Cruise Companies Pursue Different Brand Growth Strategies

Posted on 7 August, 2019 by Spacejunkie2

The multi-brand cruise companies will continue to grow their largest and most popular brands, but individual brand growth may surprise, according to the 2019 Cruise Industry News Annual Report.

While Carnival Cruise Line brand will continue to be the dominant brand for Carnival Corporation over the next decade, carrying twice as many passengers as the second-largest brand, Costa Crociere will see the most capacity growth over the same time period, driven partially by its short cruises in China.

AIDA will be third in terms of capacity growth, followed by Princess Cruises.

Altogether the Carnival brands will grow their passenger capacity from an estimated 12 million (double occupancy) in 2019 to some 16 million in 2027, barring any ship withdrawals and deployment changes.

At Royal Caribbean Cruises, the Royal Caribbean brand will also continue to dominate and could be the single largest brand in the world by 2027, growing by an estimated 1.2 million passengers, twice the projected capacity growth for the Carnival brand over the same time period. TUI Cruises, which is 50 per cent owned by Royal Caribbean, will also see significant growth. However, Celebrity, which will see less growth over the same time period, will remain the second-largest brand at Royal Caribbean. The total capacity for the Royal Caribbean brands is forecast to grow to about 9 million.

MSC Cruises will move up to become the third-largest cruise company with the most capacity growth of any brand, from an estimated 2.4 million in 2019 to nearly 5 million by 2027.

Norwegian Cruise Line Holdings moves to fourth place, however, the Norwegian Cruise Line brand will see the second largest passenger capacity increase. Total capacity for the three Norwegian brands is estimated at 3.7 million in the nine-year forecast.

Genting will also see significant relative growth and remains the fifth largest cruise operator.

Carnival to use platform ship to fix Vista

Posted on 7 July, 2019 by Spacejunkie2

Carnival Cruise Line said it will hire a heavy lift vessel used in the oil and gas industry to enable repairs on the Carnival Vista’s underperforming azipod units.

The Boka Vanguard, built in 2012 and operated by the Dutch speciality shipping firm Boskalis, is the largest vessel of its type in the world, capable of transporting equipment of up to 117,000 tons.

Carnival will use the ship as a floating dry dock to pick up the Vista on its platform and transport it to Grand Bahama Island, where repairs will occur.

The Boka Vanguard is a bowless ship with a flat 230-by-920 foot watertight deck. The ship’s tanks will be filled with seawater to submerge it so that the Carnival Vista can be towed over it. Then the tanks will be evacuated, raising the Vista onto the Boka Vanguard’s platform.

The Boka Vanguard is expected to arrive in Bahamian waters on July 5 to prepare for Carnival Vista’s arrival on July 12. The loading, transport and repairs are expected to take approximately two weeks, allowing Carnival Vista to return to Galveston in time for its July 27 voyage, Carnival said.

The Carnival Vista’s azipod propulsion motors will have all of the bearings replaced while it is out of service. Carnival turned to the novel solution because the drydock it would normally use at the Grand Bahama Shipyard was damaged in April by crane collapse. The cranes were attempting a repair on the Oasis of the Seas, which also needed work on its azipods.

In 2013, Costa Cruises obtained a $30 million option on the Boka Vanguard for possible use in refloating the sunken Costa Concordia in Italy, but the option expired when Costa decided on a different method of raising it.

Carnival Vista cruises cancelled to fix thruster

Posted on 24 June, 2019 by Spacejunkie2

Carnival Cruise Line has cancelled three July departures of the 3,934-passenger Carnival Vista to fix a propulsion problem. The Vista is a relatively new ship that entered service in May 2016.

The problem left the ship only able to operate at reduced speeds. Carnival said the Vista has been operating on revised itineraries the last two cruises because one of its two azipod thrusters is not operating normally.

The cruises cancelled are the Vista’s July 6, 13 and 20 departures from Galveston, Texas. Guests will get a full refund of cruise fares and any pre-purchased excursions.

Carnival is offering a credit of 100% of the fare paid towards the cost of a future Carnival cruise. It has also offered up to $200 per person for independent air expenses or change fees.

“We sincerely apologize for the unanticipated disruption to your vacation plans. We are deeply disappointed that we will not be able to deliver the cruise we had planned for you,” a Carnival guest letter said.

Carnival said the seven-day cruise scheduled to depart on June 22 from Galveston will now be an eight-day cruise departing June 23. The cruise scheduled for June 29 will now depart on July 1 and will be a similar eight-day cruise. After that, the ship will be out of service for 17 days while all azipod thruster bearings are replaced.

In a conference call with analysts about 2019 second-quarter earnings, Carnival Corp. CFO David Bernstein said fixing the problem will take longer than it might otherwise have because damage to the drydock at the Grand Bahama Shipyard made it unavailable.

The drydock was damaged when a crane collapsed while making repairs to the Oasis of the Seas in April.

In its second-quarter earnings statement, Carnival said 2019 earnings would be reduced by $62 million to $74 million by “voyage disruptions related to Carnival Vista.”