Undocking at Meyer Werft: Genting legend has left the building dock

Posted on 19 August, 2016 by Spacejunkie2

The latest cruise giant Meyer Werft, the “Genting Dream” has, II leave the covered building dock in Papenburg today in good weather. Meter by meter of the 335 meter long building for the Asian shipping Dream Cruises pushed ahead slowly.

Photo: Tobuas Bruns

PAPENBURG. Extensive testing of security systems, mechanical and plant trials and the completion of the interior had determined in the last few weeks the yard everyday. Due to current weather forecasts undocking was still postponed at short notice, but against 14:15 the time had finally come: the “Genting Dream” made her first meters. Supported by 4 tugs they slid stern first slowly toward sunlight. Hundreds of onlookers had gone on Friday afternoon to the Papenburg shipyard basin to ogle the first new construction. special, brightly colored hull paint particularly caught her eye.

The ship made finally fixed at the pier in the shipyard harbor where the installation of the chimney is carried out. On the outfitting of the Meyer Werft the final work and tests are carried out to the ship in the following days. Few days later, the first members of the crew then their cabins reflect on the ship and to become familiar with the ship. Already in mid-September will then begin their Emsüberführung direction Eemshaven, the “Genting Dream”. This is followed by sea trials and the final final outfitting in Bremerhaven before she is expected to be handed over on 12.10.2016 to the shipping company.

Photo: Tobuas Bruns

Even the next boat, the “Norwegian Joy ‘that is to follow in the spring of 2017, is making great progress. Already in the morning has a vast 100-meter long swimming part, that was before the “Genting Dream”, also left the building dock. One More was already longer on Werftpier. It had to take place and be hauled. Both sections will now be docked again.

Photo: Tobuas Bruns

The “Genting Dream”, or in Chinese also云顶梦, has to have a length of 335 meters, a width of 39.7 meters and a size of 151,300 GT. The client is the Asian shipping Dream Cruises (Hong Kong), which is part of the Genting Group. Also planned for autumn 2017 sistership called “World Dream”.

It will accommodate 3,360 passengers and 2,000 crew members, suggesting a ship for the premium segment. Of the 1,680 cabins, 1,278 are outside cabins. One thing is certain, according to Tan Sri Lim, CEO of the shipping company: “The ship is ready to hold many special features for the Chinese market.” So is the “Genting Dream” have two small deep-sea submarines, each four passengers up to 200 meters depth can convey. Much aboard similar to Breakaway-class of Norwegian Cruise Line, which also belong to Genting.

For RCCL’s Fain, China a case of deja vu

Posted on 11 August, 2016 by Spacejunkie2

Two weeks ago I wrote about Frank Del Rio’s take on China and the obstacles he saw to further growth there, but the Norwegian Cruise Line Holdings CEO is clearly not the only cruise chief thinking a lot about development in Asia.

Royal Caribbean Cruises Ltd. chairman Richard Fain delivered some insights into his thinking on China on a recent conference call with investors. He listed four areas in which China is similar to the industry in North America and Europe, at a comparable stage of maturity.

China has troubled cruise investors, most recently because of price softness in Shanghai.

Drawing on 30 years of decision-making experience, Fain said he’s seen it before. “It is striking how many parallels there are in China’s evolution today compared to other places in other times where we have developed a market for cruising,” Fain said.

Cruising in North America in the 1980s looked much like China does today, according to Fain’s analysis.

“It was poorly known to the population at large,” Fain said. “Distribution was through a small number of specialist agencies. There was little choice of itineraries, and growth was episodic and dictated by the arrival of new ships.”

In addition, favorable word of mouth was the main way people found out about cruising, he said.

Fain characterized travel agencies specializing in cruises in the 1980s as a “niche” business and said China’s embryonic cruise travel agency system will evolve with time, as in the U.S.

He said worries about the paucity of destinations in China parallel the same concerns in the U.S market years ago. When Royal Caribbean was trying to decide on a fourth ship, there was “a great deal of hand wringing” about whether there would be interest “beyond the established group of then popular destinations.

“Today we all look back on that concern and find it laughable, but then it was a real concern. Similarly in China, our attachment area today for customers is small and our itineraries are limited, but a quick look at the map shows just how enormous the potential really is.”

Norwegian Cruise Line disappointed in Caribbean returns

Posted on 10 August, 2016 by Spacejunkie2

Norwegian Cruise Line Holdings CEO Frank Del Rio said the company’s “lofty” expectations for the Caribbean this summer have not been met, one factor in revising expectations downward for the rest of the year.

In a conference call to discuss second-quarter results, Norwegian lowered its guidance for second-half earnings and said it will not make its previously forecast goal of earning $5 a share in 2017.

A big part of the problem is lower demand for European cruises by North Americans due to geopolitical factors. But Norwegian surprisingly said that keeping two big new ships, Norwegian Escape and Norwegian Getaway, in Miami for the summer has not worked out.

“Today is not a happy day at Norwegian headquarters for obvious reasons,” Del Rio said. “We had to reset expectations based on the current booking environment.”

Although yields are still up in the Caribbean from last year by mid-single digits, Del Rio said strong pricing growth did not fully materialize.

As a result, in 2017 Norwegian Getaway will be deployed on Baltic itineraries for the summer months. “It’s a recognition that high expectations just aren’t being met,” Del Rio said, “almost exclusively due to heavy concentration of inventory during the weak period.”

The Norwegian Getaway is leaving Miami for the Baltics next summer.

Del Rio also delivered bad news about Europe. Norwegian had been seeing modest traction in the weeks following the Brussels terrorist attack in March. But with the bombing of the airport in Istanbul, the Nice truck massacre and the failed coup in Turkey, that “evaporated,” Del Rio said.

About 70% of Norwegian’s passengers on European itineraries are sourced in North America, considerably higher than competing cruise companies. Attracting more Europeans will produce lower ticket and onboard spending revenue, Del Rio said.

Del Rio also said South American itineraries are soft, and are being impacted by perceptions about the Zika virus.

Norwegian reported a decline in earnings in the second quarter to $145.2 million, down from $158.5 million a year earlier. Revenue increased 9.3%, to $1.2 billion.

In late morning trading, shares of NCLH were down over 9%, to $39.04, while stocks overall were up slightly.