Carnival’s new Fathom brand to sail to Cuba

P&O Adonia to become Fathom

Carnival Corp.’s new Fathom brand has already received permission from the U.S. government to mount cruises to Cuba and it plans to start next year.

Fathom’s Cuba cruises are scheduled to begin in May 2016, a month after the brand launches its inaugural social-impact travel experiences in the Dominican Republic. Carnival said the U.S. Treasury and Commerce departments have signed off on the cruises, which will qualify for exceptions in the law that prevents general travel to Cuba by U.S. citizens.

“We are excited about receiving U.S. approval as the very important first step to ultimately take travelers to Cuba under the existing 12 criteria for authorized travel,” Carnival Corp. CEO Arnold Donald said in a statement. “We look forward to working with the Cuban authorities for their approval to help make the social, cultural and humanitarian exchanges between U.S. citizens and the people of Cuba a reality.”

Donald appeared on “CBS This Morning” on Tuesday to talk about cruising to Cuba.

The move is a major departure for Carnival Corp., which like other U.S.-based cruise lines has strictly avoided business dealings with the Castro government.  The issue has been particularly sensitive in the large Cuban-American community in Miami, where Carnival and several other major cruise brands are headquartered.

Many Cubans in Miami emigrated there after the Communist-led coup in 1959, some emigrating after their businesses or properties were confiscated by the government and many leaving all of their possessions and property behind as they sought political refuge.

General travel to the island has been off-limits to Americans since a trade embargo enacted in the early 1960s.

The new diplomatic thaw with Cuba initiated by the Obama administration has several cruise lines seeking an opening for cruises to the island. Over the weekend, MSC Cruises, based in Geneva, Switzerland, said it will begin weekly seasonal cruises from Havana on its 2,106-passenger MSC Opera in December.

In the Dominican Republic, Fathom has identified two domestic organizations that are doing social-improvement projects already in the country. Carnival’s announcement didn’t say who it would work with in Cuba, or whether the organizations would be affiliated with the Cuban government.

However, the Carnival statement said one of its partners in the Dominican Republic, the Instituto Dominicano de Desarrollo Integral, would be interested in partnering with Fathom in Cuba.

“IDDI has longstanding relationships in Cuba and more than a decade of experience working on the ground side-by-side with local officials to make a positive impact in Cuban communities,” IDDI founder and executive director David Luther said.

Carnival said prices for a seven-day Cuban itinerary will start at $2,990 per person, more than triple the cost of a typical seven-day Caribbean cruise from Miami on its flagship Carnival Cruise Line brand. It said the price includes onboard social-impact immersion experiences and on-the-ground cultural immersion activities, but excludes taxes, port charges and other fees.

Tara Russell, president of Fathom and global impact lead for Carnival Corp., said she was incredibly excited by the potential for expanding the brand’s mission to Cuba.

“We are looking forward to building what we intend to be a beautiful and lasting friendship with the Cuban people,” she said.

MS Koningsdam Cruise Ship, United States of America

MS Koningsdam is a new cruise ship being constructed by Fincantieri at its Marghera shipyard, Italy, for Holland America Line. It will be the first Pinnacle-class vessel to join Holland America’s cruise ship fleet.

The first steel for MS Koningsdam was cut in February 2014, and a keel laying ceremony was held in August 2014. Delivery is expected in February 2016.

MS Koningsdam design

Koningsdam is designed in a contemporary style to create a perfect harmony with classic elegance. It will feature luxurious interiors that blend fresh air, fluid curves, elegant lines and illuminated spaces. The public spaces are designed to reflect tradition, whereas the architectural elements are inspired by music.

The central atrium with a ceiling skylight will be three decks high and adorned by an airy stainless steel sculpture. The interiors are designed by Adam D Tihany and Bjørn Storbraaten.

The 99,500 gross register tonnage (grt) cruise ship will have a capacity to accommodate 2,650 passengers and 1,025 crew members.

Accommodation aboard the new Pinnacle-class cruise ship

The new Pinnacle-class cruise ship will offer single and family staterooms. The staterooms will be classified into three categories, namely Neptune, Signature and Vista.

