Cruise lines must move quickly and creatively to redeploy ships

Cruise lines must move quickly and creatively to redeploy ships

The Celebrity Millennium is being repositioned from Asia and will be in Los Angeles in March.
The Celebrity Millennium is being repositioned from Asia and will be in Los Angeles in March.

At last count, at least 27 cruise ships in Asia have had to cancel or modify not only single itineraries but in some cases entire seasons in response to the Covid-19 coronavirus outbreak in China.

Fixing that kind of disruption on short notice is no small feat, especially for lines whose ships are being turned away from ports or are dealing with outbreaks onboard.

For example, it took weeks for Celebrity Cruises to rework itineraries for the Celebrity Millennium, which was in the midst of its Asia cruise season when the outbreak occurred in China.

After talks with the deployment team, travel advisors and port and health authorities, the cruise line cancelled its remaining Asia cruises, starting with its Feb. 15 sailing.

It will instead arrive in Los Angeles on March 20, said Celebrity Cruises CEO Lisa Lutoff-Perlo. There it will conduct free sailings for first responders, active military and veterans. It will also sell a series of revenue cruises and donate the net proceeds to charities and foundations that help first responders and the military.

“At the end of the day, you really have to make the right decision for your guests,” she said. “Unfortunately, with coronavirus, there’s been growing concern for travelling to that region. Safety is paramount to us. It was clearly not our desire or intention to leave that region, but we felt it was the prudent thing to do in the short term. You just didn’t know each day what was going to happen.”

Celebrity’s sister cruise line Royal Caribbean International made a similar decision: Its China-based Spectrum of the Seas is going to Australia, where it will give free cruises to first responders who helped fight the recent devastating wildfires.

The Millennium, which was renovated last year, will make a three-day stop in Hawaii en route to Los Angeles to equip the ship to be able to hook up to shore power once there.

“Redeploying the ship is one thing,” Lutoff-Perlo said. “We had to work with the deployment team to put the itineraries together. We had to work with the global marine organization on how to get shore power on Millennium in just five weeks.”

She said that anybody who understands the complexity of this knows “it’s heroic to be able to do this.”

Details of the new sailings are still being worked out, but Celebrity offered a rough sketch.

Once in California, the Millennium will operate three four-day cruises and one five-day cruise for revenue. As of now, it will also host four two-day cruises for first responders, active military, veterans and their families.

The Millennium will resume its regular Alaska season on May 22. The ship’s Japan cruises are still scheduled for later this year.

Lutoff-Perlo said her team has had to answer several questions, such as whether or not they will be able to sell the new itineraries on such short notice. In response, she said that the staff has had to deal with many crises before, such as the 9/11 attacks, and that they are prepared to make adjustments.

They are still finalizing all the ports, but she said once the relevant officials found out that the cruises would be used to benefit first responders and military, they were willing to be more accommodating.

“As you can imagine, we went back and forth a lot as we fine-tuned these itineraries and figured out what we wanted to do, and every time we went back to every port we talked to, they couldn’t have been more gracious, and they couldn’t have been more wonderful,” she said.

Other lines are still figuring out what to do with their ships, citing the complexity of making such big changes on such short notice to frustrated customers.

Holland America Line said in an online blog post last week that it was figuring out a solution for its Asia-based Westerdam, on which it cancelled sailings through March 14.

In a statement, the line said it was “still working through the extremely complex factors and decisions of itinerary planning. We understand that our guests are eager to learn more about their departures, and we are assessing future cruise itineraries as quickly as possible.”

For travel advisors, the slew of itinerary changes and cancellations has had them working overtime to keep up with changes happening while their clients were at sea as well as awaiting the fate of ships with upcoming departures.

Michelle Fee, CEO of Cruise Planners, said the last time this many cruises had to redeploy from a region this quickly was after 9/11, when nearly all ships repositioned to the U.S.

And despite the logistical difficulty of having so many ships change itineraries on such short notice, Fee said this response points to one of the industry’s best qualities in a time like this: “Unlike land destinations, the upside is that cruise lines can move their hardware. At this point, China and parts of Asia have completely shut down, whereas the ships are just relocating.”

Fee was among several advisors who said the biggest challenge is not knowing “what decisions the cruise lines will make and what types of refunds or accommodations will be offered.”

Linda Terrill, a cruise specialist with the Luxury Travel Group, an independent affiliate of Brownell Travel, agreed. She had clients on a Seabourn Ovation sailing in Asia that was eventually cancelled.

“The most challenging part was spending so much time just checking, checking and rechecking,” she said. “Searching and contacting the sales managers and saying, ‘Tell me what to do.’”

Terrill said the challenges are “all-encompassing.”

“But these are long-time clients, and they were so worried, and I kept putting myself in their shoes and saying, ‘What would I do?’” Terrill said.

In the end, she said, “All’s well that ended well,” and she added that she understands what the cruise companies are facing.

“The lines are completely overwhelmed,” she said. She said one sales manager told her, “We’re just trying to get people home right now.”

Fee said last week that the communication from cruise lines had improved.

