Crystal Cruises parent agrees to buy German shipyard

The parent company of Crystal Cruises has agreed to acquire leading shipyard Lloyd Werft in Bremerhaven, Germany.

Global cruise and resort company Genting Hong Kong is to pay €17.5 million for 70% of a new shipbuilding business and a 50% ownership of the shipyard’s land.

The company will complete the acquisition of Lloyd Werft subject to the fulfilment of certain final purchase conditions.

The move follows plans for massive expansion of Crystal Cruises with the introduction of Crystal Yacht Cruises in December, Crystal River Cruises and Crystal Luxury Air in 2017 and new cruise ships from late 2018.

Genting Hong Kong signed a letter of intent earlier this year with Lloyd Werft to build Crystal’s ‘Exclusive Class’ polar-class cruise ships.

Lloyd Werft will also build luxury river yachts to sail to destinations in France, Germany, Switzerland, Holland, Belgium, Austria, Slovakia, Hungary, Croatia, Serbia, Romania and Bulgaria.

Genting Hong Kong chairman and chief executive, Tan Sri Lim Kok Thay, said: “Lloyd Werft has built and lengthened six of the ships owned by an affiliate of the company and has the expertise to build a series of world class cruise ships for the company, which will include the ‘Exclusive Class’ vessels for Crystal Cruises.

“Ownership in Lloyd Werft will enable Genting Hong Kong to leverage on the shipyard’s technical expertise and their well-established and long track record in the shipbuilding industry.”

Crystal president and chief executive, Edie Rodriguez, said: “With such great anticipation for Crystal River Cruises and Crystal Exclusive Class ocean vessels, we are incredibly excited about Genting’s groundbreaking investment in the Lloyd Werft shipyard that will contribute mightily to Crystal Cruises’ expansion.”

Should river lines be worried about Crystal?


By Michelle Baran

Throughout the last several years of seemingly unstoppable growth in the river cruise market, ocean cruise lines have resisted getting in on the river action, a segment of the cruise market that, while clearly very popular, represents entirely different economics of scale (in other words, much lower passenger volumes) than ocean cruising.

So when Crystal Cruises announced a massive expansion initiative, including plans for two new river cruise vessels, it effectively became the first ocean line to cross into the river world.

Until the Crystal announcement, the only significant crossover in Europe had been in the opposite direction: river cruise heavyweight Viking Cruises launched its first ocean-going vessel this year (there are several smaller scale examples, such as Haimark, which has both river cruise vessels and a coastal cruise vessel, as well as the now-defunct Peter Deilmann Cruises and Cruise West, both of which dabbled in river and coastal cruising). And Crystal has been involved on the rivers before, via a marketing partnership with AmaWaterways.

Crystal hasn’t revealed much detail about the river cruise piece of its ocean-yacht-river-jet expansion plan. Lloyd Werft, the German shipyard that will construct Crystal’s new ocean ships, is also building two luxury, Crystal-branded river cruise vessels that will operate in Europe. (Crystal CEO Edie Rodriguez told Travel Weekly’s Tom Stieghorst that Crystal will reveal additional information about its river cruise product at a later date for competitive reasons.)

Looking at all of this, should river cruise lines be somewhat nervous? Could Crystal entering the river cruise business put a dent into the all the hard work they’ve put into creating, growing and developing the market these past years?

Well, Crystal still has to fit those plans into the same 38-by-410-foot dimensions that all river cruise vessels are limited to, due to the locks and bridges along Europe’s inland waterways. In that regard, Crystal will be up against the same innovation challenges the river lines have been grappling with through these growth years: how to maximize space and onboard offerings when square footage is so limited.

Additionally, for now at least, it’s only talking about two vessels, a tiny fraction of the overall river cruise inventory in Europe.

But under its new ownership of Genting Hong Kong, which clearly has ambitious plans for the company, Crystal could have enough resources at its fingertips to at least make some waves in the river cruise market, both from a hardware as well as from a marketing point of view.

“I think Crystal is doing a very smart thing,” said Donald Baasch of American Canyon, Calif.-based LastCallCruises. “They might as well make money on their customers instead of letting someone else have them, especially if they believe that a lot of them will inevitably want to try a river cruise.”

So, all told, surely the highly competitive river cruise industry has its eye on Crystal’s plans, but I doubt they are shaking in their boots quite yet.

Crystal Cruises announces massive expansion plan


Crystal Cruise’s Dreamliner

By Hollie-Rae Merrick

Crystal Cruises has announced a massive expansion plan which includes three new ocean ships and the line’s entry into yachting and the growing river cruise market.

The luxury line, which currently operates just two ships, today announced that over the next three years it would introduce new ships, a yacht and a plane.

Crystal chief executive and president Edie Rodriguez has signed a letter of intent with a German shipyard to build three all-suite vessels.

Rodriguez said: “We continue to think bigger, aiming to create unparalleled luxury experiences and adventures for our loyal and new guests, who – like Crystal – continue to seek broader horizons and new perspectives on the world.”

“We are ecstatic to continue pioneering new areas of luxury travel. Crystal’s newly expanded fleet will truly be travellers’ passport to virtually the entire world.”

Crystal chairman Tan Sri Lim Kok Thay said: “Our intent is to make Crystal Cruises the core of what will become the world’s premier luxury hospitality and lifestyle brand portfolio, not only for the immediate future but for years to come.”

The ships will carry rubber zodiac boats for expedition style cruising and the three builds will also be designed with polar ice-rated hulls to allow them to travel in the Arctic and Antarctica.

The first all-suite, all balcony ocean ship, which is being built at the Lloyd Werft shipyard, is expected for completion in late 2018 and will accommodate 1,000 guests.

Tan Sri Lim added: “Our vision and revolutionary plans for Crystal’s ocean vessels requires us to partner with a premium shipyard that has the expertise and resources to deliver the ‘Crystal Exclusive Class’.

“Lloyd Werft is synonymous with successful world-class new builds and luxury mega yachts, including Luna, the second largest expedition private yacht in the world, measuring at 337 feet long.”

Each ship will have 48 residences on board and travellers will be able to buy the residences as a second home. Those guests will have access to an exclusive restaurant and reception, as well as other facilities which are yet to be announced.

The line will also enter the river cruise sector in 2017 with two custom-built ships. The ships will operate under the new brand Crystal River Cruises.

In addition, Crystal will also gain a new 62-passenger yacht this December. The yacht, called Crystal Esprit, will have a 32-foot long boat for zodiacs, jet skis, kayaks and a two-person submarine. This brand will be called Crystal Yacht Cruises and Rodriguez hopes to add more yachts to the fleet eventually.

The yacht will sail around the Seychelles, Dubai and the Adriatic Coast between 2016 and early 2018, visiting the likes of Croatia, Venice, Montenegro and Greece.

The expansion of Crystal, which comes four months after Genting Hong Kong purchased Crystal from Nippon Yusen Kabushiki Kaisha, also includes the plan to acquire a 60-passenger Boeing 787 under the new Crystal Luxury Air banner.