Longtime executives promoted to lead Celebrity, Royal Caribbean

By Jerry Limone
Michael BayleyRoyal Caribbean Cruises Ltd. (RCCL) has named Michael Bayley president and CEO of Royal Caribbean International, transferring to the company’s largest brand from the helm of Celebrity Cruises.

Lisa Lutoff-Perlo replaces Bayley as Celebrity’s president and CEO, promoted from her position as Royal Caribbean’s executive vice president of operations.

Each executive has 30 years of experience in the industry.

Bayley had Lisa Lutoff-Perlobeen Celebrity’s president and CEO since July 2012. At that time, Bayley had been promoted from his position as Royal Caribbean’s executive vice president of operations, and Lutoff-Perlo was promoted to replace Bayley.

The top spot at Royal Caribbean International had been vacant since April, when Adam Goldstein was promoted to president and COO of the parent company.

In a statement, RCCL said Bayley “delivered strong results” at Celebrity “while building the company’s ‘modern luxury’ positioning, which resonated successfully with Celebrity’s sophisticated customer base.”

RCCL said Lutoff-Perlo “played a critical role in the recent successful launch of Quantum of the Seas.”

Royal Caribbean’s rollout of RFID wristbands will be gradual

Royal Caribbean RFID wristbandFORT LAUDERDALE — Royal Caribbean Cruises Ltd. President Adam Goldstein said it will be several years before the Sea Pass wristbands being used for room keys on Quantum of the Seas can be rolled out fleetwide.

Goldstein said the radio-frequency identification (RFID) wristbands are simple, but they go hand-in-hand with a new shipboard property management system that takes a fair amount of time to install.

“The next-generation embarkation and the RFID bands will kind of follow that process,” Goldstein said in a speech at the CruiseWorld conference, a Travel Weekly event.

Royal Caribbean will proceed ship by ship with the installations. He did not say which would be the next ship in line for Sea Pass.

Goldstein said that older ships such as Majesty of the Seas that look their age next to Quantum have been given extended life by adding newer features in scheduled drydocks.

“We’ve found across the boCruiseWorld - Adam Goldsteinard — and this is industrywide — that we’ve been able to inject a lot more features from the newer ships onto the older ships than probably any of us thought possible.”

He also noted that RCCL has six brands and that older Royal Caribbean and Celebrity Cruises ships such as Majesty of the Seas have traditionally migrated to its other, primarily European, brands.

Goldstein said pressure on concessionaires to be more efficient has resulted in smaller footprints for areas like the photo gallery on Quantum. That has freed up more space for a variety of extra features that make the ship more exciting overall, he said.

CruiseWorldGoldstein said he’s never been a big fan of the contemporary-premium-upper premium-luxury continuum that many use to label the market segments of the cruise business, and that the edges of those categories are increasingly blurring into each other.

“If you’re in a loft suite on Oasis of the Seas, you’re in a pretty luxurious product,” he said.

“Very often our bigger brands are the second choice for couples that are normally cruising on small luxury ships,” Goldstein said. He said those passengers want the attributes of a large ship with all of the luxury amenities of a small one. “It is an interesting marketing challenge.”

Biggest, newest ships can thrive in Europe, Asia: Goldstein

Goldstein - 'In the Mediterranean, Europe and Asia-Pacific, the largest ships can be viable and thrive'Goldstein – ‘In the Mediterranean, Europe and Asia-Pacific, the largest ships can be viable and thrive’

Oasis of the Seas turning around in Barcelona this month and Quantum of the Seas going to China next year show that Europe and Asia can handle cruising’s biggest and newest hardware. As Adam Goldstein, president and coo of Royal Caribbean Cruises Ltd., put it: ‘In the Mediterranean, Europe and Asia-Pacific, the largest ships can be viable and thrive.’

When Oasis of the Seas made its inaugural call at Barcelona two weekends ago, it generated three times the media response of anything the company has ever done in the region, Goldstein said. Apart from the publicity, the operations were impressive—a ‘great accomplishment’ by the Port of Barcelona.

‘It clearly shows Europe is capable right now of supporting the biggest ships in the world and the infrastructure exists to support Allure of the Seas for a full season next year,’ Goldstein told Seatrade Med in Barcelona last week. ‘We now have the opportunity to deploy our biggest and best new ships here. This bodes well for the Mediterranean.’

It’s the culmination of a sequence of development. The current Oasis ‘micro-season’ paves the way for Allure’s full season. Going step by step over time gives everyone the chance to acclimate.

‘The infrastructure that exists to handle 6.4m passengers wasn’t here 20 years ago,’ Goldstein said. ‘The fundamental capability to accommodate growth in the Mediterranean is available if there’s adequate planning.’

From a source market perspective, Europe remains ‘a mainstay of the business for us and the industry. We’d all like to see the macroeconomic situation in Europe be better than it is,’ he added. However, the good news is that Spain is showing signs of recovery.

The market is growing, although at a slower rate. ‘We’re able to generate profitability here. It’s really attractive to cruise in Europe. The business is doing well,’ Goldstein told Seatrade Insider during an interview in Barcelona.

Last year cruises in Europe attracted nearly 1m non-Europeans, demonstrating resilience following the global recession.

And Asia is emerging as the third major cruise operating region of the world.

After the recent deal to sell Celebrity Century to China’s Ctrip.com International, it’s too early to tell how the relationship will develop. ‘We’re in discussions to see,’ Goldstein said. ‘They’re already a producer for us. We hope to maintain and build the relationship.’

The fact that Quantum of the Seas will operate year-round from Shanghai is ‘remarkable. It’s an amazing development for the Royal Caribbean International brand and the company to so quickly have one of our newest ships operating in China.

‘I don’t think anybody foresaw something like this,’ he said, adding that just 10 years ago, China was ‘a gray spot on the map’ for the cruise industry.

Next year Royal Caribbean will have four ships there, counting also Mariner of the Seas, Voyager of the Seas and Legend of the Seas.