Celebrity Edge Floated Out

Celebrity Edge

The Celebrity Edge has been floated out of her drydock at the STX France shipyard.

Celebrity Edge

“This truly is an exciting moment for our brand,” said Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises. “The float out process marks a milestone in the building of Celebrity Edge. With exterior construction complete, the amazing STX France team will now turn their attention to bringing all of the meticulously designed venues and transformational staterooms and suites to life.”

The 2,900-passenger ship debuts in November.

Royal Caribbean staff to receive ‘thank you bonus’ after profits hit target

Image result for royal caribbean

Thousands of workers across Royal Caribbean Cruises brands are to share the equivalent of $80 million after the world’s second-largest cruise group hit long-term profit targets.

Each of the company’s 66,000 employees will receive equity awards equal to 5% of their 2017 salaries following a record year.

The individual salary bonuses in the form of equity grants over three years will go to staff working at sea and on land, full-time and part-time, domestic and overseas – but not corporate officers.

The parent company of Royal Caribbean International Celebrity Cruises and Azamara Club Cruises also pledged to contribute to a crew welfare fund for upgrades to crew living and recreational areas on board ships.

The windfall for staff came as Royal Caribbean announced that it had achieved a three-year goal of doubling earnings per share and recording a double-digit return on invested capital – a so-called ‘double-double’.

Chairman and chief executive Richard Fain said: “Exceptional results require exceptional effort.

“Reaching the double-double required remarkable focus and discipline from our employees, and they delivered.”

The “thank you bonus” had the added benefit of enabling employees to see the company as shareholders do, he added.

“Ours is a people business. We want to thank every one of our people for the hard work that got us to today’s announcement and give them a stake in our success going forward.

“We wanted to show our appreciation in a tangible way and we wanted it to reach every employee regardless of level in the organisation. It was our way of saying thanks a million; in fact, thanks 80 million.”

The group’s net income for 2017 rose to $1.63 billion from $1.28 billion the previous year.

This result was achieved despite what was described as an “unusually ferocious” hurricane season last September which hurt earnings by approximately $55 million.

Passenger carryings nudged up marginally year-on-year to 5.76 million from 5.74 million. Looking forward, bookings for 2018 is better than last year’s record high and at higher rates.

“North American and European consumers continue to drive strong demand for all of our main products,” the company said. “These trends, coupled with strong onboard spend and a positive outlook for our Asia Pacific products, are positioning the company for a ninth consecutive year of yield growth.”

The forecast came as the group prepares for the launch of Symphony of the Seas in April and Azamara Pursuit in August in Europe and the introduction of Celebrity Edge in Fort Lauderdale in November.

“These new ships will be important contributors to 2018 yield growth,” the company said.

Chief financial officer Jason Liberty said: “Our yields are increasing on top of an exceptional 6.4% net yield growth experienced in 2017.

“This is quite extraordinary and a testament to the strength in the demand for cruising and our brands.”

Reviewing last year’s performance, he said: “We started the year very well positioned to achieve our double-double goals, and 2017 ended up being exceptionally good, resulting in the company exceeding these goals.

“Strong demand trends for cruising coupled with disciplined cost management helped deliver another record year for the company.”

A combination of strong demand for North American and European cruises as well as onboard offerings drove growth.

Fain said: “Each of the brands performed excellently during the past year raising their guest satisfaction and employee engagement scores to new heights.”

Special Report: The great cruise gratuities debate


I took this Photo on the Norwegian Jade, the gentleman in the front has gained a promotion. The crew that you see and don’t see work hard to make sure that we have the best possible cruise experience, they deserve our Gratuities and more.

A hike in rates by Royal Caribbean and Celebrity Cruises reignited the debate about onboard tipping. Amie Keelie and Harry Kemble report

News that Royal Caribbean International and Celebrity Cruises have upped their gratuities by 7% prompted dozens of responses from cruisers on consumer forums (Travel Weekly, January 4).

Some questioned whether the service they receive justified the hike. Some asked if charging gratuities meant cruise lines get away with paying staff low basic salaries. And some wondered if the tips even went to the staff.

Others said they were happy to reward hardworking crew for the long hours they put in to make their holidays as good as possible.

