Pandas and Beauty Queens Lure Chinese Groups to Cruise Ships

Ovation of the Seas arrives in Hong Kong in June 2016. Photo: Royal Caribbean International

By Bloomberg News (Bloomberg) — Liu Jing wakes at 7, feeds her 84-year-old mother and two-year-old grandson and then spends the day watching the boy play in the playground, with breaks for meals and his afternoon nap and perhaps a little TV in the evening.

That’s not unusual for a Chinese retiree, many of whom play an instrumental role in raising grandkids, but Liu, 57, is on board the Costa Atlantica, a luxury cruise ship packed with activities and events that she largely ignores.

“I just don’t have time to do all these,” said Liu, 57, a Beijing resident who sailed with her husband, grandson and mother from Tianjin port late last year. “Everywhere you look on the cruise, you see middle-aged people like me, with small kids.”

Lines including Royal Caribbean Cruises Ltd. and Carnival Corp. have sent an armada of luxury vessels to China to tap the world’s fastest-growing market, but they face turbulent waters. In addition to satisfying the tastes of Chinese passengers, they sail in the shadow of the region’s increasingly volatile politics. And soon, a new threat will emerge: Chinese companies are building their own big ships.

“Right now it’s a learning process,” said Ken Muskat, chief executive officer at SkySea Holding International Ltd., a Shanghai-based cruise operator. “Everybody is adapting and learning more about what the Chinese market is looking for.”

The number of passengers in China has risen tenfold in five years, to around 2 million in 2016, and the government expects 4.5 million by the end of the decade. Most make shorter trips — five days on average — and call in South Korea and Japan, the top two destinations in Asia outside of China, according to industry body Cruise Lines International Association.

With so much potential — China is still nowhere close to the 11 million plus Americans who cruise each year — companies are bringing bigger and better ships to the Yellow Sea, tailoring their offerings and seeking new destinations in an effort to persuade Chinese travelers that a cruise is more than just a form of transportation.

Royal Caribbean’s latest mega-ship, the 4,905-passenger “ Ovation of the Seas,” complete with indoor sky-diving and robot bartenders arrived at its new home port of Tianjin on May 4 for the summer season after being christened in China last year by actress Fan Bingbing. On deck, a sculpture of a mother panda reaches out to her cub on the deck below.

“We have still a huge challenge ahead of us to create more consumer awareness of what a cruise is, what that experience is like,” said Adam Goldstein, president of Royal Caribbean.

But before China’s newbie cruisers adapt to life on the ocean, the cruise lines first have to adapt to local tastes. And that starts in the kitchen.

“Whether it’s rice and congee for breakfast or different types of seafood for lunch or dinner, they’re sticklers for the authenticity of Chinese cooking,” Goldstein said.

Then there’s the entertainment. Out go the Broadway-style shows beloved in the Caribbean and in come flashy Chinese song-and-dance hits and local celebrities. SkySea invited candidates from the Voice of China reality TV singing contest to perform and staged the Miss World China Final beauty pageant on its ship Golden Era, which can carry 1,814 people.

Royal Caribbean in 2016 invited cross-talk artist Guo Degang to perform on “Ovation of the Seas” during the ship’s inaugural visit to China last year.

“There’s much more of an emphasis on shopping,” Goldstein said, adding that Chinese passengers spend two or three times as much in the on-board stores. “Plus we know that they’re shopping energetically in the ports of call.”

But perhaps the biggest difference in China is that cruises are often a mutigenerational holiday.

“Chinese cruise travelers are very family oriented” said Muskat at SkySea, which counts Royal Caribbean and Chinese online travel service Ctrip.com International Ltd. as major backers. “They like to spend a lot of time with their family whereas in North America you can put the kids in the youth program for seven days and not see them again.”

Liu said she barely tried any of the swimming pool, mahjong, shows, casino, bars and gym on her cruise ship, owned by Italy’s Costa Crociere SpA, because her grandson and 84-year-old mother required her constant attention. Costa said it invites local chefs for its China cruises and adds more extensive retail space. The company, which still keeps an Italian flavor to its voyages, said about 85 percent of its passenger accommodation is in family cabins for China cruises.

Tailoring ships to win over Chinese seafarers may provide an advantage to local cruise lines that can adapt quickly to the rapidly changing tastes of Chinese consumers, said Yu Dunde, CEO of Chinese online travel booking service Tuniu Corp.

China has “too many similar offerings,” said Yu. “To win the market, you’ll have to differentiate through activities, you have to give people something that other cruises can’t.”

Companies are trying to diversify, with more ships departing from southern ports like Guangzhou and Xiamen into the warmer waters of the South China Sea for the winter market.

China’s own operators and shipyards are also entering the market for big cruise ships. Shanghai Waigaoqiao Shipbuilding Co., a subsidiary of China State Shipbuilding Corp., is working with Italian cruise shipbuilder Fincantieri SpA to build two vessels, worth approximately $1.5 billion, according to a memorandum signed in February. The ships will be delivered to a new China-based joint venture between Carnival, CSSC and CIC Capital, and will be tailored for the Chinese market. The first, carrying about 4,000 passengers, is expected to be delivered around 2023 and the operator also has an option for four more.

