Short windows limit marketing of Cuba cruises

Royal Caribbean’s Empress of the Seas is scheduled to sail to Cuba from Miami on April 19, then move to Tampa for its next two Cuba departures.

Travel agents have begun selling cruises to Cuba set to sail in the first half of 2017, but some said the limited number of itineraries approved so far by the Cuban government makes it hard for them to justify a marketing campaign.

Royal Caribbean International has three cruises to Havana firmly scheduled, while Norwegian Cruise Line has five.

“There’s definite interest in it, but it’s not something that as of yet is a hot seller,” said John Rice, president of Vacation Tour and Cruise in Tampa. “We have a lot of people asking about it. We’ve only done a couple of [sales] at this point in time.”

While six brands were authorized in December to carry passengers on a handful of cruises to Cuba, no U.S. cruise line has permission to sail there after the end of May, although most have applied.

And in the U.S., the volatile politics of rapprochement with Cuba could very well signal an end to relaxed travel rules with the change in administrations this month.

That uncertainty is hampering what otherwise might have been a great new market for agents, Rice said.

“Right now, our big problem is we have absolutely no idea what the future will hold,” Rice said. “My senator [Florida Republican Marco Rubio] is against this continuing. We’ve heard negative comments about the program from [president-elect Donald] Trump when he was running.”

The latest opening for passengers interested in cruising to Cuba came Dec. 9, when the country approved a number of new entrants, including Oceania Cruises, Regent Seven Seas Cruises, Azamara Club Cruises and Pearl Seas Cruises.

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One of the Norwegian Cruise itineraries 

All those companies have opened sales and set dates for at least one cruise, offering consumers a variety of price points, cruise lengths and luxury levels for a U.S. departure that includes Cuba.

In the contemporary segment, the entrants are Royal Caribbean and Norwegian Cruise Line. Royal Caribbean’s Empress of the Seas has a five-day Cuba cruise scheduled to depart Miami on April 19, along with a seven-day cruise from Tampa departing April 30 and a five-day cruise from Tampa leaving May 20.

Rice said he is offering the five-day Tampa cruise at a lead-in price of $608 per person.

Norwegian Cruise Line has four-day cruises on the Norwegian Sky departing Miami every Monday in May that include an overnight in Havana and a stop at Great Stirrup Cay. Prices for inside cabins start at $699.

Cheryl Scavron, an agent at Dream Vacations in Pompano Beach, Fla., said the prices can seem expensive relative to a typical Caribbean cruise.

“People from here, it’s in their minds that Cuba is 90 miles away; it shouldn’t cost me that much to go there. They think about it as another Caribbean island,” Scavron said.

Frank Del Rio, president of Norwegian Cruise Line Holdings, said in a recent conference call that the Cuba cruises would be priced at a premium because of their relative scarcity and pent-up demand.

Scavron said another hindrance is Royal Caribbean’s decision to have just one cruise to Cuba from Miami before repositioning the ship to Tampa for the summer.

“People in this area, from Palm Beach and Broward counties, they don’t want to drive to Miami, let alone Tampa,” Scavron said. “I have a few of them booked on the inaugural sailing in April, but I was hoping we would be able to do more sailings from here.”

“People from here, it’s in their minds that Cuba is 90 miles away; it shouldn’t cost me that much to go there.” — Cheryl Scavron, Dream Vacations, Pompano Beach, Fla.

Several cruises departing Miami for Cuba are scheduled by lines in the upper-premium segment, offering smaller ships and more luxury than the 1,602-passenger Empress and the 2,004-passenger Norwegian Sky.

Azamara Club Cruises will include an overnight in Havana on a 12-day Azamara Quest departure from Miami on March 21. Prices start at $2,799. And Oceania Cruises will spend from 8 a.m. to 11 p.m. in Havana on March 9 as part of a 14-day cruise on its Marina ship, with prices starting at $3,199.

The Marina has two subsequent 10-day cruises that include overnight stays in Havana.

Luxury operator Regent Seven Seas also has departures from Miami scheduled on April 11 and 18 that will include an overnight stay in Havana. Prices for the seven-night cruises start at $2,999 per person.

