Anthem of the Seas Now Sailing in the U.S.

Anthem of the Seas enters New York

Anthem of the Seas sailed past the Statue of Liberty and around Manhattan on a night of such warmth and clarity that it was hard for me to realize the month was November. I sat in the ship’s beautiful conservatory and marveled at how welcoming such a huge vessel could be.

A ceremony marked the arrival of the Royal Caribbean International ship in the U.S., and Anthem made a glowing entrance. The onboard entertainment, dining and accommodations incited the same excitement seen in the U.K. for the vessel earlier this year. Americans were particularly enthusiastic about features such as the large virtual balconies in the inside staterooms, where people with live-streaming “windows” saw more dolphins and whales on the transatlantic crossing than many of those with balcony staterooms.

Doug Grau, director of sales for the Western U.S. for Royal Caribbean, says the active lifestyle activities available onboard — from a skydiving simulator to circus school — are an especially good match for Western travelers, who tend to be energetic and outdoors-oriented, falling within Royal Caribbean’s psychographic. The top-flight entertainment, including the amazing “We Will Rock You” Broadway musical, tribute bands and cabaret shows, is also a particularly strong draw for the West.

“There is huge interest in Western states for Anthem (Quantum-class) and Oasis-class ships, and 30 percent of Royal’s sales coming out of the West is for these ships,” Grau said.
However, Grau finds a gap between agent experience and demand. When he talks to agent groups and asks how many have sailed with Royal Caribbean, most have; however, when he asks how many have been onboard during the past few years, only a handful respond affirmatively. Grau notes that when Mariner of the Seas came to the West, it was the first time many agents had seen the ship — and it was nearly 10 years old.

At the rate that the line’s ship design and customer experience has changed, this means Western agents are missing out on the modernized Royal Caribbean, Grau says.

“If you aren’t selling these ships, your customers are buying them elsewhere,” Grau said. “I tell them it is well worth the investment to attend the East Coast Cruise 360 sessions and inspect a number of recent ships. Large ships scare a lot of agents, who are afraid their clients will be caught in long lines and tied up for hours when embarking. We’ve done everything possible, both in terms of design and technology, to make the experience human-sized and comfortable. We have more rooms that hold 80 or 90 people than ever before.”

These efforts are paying off. At Anthem’s embarkation on Nov. 4 in Cape Liberty, N.J., Royal Caribbean representatives with iPads checked passengers in as they were dropped off at the port. Common questions I heard from guests were, “Is that all?” and “What do I do now?” The answer: “Go right to your stateroom and enjoy the ship.”

My own check-in experience, complete with credit card scan and photo ID, which I had not done in advance, was five minutes from start to finish — considerably shorter than check-in on ships less than a quarter the size of Anthem.

During Anthem’s first cruise from the U.S., Royal Caribbean announced an order for a fifth Quantum-class ship to be delivered in fall 2020.

“It is such a pleasure to announce the order of another Quantum-class ship as we are welcoming Anthem of the Seas to North America,” said Richard Fain, chairman and CEO of Royal Caribbean Cruises Ltd.

Fain says although there have been some tweaks in food, drink and entertainment, the Oasis and Quantum ships cross international markets with ease.

“These ships have been received with excitement by passengers and crew and have performed exceptionally well across the globe,” he said. “We fully expect that momentum to continue as we add to this innovative class.”

Royal Caribbean gets leg up in China with Ctrip deal

By Tom Stieghorst
Celebrity CenturyThe sale of the Celebrity Century to the Chinese travel agency Ctrip opens a second way for Royal Caribbean Cruises Ltd. (RCCL) to develop a passenger business in the world’s most populous country.

Starting next year, the 19-year-old Century will sail for a new venture owned by Ctrip, a Shanghai-based online travel agency (OTA) that also supplies travel products and services.

In a statement, Ctrip said an affiliate will own the Century and that the affiliate will form a joint venture with RCCL to manage the ship’s operations. The companies have a memorandum of understanding to set up the venture “and potentially broaden the relationship,” the statement said.

While RCCL will recognize a $20 million loss on the ship’s disposal, company Chairman Richard Fain nevertheless called the sale “an excellent business opportunity for both Royal Caribbean and Ctrip” that will generate “strong value for both companies’ shareholders.”

RCCL had previously decided to get rid of the Century, the last remaining ship in Celebrity’s Century class. At one point, it appeared bound for a French cruise line owned by RCCL that operates two other former Celebrity ships.

RCCL already is marketing several ships to Chinese passengers, including the Mariner and Voyager of the Seas. It is raising the ante in the Chinese market next year by deploying its newest ship, Quantum of the Seas, for year-round sailings from Shanghai.

