When cruise lines went global

By Tom Stieghorst
*InsightIt is easy to forget that the cruise industry was not always the global, or even national business that it is today.

In the early period of modern cruising, the airlines were still regulated and selling cruises was mostly a drive-port business. I was reminded of that in talking with Carnival Corp. COO Alan Buckelew, who began his career in the 1970s at Sitmar.

Buckelew’s latest assignment takes him to China, where he will function as Carnival’s point person in that key emerging market. Buckelew said China in many ways reminds him of the cruise market in North America back in its infancy.

In the mid-1970s, Buckelew recalls, each part of the U.S. had its own cruise players.*TomStieghorst

“There were a couple of brands in Miami, one or two in New York, one in L.A., and they pretty much kept to their own neighborhoods — the Miami guys in the Caribbean, New York in the Caribbean as well, the L.A. guys in Alaska and Mexico.”

With the deregulation of airlines in 1979, flying became more affordable.

“As cruise lines began to create an air package program and began flying, more ships came into the business, and it became more of a national business rather than a regional business,” he said. “And now it’s a global business.”

As it played out, the regional cruise lines consolidated in Miami. Princess Cruises, which merged with Sitmar, and Holland America Line became part of Carnival Corp. As did Cunard Line. Another big player in the New York market, Celebrity Cruises, became part of Royal Caribbean Cruises Ltd.

Now the competitive arena has shifted to China, where, Buckelew says, “we’re back in the 1970s.”

“It’s still pretty regional, not that many guests flying to the ships,” he said. Hong Kong, Shanghai and Tianjin all draw passengers from their own geographic areas.

One big difference, however, is the scale. China’s population is four times that of the U.S. There are 24 million people in greater Shanghai alone. “When I go back home to L.A. or Miami, they seem like little villages in contrast to Shanghai,” Buckelew said.

Norwegian Escape itinerary eagerness after Keel laying ceremony

Norwegian Escape itinerary excitement with Keel laying ceremony

The Norwegian Escape Keel laying ceremony took place a few days ago, and as a result has now given people a renewed interest in looking at what itineraries are available for this new Norwegian Cruise Line ship once she enters service in October 2015.

The first of 86 blocks was laid down with a lucky coin being placed beneath this 400-ton block. This is a tradition that has gone on for yeas, and happens each time a new cruise ship has her Keel laid.

Norwegian Escape itinerary eagerness – With the Norwegian Escape progress now set to start ramping up because of hitting this milestone, we suspect that there has now been more people looking to see what the inaugural cruises are for this new ship, and how much they are likely to cost.

Norwegian Escape itinerary excitement

This information is available on Norwegian’s official page for their new ship, the Escape, which is the first Breakaway-Plus class vessel. While the choice may not be extensive at this time, you still have the option to sail to the Caribbean from Miami, although if you would rather cruise on her maiden voyage, then that will be from Southampton to Miami, Florida, US.

MSC Cruises changes course for Divina

By Tom Stieghorst

MSC Divina in the Caribbean Video

MSC Cruises said the MSC Divina, a ship that was scheduled to sail year-round from Miami, will be moved to the Mediterranean for summer 2015 before returning for the winter of 2015-16 in the Caribbean.

The ship began sailing from Miami in November and was the centerpiece of an MSC marketing campaign in North America. It will continue on current Caribbean itineraries for the rest of 2014 and the first four months of 2015.

In a statement, MSC Cruises USA President Rick Sasso said “customer surveys are showing an increased desire for North Americans to sail onboard MSC Divina in the Mediterranean.”

Industry-wide, Caribbean pricing has suffered from a glut of capacity this year, while demand for European cruises has been surprisingly strong, especially from North America. The weak economies in several European countries and high airfares led some cruise lines to reduce capacity in Europe this year.

MSC said the changes to Divina designed to bring it more in line with American tastes will remain in place for its summer in Europe. Upon returning in the fall of 2015 to the U.S., Divina will get some “surprise enhancements” for the North American market.

In a conference call with analysts earlier Tuesday, Norwegian Cruise Line CEO Kevin Sheehan mentioned the Divina move, saying its arrival in Miami was a significant addition to capacity in the Caribbean that would be removed next summer.
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