Bill Schneider, owner of a Dream Vacations franchise in Tampa, said he has one client in particular who has been waiting for a newer, more luxurious ship such as the Seven Seas Mariner to book his initial cruise to Cuba.

“Regent is the way I’m pushing him,” Schneider said.

He said that the Empress of the Seas sailings haven’t drawn any calls.

“It really hasn’t been promoted that heavily that they’re coming, at least in the local market,” Schneider said. “As New Year’s comes, it’s definitely going to be one of my featured sailings.”

The Empress Cuba sailings opened for booking on Dec. 9 and have been selling extremely well, said Lyan Sierra-Caro, a corporate communications manager at Royal.

Only one line is offering ports other than Havana initially. Pearl Seas Cruises has a series of 11 10-day sailings from Fort Lauderdale starting Jan. 17 on its 200-passenger Pearl Mist coastal cruiser that will visit seven ports on the island, including Havana, Cienfuegos, Trinidad and Santiago de Cuba. The cruises end in April.

Carnival Corp.’s Fathom brand won permission to visit Santiago de Cuba as a port call on six sailings to the Dominican Republic this winter on the Adonia. In addition, the 704-passenger Adonia continues to sail every other week to Cuba, but those cruises, like the others, end after May.

Rice of Vacation Tour and Cruise said agents can only hope that more approvals are forthcoming after that.

“I think everybody’s trying to move the ball forward, hoping that it helps us to try to get the program going,” Rice said. “As a Floridian, it’s something I’ve been supportive of for years. As an agency owner, it’s just tough to operate in an environment where you don’t know what the future’s going to hold.”

Norwegian Cruise Line Holdings’ Frank Del Rio

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Norwegian Sky will cruise from Cuba.

Norwegian Cruise Line Holdings CEO Frank Del Rio has been seeking permission for his U.S.-based cruise ships to dock in Cuba for over a year. On Dec. 7, the Cuban-born Del Rio was called to Havana to sign agreements that finally enable all three of the company’s brands to sail there next year. He spoke with senior editor Tom Stieghorst about the process.

Q: Were you aware when you were down there that the other cruise lines had also been approved?

Frank Del Rio
Frank Del Rio

A: I was pulling into the terminal building where the signing ceremony was taking place, and as I was pulling up with my driver and my team, [Royal Caribbean Cruises Ltd. president and COO] Adam Goldstein was walking out with his team and we exchanged pleasantries as we always do, congratulated each other and had a good laugh about it.

Q: So you almost had a CLIA quorum?

A: Adam even mentioned that. He said, “Frank, I understand there’s a CLIA meeting today,” so that was one of the reasons we had a good laugh.

Q: What building were you in and who were your Cuban counterparts?

A: Oh, there’s too many to mention, and they may not want us to mention them, but the ceremony took place at the terminal building where the cruise ships actually tie up. It’s a very nice building. As I told the officials there, I think that terminal facility is as nice a facility as any in the world, certainly the premier one in the Caribbean basin and Central America that I’ve been to, at least.

Q: Do you plan to visit other ports besides Havana?

A: We do, but not in this first round that covered 10 sailings of the three brands through May 31.

Q: Do you have any insight as to why the Cubans acted now? 

A: I don’t. I think one could speculate. Is it because Fathom pulled out? Is it because of the rhetoric around president-elect Trump’s views on Cuba? It could hypothetically mean that after some time Cuban authorities felt comfortable with additional cruise lines. I didn’t ask. I don’t really care. I’m just happy as all can be that we’re finally in.

Q: Will this be too much at once? Is there anything that concerns you about the infrastructure arrangements?

A: No, on both counts. Because of the infrastructure limitations, the maximum number of vessels in Havana at any given point in time are two: a mid-size vessel like a Sky or a Marina, for example in our case, and one smaller ship, like an Oceania R ship or Regent Mariner. So the number of cruise guests who can be in Havana at any given time is in the 2,500 to 2,700 range. Havana’s a large city. Cuba handles over 3 million tourists a year. So I don’t see that as a burden whatsoever.

Q: Will your shore-excursion department plan the people-to-people program? Do you have someone in Cuba that can help?