Having the Century in China at the same time will offer a lower price point on a smaller ship for the new joint venture, which will take delivery of the ship in April after it completes its scheduled cruises for Celebrity.

Matt Jacob, an analyst with ITG Research in New York, said the sale of the ship into a less-developed market makes sense at this point in its life.

“Royal Caribbean is looking at this deal as allocating its ships in the best possible manner,” Jacobs said. “They believe the Chinese market represents a great opportunity, and this is another way to get exposure to that market.”

As Europe has evolved over the past decade, older tonnage sent there is competing against new ships. But that’s not the case in China.

“There’s an opportunity to take a ship that might not be viewed as competitive in the more saturated markets and position it for the Chinese market where the requirements and desires of that clientele at this stage are not as developed or as stringent,” Jacob said.

RCCL did not disclose the sale price, but one analyst estimated it at $157 million.

If the price was at or above the market for such ships, disposal at a loss could still be a win, Jacob said. “Although they’re taking an accounting loss, this I imagine is the highest-yielding use they have for that ship at this time.”

Ctrip offers RCCL established connections to Chinese consumers. Founded in 1999, it provides hotel reservations, transportation ticketing, packaged tours and corporate travel management in China.

In 2012, Priceline invested $500 million in Ctrip, calling it the “clear leader in online travel in China.” The OTA offers an English-language version of its website to promote U.S. travel to China and is already active in selling cruises to Chinese passengers.

In announcing the acquisition of the Century, Min Fan, vice chairman and president of Ctrip, said, “As the largest cruise agency in China, Ctrip has sent over 120,000 guests to cruise trips so far and acquired more than 10% of market share in China.”

Addressing this deal specifically, he added, “Ctrip will capitalize on our strong brand, large customer base and superior service quality, as well as our partner’s extensive cruise operating experience to generate great value to our customers and shareholders.”

The Ctrip deal resembles one RCCL formed with German travel conglomerate TUI AG in 2009. The two companies formed TUI Cruises after TUI acquired the Celebrity Galaxy, another Century-class ship, to cater to the growing German market under the name Mein Schiff (My Ship).

TUI Cruises later acquired the Celebrity Mercury and this year took delivery of its first newbuild, the 100,000-gross-ton Mein Schiff 3.

RCCL’s deal with Ctrip is in the early stages and hasn’t gone beyond an agreement to jointly manage the Century. An RCCL spokeswoman said the companies are still in discussion about what else their cooperative venture might entail.

Peter Whelpton, a consultant in Gainesville, Fla., and a former RCCL executive, said that in his experience, Chinese companies prefer becoming partners with U.S. businesses rather than selling them services.

Whelpton said he was part of a group that raised money in China to start a cruise line there. “Everything we attempted to do in China, we were told, ‘We’ll be your partner,’” he recalled.

Whelpton added that RCCL is pursuing a familiar model by selling the aging Century to a foreign buyer. “They started the same way with Pullmantur,” he said.

The Century will continue its scheduled sailings through the March 22 itinerary. A final 15-night trip from Dubai to Rome is being changed to a 14-night sailing ending in Singapore. From there, the ship will be renovated and altered for the Chinese market before redeployment later in the year.

Royal Caribbean’s Legend of the Seas bound for Asia, Australia

Royal Caribbean’s Legend of the Seas bound for Asia, Australia

By Rebecca Tobin

Royal Caribbean International’s Legend of the Seas will cruise to Asia and Australia during the 2015-2016 season, a move that gives the line a year-round presence in Singapore.

The Legend will operate cruises to Southeast Asia from Singapore during summer 2015. It will shift to a new homeport for the line, Brisbane, Australia, in November 2015 for cruises to Australia and the South Pacific.

The Mariner of the Seas, which also will operate seasonally from Singapore, rounds out Royal Caribbean’s year-round offerings in that port.

Royal Caribbean has been steadily increasing its offerings in Asia and Australia. Last month it announced it was commiting its newest ship, the 4,200-passenger Quantum of the Seas, year-round in Shanghai; it joins the Mariner and the Voyager of the Seas in that market.

It also will operate the Explorer of the Seas, Voyager of the Seas and Radiance of the Seas in Australia in addition to the Legend, which it said was a “record” deployment there.

 

The Legend will depart for Asia after an April Panama Canal cruise from Fort Lauderdale to San Diego, and it will offer three sailings across the Pacific: a 10-day cruise from Ensenada, Mexico, to Honolulu; a 17-day cruise to Sydney via French Polynesia, Fiji and New Caledonia; and a cruise from Sydney to Singapore.