News

RCCL plans third Oasis ordered by year end; seen to enter service 2016

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 October 2012 25 October 2012

Royal Caribbean Cruises Ltd (RCCL), the second largest cruise shipping company, says it is planning to order a third Oasis of the Seas class vessel that would enter service in 2016 if an ordered is placed.

“The company noted that it is engaged in negotiations for the possible construction of an Oasis-type newbuild that would be delivered in middle to late 2016. While the company has not entered into any agreement at this time, it hopes to do so before year’s end. The new ship is expected to cost less on a per berth basis than either of the first two Oasis-class vessels,” the company said in a statement.

“The Oasis of the Seas and Allure of the Seas have proven themselves to be exceptionally attractive ships by generating the highest guest satisfaction ratings in the fleet coupled with very compelling financial returns,” said Richard D. Fain, chairman and chief executive officer. Fain continued, “Ordering another such ship for delivery in 2016, at a lower cost, with better energy efficiency is very consistent with our balanced goals of prudent growth, return improvement and debt reduction.”

RCCL third quarter profit markedly exceeds forecast

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 October 2012 25 October 2012

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, announced third quarter 2012 net income of $367.8 million, or $1.68 per share, versus income of $399.0 million, or $1.82 per share, in the third quarter of 2011.

The fresh figure significantly exceeds forecast of $1.45 by industry analysts.

“Close-in bookings for the third quarter across most itineraries — including Europe — were stronger than anticipated, resulting in a Net Yield increase of 0.1% on a Constant-Currency basis. NCC (net cruise costs) excluding fuel were also better than anticipated and increased 2.0% on a Constant-Currency basis (declined 0.2% As-Reported),” the company said in a statement

“Approximately 200 basis points of the Net Yield improvement and approximately 220 basis points of the NCC excluding fuel increases during the quarter relate to previously announced deployment initiatives and changes to the company’s international distribution system,” RCCL said.

Two UK travel consortia reject cruise lines' commission cut moves

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 24 October 2012 24 October 2012

Following recent announcements by a number of the UK's largest cruise companies that they are to reduce the rate of commission payable to third party agents, The Travel Network Group and Advantage Travel Centres, two of the UK's largest consortia with a combined network of over 1500 independent agents, have joined forces to reject the proposal.

Gary Lewis, Group Managing Director, The Travel Network Group said in a joint statement issued by the two organisations: "We have now discussed this issue in great depth with our members and with Advantage Travel Centres and we are all deeply dissatisfied with moves by certain companies to reduce commission.

"Our strategy is, and has always been, to work with operators who help our members satisfy the needs of their customers, and who at the same time support the trade and our members commercially. There are a number of great quality Cruise lines providing fantastic cruise product to us as a Group and therefore, with immediate effect, we will be looking to strengthen our relationships with those cruise operators who are more supportive of our members and the trade. This will inevitably lead to a reduction of business going through those suppliers that are not supportive of this strategy.

"It is disappointing that during these already difficult trading conditions that some are choosing to make these commercial decisions that will ultimately harm the relationship they have with the trade and independent agents in particular," added Mr Lewis.

Julia Lo Bue-Said, Leisure Director, Advantage Travel Centres, said: "Agents margins are constantly being penalised. Seven years ago they earned the base commission on every component, seven years on non commissionables can account for at least 2% of the holiday price. This means that agents' margins have continued to diminish whilst their costs have continued to increase."

The Travel Network and Advantage combined sell around £350 million worth of cruise through their network of agents.

"Members of Advantage Travel Centres and The Travel Network Group are not supportive of the latest round of commission cuts and this will have a detrimental impact to sales. We have already witnessed the impact commission cutting has achieved and it does not drive incremental sales."