Comment: Cruise industry must take China’s rise on board

Comment: Cruise industry must take China's rise on boardFollowing the announcement of the deployment of Royal Caribbean’s newest ship year-round from Shanghai next year, David Selby assesses the significance of the decision and the impact on established markets

China is vast – it has a population over 20 times that of the UK and is the world’s second largest country by land mass.

Between 2007 and 2011, its economy grew at the rate of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States combined – and while we dither in the UK about where the next commercial airport capacity will be situated, around two-thirds of the world’s airports are being built in China, with 55 planned between 2013 and 2015!

Shanghai is China’s biggest city, with a population of over 22 million, according to the last National Population Census in 2010. While a significant number of residents still have insufficient income or interest in cruising, it was perhaps only a matter of time before a major international cruise line would announce year-round deployment from the city, as Royal Caribbean has done.

The fact that it is its newest and “shiniest” ship, Quantum of the Seas, does make it interesting. It goes against the traditional idea of growing “new to cruise” markets typically using older tonnage, and keeping the key markets fresh with the newest innovation hardware.

During last week’s announcement, Adam Goldstein, Royal Caribbean’s president and chief operating officer, said: “Every trend we are seeing in China tells us we can achieve real long-term competitive advantage and appealing returns on our investments in this fast-growing market by accelerating our presence there. We will have to be nimble, but the ability to move fast is one of our strengths.”

I agree! It comes from having – in my view – the strongest single international cruise brand in the world.

Meanwhile, analysis commissioned last year by the Asia Cruise Association predicts a market size in Asia by 2020 of 3.8m, of which China will be 1.7m – just below what the UK is today. Cruises are typically of short duration and to serve 3.8m cruisers on 5 night voyages, the region will need the equivalent of eighteen 3,000 berth ships sailing in the region year round. It is unlikely to stop there.

Where will they come from, and what of traditional core markets?

Well, Royal Caribbean points out that the ports of Florida (with ships sailing to the Caribbean – the most popular cruising destination), will be operating with record levels, while from New York passengers will have the chance to cruise on ships not previously deployed from there.

In the UK of course, we look forward to seeing Anthem of the Seas – Quantum’s sister-ship – sailing from Southampton after she is launched next year. Longer term however, we could see a general shift away from current core markets unless there is an acceleration of new-build activity.

For the remainder of this year, apart from Quantum, there are just three ships over 2000 berths being launched worldwide – for Princess, Costa and Tui in Germany. Next year there are five, in 2016 there are six and in 2017 there are so far just three. While this may increase, it is barely enough to cover the Asian growth over the next six years.

Therefore, the challenge is on for the industry in traditional markets to keep the product and marketing fresh, to drive value and deliver exceptional levels of customer service – and the same goes for the destinations the ships visit.

Looking even further ahead – once the Chinese have tried cruising at a local level, they will without doubt be cruising further afield and coming to Europe.

So while we sort out the runway problem, it would be a good idea to sort out the UK Visa situation at the same time.

Thomson Cruises reveals new home ports and two ship revamps

By Phil Davies

 
Thomson Cruises reveals new home ports and two ship revamps

Dubrovnik is to be the new home port for Thomson Cruises in 2015 as part of an expanded programme including 28 new destinations, including Albania.

Thomson Celebration will be based in the Croatian port running four new itineraries from May 7, 2015.

Thomson Spirit and Thomson Majesty (pictured) will join the Platinum fleet next summer, with an interior makeover and 28 balcony cabins on Majesty and 19 on Spirit.

Thomson Spirit will also be based in the new home port of Marmaris in Turkey.

Thomson Celebration will go child free on its four itineraries from Dubrovnik with new ports of call including Sibenik, Korcula, Rovinj, Split, and Hvar in Croatia; Trieste, Bari, and Brindisi in Italy; and Corinth and Itea in Greece.

New regional airports are being added to serve the Dubrovnik sailings, giving 50,000 seats across the summer from Glasgow, Newcastle and Bristol, as well as Birmingham, Manchester and Gatwick.

New destinations for Thomson Dream incude Elba, San Remo (for Monaco), and La Spezia (for Portofino) in Italy, Sete (for Carcassonne) in France and Tarragona, Spain.

Thomson Majesty will be visiting six new ports, including Ravenna and Lipari in Italy, Durres in Albania, Rijeka in Croatia, Chania in Crete and Kalamata.

The cruises go on sale on April 24.

Thomson Cruises managing director Helen Caron said: “Summer 2015 will be a record year for Thomson Cruises as we introduce a total of 28 new ports of calls, 13 new itineraries and an exciting new home port of Dubrovnik for Thomson Celebration.

“Listening to our customers is at the heart of all our planning, which is why we’re offering more choice and variety of destinations in our some of our favoured locations, and providing our guests the flexibility on their holiday to cruise and stay, with even more hotels introduced to our collection.

“We hope the investment to modernise our ships and give Thomson Spirit and Thomson Majesty the Platinum seal of approval, along with the introduction of balcony cabins, will enhance the overall experience for everyone we welcome on board.”

P&O floats out Britannia in Italy

By Jane Archer 

P&O floats out Britannia in ItalyP&O Cruises took more pre-registrations in one day last week for new ship Britannia than in a whole week for Azura before it launched in 2010.

Marketing director Christopher Edgington said pre-registrations, targeted at past passengers only, allowed clients to put their name down for specific cruises but not cabins.

The maiden voyage, a 14-night Mediterranean cruise departing March 14 2015, was in high demand, as was a 12-night round-Britain cruise in July. They open for sale on March 27.

Speaking at Britannia’s float out – the moment when the dry-dock is flooded and water hits the hull for the first time – Edgington said: “Our past passengers are really excited about Britannia. We have created a ship that is right for them and for people who have never cruised by enhancing our signature features and adding exciting new ones.”

They include a new cookery school devised by TV chef James Martin, the Limelight dining and cabaret club, and a Mediterranean-style Market Café serving charcuterie and sweet treats from TV’s Cake Boy Eric Lanlard.

Michelin-starred chef Atul Kochhar and wine expert Olly Smith, who have venues on other P&O ships, are also part of Britannia’s culinary line-up. Instead of a restaurant, Marco Pierre White is creating dishes for gala nights in the dining rooms,

Hebden Bridge-based agent Louise Hunt, who works for Travel Councillors, won a P&O competition to be Madrina, or godmother, for the float out, at the Fincantieri shipyard in Monfalcone, Italy. A bank worker until last year, Hunt admitted she was both nervous and excited. She said: “This is quite surreal, quite incredible.”