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NORWEGIAN CRUISE LINE ANNOUNCES 2018 & 2019 DEPLOYMENT

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Norwegian Escape, Getaway and Breakaway.

Highlights include five ships in European waters, among them Norwegian Breakaway in the Baltic from Copenhagen and Warnemünde, Norwegian Escape sailing to the Caribbean and Bermuda from New York, Norwegian Bliss sailing to Alaska from Seattle and bucket list destinations including Cape Horn and the Panama Canal.

NORWEGIAN CRUISE LINE ANNOUNCES 2018 & 2019 DEPLOYMENT

NORWEGIAN CRUISE LINE ANNOUNCES 2018 & 2019 DEPLOYMENT

Norwegian Cruise Line today announced its summer 2018 and autumn/winter 2018/19 itineraries, featuring exciting new opportunities for guests to set sail to their dream destinations, while unpacking just once and enjoying the most free and flexible cruising experience at sea. Norwegian’s 2018/2019 deployment spans across the globe, from a wide range of cruises in Europe from seven embarkation ports including round-trip cruises from Southampton and Hamburg to the warm waters of the Caribbean, the adventure-filled coasts of South America, the awe-inspiring glaciers of Alaska and beyond. The new itineraries are on sale now for all guests.

Europe

Guest sailing on Norwegian Cruise Line can again look forward to a wide variety in Europe in summer 2018 with two ships in Northern Europe and in the Baltic as well as three ships in the Mediterranean. Norwegian Breakaway will depart New York on April 15 for the first time since her inaugural season in 2013 for a 12-night transatlantic voyage to London (Southampton). Following her arrival in Europe, Norwegian Breakaway will undergo enhancements in dry dock and then journey to her new seasonal homeports of Copenhagen and Warnemünde, where she will sail nine-night Scandinavia & Russia cruises through the summer season. Norwegian Jade will return to Europe in summer 2018 and sail a series of Norway, Iceland and North Cape cruises from Southampton and Hamburg, showcasing the spectacular Norwegian fjords, along with British Isles cruises on select dates. Norwegian Spirit will return as well, sailing longer 10-night Western Mediterranean and 11-night Mediterranean & Adriatic cruises from Civitavecchia. Norwegian Star will reposition from the US West Coast to Venice, sailing a series of seven-night Greek Isles and Adriatic & Greece cruises from The Floating City. Norwegian Epic, which received ship wide enhancements earlier this year during an extensive dry dock will once again sail seven-night Western Mediterranean cruises from Barcelona and Civitavecchia, showcasing the best of Italy, France and Spain.

In winter 2018/2019, Norwegian Spirit will set sail from Barcelona to the Canary Island & Morocco, on a series of 10- and 11-night cruises that will bring guests looking to escape winter weather to the exotic bazaars of Northern Africa and Tenerife, which boasts the world’s third largest volcano and the highest elevation in all of Spain.

Alaska

Image result for norwegian blissIn summer 2018, Norwegian will once again offer guests the opportunity to sail through the glacier-filled waters and gaze upon the snowy mountaintops of Alaska on three unique ships, making up the youngest fleet sailing to the region. The brand-new Norwegian Bliss, arriving in June 2018, will lead Norwegian’s 2018 Alaska fleet with her inaugural season to the region, offering seven-night voyages departing each Saturday from Seattle. The largest and most innovative ship sailing in Alaska, Norwegian Bliss will be the first cruise ship custom-built with features and amenities for the ultimate Alaska cruise experience and the first Norwegian Cruise Line ship to make its debut in Seattle. Following an extensive renovation in 2017 as a part of the Norwegian Edge programme, Norwegian Pearl will sail seven-night Glacier Bay Alaska cruises from Seattle departing on Sundays. Rounding out the Alaska fleet, Norwegian Sun will return to Vancouver and Seward to offer her incredibly popular northbound and southbound seven-night Alaska highlights voyages, offering guests the opportunity to combine back-to-back sailings for an immersive 14-night roundtrip cruise.

Caribbean

Guests can set sail to the Caribbean on seven of Norwegian ships, sailing from convenient departure ports including New York, Port Canaveral, San Juan, Miami, New Orleans and Tampa.

