Opportunities in the industry’s Asia expansion

The development of China as a cruise market means new ships are going there instead of to North America, which is a mild source of anxiety for travel agents in the U.S. and Canada.

But it also serves to put the spotlight on Asia and encourage travelers to explore that part of the world.

At Expedia CruiseShipCenters, trips to Asia were up 10% in 2013, up 37% last year and up 95% so far in 2015, said Matthew Eichhorst, president of the Vancouver-based franchise.

“That’s sending people on itineraries to Asian ports,” Eichhorst said. “It’s not all China; there might be a little bit of Hong Kong, Singapore, Thailand, Japan.”

Two types of customers are likely prospects. The first is experienced cruisers who have seen other places — the Caribbean, Europe — and want to expand their horizons. North Americans of Asian heritage who are curious about their ancestral homes, or have relatives in Asia, are another active segment, Eichhorst said, adding that Vancouver in particular has a large population of Asian ancestry to draw on.

River cruises in Asia have been around for a while but are benefitting from the overall rise in river cruise interest, Eichhorst said.

Because of the long flight times involved in travel to Asia, cruise customers are often looking for pre- or post-cruise activities and lodging there, adding to the attractiveness of the sale for agents.

Asian cruise sales are up, in part, because at every age travelers are more adventurous than they were 20 years ago, Eichhorst said. But travelers want to feel secure about their provider.

“They are looking for a trusted brand when they go there,” he said. “There’s definitely a few operators that are in the Asia market that aren’t what you’d call North American brands.”

Eichhorst encourages his agents to think big and initiate the conversation with clients.

“Speak to all the places they can go, and people will put it on their bucket list and maybe they’ll do Caribbean four more times before they go there, but really tell the stories about amazing places you can go,” he said. “You sort of plant that seed as to the opportunity, because it’s probably an 18-months-out buy.”

Quads for Quantum: Royal Caribbean orders fourth ship in the class

Royal Caribbean ordered a fourth Quantum-class vessel from the Meyer Werft shipyard for delivery in 2019.

The cruise line recently announced that a third Quantum ship, Ovation of the Seas, would debut in China in 2017.

Royal have not yet released the name of the new Ship, but they still have two registered names, Passion of the Seas and Pulse of the Seas, which one do you think?

The 4,180-passenger ships have a sky-diving simulator, bumper cars and a crane-powered observation gondola.

Royal Caribbean did not disclose the cost but said that based on current ship orders, its projected capital spending for 2019 would be $1.3 billion.

Royal Caribbean Cruises Ltd. said its projected capacity increase in 2019 would be 6.5% across all of its brands.

Princess Cruises to put new build in China

Photo of the Regal Princess.
Princess Cruises said its 3,600-passenger ship under construction for delivery in 2017 will be deployed to China full time, with special modifications for the Chinese market.

The announcement makes Princess the second line, and the first owned by Carnival Corp., to commit an as-yet unfinished ship to China.

Royal Caribbean International broke the mold by announcing last year that the Quantum of the Seas would be stationed year-round in Shanghai after a six-month season in New York. More recently, it said a third ship in the Quantum class, the Ovation of the Seas, would also be devoted to China and Australia.

With the news, Princess Cruises dramatically increases its involvement in China. To date, Costa Cruises has been the main Carnival Corp. vehicle for China-sourced business, with the Sapphire Princess stationed in China only last year for a four-month summer season.

“Deploying our next new ship in China underscores our strong commitment to growing the China cruise market,” said Princess President Jan Swartz.

The new ship, as yet unnamed, is based on the same platform as the Royal and Regal Princess. However, it will also include distinctive features created for the Sapphire Princess, such as the World Leaders Dinner, traditional English afternoon tea, a Lobster Grill, Ultimate Balcony Dining, an ocean-view hot pot dinner option, ballroom dancing and an unparalleled duty-free shopping experience.

“And as this ship is still in the design phase we are looking forward to creating other new and exciting venues and experiences catering to the Chinese vacationer, which we will reveal in the coming months,” Swartz added.