Azamara: Investing in Existing Fleet and More Markets

Azamara: Investing in Existing Fleet and More Markets

With a new refurbishment program underway, Azamara is focusing on hardware upgrades and operational agility to drive profitability, according to Chief Executive Officer Dondra Ritzenthaler.

The company last expanded its fleet in 2022, with the introduction of the Azamara Onward, which was acquired from Princess Cruises a year earlier.

According to Ritzenthaler, the company currently sees investment in its own fleet as the biggest opportunity for growth.

In 2026, Azamara announced the “Forward” refurbishment program, an $80-million project that will see the brand’s four ships undergoing major refits.

Ritzenthaler said that in addition to updates to existing areas of the vessels, the program includes major structural additions.

“We’re literally putting a deck on top of the ship that’s going to have 12 more suites,” she explained.

The first ship to undergo the project is the Azamara Quest, which will debut the new features ahead of its upcoming world cruise in early 2027. The Azamara Onward follows suit later next year.

Beyond hardware upgrades, the company is also planning to expand its global sourcing footprint, paying more attention to new markets around the world, Ritzenthaler said.

Azamara currently sources most of its guests in North America, the United Kingdom, Ireland and Australia, she explained.

Executing these growth strategies is made easier by the lack of corporate bureaucracy inherent in a smaller organization, Ritzenthaler noted.

“You can make changes; you can turn on the dime. And I think when you’re able to do that, then the economics of what you do become much easier to achieve,” she explained.

Ritzenthaler said that Azamara is currently performing extremely well financially from an EBITDA standpoint.

This so-called operational nimbleness is said to be transferred to the brand’s deployment strategy, allowing Azamara to secure premium berthing in highly regulated destinations.

“We simply can go in right into the city center. We literally go up the Seville River where the larger ships have to stay out and tender people in,” Ritzenthaler said.

As some ports push back against large tourist influxes, smaller vessels provide a vital economic lifeline for local communities without overwhelming local infrastructure, Ritzenthaler continued.

The ability to rapidly adjust deployments is also an important defense against external disruptions, including fluctuating fuel prices and regional conflicts.

“We look at this every single day,” Ritzenthaler said, noting that Azamara is in a better position to weather geopolitical issues due to being small and profitable.

She said that when itinerary changes occur, the company relies heavily on its travel advisor network to communicate with passengers, ensuring safety remains a non-competitive priority across the industry.

Speaking of demographics, Ritzenthaler said that the company caters to shifting audiences but tends to naturally attract a specific passenger demographic.

While maturing cruisers looking to step up from premium lines form a significant part of the company’s public, the core Azamara guest is defined by having ample time and resources.

“The average cruise length for us is 12 nights, but many of our customers do back-to-backs or take intensive cruises or even a world voyage,” she said.

“These customers are different customers who really want to get immersed,” noting that the company’s passengers ultimately “love cruising.”

This mindset fosters a strong onboard community, Ritzenthaler added, leading to repeat bookings among affinity groups.

However, despite having an affluent passenger base, the company sees a consistent demand for a clear upfront value.

“No matter how wealthy somebody is, people still love value for money,” she noted, pointing to the line’s inclusive pricing model.

Ritzenthaler said that while external challenges may arise, the company is in a good position to handle situations positively.

“In life, it’s only 10 percent what happens and 90 percent how you handle it, and we’re going to handle it in a positive, nimble, flexible and resilient way.”

A Promising 2021 for Limassol Cruise Terminal

Cruising is back to DP World Limassol’s Cruise Terminal, said its Commercial Manager Lazaros Charalambous.

“Cruises are going strong until October 2021,” he told Cruise Industry News.

Royal Caribbean, Celestyal, Seabourn, Azamara and Celebrity have all either already returned or are about to return to Cyprus with their ships this summer.

“Moreover, cruise lines have been taking the necessary steps to ensure that COVID-19 does not spread to their cruise ships, with many requiring passengers to be vaccinated or hold a negative PCR test. This has boosted the morale of cruise lovers, who have been itching to get back to the seas for some time now,” said Charalambous.

He added that the Cyprus government has prepared and announced a “rigorous health protocol for cruises, which will add to the momentum of the industry.”

“As it comes to the year 2022, I believe that demand will continue to increase, as more passengers will be vaccinated and keener than ever to travel. I strongly believe that (Cyprus) has great potential to further develop the cruise sector and attract many more cruise lines and passengers,” Charalambous noted. “Cyprus’ stakeholders, including DP World Limassol, are hard at work to promote the safe conduct of cruise tourism and successfully seize the opportunity of the widespread reshuffling happening in the cruising industry because of the pandemic, with a view to establishing the Limassol port as a major cruise hub in the Eastern Mediterranean.”