From December 2018 to February 2019, Norwegian Escape will set sail from New York on extended 12- and 14-night Southern Caribbean cruises, as well as 14-night Western Caribbean cruises, which will include a call at Harvest Caye, Belize’s newest resort-style port of call featuring a cruise ship pier for easy access, seven acre white sand beach and 15,000 square foot pool, among other eco-friendly adventures. Norwegian Breakaway will also sail 10- and 11-night Eastern Caribbean cruises from New York, for a sunshine-filled extended getaway including calls in the Virgin Islands during the heart of winter. New for 2018, guests can set sail to the Caribbean from Boston on Norwegian Dawn for a 14-night Eastern Caribbean cruise in October 2018.

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Norwegian Gem will reposition to New Orleans, sailing to the Western Caribbean on seven-, 10- and 11-night cruises from the Crescent City. Guests sailing from Miami in winter 2018 can cruise to the Western Caribbean on Norwegian Getaway, which will sail seven-night cruises that will also include a call to Harvest Caye. Norwegian Pearl will homeport in Tampa during winter 2018, sailing seven-night cruises to the Western Caribbean.

Norwegian Dawn will seasonally homeport in San Juan, Puerto Rico during the winter 2018/2019 season, sailing to the heart of the Southern Caribbean on seven-, 10- and 11-night cruises, with calls in Barbados, St. Lucia, Antigua and more. Guests can also sail to the Southern Caribbean from Miami on Norwegian Jade, on a 10-night cruise on select dates from November 2018 – April 2019.

Norwegian Epic will again return to Port Canaveral in autumn 2018, sailing alternating seven-night Eastern and Western Caribbean cruises, along with select longer 10- and 11-night Western Caribbean cruises from November 2018 – January 2019 that will include a call at Harvest Caye. Guests who wish to visit Norwegian’s private island Great Stirrup Cay can do so from Port Canaveral in March 2019, as Norwegian Epic will also offer a four-night Bahamas cruise from Port Canaveral and a five-night Western Caribbean cruise that calls in Cozumel and Great Stirrup Cay.

Bermuda

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Norwegian will continue its tradition of sailing from both New York City and Boston to the pink sand beaches of Bermuda between April and September 2018. Norwegian’s newest ship, Norwegian Escape, will reposition for the first time since she was christened in 2015, and will sail from New York City to Bermuda on seven-night cruises every Sunday, offering guests a new ship to enjoy, featuring Norwegian’s first brew pub at sea, the Tony-award winning After Midnight and critically-acclaimed For the Record: The Brat Pack, along with two restaurants from Iron Chef Jose Garces and The Cellars, a Michael Mondavi Family Wine bar. Norwegian Dawn, essentially a new ship after bow to stern enhancements this year, will sail seven-night cruises from Boston to Bermuda, departing every Friday.

Bahamas & Florida

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In summer 2018, Norwegian Gem will set sail for the Bahamas and Florida each Saturday from New York City, bringing guests the best of beaches, theme parks and sunshine. Norwegian Sky will continue to sail three- and four-night Bahamas cruises from Miami year-round, providing guests a private island escape to, Great Stirrup Cay, which is currently undergoing enhancements that include a luxury lagoon area for Haven guests, along with enhanced facilities, premium cabana furnishings and more family-friendly amenities.

In winter 2018/2019, Norwegian Escape will remain in New York, and bring guests to the tropical beaches of the Bahamas & Florida on seven-night cruises. Norwegian Breakaway will return to New York from Europe and will also sail seven-night Bahamas & Florida cruises from Manhattan during winter 2018/2019.

Canada & New England

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Norwegian will offer guests the opportunity for prime “leaf peeping” in Canada &New England on three vessels in autumn 2018. Norwegian Escape will be the company’s largest vessel to bring guests on spectacular autumn foliage cruises, sailing seven-night Canada & New England cruises from New York on select dates in September 2018. For those looking for a summer cruise to the Pinetree State and Great White North, Norwegian Gem will also sail north from the Big Apple in June 2018 on two seven-night cruises, calling in Maine, St. John and Halifax. For those guests looking to explore Canada & New England further, Norwegian Gem will sail extended 10-night cruises from New York that include an overnight in Québec City, while Norwegian Dawn will sail a series of northbound and southbound seven-night cruises between Boston and Quebec, offering the opportunity to combine for the ultimate autumn getaway with a 14-night roundtrip cruises.

Hawaii

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The recently refurbished Pride of America will continue to sail her very popular seven-night Hawaii itinerary departing from Honolulu every Saturday through May 2019. Offering more than 100 hours of in-port sight-seeing time, the only ship to sail the islands features an itinerary with calls that include an overnight in Kahului, Maui; Hilo, Hawai`i; Kona, Hawai`i; an overnight in Nãwiliwili, Kaua`i; and an afternoon cruise past the breath-taking Nãpali Coast.

