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

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.”

Hull art revealed for China-bound Norwegian Joy


Norwegian Joy’s Hull Artwork by Tan Ping

The 4,200-passenger Norwegian Joy, a new ship bound for China next year, will feature a large red phoenix on its hull, the latest in a series of hull paintings for Norwegian ships.

Chinese artist Tan Ping is responsible for the design, which will also include waves and other stylized nautical motifs.

“The Phoenix symbolizes beauty and good luck in Chinese culture, and Norwegian Joy will bridge across the West and the East and bring Chinese people’s best wish to the world and everyone in her path,” said Tan Ping, a painter, print maker and educator.

Joy, the first Norwegian ship to be custom-built for the Chinese market, is scheduled to begin sailing from Beijing and Shanghai next summer.

Norwegian’s ship in China to feature many firsts at sea

The top deck of Norwegian Joy will be the home of Serenity Park.

SHANGHAI — David Herrera, president of Norwegian Cruise Line Holdings’ China operations, revealed some of the features that will debut on the Norwegian Joy, a ship being built for the Chinese market.

Herrera made the announcement here during a keynote address at Travel Weekly’s CruiseWorld China.

Although Joy is a sister ship to the Escape, it will offer several “first-at-sea” features related to activities, hotel, service and gaming.

Some attractions — a formal tea room and an upper-deck Serenity Park — are what one might expect on a ship built for Chinese guests.

Guests can ride hover craft bumper cars at the Galaxy Pavilion.
Guests can ride hover craft bumper cars at the Galaxy Pavilion.

But other features would seem to fit ships sailing the Caribbean equally well.  The Joy’s highest-profile attraction, literally, will be a two-level race track on the top decks in which 10 guests in electric carts will compete in a 5-6 minute race. (NCL is in discussion with possible partners whose logos would adorn the cars, Herrera said.)

Autos are also front-and-center in a Formula 1 attraction. Race cars have been converted into individual three-screen simulators displaying famous race tracks from around the world.

Deck 16 activities will include Oculus virtual reality technology in several variations, including walking a plank between buildings, hang gliding and a design-your-own roller coaster module.

Oculus technology will be installed on additional new ships going forward, Herrera said.

Motion simulation will be the attraction in a colorful fleet of Star Wars Battle Pods.

The Haven's observation deck will have views "as good as the captain's."
The Haven’s observation deck will have views “as good as the captain’s.”

Laser tag, a giant touch screen for young children, hovercraft bumper cars, wider-than-ever waterslides with transparent panels that go over the side of the ship and several karaoke rooms complete the new activities offerings.

On the hotel side, a new level called Concierge will be built above the Haven. It will not be as luxurious as the Haven but will have unique features, including a new suite class with two bedrooms and a simulated balcony.

Both the Haven and Concierge will have observation decks whose views, Herrera said, are “as good as the captain’s.”

The ship will feature many more family friendly suites and rooms with connecting doors than on any previous NCL ship, Herrera said. He added that the new room configurations reflect the  Chinese tendency to travel with multiple generations.

Studio cabins for singles, a feature of every NCL ship since the Epic, will not be on the Joy.

A bathroom in a Concierge suite.
A bathroom in a Concierge suite.

The ship will, however, feature the highest crew-to-passenger ratio of any contemporary-class ship, in part because it will carry 250 fewer passengers than the Escape. (Herrera said that additional staff was also hired.) The space occupied by some cabins that had been on the Escape has been given to the casino and shopping areas.

The 29 restaurants onboard will include one for Korean barbecue as well as a Japanese shabu-shabu restaurant. Herrera declined to say how many of the restaurants will be specialty dining requiring a surcharge.

“It’s about bringing best of east and west together,” Herrera said, summing up all the changes.

More details will be announced in the coming months, he added, including the names of luxury store brands.

A Concierge suite bedroom.
A Concierge suite bedroom.

Norwegian Cruise Line Holdings’ executive vice president for international development, Harry Sommer, said that the Chinese operation has renamed itself from “Norway Cruise Line,” as it was known in China, to three characters which phonetically sound like “Norwegian” but which translate to “promising, exclusive and authentic.”

The characters for the word “Joy” represent “Inner Joy,” Sommer said.

The Norwegian Joy is due to enter service in summer 2017.