“In the beginning of the coronavirus crisis, some cruise lines made decisions and communicated them immediately, while others took a bit longer,” she said. “In the last weeks, we have seen a robust amount of communication from the cruise lines, which is helpful.”

And although the industry has borne the brunt of negative travel headlines due to the challenges on Princess Cruises’ Diamond Princess, Fee is among those who hope that once everyone disembarks the ship, “the story will die down.”

“If history repeats itself,” Fee said, “a few weeks afterwards, we should get back to normal booking trends.”

Norwegian Jewel to Return to Australia

Norwegian Jewel

Norwegian Cruise Line has opened bookings for the line’s 2018/2019 Australia and New Zealand cruises aboard Norwegian Jewel, the ship’s second season in Australia and New Zealand.

Following an expansive refurbishment, the Norwegian Jewel will spend a second season down under cruising a set of itineraries taking in the “best of Australia” including Melbourne, Cairns, Hobart; and New Zealand including Milford Sound, Wellington and Tauranga, as well as itineraries to the South Pacific, Southeast Asia, and a transpacific voyage from Vancouver to Tokyo (Yokohama).

In late October 2018, Norwegian Jewel will undergo a three-week dry dock in Singapore, as part of the Norwegian Edge multi-million-dollar revitalization program.

“Norwegian Jewel’s Australia and New Zealand sailings have received a great deal of anticipation and excitement from guests both locally and internationally,” said Andy Stuart president and chief executive officer for Norwegian Cruise Line. “The region is a bucket-list destination for many of our guests with a warm culture, lush lands, sandy beaches, action-packed adventure and more. We are thrilled to be returning to this dream destination with the iconic Norwegian Jewel looking as if she were a brand new ship.”

10 Trends You Need to Know About the Asia Cruise Industry


Shanghai ‘Bung Area’ photo by Dave Jones

CLIA has released its 2016 Asia Cruise Trends Study. Not surprisingly, the study reveals that cruising in Asia is growing by leaps and bounds and the report found that it shows no signs of slowing.

According to the study, Asian source markets experienced the most growth year over year in ocean cruise passengers, increasing 24 percent from 2014 to 2015. However, cruise deployment in Asia, capacity and destinations have also been growing.

“The cruise industry has been nimble and responded quickly to the demand for cruise travel in Asia by delivering cruise ships with amenities and experiences tailored to Asian travelers,” said Cindy D’Aoust, President and CEO, CLIA. “Asian cruise travel continues to deliver a growing number of enticing opportunities for international guests to visit Asia’s fascinating destinations.”

The fact that the market is growing did not come as a surprise to industry experts, but the amount of growth is unprecedented.

“While we expected Asia to experience record-breaking growth in cruise travel, we are astonished at the rate at which the region is emerging as one of the most significant cruise destinations and cruise source markets in the world,” said Dr. Zinan Liu, chair of CLIA North Asia. “The Asia Cruise Trends project has again developed extremely valuable data on what is happening in Asian cruising, its current size and recent growth trends.”

In its State of the Asia Cruise Industry report, CLIA details 10 trends to watch for in this market.

More Cruises
The number of ocean cruises and voyages offered in the region is continuing to grow. This year, there are 1,560 sailings scheduled, which is an increase of 43 percent when compared to last year.

More Cruise Ships

In 2013, there were 43 cruise ships in Asia. Last year, there were 52. This year, there are 60. There is also an increase in the number of ships that are sailing in the region year-round. Fourteen are operating year-round this year, with an additional 12 ships on an extended deplyoment.

More Capacity
With more ships staying longer in the region, capacity is rising. According to CLIA, capacity surged 51 percent this year, reaching 3.2 million passengers.

More Destinations
Currently, there are more than 200 destinations on offer in Asia, across 17 countries. It is one of the easiest ways to see multiple destinations in the region.

Right now, Japan is the most frequented country, with 1,526 port calls in 2016, followed by China (850), South Korea (745), Vietnam (466) Malaysia (422) and Singapore (391).

The most visited port is South Korea’s Jeju Island, followed by Shanghai, Singapore and Fukuoka.

More Passengers
Asia saw the biggest growth of any destination for cruising, growing 24 percent from 2014 to 2015 and welcoming 2.08 million passengers.

More Chinese Cruisers
Chinese travelers represent nearly half of all the cruisers in the region. In 2014 and 2015, China was the world’s fastest-growing source market.

More Shorter Cruises
Asian cruisers make up the majority on Asian cruises and they want shorter journeys. Thirty percent desire two- to three-night journeys and almost 50 percent want cruises that are four to six nights long.

More Asia Exploration
According to CLIA’s report, Asian outbound tourism is exploding around the world but Asian cruisers want to explore more Asian destinations. More than eight out of 10 Asian passengers (84 percent) cruised within Asia.

More Under 40 Cruisers

While the average cruise age skews older, in Asia, 42 percent of cruise travelers are below the age of 40.

More Amenities for Asian Travelers
Cruise lines are bringing their best ships to Asia and their best new amenities, flooding the market with inclusive onboard activities, high-end shopping, adapted menus and more.