So which lines charge the most, why do gratuities even exist and are they justified?

Why do gratuities exist?

The concept of automatic gratuities stemmed from cruise ships being a cashless environment. Generally, passengers did not carry wads of cash and so were unable to reward crew members for excellent service.

It also became a way to distribute tips fairly to all the crew, including those behind the scenes working just as hard as the butler that passengers saw every day.

Lines justify the cost by claiming a superior level of customer service guests receives on a cruise ship compared with a hotel or resort on land.

“When we do our survey of guests, one of their top reasons they give to cruise is the service levels, so we stand up well against other sectors,” says Andy Harmer, Clia’s senior vice-president for membership.

“In cruise, you get to build up a relationship with the crew – you see them several times a day – compared to a hotel where you might not see the person turning down your bed at all.”

Ben Bouldin, associate vice-president of Royal Caribbean International and managing director for the UK and Ireland, agrees. “Gratuities are something our customers are comfortable with because they understand the outstanding level of service.”

However, as one agent told Travel Weekly: “If a cruise line is going to increase its gratuities, it had better make sure its customer service is impeccable”.

It is accepted that American cruisers are more than happy to pay automatic gratuities, often in advance of their cruise, but Brits much less so. Cruise lines have adapted their policies to reflect the different markets they sell in, allowing cruise customers to opt out of paying auto-gratuities at the end of their cruise when they pay their final bill.

“[In Britain] we don’t have a history of tipping in the way other cultures have,” says Harmer. “What a lot of passengers don’t realise is that if they do have issues, they should raise these on the ship so they can be dealt with and if they’re not happy they can have [the gratuity] taken off.”

Mike Hall, Cruise & Maritime Voyages’ head of marketing, says: “The reason why gratuities are such an issue is because of that cultural difference. Americans will give a staff member $50, while here in the UK, a conversation about gratuities is one we do not want to have.”

Gratuity rates

Royal and Celebrity Cruises’ recent increases now mean passengers pay $14.50 a day in standard accommodation, making it one of the highest in the sector.

“Royal and Celebrity need to be careful because it could put customers off,” the cruise agent added. “For a couple travelling on a 14-night cruise that’s an extra $400, so it needs to be better than a hotel which doesn’t have auto-gratuities.”

The agent also warned that if gratuities continued to rise on mainstream lines, luxury cruise brands, which more often than not include them in the price, would become more appealing.

By comparison, discretionary gratuity fees for P&O Cruises, MSC Cruises, Fred Olsen Cruise Lines, CMV and Carnival Cruise Line range from £4 to €13 per passenger per night and continue to be automatically added to onboard accounts. The majority of river cruise lines suggest a recommended amount to give the crew at the end of their cruise.

Last year, Norwegian Cruise Line became the first mainstream line to incorporate gratuities, among a host of other ‘extras’, into its fares, when it rolled out its Premium All Inclusive concept.

NCL’s Nick Wilkinson said: “Premium All Inclusive has driven greater simplicity for agents having to explain and sell cruises, and greater confidence in consumers having to budget.

“The biggest change since introducing Premium All-Inclusive is double-digit growth we’ve seen in the long-tail of agents we’ve never worked with before, now selling Norwegian. They are comfortable selling us.”

So could other mainstream lines follow suit? Wilkinson added: “I think it’s very telling how many mainstream lines are using the term ‘all-inclusive’ in their wave campaigns as they recognise it appeals to agents and consumers.

“But we are the only mainstream line offering a truly all-inclusive product, including gratuities.”

Full breakdown by cruise line here

Views on gratuities

“Gratuity fees should be phased out, not increased. They are an archaic way of paying salaries, they should be included in the fare.”

David Speakman, chairman, Travel Counsellors

“I wish all cruise companies would include them [gratuities], then everyone would pay the same. It would stop a lot of people asking for them to be taken off once on board.”

Travel agent, name withheld

“As customers, we would never take off service and hotel charges but, in a way, I hope many do. You never know, we might yet see the dawn of non-deductible service or all-inclusive charges on cruises. If all passengers paid their gratuities on a two-week cruise, that would be $578,000 on Eclipse – getting a little silly, don’t you think? The cruise lines are cutting back and increasing gratuities.”