The ship will also feature 32 family ocean-view staterooms that occupy between 222ft2 and 231ft2, with two bathrooms and accommodation for five people, and 12 single ocean-view cabins measuring between 127ft2 and 172ft2. The staterooms and suites will be furnished with custom casework, USB ports and frameless glass shower doors.

A grand Pinnacle Suite of 1,290ft2 will comprise a living area, dining area, dressing area, bedroom and personal verandah with whirlpool. The cruise ship will also feature two Neptune Spa Suites and 43 Neptune Suites. The guests of Neptune and Pinnacle suites will have access to the Neptune Lounge, with the personalised service of a concierge.

The fleet-wide lounges offer worktables, a big-screen television, a library, sofas and chairs, complimentary refreshments and wi-fi at a nominal charge in the ship.

Koningsdam will also offer affordable accommodation, including 266 standard or large interior rooms of up to 225ftsq. Most of the rooms will feature verandas. The verandah spa accommodations, which will be located near the Greenhouse Spa & Salon, will offer health and wellness services during the journey.

Dining aboard the Koningsdam

The guests on-board Koningsdam can enjoy dining at six restaurants, namely the Pinnacle Grill, the main dining room, the Lido, Tamarind Asian fusion restaurant, In-Cabin and Balcony Dining, and Canaletto Italian restaurant.

The central bar area will allow the guests to check-in for an alternative-dining reservation at the central podium, and enjoy a pre-dinner cocktail before being seated at the restaurant.

The Culinary Arts Centre will offer activities such as hands-on classes and cooking demonstrations during the day, while it will transform into a dining area and the Grand Dutch Café to provide snacks or beverages in the evening.

MS Koningsdam entertainment venues

The Music Walk complex on the ship will encompass the Lincoln Centre Stage, Billboard Onboard and BB King’s Blues Club.

The World Stage, with multiple stage configurations, will feature high-definition 270° LED screen of two stories high and 250ft-long. It will be equipped with state-of-the-art sound systems and lighting for showcasing performances and productions.

Additional facilities will include Digital Workshop, Explorations Café, Fitness Centre, Merabella luxury shop, Signature Shops, Promenade, Casino and Explorer’s Lounge.

MS Koningsdam itineraries

MS Koningsdam will enter service with a seven-day round-trip voyage from Civitavecchia (Rome) to Naples, followed by a series of six 12-day sailings across the Mediterranean.

Carnival Corp. records $222 million in net income in Q2

Carnival Corp. reported $222 million in net income in the second quarter, up more than 126% from second quarter 2014. Revenue for the quarter, the company said, was $3.6 billion, compared with $3.63 billion in 2014.

Carnival said its net income in the quarter included unrealized gains on fuel derivatives of $34 million and $7 million on restructuring expenses.

Net revenue yields rose 4.1% in the quarter on a constant-dollar basis, beating the company’s estimate of increases in the 2% to 3% range; gross revenue yield decreased 3.5% due to changes in currency exchange rates, it said.

Fuel prices declined 37%, to $411 per metric ton; the company spent $333 million on fuel in the quarter, compared with $527 million in Q2 2014. Net cruise costs, excluding fuel, increased 6.1%, which the company primarily attributed to an increase in drydock days.

Carnival Corp. CEO Arnold Donald said in the earnings statement that all company’s North American brands “enjoyed strong revenue yield improvement”; he singled out the Carnival Cruise Line brand and said it “performed particularly well again this quarter.”

The company said that fleetwide booking volume for the next three quarters was running “well ahead” of last year, at slightly lower prices due to transactional currency impacts. Donald said that the strong booking volume “clearly demonstrates strong consumer demand for our brands,” and he added that Carnival Corp. would step up marketing investment for the remainder of the year.

Carnival said its third-quarter net revenue yields were expected to be up 2% to 3% in constant dollars compared with Q3 2014.

This report was updated to clarify a statement from Arnold Donald regarding yield improvement in the company’s cruise brands.