Anthem of the Seas Now Sailing in the U.S.

Anthem of the Seas enters New York

Anthem of the Seas sailed past the Statue of Liberty and around Manhattan on a night of such warmth and clarity that it was hard for me to realize the month was November. I sat in the ship’s beautiful conservatory and marveled at how welcoming such a huge vessel could be.

A ceremony marked the arrival of the Royal Caribbean International ship in the U.S., and Anthem made a glowing entrance. The onboard entertainment, dining and accommodations incited the same excitement seen in the U.K. for the vessel earlier this year. Americans were particularly enthusiastic about features such as the large virtual balconies in the inside staterooms, where people with live-streaming “windows” saw more dolphins and whales on the transatlantic crossing than many of those with balcony staterooms.

Doug Grau, director of sales for the Western U.S. for Royal Caribbean, says the active lifestyle activities available onboard — from a skydiving simulator to circus school — are an especially good match for Western travelers, who tend to be energetic and outdoors-oriented, falling within Royal Caribbean’s psychographic. The top-flight entertainment, including the amazing “We Will Rock You” Broadway musical, tribute bands and cabaret shows, is also a particularly strong draw for the West.

“There is huge interest in Western states for Anthem (Quantum-class) and Oasis-class ships, and 30 percent of Royal’s sales coming out of the West is for these ships,” Grau said.
However, Grau finds a gap between agent experience and demand. When he talks to agent groups and asks how many have sailed with Royal Caribbean, most have; however, when he asks how many have been onboard during the past few years, only a handful respond affirmatively. Grau notes that when Mariner of the Seas came to the West, it was the first time many agents had seen the ship — and it was nearly 10 years old.

At the rate that the line’s ship design and customer experience has changed, this means Western agents are missing out on the modernized Royal Caribbean, Grau says.

“If you aren’t selling these ships, your customers are buying them elsewhere,” Grau said. “I tell them it is well worth the investment to attend the East Coast Cruise 360 sessions and inspect a number of recent ships. Large ships scare a lot of agents, who are afraid their clients will be caught in long lines and tied up for hours when embarking. We’ve done everything possible, both in terms of design and technology, to make the experience human-sized and comfortable. We have more rooms that hold 80 or 90 people than ever before.”

These efforts are paying off. At Anthem’s embarkation on Nov. 4 in Cape Liberty, N.J., Royal Caribbean representatives with iPads checked passengers in as they were dropped off at the port. Common questions I heard from guests were, “Is that all?” and “What do I do now?” The answer: “Go right to your stateroom and enjoy the ship.”

My own check-in experience, complete with credit card scan and photo ID, which I had not done in advance, was five minutes from start to finish — considerably shorter than check-in on ships less than a quarter the size of Anthem.

During Anthem’s first cruise from the U.S., Royal Caribbean announced an order for a fifth Quantum-class ship to be delivered in fall 2020.

“It is such a pleasure to announce the order of another Quantum-class ship as we are welcoming Anthem of the Seas to North America,” said Richard Fain, chairman and CEO of Royal Caribbean Cruises Ltd.

Fain says although there have been some tweaks in food, drink and entertainment, the Oasis and Quantum ships cross international markets with ease.

“These ships have been received with excitement by passengers and crew and have performed exceptionally well across the globe,” he said. “We fully expect that momentum to continue as we add to this innovative class.”

Royal Caribbean’s ‘Come Seek Live’ an innovative draw for millennials


Come Seek Billboard.

The range of activities passengers can do on a cruise was demonstrated for countless New Yorkers during their daily commute last week, as Royal Caribbean International streamed live images directly to outdoor ad screens on 230 subway kiosks and display spaces on digital newsstands.

Commuters learned they could dance in Martinique, feed a monkey in St. Kitts, go on a sailboat regatta in St. Maarten or go cliff jumping in Barbados.

All were excursions offered on Royal Caribbean’s 4,180-passenger Anthem of the Seas, which recently arrived at its Bayonne, N.J., homeport, as it toured the southern Caribbean.

The images were streamed via Twitter’s new video application called Periscope, a fast-growing social media platform. Royal said New York Transit officials believe it was the first time that its network of digital billboards has been used to show live video via Periscope.

Royal Caribbean’s “Come Seek Live” display at the Union Square subway station in New York. It featured streaming Periscopes and video images from the campaign’s TV ads. Photo Credit: Johanna Jainchill

Royal Caribbean’s “Come Seek Live” display at the Union Square subway station in New York. It featured streaming Periscopes and video images from the campaign’s TV ads. Photo Credit: Johanna Jainchill

Jim Berra, chief marketing officer at Royal Caribbean, said the outdoor effort was part of a larger bid to bust through advertising clutter with Royal’s “Come Seek” marketing message.

“In a world where consumers tune out a message if it is overly produced or directed, we want to show the experience as it is happening in real time,” Berra said before the campaign’s launch.

By streaming video to new-age billboards, Royal sought to target new-to-cruise millennial generation consumers with a type of technology that resonates with them. In addition to the videos, the displays featured running comments sent via Twitter, and a stream of colored hearts, the Periscope equivalent of Facebook “likes.”

