Princess ordering its largest ships

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The new class will be 20% larger than the Royal Princess pictured above

Princess Cruises has signed a memorandum of understanding for two ships that will carry 20% more passengers than the Royal class of Princess ships that began with the Royal Princess.

The ships will be 175,000 gross tons and are designed for 4,300 passengers, compared to 3,560 for the Royal Princess.

Set for delivery in 2023 and 2025, the ships will be equipped with the dual-fuel capability and are intended to operate primarily using liquefied natural gas.

The cost of the ships, to be built by Fincantieri, was not disclosed.

Princess has three Royal-class ships on order with Fincantieri, including its next new ship, Sky Princess, which is currently under construction and scheduled for delivery in October 2019. The two other Royal-class ships are planned for delivery in 2020 and 2022.

Princess Cruises orders two low-emission ships

Princess Cruises is joining UK sister company P&O Cruises in agreeing to build two large new generation ships.

The new 4,300-passenger vessels will be Princess Cruises’ first to be dual-fuel powered – primarily by Liquefied Natural Gas to cut air emissions and marine gas oil.

The 175,000 gross ton new builds are due to be delivered in late 2023 and spring 2025.

The ships will be based on a next-generation platform “designed to further enhance an already world-class holiday experience”.

They will be the largest by capacity in the US line’s fleet and be built at Fincantieri’s shipyard in Monfalcone, Italy.

The agreement for Princess Cruises’ next-generation ships represents parent company Carnival Corporation’s 10th and 11th LNG-powered vessels.

Specification details for the ship design, along with anticipated features and amenities of this new platform design for Princess Cruises, will be shared in the future, according to the company.

The line’s president, Jan Swartz, said: “This revolutionary platform for next-generation, LNG-powered cruise ships will introduce innovative design and leisure experiences driven by the future holiday and lifestyle trends of our guests – further evolving the already best-in-class Princess Cruises experience we deliver today.

“We look forward to collaborating with Fincantieri to bring our vision for this next-generation premium cruise ship into service.”

Fincantieri chief executive Giuseppe Bono added: “We are proud to extend our long-established partnership with Princess Cruises, a brand we have been tied to since our return to the cruise shipbuilding industry in 1990.

“After so many years, we are ready to enter, together, a new era of this industry, increasingly aimed at reducing even more of our environmental impact.

“We proudly do this with an all-time record project, both in terms of size and technology. We believe that there are no more significant milestones than these to reaffirm our market-leading position.

“This builds upon the solid partnership between our country and Carnival Corporation – the largest foreign investor in Italy – while at the same time building upon our technological strength and increasing employment.”

Princess Cruises has three new Royal-class ships on order with Fincantieri, including its next new build, Sky Princess, which is due for delivery in October 2019. The two other Royal-class ships are planned to enter service in 2020 and 2022.

China ‘Stronger Than Last Year’ For Carnival Corp

Costa Serena

“The bottom line is things are stronger for sure that they were last year at this time,” said Arnold Donald, president and CEO of Carnival Corporation, touching on China on the company’s Monday morning second quarter earnings call.

Donald said he still believes China will eventually be the largest cruise market in the world and putting in new hardware (ships) still made sense.

“The market there is very large in terms of overall travel, both from cities in China and, of course, as a huge potential source market for fly/cruise all over the world,” Donald said.

“In terms of the distribution system itself, yes, we’ve moved from full-ship charters primarily now to group sales and partial ship charters,” he continued. “We’ve added a large number of additional distributors. All of that kind of de-risks things a bit from being overly concentrated and what, in effect, today is still pretty much a B2B market. The direct sales component is slowly growing a bit there. There’s an opportunity to grow that over time. But a timeline in China, we’ll see. It’s a small market.

“I don’t see a dramatic increase in per cent of total capacity in the short term there. And the reason is not so much because of China, but because of the demand everywhere else in the world. And then as I mentioned, there are large addressable markets everywhere in the world that are under-penetrated, including the United States.

“And so it looks positive for the year on a relative basis so far. But China’s China, and we have to see how things play out for the full year,” Donald said.

“But right now, conditionally, things definitely look stronger. In terms of sanctions, we haven’t heard of any sanctions on either side that would directly impact the cruise industry.”

Travel to Korea is still unofficially restricted, and Donald said if that opens up, it could help the situation.