Learning from RCCL’s cruise line partnerships

By Tom Stieghorst
*InsightForming partnerships to operate cruise lines is a tricky business that can have hard-to-predict consequences.

Take, for example, two cruise lines that Royal Caribbean Cruises Ltd. (RCCL) got involved with in Europe.

One, Spain’s Pullmantur, has been a qualified disaster. As the economy in Spain soured over the past decade, Pullmantur’s results worsened. Because RCCL had acquired Pullmantur outright in 2006, it had to accept the subsidiary’s losses as its own on profit or loss statements.

Last year, RCCL took a $414 million writedown of Pullmantur’s assets. The only positive has been Pullmatur’s growing business in Latin America.*TomStieghorst

The other cruise line Royal took an interest in is Germany’s TUI. It remains 50/50 partners in TUI with TUI AG, which means it can’t incorporate either losses or profits directly in its bottom line.

In this case, it wishes it could. Unlike Spain, the German economy has mostly been strong and TUI has been highly profitable.

“TUI Cruises has been a very solid performer,” RCCL Chairman and CEO Richard Fain said in a recent conference call with Wall Street analysts. “I dearly wish they were included in our yield stats because it would make them look very good.”

Royal Caribbean reported $18.8 million of “other income” in a third quarter in which it earned $490.2 million. Most of that came from TUI, CFO Jason Liberty said.

The exact structure of how cruise line partnerships are formed is worth keeping in mind as both Royal Caribbean and Carnival Corp. negotiate joint ventures in China to further their interests in that key country.

The devil is in the details, as they say. It should be interesting to see what the details are if and when these Chinese ventures are finalized.

Top 10 Things to Do on a Cruise on a Rainy Day

rainy day on cruiseIf you’ve taken enough cruises, chances are you’re going to experience your fair share of rainy days while at sea.  On my last cruise it was cloudy or rainy almost the entire trip, so it inspired me to write this post on some fun things you can still do even if the skies are a little foreboding.  Don’t let a little rain ruin your vacation.

These are my top 10 things to do on a rainy day at sea but feel free to add your own to the list in the comment section below.

Spend some time in the spa

No matter how much rain is pouring out of the sky it will always be calming and relaxing in the spa.  Besides getting a facial or some other treatments you can always just enjoy watching the storm from the warm tepidarium or sauna if the ship has these features.  There is usually an indoor hot tub in the spa as well, and this is a great place to avoid the rain while enjoying some relaxation.

Check out a book from the library

The library on a cruise ship is often overlooked by most passengers.  You will not find a vast array of books here, but it’s a nice place to sit and read and get away from the hustle and bustle of the rest of the ship.  And besides finding a few good books to read during your cruise you can also check out some games to play with your cruise mate or family.

Hit the arcade

Even if video games aren’t really your thing you should check out the arcade at least once anyway.  My wife and I seem to always end up playing air hockey on every cruise we go on, in addition to a competitive game of skee-ball.  You might have to endure some adolescent interaction, but a rainy day is a great time to feel like a kid again.  Just remember that the cost of those arcade games adds up fast on your cruise account. It catches me by surprise every time.

Order room service and enjoy the storm from your balcony

This is an activity I look forward to the most every time it starts to rain at sea, provided the wind is not blowing the rain onto the balcony of course.   With some food delivered by the room service staff you can simply enjoy watching the rain from your balcony.  The rain at sea is so different from watching it on land, and it provides quite the relaxing spectacle in my opinion.

Karaoke

Even if you don’t feel like singing your heart out  in front of a bunch of strangers you will probably never see again anyway, it’s always fun to listen to the singing talent (or lack thereof) on board.  Check the ship’s itinerary but there is almost always karaoke going on, especially on a sea day.

Find a covered  place to watch the pool deck TV screen

As soon as it starts raining the lounge chairs on the pool deck usually clear pretty quickly, but you can sometimes find a place that is covered and still has a view of the pool deck TV screen.  But even if watching what’s on the screen isn’t your thing it’s a fun place to people watch as well.

