 May 2016

The most luxurious ship ever built, Seven Seas Explorer, will enter service in royal fashion with Her Serene Highness Princess Charlene of Monaco having kindly accepted to serve as the ship’s godmother at a gala christening event in Monte Carlo on the evening of July 13, 2016.

“It’s fitting to have the world’s most luxurious ship, Seven Seas Explorer, christened in one of the most glamorous cities in the world by H.S.H. Princess Charlene of Monaco, who is the definition of elegance, grace and passion,” said Jason Montague, president and COO, Regent Seven Seas Cruises. “Her Highness’ stature, Her career as a world class athlete and the charitable endeavors She pursues through the Princess Charlene of Monaco Foundation are inspiring. We are extremely proud and humbled that She agreed to serve as godmother for Seven Seas Explorer.”

Joining H.S.H. Princess Charlene at the christening ceremony for Seven Seas Explorer is world renowned Italian tenor Andrea Bocelli, who will take the stage for a spectacular 40-minute performance during the event. Bocelli’s beautiful serenade will be a fitting send-off for a ship that sets a new benchmark for luxury.

“It’s such an honor to have Andrea Bocelli – a musical maestro with such an iconic and endearing voice – perform at the christening ceremony,” shared Montague. “We are making the christening ceremony for Seven Seas Explorer one for the ages, one that is truly befitting of the most luxurious ship ever built."

Emre Sayin takes helm at Global Ports Holding

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 18 May 2016 18 May 2016

Emre Sayın has become the new CEO of Global Ports Holding, the world’s largest cruise port operator that provides services to over five million cruise passengers a year.

A new CEO has been appointed to steer Global Ports Holding, the world’s largest cruise port operator. Having previously conducted high-level managing positions at several International companies, Emre Sayın has now taken the helm at Global Ports Holding,

Global Ports Holding, an affiliate of Global Investment Holdings, carries out operations in 10 ports in seven countries extending through the Mediterranean and to Asia Pacific, Adriatic and the Aegean Sea. Being the leader of the industry, Global Ports Holding is expected to see serious steps towards further growth under Emre Sayın’s leadership.

Expressing his excitement at becoming a member of Global Ports’ international team Emre Sayın said, "I strongly believe that although being the world leader we are only at the beginning of Global Ports Holding’s growth story. There are numerous tools to use to achieve better service quality and to add value to the cruise and transportation sectors while enhancing passengers’ experiences at the ports. My experience in “marketing”, “service development” and “experience management” together with our spread-out international team’s devotion will make a serious difference to reach our goal. Tens of ports can learn from each other and share their best practices. This synergy and knowledge sharing will not only result in an increase in service quality but it will also lead to an increase in tourist arrivals in countries where we are active, and ensure that tourists will leave these countries happier.”

After graduating from the Department of Industrial Engineering, Boğaziçi University, Emre Sayın completed his postgraduate degree in Systems Engineering at Rutgers and Princeton Universities. He started his carrier as Management Expert at Merrill Lynch, Princeton in 1992. In 1993 he joined Unilever and worked at high level positions for seven years at various departments including Marketing and Management of chain stores. Following Unilever he moved to Microsoft where he became Marketing Deputy General Manager, for the following three years. He continued his career as the General Manager of Kodak until 2005. From 2005 to 2007, he worked as Marketing Deputy Director at Evyap.

Emre Sayın worked at high-level positions such as Deputy Director of Retail Sales and Marketing Departments and Deputy General Director of Corporate Services in Turkcell reporting directly to the CEO, for seven years. In the last three years, he worked as Deputy General Director of Business Development at Vimpelcom, Amsterdam, and Senior Advisor at Verizon, New York.