Panama Canal and Mexican Riviera

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A true bucket-list experience, Norwegian will offer one-way and roundtrip Panama Canal cruises on three ships in 2018/2019. Norwegian Jade and Norwegian Pearl will sail 11-night and 14-night roundtrip canal cruises from Tampa and Miami in 2018/19, providing guests with a once-in-a-lifetime chance to see one of the seven wonders of the modern world. For guests looking for an extended Panama Canal cruise, they can embark Norwegian Star from either Miami or Los Angeles during select dates in January – March 2019 for a 14-night one way cruise that includes a day-time transit of the canal. Norwegian Pearl will also sail a one-way 15-night Panama Canal cruise from LA to Tampa in October 2018.

Guests looking for a sun and fun cruise can embark on a seven-night Mexican Riviera sailing from Los Angeles on select dates in December 2018 and March 2019 that features calls in Puerto Vallarta, Mazatlán and Cabo San Lucas.

South America

Norwegian Sun will once again return to South America, sailing a series of alternating westbound and eastbound 14-night itineraries between Valparaiso, Chile and Buenos Aires, Argentina in Winter 2018/2019, featuring a sail around Cape Horn and Tierra del Fuego’s splendid fjords.

Information source: Norwegian Cruise Line

As fleets grow, cruise lines opt to update ships

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Royal Caribbean this year spent $50 million renovating the Empress of the Seas for potential use in Cuba. Photo Credit: Tom Stieghorst
 

Cruise lines are increasingly focusing their capital investments on renovating older ships as fleet sizes grow and attitudes evolve about the kinds of returns they get from new ships versus refurbished ones.

In Europe, where most new ships are built, 20.3% of what cruise lines spent at shipyards last year was for refurbishment, up from 5.7% in 2008, according to a new white paper from Seatrade.

Last year, Carnival Corp. spent more on improvement and replacement of its ships than it did building new ones.

For passengers and travel agents, that translates to having a broader selection of up-to-date vessels from which to choose and new features on older ships, not just on newbuilds.

Cunard Line’s Queen Mary 2 provides a recent example.

The QM2 pulled into its pier in Brooklyn in July after a $132 million “remastering,” one of the most expensive refurbishments ever undertaken. In 25 days at the Blohm & Voss shipyard in Hamburg, Cunard added 30 balcony cabins and 15 solo traveler cabins and completely redid a restaurant and lounge.

It also overhauled the King’s Court buffet restaurant, upgraded the Queens and Princess Grill restaurants and expanded the dog kennels, a feature unique to Cunard.

The atrium of the Ruby Princess, a ship that was refurbished last December. Photo Credit: Tom Stieghorst
The atrium of the Ruby Princess, a ship that was refurbished last December. Photo Credit: Tom Stieghorst

The QM2 was one of 40 cruise vessels renovated during the first six months of the year, according to the white paper, which estimated their combined cost of renovation at $1 billion.

That’s more than what the QM2 cost when it was launched in 2004.

There are several reasons why refurbishment is a growing business segment for shipyards.

For one, the fleets keep getting larger. There were 448 ships last year owned by CLIA-member cruise lines. Safety rules dictate that ships go to drydock at least once every five years. Since ships can have a useful life of 30 years or more, each one could get at least six refurbishments.

Some cruise lines are also slowing the pace of new construction. Carnival Corp., with 100 ships already, is sticking to growth of two or three ships a year. So the proportion of its capital spent on refurbishment is growing.

Last year, Carnival spent $981 million on new ships, chiefly the P&O Cruises ship Britannia, and $1 billion on ship improvements and replacements, according to its annual report.

Other cruise lines said the financial returns from refurbishments can equal or surpass those of newbuilds.

Frank Del Rio, CEO of Norwegian Cruise Line Holdings, has roughly doubled the amount budgeted for the drydocking of Norwegian Cruise Line ships, to about $35 million per ship, according to the Seatrade white paper.

In comments to Wall Street analysts last November, Del Rio described it as an alternative strategy to simply churning out new ships to drive revenue.

“We think the return on invested capital on these kinds of choices outpaces the [return] and the payback of new vessels,” he said. “We’ve got billions of dollars invested in these ships. You have to maintain them at the highest standards if you expect to achieve these higher yields.”

As a result, all of Norwegian’s ships except one will undergo refurbishments between 2016 and 2018.

