Tag Archives: crystal cruise

Players in a Likely Crystal Cruises Acquisition

Posted on by
1

With Crystal Cruises suspending operations through April with owner Genting Hong Kong warning of cash troubles, there is no shortage of speculation of what will happen to one of the key luxury brands in the industry.

According to sources familiar with the situation, Crystal is drawing interest for its brand name, past passenger list of wealthy American clients, its new 200-guest expedition ship and fleet of river ships. Less interesting, according to sources, are the company’s larger ocean-going ships.

Catching up with industry sources, Cruise Industry News put together a list of possible suitors and scenarios.

Potential Players:

  • Genting: Could Genting reorganize using bankruptcy protection and continue to operate Crystal? The company could emerge stronger with reduced debt loads, new money and a fresh outlook if a reorganization takes place.
  • Lindblad: Lindblad Expeditions and Genting have already been at the negotiating table as Lindblad bought the Crystal Esprit in 2021. Lindblad has been active in the acquisition space, also having bought up complementary companies in recent years. While Crystal’s big ocean-going luxury ships don’t fit the Lindblad product, the river ships, new Endeavor and passenger list could be ideal.
  • MSC: MV Werften and a 75 per cent-finished 5,000-gest Global Dream could present an interesting opportunity for fast-growing MSC Cruises. The family-owned company is known to make quick decisions and wants to dominate the cruise industry. Could a shipyard and newbuild designed-for-China give them a platform to accelerate future growth even more? It could prove tempting. The Endeavor would also allow the company to enter the expedition market overnight.
  • Carnival/Royal/Norwegian: Could one of the three major players acquire Crystal into their portfolio of brands? It would prevent potential new competition. However, chances are the answer is no, as all three would see significant pushback from the investment community, which is focused on short term financial performance.
  • Azamara/Sycamore: After buying Azamara Cruises from Royal Caribbean Group in early 2021, Sycamore Partners, a private equity company, added the fourth ship with the acquisition of the Pacific Princess. It’s no secret in the industry circle they have been looking for more. A new parent company could operate both brands, with a lean shoreside organization, and vessel management from V. Ships Leisure, which is already running the Azamara fleet. It would allow Sycamore to add to its ocean-going capacity while entering the expedition and river markets.
  • Ponant: Another small cruise line that has been quickly growing is Ponant. With well-financed French owners, the boutique luxury operator has acquired both Travel Dynamics and Paul Gauguin and introduced a fleet of new ships for the Ponant brand.
  • National Investment Fund: It’s not a matter of if, but when, as it relates to a major public investment fund from a Middle Eastern country buying majority control of a cruise line.
  • Hotel Chain: The Ritz-Carlton Yacht Collection and Margaritaville enter the cruise industry in 2022. For hotel chains with a fear of missing out, this may be a key opportunity to get into the business.
  • New Money: The pandemic has brought new private equity money, hedge funds and new investors into the cruise industry. According to sources, there are still multiple deep-pocketed investors waiting for the right time to buy-in.
  • River Operator: The Crystal river ships are said to be drawing interest from a number of existing European river operators.

Crystal Cruises to Require COVID-19 Vaccine for Guests

Posted on by
Reply

Crystal Cruises has confirmed it will now require all guests to be fully inoculated with a COVID-19 vaccine at least 14 days prior to their Crystal cruise.

Guests will need to provide proof of vaccination before embarkation and must have received both doses of the vaccine if recommended by the manufacturer by that timeline, the company said.

“We are encouraged by the progress being made with the COVID-19 vaccines and what this means for our Crystal Family and the travel industry as a whole as we eagerly look forward to exploring the world again,” said Crystal’s interim president and CEO, Jack Anderson. “We know that peace of mind is the greatest luxury; and the vaccine requirement is simply the best way to ensure the safest possible Crystal Experience for all onboard. This sentiment is underscored by conversations with our guests and travel partners and a recent Cruise Critic survey of cruisers that revealed that more than 80 percent of respondents would cruise if a vaccine were required.”

Crystal’s crew, who hail from dozens of countries around the world, will be expected to be vaccinated as well when the company resumes sailing, however, this may not be a viable option for all crew members given their age and/or the availability of vaccines in their home countries, the company said, in a statement. 

