News

CLIA expects 32 million passengers in 2020, spots six trends

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 13 December 2019 13 December 2019

Cruise Lines International Association (CLIA) expects the number of ocean cruise passengers carried by its member lines to grow to 32 million next year from 30 million in 2019 and 28.2 million in 2018.

“Newly released data shows 32 million passengers are expected to set sail in 2020. To meet ongoing demand, CLIA Cruise Lines are scheduled to debut 19 new ocean ships in the upcoming year, resulting in a total of 278 CLIA cruise line ocean ships projected to be in operation by the end of 2020,” the organisation said in its 2020 outlook report.

In addition, it said six trends would hallmark thie industry in the near future.

Environmental Sustainability: The development and identification of new technologies and cleaner fuels is a top priority for the cruise industry, which continues to make substantial investments in reducing environmental impact. CLIA’s most recent Environmental Technologies and Practice Report shows significant progress towards the adoption of new and innovative practices, while the industry continues to explore new ways to increase efficiencies.

Liquified Natural Gas (LNG) – 44% of new build capacity will rely on LNG fuel for primary propulsion

Exhaust Gas Cleaning Systems (ECGS) – 68% of global capacity currently utilizes EGCS, while 75% of non-LNG new-builds will have EGCS

Advanced Wastewater Treatment Systems – 100% of new builds will have these systems in place

Shore-side Power – 88% of new build capacity will have or be configured to add this ability.

Additional Areas of Focus – battery propelled vessels, advanced recycling practices, reduced plastic use, energy-efficient lighting, solar energy, and fuel cell.

Destination Stewardship: With increased demand and growth in the cruise industry comes responsibility to foster respect and cooperation with cruise destinations. In collaboration with local communities, the cruise industry is exploring new and creative ways to manage the flow of visitors and implement the highest standards of responsible tourism including:

Partnerships with local governments

Staggered arrivals and departures

Excursion diversification

Shoreside power

Local passenger spending

Cruise and Stay: The State of the Cruise Industry Outlook found more travellers are spending time in and near cruise ports. In fact, 65% of cruise passengers spend a few extra days at embarkation or debarkation ports.

Reduce Single-Use Plastic: Travellers are taking sustainability to the seas. The study found that more than eight of ten cruise passengers recycle (82%) and reduce using single-use plastics (80%) while travelling. Seven out of ten cruisers also forego plastic straws.

Generation Cruise Positive: The attitude around cruising is changing, no matter the generation. More than 66% of Generation X and 71% of Millennials have a more positive attitude about cruising compared to two years ago.

Lone Cruisers: Marriage rates are declining and the number of single adults is growing globally. As a result, cruise lines are responding to the shift in passenger demographics by offering studio cabins, single-friendly activities, eliminating single supplements and solo-lounges.

Micro Travel: Trip durations are continuing to change, with many travellers looking for quick trips. Cruise lines are offering bite-sized cruises over a three-to-five-day period offering shorter itineraries to a variety of destinations.

GPH losses widen, issues profit warning as cargo ports extend drag

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 11 December 2019 11 December 2019

Global Ports Holding (GPH), the world’s largest operator of cruise ports, has reported a much wider nine mont loss than last year and issued a profit warning by saying that its cargo facilities continue to underperform and outweigh the positive development of its cruise facilities.

“As a result of the weakness in our Commercial ports, we now expect the Group to deliver for the full year a decline in Consolidated EBITDA in percentage terms of mid-single digit against 2018,” said the company that is headquartered in Istanbul and listed in London, in a statement.

Group net loss in the first nine months of the year widened to $14.8 million from $0.1 million year-on, while revenes fell by $3.0 million to $91.5 million.

“During Q3 2019 we announced that in light of the emerging opportunities in our cruise business that we were undertaking a strategic review of the Group. The process is currently expected to conclude in Q1 2020, however there can be no certainty as to the final outcome. A further announcement will be made when it is appropriate to do so,” GPH said.

Although the company has not explicitly said so, the review could result in disposal of the cargo ports that hurt the company’s performance for some time now.

Revenue from the cruise operations of the company rose by 11.2% to $46.2 million and EBITDA by 13.9% to $32.6 million in the first nine months, year on.

Revenue from the two cargo facilities, however, fell by 14.4% to $33.7 million and EBITDA by 19.5% to $33.7 million in the first nine months of the year.

“Our Cruise business continues to perform well in Q4 2019 and looking into 2020 and 2021, organic growth is expected to be strong driven by a significant increase in passengers at both Ege and Bodrum. The recent addition of Nassau and Antigua cruise ports to our cruise portfolio is a truly transformational for the group. Cruise passenger volumes for 2020 will increase by close to 100% and we expect to deliver in excess of $85m of EBITDA from our Cruise business by 2022, a growth rate of in excess of 100% from 2018 levels,” GPH stated.

“As expected, macro-economic factors such as trade tariffs continued to negatively impact our Commercial business in Q3, particularly Port Akdeniz. Throughput container volumes were once again weak in the period and this sustained weakness has continued into Q4. Longer term an agreement to end the current escalation of trade tariffs involving China and a general improvement in Chinese GDP are, we believe, the most likely catalysts for a meaningful improvement in container throughput volumes,” the company said.

National Geographic Endurance floated out in Ulstein Werft, Norway

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 10 December 2019 10 December 2019

Lindblad Expeditions Holdings Inc. celebrated the float out of National Geographic Endurance in Ulstein Verft, Norway on Saturday, December 7, 2019. The first polar new build for the line, the 126-guest vessel is fully stabilized with the highest ice class (PC5 Category A) of any purpose-built passenger vessel. Key to its design is the patented X-BOW - its powerful wave-slicing action will provide an extremely smooth ride in even adverse conditions, which results in greater fuel efficiency and fewer emissions for reduced environmental impact.

The vessel is scheduled for delivery in January 2020.