Wetravel2u's Weblog

Travel #1 insider's Blog

Wetravel2u's Weblog

COVID-19 Claimed These Cruise Brands

Big thanks to https://www.cruiseindustrynews.com/ 

With COVID-19 taking its toll on the industry and with some ships and brands still out of service, the lack of income has claimed a handful of smaller cruise brands since the global pandemic started.

Pullmantur Cruceros
June 22

Madrid-based Pullmantur Cruceros was the first cruise line to be claimed by the COVID-19 pandemic. A joint venture between the Royal Caribbean Group and Cruise Investment Holding, the brand filed for reorganization under the terms of Spanish insolvency laws on June 22.

At the time, Pullmantur’s board of directors claimed that the unprecedented impact of the pandemic made the action necessary. While the website of the Spanish cruise line is still online, two of its ships are being scrapped in Turkey. The third was withdrawn from DNV GL’s database in August and is anchored off Greece, awaiting its fate.

Cruise & Maritime Voyages (CMV)
July 20

In the United Kingdom, Cruise & Maritime Voyages (CMV) was placed into administration on July 20. On the same day, all future cruises were cancelled, including those of the sister-brand TransOcean Tours, which was also placed into administration in Germany.

In the weeks prior to the announcement, CMV was reportedly negotiating a rescue financing deal, which did not pan out. The Essex-based brand operated a fleet of six vessels, which were returned to its owners or auctioned off over the last weeks.

FTI
July 28

FTI Cruises was shut down by its owners on July 28. The one-ship cruise brand was part of the German-based FTI Group, which has other assets in the travel and hospitality sector.

Operating for FTI since 2012, the 420-guest Berlin used to offer cruises in the Caribbean, Europe and the Middle East. In September, the FTI Group sold the vessel to new owners, who plan to convert it into a private yacht. 

Blount Small Ship Adventures
August 24

Blount Small Ship Adventures ceased operations in late August. The US-based cruise line operated a fleet of two small 100-passenger coastal ships and was a subsidiary of the shipbuilder Blount Boats.

While a message on the cruise line’s website says it “hopes to be sailing again in 2021,” all future cruises were cancelled, and its two vessels were spotted on Blount Boat’s website as available for sale.

Jalesh Cruises
October 9

Jalesh Cruises announced its shut down on October 9. The brand had started operations in 2019, operating the 1,590-guest Karnika. With ambitions to grow, Jalesh targeted the Indian source market, sailing around the country and also in the Middle East.

In a statement, it blamed the future uncertainty for the situation, citing the ongoing COVID-19 pandemic. “The owners of MV Karnika states that it is not in a position to start the operation as the ports in India has not given the date by which cruise ships can start its operations”, Jalesh said.    

Cruise lines told to work hard for repeat custom

Cruise companies must do all that they can to ensure that first-time passengers don’t end up falling into the ‘one and done’ category.

That was one of the main messages to come out of the recent CLIA UK gathering in Southampton, with Travel Weekly reporting that the industry was also told to continue focusing on passenger growth.

While the mood was upbeat, the business of cruising demands that these lines are always looking at the future of the industry. And according to the experts, it will become increasingly important in the future to ensure that new repeat customers are being created.

“The lines are desperate to ensure that new capacity and competitive pricing don’t have a negative impact on yields which, for many, are already much lower than they would like,” the news company stated.

And when it comes to convincing first-time passengers to become repeat customers, the conference heard that the key is to make it clear to them just how diverse a cruise can be.

China’s cruise industry could face challenges

China’s cruise industry could face challenges

Royal Caribbean has been a big player in China’s nascent cruise industry but some are concerned that obstacles in the near-future will hamper its growth overall.

Royal Caribbean chairman in Shanghai, Liu Zinan, feels tighter integration between the cruise companies and government is essential, “The government, the local authorities, need to support the cruise lines in exercising international practice here.”

Since cruise tourism was introduced in China less than 10 years ago, five cruise terminals have been built at an estimated cost of more than 4.5 billion yuan (US$736 million). Three more are under construction and another six are in the pipeline.

Royal Caribbean estimates in Shanghai and Tianjin, the combined investment in cruise infrastructure has topped 12.3 billion yuan.

The danger lies in these facilities not returning on the investment, with losses common thus far.