“As part of the company’s Crystal Clean+ 4.0 measures, crew members will be tested for COVID-19 prior to leaving their home location to join the ship and must receive a negative result. They also will take a COVID-19 test at embarkation; quarantine for seven days upon arrival; be tested again at the end of that seven-day period and must receive a negative result before beginning their duties,” Anderson noted. “When vaccines are widely available, they will be a requirement of employment for crew which must be completed at least 14 days prior to service.”

In addition to providing verified documentation of their COVID-19 vaccine at the time of boarding, guests will complete an online form acknowledging this requirement before their cruise tickets will be issued. Crystal has published a frequently asked questions document on the advisory alert section of its website for further reference.

Cruise Industry

Posted on by
Reply
Image result for cruise ship Dry docks
Norwegian Breakaway in a Large Dry Dock

As the cruise industry sails into the third decade of the 21st century, the signs of its vitality are everywhere.

New entrants are flocking to the business. Established players have record booking curves. Big networks of cruise vacation advisors are growing. Competition is healthy but not cutthroat. And cruise lines are spending more than ever before to modernize their older ships.

Cruise line executives are optimistic, none more so than 30-year industry veteran Richard Fain, chairman of Royal Caribbean Cruises Ltd.

“We expect to end this year with more revenue on the books than ever before, with very high booked load factors at very attractive pricing,” Fain told Wall Street analysts in October. “All of that bodes well for an attractive 2020.”

Perhaps no development demonstrates the vitality of today’s cruise industry more than the growth of expedition cruising. No fewer than nine expedition ships from seven cruise lines are expected to arrive in 2020.

And everyone wants in. Luxury names such as Crystal and Seabourn as well as Viking Ocean Cruises are all preparing to add expedition capacity to their portfolios.

Brands with cachet in other parts of the hospitality business are putting capital into the cruise arena. Virgin is adding ships to its existing plane, train and hotel brands, with Virgin Voyages set to launch in April.

And sprawling Marriott International, through its Ritz-Carlton brand, will rejoin the cruise industry with the Ritz-Carlton Yacht Collection, 25 years after giving up its previous cruising venture, a part interest in Sun Line. Ritz-Carlton’s 298-passenger, ultraluxury vessel, the Evrima, is scheduled to debut in June.

The yacht-like Windstar ships are being stretched and relaunched by owner Xanterra.

The yacht-like Windstar ships are being stretched and relaunched by owner Xanterra.

The supersizing of refurbishments is another demonstration of cruise vitality. Royal Caribbean International just completed a $165 million rejuvenation of the Oasis of the Seas, and Norwegian Cruise Line plans to spend $100 million next year on its 22-year-old Norwegian Spirit.

“This is the most extensive revitalization in our company’s 50-year history,” Norwegian chief sales officer Katina Athanasiou told an audience at CruiseWorld in November.

Continued innovation is another hallmark of vital industries. In August, the 5,282-passenger Carnival Mardi Gras will debut, the first liquefied natural gas-powered cruise ship to sail in North America and the first to have a roller coaster onboard.

The coaster follows hard on the heels of go-kart tracks and sky diving simulators developed by rival lines.
As Carnival Cruise Line gears up to celebrate its 50th anniversary in 2022, it is still finding new homeports from which to sail. Next year it will deploy the Carnival Miracle to San Francisco, its 19th domestic homeport, where it will offer cruises to Mexico, Hawaii and Alaska.

Cruise selling is also a dynamic contributor to the vitality of the cruise sector. At its recent annual convention in Hollywood, Fla., Cruise Planners celebrated its growth into a powerhouse of 2,500 franchises nationwide.

“From 2015 to 2019, we’ve doubled our sales,” Cruise Planners CEO Michelle Fee said.

Even corners of the cruise industry that were once endangered are prospering. In 2007, Carnival Corp. sold the diminutive Windstar Cruises to Ambassadors International, and the sail-powered line fell into bankruptcy during the Great Recession.

It was rescued in 2011 by Xanterra Parks and Resorts, which bought three 212-passenger ships from Seabourn to expand the fleet.

Now those ships themselves are being expanded. Windstar has budgeted $250 million to cut each of the former Seabourn ships in half and insert an 84-foot block of new cabins and public areas into the middle.

The process was started in October with the Star Breeze, which also got new engines and a larger fuel tank. The schedule calls for a similar stretching of the Star Legend and Star Pride to be completed by November.