The Shanghai shipyard said the order is a substantial step forward that brings local builders closer to their dream of having a cruise vessel made in China.

But for both local and foreign operators, the waters around China have become increasingly risky due to the region’s politics. Both Royal Caribbean Cruises and Costa scrapped calls to South Korean ports in March for their cruises departing from China amid escalating tensions between the two countries over the deployment of a U.S. Thaad missile defense system.

China has had similar brushes with Japan and its Southeast Asian neighbors over disputed islands.

Those risks aren’t deterring the expansion of the industry. Cruise lines are already looking to the largely untapped market of potential cruisers in China’s inland cities, a market that is becoming more accessible as the nation builds more airports and high-speed railways.

“They just can’t ignore a broader market beyond the coastal regions” Yu said. “If they can extend the market to the hinterland, then the number of cruise travelers could grow from millions to tens of millions.”

Six Carnival ships to add calls at Princess Cays

Image result for princess cays island

Carnival Cruise Line said its ships will make greater use of Princess Cays, starting in May 2017.

The Bahamian island was developed by Princess Cruises prior to the acquisition of Princess by Carnival Corp. in 2003.

Carnival said that six of its ships will make calls at Princess Cays, with 40 calls scheduled this year and 98 next year.

Princess Cays will be featured on some seven-day cruises from Baltimore aboard the Carnival Pride, five-day voyages from Charleston on the Carnival Ecstasy, eight-day sailings from Fort Lauderdale on the Carnival Conquest, five-day voyages from Jacksonville on the Carnival Elation, four-day voyages from Port Canaveral on the Carnival Liberty, and four-day cruises from Miami aboard the Carnival Sensation.

The announcement comes even as Carnival Cruise Line is negotiating for use of a beach area in Grand Bahama to develop its own destination. In comments before the christening of the Seabourn Encore in Singapore last week, Carnival Corp. chairman Micky Arison said the deal was “very, very close” to being finalized.

Carnival Corp. also owns Half Moon Cay in the Bahamas, which is used primarily by Holland America Line. Carnival Corp. developed the Grand Turk Cruise Center in the nearby Turks & Caicos islands in 2006.

Seabourn Encore christened in Singapore

On the dais during the Seabourn Encore’s christening were (from left) godmother Sarah Brightman, ship captain Mark Dexter and Seabourn president Rick Meadows.

SINGAPORE — With bright yellow two-person Chinese lion dancers prowling the audience, along with illuminated stilt walkers, a troupe of drummers and a long pink paper dragon carried on poles by a half-dozen bearers, Seabourn christened its newest vessel in this hub of Asian shipping.

The 600-passenger Seabourn Encore becomes Seabourn’s fourth ship, in one swoop returning the line to the capacity it had prior to selling three 200-passenger ships to Windstar Cruises in 2013.

“Encore marks a major step forward in the growth of our company,” Seabourn president Rick Meadows said before introducing godmother Sarah Brightman to the audience, which included 1,050 passengers from the Encore and the Seabourn Sojourn, also docked at the modernistic Marina Bay Cruise Center.

Inside the terminal, they watched projection screens showing the ship’s hull as Brightman pushed a button that sent the traditional champagne bottle careening into the side of the ship.

It smashed, triggering a blizzard of gold and black confetti inside the hall. Brightman, a classical crossover vocalist who has sold more than 30 million albums worldwide, did not sing for the event.

The Encore departed later in the evening on its 10-day inaugural cruise that will end in Bali.

An illuminated stilt walker was part of the pre-event entertainment at the Seabourn Encore christening. Photo Credit: Tom Stieghorst
An illuminated stilt walker was part of the pre-event entertainment at the Seabourn Encore christening. Photo Credit: Tom Stieghorst

On hand for the event were Micky Arison and Arnold Donald, chairman and CEO, respectively, of Carnival Corp., which owns the Seabourn luxury brand.

Donald flew in by private jet fresh off an appearance at the Las Vegas consumer electronics show, where he unveiled Carnival’s new Ocean Medallion technology.

In his remarks, Donald reprised a favorite theme that this is “the golden age of cruising” and that the audience should feel fortunate it is living in an age when beautiful ships like the Encore are built.

Singapore’s minister for trade and industry, S. Iswaran, said that Carnival Corp. ships represent about 20% of the annual cruise calls in Singapore.

He said the island city-state has a “rising appeal to sophisticated travelers” and that it is “the home port of choice in southeast Asia.”

He noted that the World Bank for a decade put Singapore atop its list of easiest places to do business. It fell last year to number two behind New Zealand when the bank revised its ranking formula.

The Encore represents a refinement of Seabourn’s Odyssey-class vessels delivered from 2009-2011. It has an extra deck that provides space for a small sushi restaurant and a larger chop house created by celebrity chef Thomas Keller.

Designer Adam Tihany reimagined the interiors in a softer, more curvaceous mode. He has also designed the second ship in the class, Seabourn Ovation, which is currently under construction and is scheduled to launch in spring 2018.