Get a galley tour on the cruise ship

Not every cruise line offers a galley tour for free, but often on sea days you can get the tour as an excursion.  It’s a fun thing to do if you’ve never seen the inner-workings of the kitchen, and it really is amazing how the well-trained staff serves so much quality food on a daily basis.

Watch a movie in your cabin

In your cabin you will be able to watch a number of newly released movies.  The charge for each movie will be applied to your on board account and usually you will have 24 hours to watch the movie.  And while some would think it crazy to be in a cruise cabin watching the television on vacation, others will find it the perfect way to relax on a rainy day at sea.

Get a workout at the gym

Now I know a few readers will be very opposed to this idea as well (after all, a cruise is time to do nothing, right?), but the gym is a great place to get out of the rain but still be active.  This is for those who can’t stand to sit still.  They can still enjoy watching the rain storm while burning a few calories from the chocolate melting cake.

Explore the ship

Cruise ships have so many little hidden gems that most cruisers will overlook simply because they didn’t take the time to read over the daily itinerary or explore the ship.  I always enjoy roaming the ship and exploring each floor to find rooms and spaces I didn’t know existed before.  Just make sure you don’t go anywhere that’s off limits.

So what would you add to your list?  Let us know what you like to do when it rains on a cruise in the comments below.

Cruise Ship Orderbook

 

SHIP CRUISE LINE YEAR MONTH STARS PAX GRT Shipyard
Costa Diadema Costa 2014 October 4,5 3700 132,500 Fincantieri, Marghera
Quantum of the Seas Royal Caribbean 2014 November 5,0 4180 167,000 Meyer Werft
P&O Britannia P&O Cruises 2015 February 3600 141,000 Fincantieri, Monfalcone
Viking Sea Viking Ocean 2015 Spring 5,5 944 47,000 Fincantieri
AIDAprima AIDA 2015 March 3250 125,000 Mitsubishi, Nagasaki
Anthem of the Seas Royal Caribbean 2015 Spring 5,0 4100 167,000 Meyer Werft
Mein Schiff 4 TUI 2015 May 2500 97,000 STX Finland
Le Lyrial Le Ponant 2015 May 6,0  264 11,000 Fincantieri
Norwegian Escape Norwegian 2015 October 5,0 4200 164,600 Meyer Werft
ms Koningsdam Holland America Line 2016 February 5,0 2660 99,000 Fincantieri
Carnival Vista Carnival 2016 Winter 4,5 4000 135,000 Fincantieri
Viking Sea Viking Ocean 2016 Spring 5,5 944 47,000 Fincantieri
Mein Schiff 5 TUI 2016 Spring 2500 97,000 STX Finland
unnamed AIDA 2016 March 3250 125,000 Mitsubishi, Nagasaki
Ovation of the Seas Royal Caribbean 2016 Summer 5,0 4100 167,000 Meyer Werft
Explorer Regent 2016 Summer 6,0 738 54,000 Fincantieri
Viking Sky Viking Ocean 2016 Summer 5,5 944 47,000 Fincantieri
unnamed (Oasis class) Royal Caribbean 2016 Summer 5,0 5400 227,500 STX France
unnamed Seabourn 2016 Autumn 6,0  604 40,350 Fincantieri
unnamed Star Cruises 2016 Autumn 3360 150,000 Meyer Werft
Norwegian Bliss Norwegian 2017 Spring 5,0 4200 164,600 Meyer Werft
unnamed MSC Cruises 2017 Spring 4500 167,600 STX France
unnamed Viking Ocean 2017 Spring 944 47,000 Fincantieri
Mein Schiff 6 TUI 2017 Spring 2500 97,000 STX France
unnamed Princess 2017 May 3600 141,000 Fincantieri
unnamed Star Cruises 2017 Autumn 3360 150,000 Meyer Werft
unnamed MSC Cruises 2017 November 4140 154,000 Fincantieri
unnamed MSC Cruises 2018 May 4140 154,000 Fincantieri
unnamed (Oasis class) Royal Caribbean 2018 5,0 5400 227,500 STX France
unnamed Norwegian 2018 Spring 4200 164,600 Meyer Werft
unnamed MSC Cruises 2019 Spring 4500 167,600 STX France
unnamed Norwegian 2019 Autumn 4200 164,600 Meyer Werft