Royal Caribbean and Norwegian: Differing Strategies on Caribbean Cruises

Royal Caribbean International and Norwegian Cruise Line are taking different business approaches when it comes to Caribbean deployment.

Caribbean itineraries will make up roughly 65 per cent of Royal Caribbean’s deployment this year, compared to approximately 33 per cent for Norwegian Cruise Line, according to the 2023 Cruise Industry News Annual Report.

Next year those numbers should climb for Royal Caribbean, which will put the Icon of the Seas in the year-round Caribbean market, sailing week-long cruises from Miami in January. That will be followed by the Utopia of the Seas, which will sail short voyages year-round from Port Canaveral, with the Miami-based cruise line betting big on the Caribbean cruise market, including the short cruise business.

“Utopia will be the first Oasis-class ship that will be entirely focused on short cruises in the Caribbean, supporting our strategy of competing with land-based vacation alternatives and driving new-to-cruise customers into our vacation ecosystem as we seek to close the value gap,” said Jason Liberty, president and CEO of Royal Caribbean Group, on the company’s second-quarter earnings call in July.

Norwegian Cruise Line has taken the opposite approach.

Norwegian’s short cruise portfolio, which account for 25 per cent of its deployment in 2019, will make up just seven per cent of cruises in 2023, according to the company’s second-quarter earnings presentation.

It also means Caribbean deployment is down some nine per cent this year when compared to 2023.

“We strategically shifted our deployment to longer, more immersive itineraries at the Norwegian Cruise Line brand and increased our concentration of premium destinations while reducing our Caribbean deployment,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, speaking on the company’s second-quarter earnings call.

“This was designed to attract a higher quality guest and maximize our competitive position.”

CFO Mark Kempa noted: “This is really about yield and EBITDA where we believe being in more premium itineraries that are booked further in advance, giving us a much longer booking curve and a more stable and predictable demand profile, which allows us to manage demand, manage our marketing a little bit more effectively and not rely so much on close-in, unstable and unpredictable demand is really key to our success.”

Former Maasdam Potentially Sold to French Start-Up Cruise Line for $30 Million

The former Maasdam from Holland America Line has been sold, according to Masters Shipping, who confirmed it acted as the broker on the sale of the ship to a company known as CFC in an email sent to Cruise Industry News.

The ship has most recently been known as the Aegean Myth and has reportedly been sold to a French start-up cruise line for $30 million, according to a report from Crew Center.

Now heading to Piraeus, the vessel has been renamed the Renaissance. 

Originally launching as the Maasdam, the Fincantieri-built ship debuted in 1993 and sailed until the pandemic.

Carnival Corporation then sold the ship to Seajets, which is under the control of Greek businessman Marios Iliopoulos, who has assembled a fleet of laid-up cruise ships.

CFC, according to Crew Center, is new French start up Compagnie Francaise De Croisieres. No further details were available at press time.

Ship History: Carnival Sensation

As the Carnival Sensation is retired from service, Cruise Industry News looks at the history of this popular Fantasy-class vessel.

1990: The Fantasy entered service as the lead ship of an eight-vessel class that also includes the Sensation – a 2,040-guest vessel built by the Kvaerner Masa-Yards in Finland, at a cost of $300 million.  

1993: The Sensation is christened in November, with four Carnival vice presidents serving as godmothers: Vicki L. Freed, Roberta Jacoby, Cherie Weinstein and Geri Donnelly. The vessel then sets sail on its inaugural voyage, launching a year-round program of weekly Caribbean cruises from Miami.  

1998: After undergoing its first mandatory drydock, the Sensation is repositioned, debuting in Tampa. In December, the vessel launches a series of week-long cruises to Grand Cayman, Cozumel and New Orleans from its new Florida homeport.

2000: The Sensation is reflagged, with its registry port changing from Monrovia, Liberia, to Nassau, Bahamas.

2002: As Carnival shifts its fleet around Florida and the Gulf Ports, the Sensation is transferred to the short cruise market. Still sailing from Tampa, the vessel takes over the 1986-built Jubilee’s schedule in August, offering four- and five-night cruises to the Western Caribbean.

2004: With the new Carnival Miracle debuting in Tampa, the Sensation is once again repositioned. This time, the vessel debuts in New Orleans, launching a series of four- and five-night cruises to Mexico in October.  

2005: As Hurricane Katrina hits Louisiana in September, the Sensation is diverted to Galveston with two of its scheduled cruises now departing from the Texas port.

2005: Soon after, the vessel is chartered to FEMA as part of the Hurricane Katrina relief efforts in New Orleans. During a six-month period, the Sensation remained docked in the Gulf region while serving as a temporary house for people affected by the natural disaster.

2006: After its first significant renovation, the Sensation resumed service in March. With new features that included a nine-hole mini-golf course, larger kid facilities and a reconfigured aft lounge, the vessel kicked off a series of short cruises to the Bahamas from Port Canaveral.  

2007: In line with other ships of the fleet, the Sensation received the Carnival prefix to its name, becoming the Carnival Sensation.

2009: As part of the Evolutions of Fun, a $250-million fleet update program, the Carnival Sensation saw a major refit in 2009. At the 35-day drydock, the vessel also received 98 balconies, which were retrofitted to existing cabins.

2016: As part of a deployment shuffle, the ship is replaced in Port Canaveral by the Carnival Victory and returns to Miami. Starting in February, the Carnival Sensation debuts a program of five- and four-night cruises from its new homeport, with itineraries visiting the Caribbean, Mexico and the Bahamas.  

2017: In February, the vessel emerges from another extensive renovation, sporting a selection of new food and beverage concepts, as well as a new children’s play area and more.

2019: During the first months of the year, the Carnival Sensation offered cruises to Havana, Cuba. The Miami-based program was halted in June, as the U.S. Administration banned recreational travel to the country

2020: On March 9, the vessel departed on what ended up being its last revenue cruise. Leaving from Miami, the five-night voyage included visits to Grand Cayman and Ocho Rios. Soon after the voyage, the vessel entered a lay-up status, along with the entire Carnival fleet.

2020: In October, while out of revenue service near Florida, the Sensation answered a distress call and rescues 24 individuals from a sinking boat.

2022: As part of reviews of its fleet and homeport strategies, Carnival announced the retirement of the Carnival Sensation in February. A few weeks later, in late March, the vessel sailed from Miami to Aliaga, where it is set to be scrapped over the next months.