Norwegian and other cruise lines use drydock to add to older vessels features that have proven to be hits on newbuilds. This fall, Norwegian will add Margaritaville restaurants to the Norwegian Breakaway and Getaway after the concept was successful on the Norwegian Escape.

Carnival Cruise Line’s $500 million Fun Ship 2.0 program is largely about adding features to older ships that keep them competitive and consistent with its latest vessels.

“They’re looking to have a homogenous brand,” said Tony Peisley, a cruise industry analyst who authored the Seatrade paper.

Cruise lines also struggle with what to do with their oldest ships, which still have value but are no longer very competitive in North America. Ten years ago, they were often transferred to European lines, but as Europe has struggled economically that trend has been reversed.

Patterned gray carpet was installed throughout the Azamara Journey during its drydock earlier this year. Photo Credit: Tom Stieghorst
Patterned gray carpet was installed throughout the Azamara Journey during its drydock earlier this year. Photo Credit: Tom Stieghorst

Royal Caribbean International this year took back the Empress of the Seas from its Spanish subsidiary, Pullmantur, and spent $50 million renovating it for potential use in Cuba, an emerging market.

Also sailing to Cuba is the Adonia, an aging P&O ship that Carnival Corp. transferred to the Fathom brand following a drydock in March that included both technical work and some redecorating.

The Adonia was refit and made available to Fathom, in part, to find a use for a ship that wasn’t doing well for P&O.

“That’s what they’ve been doing, they’ve been refurbishing, not retiring,” said Vince Ciepiel, an analyst at Cleveland Research who has expressed concern about lines having too much capacity.

Peisley said cruise lines are loath to sell ships to competitors, because, “It’s not so much that they can’t get rid of them as they don’t want to sell them to their rivals. So that kind of limits their options.”

The Seatrade white paper identifies four levels of refurbishment, ranging from adding new paint and carpets at a minimal cost of between $4 million and $5 million to a redo the size of the QM2.

Most fall in the $30 million to $50 million range and involve a combination of technical upgrades, such as new air scrubbers, and retrofits of popular features, such as bars and restaurants.

While new ships are built almost exclusively in Europe, refurbishments are done there as well as in Canada, the U.S., Singapore and the Bahamas. This year, the Grand Bahama Shipyard in Freeport is by far the busiest yard, with 19 cruise ship drydocks on its schedule.

Carnival Corp. and Royal Caribbean Cruises Ltd. both have a 40% ownership stake in the yard, which was founded in 2000, and its location cuts transit times for refurbishment of ships based in the Caribbean.

Jamaica Port Authority plans $40 million Montego Bay Upgrade

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Montego Bay Cruise pier

The Port Authority of Jamaica (PAJ) will spend $40 million to upgrade the country’s cruise ship port in Montego Bay according to local media reports. The upgrade is being designed to create a “regional, multi-purpose port” operators hope will host more cruise ships.

Jamaica officials anticipates “homeporting” cruise ships for scheduled departures from the revamped Montego Bay facility, said Dr. Horace Chang, a ministry of Economic Growth and Job Creation official, in a Jamaica Observer report.

“The current cruise ship pier has to be improved significantly to support the traffic we are going to have with home porting,” he said.

William Tatham, PAJ’s vice president of cruise shipping, said  Montego Bay “will have seven [ships] home porting, up from five” in the 2016-1017 season. Carnival Cruise Line’s Carnival Breeze, Carnival Dream and Carnival Freedom will sail regularly from Montego Bay this fall and winter along with ships from MSC Cruises, Princess Cruises and several European cruise lines.

In an earlier interview on the government-run Jamaica Information Service (JIS) website, Chang said PAJ is placing “serious focus” on expanding and improving the resort city’s cruise shipping facilities. “We expect cruise shipping to grow in Montego Bay and not just cruises coming through, but home-porting in particular,” he said.

Montego Bay is the smallest of Jamaica’s three major cruise ship ports, hosting 210,000 cruise passengers in the 2014-2015 season, trailing Ocho Rios (400,000 passengers) and Falmouth (800,000) passengers according to PJA data.

Jamaica’s 1.5 million cruise passenger arrivals during the 2014-2015 season represents the country’s best-ever annual total and is a 20 percent increase over 2014. Overall cruise ship calls increased 19 percent to 433 compared with 363 in 2014, according to PAJ data.

The ports of Falmouth and Ocho Rios accounted for 44 percent and 32 percent, respectively, of ship calls and 52 percent and 30 percent of passenger arrivals