According to him, DP World Limassol operates a strict environmental policy in an effort to reduce its footprint as much as possible.

“We use energy-efficient processes and products, regularly monitor and seek to improve energy efficiency across our operations, while we have adopted an ‘impact and sustainability’ and recycling policy throughout our business. At the global level, DP World aims to reduce its output per unit of movement by increasing efficiency and promoting clean energy, with the ultimate goal being to create a zero-emission supply chain across our networks,” Charalambous said.

The port also tries to forge partnerships with local organizations and boost its community engagement.

“We regularly join forces with the local municipality as well as civil society organizations like CYMEPA, to carry out a series of activities such as beach clean-ups, supporting them in their efforts to make Limassol a greener city. Our aim is to help Cyprus achieve its sustainability targets by investing in the port’s equipment, digitization and automation. Such investments, boost the port’s efficiency and resilience, helping it reduce its environmental footprint,” Charalambous said.

The port is always assessing the best international practices while monitoring its own facilities to identify areas for improvement, he explained. “Most recently, we opened two duty-free shops within the terminal, providing exclusive offers on luxury items and a comfortable shopping experience. We have (also) upgraded our check-in equipment, and we are working with the local authorities to improve the overall efficiency of the terminal,” explained Charalambous.

He said that he believes that the pandemic has presented the port industry with “an opportunity to embrace digitization and automation.”

“DP World has always heavily invested in state-of-the-art digital equipment and is continuously introducing innovations in terminal operations that boost resilience and automation, thereby allowing us to evolve and enhance the services we offer our customers. Indicatively, at DP World Limassol, we have introduced digital payment solutions, while this past February, we launched the new ZODIAC cloud-based Terminal Operating System (TOS). The migration into ZODIAC TOS was a big milestone for us at DP World Limassol,” he said.

“The new system helps us reduce maintenance costs and improve productivity, while it connects all supply chain participants through a single integrated platform, which provides real-time information on vessel, yard, gate and rail movements,” Charalambous added.

Drydock Frenzy as Cruise Lines Restart

The resumption of global cruise operations is keeping drydock busy around the world. With more cruise ships restarting service, cruise companies are rushing to get necessary work done before welcoming the passengers back onboard, as predicted by Cruise Industry News earlier this year.

In Europe some drydocks have seen a dramatic increase in the number of cruise ships projects, almost seemingly overnight.

Popular among several cruise lines, the Navantia Shipyard in Cadiz, Spain, has been one of the busiest facilities.. Working on vessels from brands such as Carnival, Royal Caribbean, Celebrity, Marella and Azamara, the yard currently has five ships in  Cádiz, with two more on the way.

According to the local press, Navantia plans to work on18 cruise ship projects through the end of the year. the year.

The work performed by the facility includes necessary classification society inspections,  technical maintenance and modernization. Recent work included the Liberty of the Seas, Harmony of the Seas and Celebrity Constellation, which underwent repairs and revision of propulsion and steering equipment, hydro blasting and application of silicone paint.

Marseilles, has also been a the hotspot, working closely with Carnival Corporation, Norwegian Cruise Line Holdings and Royal Caribbean Group’s Silversea.

 Carnival completed four drydocks in the facility recently, with all vessels undergoing regular maintenance and a change of hull colors. A fifth Carnival vessel – the Carnival Legend – is currently at the shipyard, along with Silversea’s Silver Spirit.

Also recently,, the Palumbo Malta Shipyard worked on several MSC ships for their restart operations. Located in Valletta, the yard was partly acquired by the MSC Group in 2020 and currently has the MSC Preziosa docked there.

Bigger Projects Making a Comeback

While most of the current drydock projects are limited to mandatory and technical work, some vessels are also seeing significant refurbishment and conversion projects in 2021.

After virtually all those projects scheduled for 2020 were cancelled or postponed, a few are now being carried out.

In April, the former Star Princess was converted into a P&O ship in Singapore. Also in Singapore, Ponant’s Paul Gauguin emerged renovated a few weeks before, with revamped interiors and cabins.

Work on Carnival Victory was also resumed recently. The vessel is set to be transformed into the Carnival Radiance with all new interiors and revamped cabins in a $200 million project. 

Another big project confirmed for the year is the conversion of the Silver Wind into an ice-class expedition vessel. Previously scheduled for 2020, the project is now set to be completed by the end of 2021.