New York was picked to pilot the marketing because it has the most advanced outdoor ad market in the country, Berra said.

Berra also said the New York project launches a new, more aggressive regional approach to marketing at Royal that, “given Anthem’s arrival and the fact that New York is a huge fly market into central and south Florida,” will continue throughout the year.

“Come Seek Live” ran from Nov. 13 to 20. During the run, Periscopes streamed three or four times a day on the displays, generally for an hour. They could also be seen via Twitter on mobile or desktop devices.

The rest of the time, the displays showed video images from “Come Seek” television ads.

The larger idea of “Come Seek” is to challenge stereotypes of cruising, tourism and the Caribbean.

To aid that process, Royal Caribbean enlisted several “influencers,” footloose social media nomads with high Twitter numbers. They included a group of 20-something Canadian lads who brand themselves as “High On Life” on YouTube travel videos, and Dan Moore, an Australian travel blogger. Each functioned as makeshift tour guides in the Periscope videos.

Sam McCully, vice president of marketing at Avoya Travel in San Diego, said the approach will engage the younger customers Royal Caribbean has focused on with “Come Seek.”

“Social media allows you to add another dimension in starting a conversation with people,” McCully said. “It’s no longer a one-way (communication); it’s very conversational, very two way.

“Especially the younger type of customer they’re targeting, those people are used to having direct engagement with brand, having a conversation with a brand.”

However, it is the outdoor dimension that really makes it different, McCully said.

“They’re not just shooting the content and putting it out there on their site and via Twitter, but there’s a live component in a key market. So they’re not just pushing the boundaries of social media, social marketing, but it’s also pushing the boundaries of your traditional outdoor advertising,” he said.

In terms of reaching new customers, “I wouldn’t be surprised if it was a major success,” McCully said.

Royal Caribbean hews to ‘price integrity’ plan, sees rise in close-in pricing

Quantum of the Seas
While long-term pricing discipline has for decades eluded the cruise industry, Royal Caribbean International is sticking to a pledge not to deeply discount its cruises in the last few weeks before departure, according to travel agents and a Wall Street analyst.

Abandoning the industry’s traditional “sail full, whatever it takes” imperative, Royal has been forgoing last-minute discounts for the past seven months in an effort to wean passengers from the practice of waiting until close to the sailing date for the best deals.

Moreover, several agents said they were seeing no signs that Royal has been selectively abandoning what the cruise line calls its “price integrity” policy.

“For the short period of time it’s been available, I haven’t seen them break their promise; I haven’t seen them discount at the last minute,” said Jay Johnson, president of Coastline Travel Advisors of Garden Grove, Calif. “I have not had any clients tell me, ‘Hey, we’re leaving next month, and we found it lower online.'”

Patrick Scholes, a cruise analyst with SunTrust Robinson Humphrey, said he was seeing signs in the firm’s monthly survey of cruise pricing that close-in fares for Royal are far higher than they were at this time last year. In August, fares for bookings within one to three months of departure were up 13% after rising 16.9% in July and 15% in June. In fact, they have risen each month since March, when the policy began.

“This is the strongest near-in advertised pricing growth we have ever observed for the Royal brand,” Scholes said of the July numbers.

Under its “price integrity” policy, Royal stops discounting 10, 20 or 30 days before departure, depending on itinerary and other variables. In a conference call with analysts in July, Richard Fain, chairman and CEO of Royal’s parent, Royal Caribbean Cruises Ltd., said that one sign the program is working was that Royal recently extended the no-discount period to 40 days in some cases.

“We recognize that this policy is costing us some money in the short term, but we believe that in the long term it will pay handsome dividends,” he said.

Fain said the impact on occupancy has been “relatively small,” but where it might be costing the brand is in lower prices for bookings made from four to six months before departure.

Scholes said his surveys show that Royal prices for cruises four to six months from departure were up only 1.7% in June and down 0.1% in May.

“We suspect [Royal] is not aggressive on the four- to eight- [month] pricing, so better load the ships earlier on so they have less last-minute inventory to fill,” Scholes said.Other cruise lines might be copying the strategy, at least informally. Scholes said Carnival Cruise Line’s surveyed pricing for bookings one to three months out was up 14.8% in July, which he described as “not too dissimilar to the Royal brand’s.”

However, several travel agents said they were seeing no signs that Carnival was mimicking the Royal policy.

“All the competitors around [Royal] haven’t changed,” said Linda Bosch, owner of Just Cruises & More in St. Louis.

Bosch said she was excited to see Royal try to end last-minute discounts because it makes for smoother planning and fewer rebooking hassles when prices drop.

“We, as the agent, are looking to project that bookings are there,” Bosch said. “We can’t project when they’re doing the discounts at the last minute.”

But Bosch predicted that it will take six months to a year before the changed incentives are reflected in consumer behavior, primarily in the form of earlier booking habits.

Johnson said he fielded an inquiry from one group recently for a cruise on the Harmony of the Seas next summer and the price went up between their first phone call and the time they called back to make a deposit.

“They said, ‘Find out if you can get the lower rate back,’ but I don’t think I can,” Johnson said.