Five Ships to Leave Costa Fleet by May 2021

Costa Mediterranea  (Photo: JD Schwartz)

Working to reduce capacity growth in Southern Europe, five ships will leave the Costa Cruises fleet by May 2021, according to Arnold Donald, CEO of Carnival Corporation, speaking on the company’s third-quarter earnings call on Thursday, Sept. 26.

Donald said that two Europe-based ships will leave the Costa fleet in 2020, and he added that two ships will leave the Costa fleet in Asia in 2020.

In addition, he confirmed the Costa Mediterranea will leave the fleet in May 2021. 

The ships will be replaced with more efficient capacity in the new Costa Smeralda, Donald underscored. 

Carnival’s CEO did not mention what other ships would leave the fleet, but based on other Carnival Corp. vessel transfers, these would most likely be the line’s older and less efficient vessels. 

“Some are being sent to China; some are being sent to other markets where we have strength,” Donald said, noting some would also leave the fleet. “When we sell them, we don’t sell them into competing markets.”

The Atlantica and Mediterranea are expected to transfer to Carnival’s joint venture in China with China State Shipbuilding Corporation, but the timeline is behind previously announced goals. 

Recent Carnival Corporation secondhand vessel transactions include not only Costa vessels, but the P&O Oriana, which was sold to Chinese owners and just transferred to the new Astro Ocean brand.

In addition, the Pacific Jewel was sold to Jalesh Cruises, the Pacific Eden moved to Cruise & Maritime Voyages, and the Prinsendam is now the Amera for Phoenix Reisen.

Readjustment Over as Chinese Cruise Market Returns to Growth

Costa Venezia

The readjustment period for the Chinese cruise market is coming to an abrupt end as capacity will be up for the first time in two years in 2020, according to the 2020 China Cruise Market Report by Cruise Industry News.

Annualized capacity with new ships from Costa Crociere and Royal Caribbean International are pushing market capacity, while full-year operations from the Piano Land will also contribute as will the 4,500-guest MSC Bellissima.

Following year-after-year of rapid growth, China saw its cruise supply drop due to an ongoing price war in 2018, as ships and operators left the market. This self-described readjustment period continued into 2019 and is now subsiding with more ships, more berths and more capacity in the market for 2020.

Costa China Set to Introduce ‘Game Changer’ New Ship

Mario Zanetti

“It is our first newbuild dedicated to the Chinese market,” said Mario Zanetti, president of Costa Group Asia, referring to the new Costa Venezia, which debuts in Shanghai next May.  “We are creating a strategy for the new ship and it will be a game changer.”

That strategy is offering Italy at Sea to Chinese guests with a flair of local tastes as well, while a dramatic Venetian-themed interior design brings out the best of Italian culture aboard the 4,232-guest ship, as the company has its eye on the current and future needs of the modern Chinese cruise guest.

With the Venezia arriving in Shanghai, it will take the place of the Serena, which will move to Tianjin in place of the Fortuna, which heads back to Europe.

The Atlantica will concentrate on southern homeports, sailing from Shenzhen and Xiamen, said Zanetti, in an interview with Cruise Industry News.

“Those four ports are our backbone and the way to create accessibility, having homeports in the south, east and north,” he said.

Zanetti has helped lead Costa away from full ship charters in the market, helping to diversify risk while working to create value for travel agencies, he said.

Costa Venezia

“At this stage of the industry it’s largely based on the charter, and it’s not adequate for the sustainable development,” he said. “We are shifting models to reduce the risk and reduce the (size of the charters), to create a win-win culture. We are not only talking but working with our agency partners to help them educate the market.”

Earlier this year the company launched various business-to-consumer programs in China, including a roadshow covering the entire country.

Moving away from full ship charters, he said a good number of agents were now involved in each sailing. Adjusting the model from a supply driven market to a consumer-centric market is key for the long-term development of the industry, Zanetti explained.

With other cruise companies making significant adjustments to their business operations in China, Zanetti said the numbers were promising.

“We are talking about a market where the penetration rate is very low,” he said, noting the growing middle class and their demand for leisure and entertainment options.

“We see our peers reducing deployment, but we are focused on being committed to the market to provide a high-quality and Italian cruise holiday experience. We are confirming this by introducing the Costa Venezia and increasing our capacity next year. That expresses our confidence in the growth and potential of this market.”