A: Both. I don’t see the shore excursions that we would offer in Cuba to be significantly different than the ones we provide when we go to any major historical metropolitan area. Whether it’s Rome or Istanbul or St. Petersburg, Russia, our target customer, especially for the upscale brands, isn’t going to the beach when they go to the Greek islands; they aren’t necessarily going to the beach when they go to Hawaii. They’re looking for experiences, they’re looking for cultural exchanges, they’re looking to visit museums and things of that nature. That’s a lot of what Havana has to offer.

NCL, Oceania and Regent get permission to sail Cuba cruises

The Norwegian Sky will sail Cuba voyages from Miami.

After waiting for six months, Norwegian Cruise Line Holdings (NCLH) finally got the call it had been seeking from the Cuban government allowing it to start cruises to Cuba from Miami, beginning in March.

The authority is temporary and will expire in May. But it covers three brands (Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania), the first time a cruise company has won approval to marshal multiple brands in a strategic foray into the Cuban market.

“We are tremendously excited to have all three of our award-winning brands receive approval from authorities in Cuba to offer cruises to Cuba from the United States,” said Norwegian Cruise Line Holdings CEO Frank Del Rio, who was born in Cuba.

“This is truly a dream come true for me, and I cannot wait for our loyal guests to experience the sights and sounds of my hometown of Havana and get to know its rich culture and its warm and welcoming residents,” he said.

Cruises will sail on the 1,928-passenger Norwegian Sky, the 1,250-passenger Marina and the 700-passenger Seven Seas Mariner.

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Seven Sea’s Mariner,

The first Oceania cruise to Cuba will depart Miami on March 7, leaving less than three months to prepare the ship, the itinerary, the crew and to sell the cruises. The Marina voyages will include “many multiple-day calls to allow guests to explore Havana and its environs,” the company said.

The Norwegian Sky will sail a series of four-night voyages over nighting in Havana in May, while Seven Seas Mariner will call on Havana during two cruises in April.

Pricing was not released. On Carnival Corp.’s Fathom, the only other cruise line to gain approval to sail between Miami and Cuba, fares start at about $1,900 for a seven-day cruise.

Fathom’s ship, the Adonia, is older and much less luxurious than the Marina, which was built in 2011. The Adonia is about the same age as the Norwegian Sky.

It isn’t clear why Cuba is giving NCLH such a small window in which to operate. However, Fathom’s authority to sail to Cuba will also expire in May.

The opening for NCLH comes at a crossroads in relations between the U.S. and Cuba with both countries going through a transition in top leadership. Some analysts had expected a pause in new business approvals, while others saw an acceleration to take advantage of the Obama administration’s open stance towards Cuba.

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Fathom Cruise entering Havana

Cruise tourism to Cuba remains bound by the “people-to-people” framework in place since 1982. That requires shore excursions to be structured to promote exchange activities, such as cultural and humanitarian visits. Norwegian said its cruises would comply with Treasury Department rules.

To sail the new itinerary, Norwegian and Oceania will have to re-accommodate guests already booked. The March 7 Marina departure is currently listed as a 14-day cruise to ports in the western Caribbean, Central America and Colombia. The ship was scheduled to leave for Europe on April 10.

The Norwegian Sky does three- and four-day cruises from Miami that typically attract late bookings.

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Regent Seven Seas Explorer

NCLH’s application to sail to Cuba has been pending for at least a year. At a July news briefing onboard the new Regent Seven Seas Explorer, also an NCLH-owned ship, Del Rio said he was “literally waiting on a phone call for the final, final approval” from Cuba.

But after the Adonia’s authority was granted in March, no other cruise ship approvals followed until now.

Royal Caribbean Cruises Ltd. is among the cruise companies with applications pending. It plans to use Royal Caribbean International’s Empress of the Seas to ply the Florida-Cuba route.

MSC Cruises sails to Cuba but does not market the cruises to U.S. residents. Celestyal Cruises offers seasonal Cuba cruises that Americans can take by flying to either Havana or Montego Bay, Jamaica, and enrolling in a people-to-people group program for shore excursions.