Gaining perspective with a look back at RCCL, Carnival Corp.

Posted on 8 May, 2014 by Spacejunkie2

Gaining perspective with a look back at RCCL, Carnival Corp.

By Tom Stieghorst

Looking back 10 years at the two biggest cruise companies is one way to gauge how far the industry has progressed and gain some perspective on the problems of the day.

In 2003, the problems included terrorism, war, flu and the SARS respiratory virus. “A perfect storm,” Royal Caribbean Cruises Ltd. Chairman Richard Fain called it in his annual letter to shareholders that year.

On the shipbuilding front, RCCL made its first new order in 3½ years, for an “Ultra Voyager” class ship that would evolve into the Freedom of the Seas. The letter mentioned short cruises from Los Angeles had been restored, and a brand-new terminal in New Jersey called Cape Liberty was inaugurated. *TomStieghorst

Celebrity Cruises had launched a marketing campaign with the theme of ordinary people being treated like celebrities, the Serenade and Mariner of the Seas were added to the fleet and RCCL’s joint venture with First Choice Holidays, Island Cruises, had just turned profitable.

RCCL was hoping to regain the investment ratings on its debt that it had lost after the 9/11 terror attacks.

Flash-forward to 2013. Terrorism, war, flu and SARS, while not vanquished, were not hot-button issues. In his letter to shareholders, Fain says RCCL ordered no new ships for 2017 to keep capacity growth modest.

Royal isn’t sailing from Los Angeles anymore, but its Cape Liberty terminal in New York Harbor is more important than ever. Royal built six ships after Serenade and Mariner, with a seventh, Quantum of the Seas, due in November.

RCCL’s stake in Island Cruises was sold to Germany’s TUI, which is a 50-50 partner with RCCL in TUI Cruises. And the company is still trying to earn back its investment grade rating.

For Carnival Corp., 2003 was the year it finalized its landmark merger with P&O Princess Cruises. It was preparing to take delivery of seven ships in a nine-month stretch, including Cunard Line’s Queen Mary 2.

“I have never, in my 35 years in this business, been more excited and enthusiastic about the future of our company,” Carnival Corp. Chairman and CEO Micky Arison wrote.

Ten years later, the mood is less ebullient. Arison’s letter in the annual report is a bit retrospective; it notes his retirement as CEO of the company he has steered for three decades and salutes Carnival veterans Howard Frank and Pier Luigi Foschi, who also stepped down from executive roles in 2013, leaving the company’s day-to-day direction in the hands of a relative newcomer, Arnold Donald.

Arison’s letter says Donald brought “a fresh perspective and a new energy to our company. … His skills are ideally suited to lead the next stage of Carnival Corp. and PLC.”

Princess Cruises to appear in fly-on-the-wall documentary

Posted on 8 May, 2014 by Spacejunkie2

By Robin Searle

Princess Cruises to appear in fly-on-the-wall documentary

Princess Cruises is to appear in a primetime four-part fly-on-the-wall documentary on ITV.

The cruise line has revealed that camera crews were given behind-the-scenes access to Royal Princess after it was launched last year by the Duchess of Cambridge.

The results will appear in four episodes of The Cruise Ship, though broadcast dates have yet to be announced.

Paul Ludlow, Princess Cruises managing director for the UK & Europe, said the line was given no editorial control over the series.

But he believes the results will provide a boost for the cruise industry in general, and Princess sales in particular.

“This is the single biggest thing happening for cruise this year as far as I’m concerned,” he said.

“This idea has been in the pipeline for a while now and it quickly became something very exciting.”

He added: “It will show the cruise industry in a really positive light and demonstrate the incredible experiences our guests have on board. Our crew are the stars of the show and it reflects how hard they work.”

The programme allows Princess to once again capitalise on the excitement generated when the duchess helped christen the ship, according to Ludlow.

“There was a great feeling in the industry when the Duchess of Cambridge launched Royal Princess and this will bring back a lot of that feeling,” he said.

“This will only have a positive effect for us as a brand and for bookings.”

Last year, BBC2 broadcast The Cruise: A Life at Sea, a series focusing on the chaplain on Fred Olsen Cruise Lines’ Balmoral. It drew criticism that it reinforced perceptions that cruises were for older people, but the line’s Nathan Philpot reported “over £1 million in sales” in the three days after the first show.

Regal Princess coming along nicely

Posted on 29 April, 2014 by Spacejunkie2

Regal Princess, the newest ship to be developed by Princess Cruises, is well on track to make its debut next month.

According to reports, the new vessel has successfully completed five days of sea trials this week. The trials involve a number of special manoeuvres being carried out at sea in order to test the ship’s propulsion systems ahead of its launch.

The tests are also used to ensure that steering and navigation equipment is all up to standard and at the ready. Following its successful completion of the exercises, the ship returned to the Fincantieri shipyard in Italy, where it will receive finishing touches to its exterior and interior.

The 3,600 passenger sister vessel to Royal Princess will be officially launched by the cruise line in May.

Among its most noteworthy features are an opulent new atrium with a truly regal colour scheme (lots of gold), designer ice creams at the Gelato bar and Princess’s largest theatre yet at see. It is also equipped with numerous pools and spas, as well as The Sanctuary, its signature relaxation haven just for adults.

FINCANTIERI: “REGAL PRINCESS” LAUNCHED IN MONFALCONE – The largest ship ever built by the Italian group

“Regal Princess”, the new flagship of the Princess Cruises fleet owned by the Carnival Group, the world’s largest cruise ship operator, was launched today at Fincantieri’s Monfalcone shipyard.
Delivery is scheduled for spring 2014, while its sister ship, “Royal Princess”, launched last august, will be delivered in the first half of this year.

Attending the ceremony for Princess Cruises were Rai Caluori, Executive Vice President Fleet Operations, and Stuart Hawkins, Vice President Newbuilding.
Representing Fincantieri were, among others, Enrico Buschi, Chief Operative Officer, and Carlo De Marco, Shipyard Manager.
Godmother of the ceremony was Carolyn Spencer Brown, editor of Cruise Critic, the most influential cruise industry website and cruise passenger online community.

The construction of “Regal Princess” consolidates Fincantieri’s primacy in building the largest passenger ships in Italian shipbuilding history. In fact, at 141,000 gross tons, 330 metres long and 38 metres wide, the new ship is the largest ship ever built by Fincantieri.
It has 1,780 cabins, of which 1,438 with balconies (81% of the total), and is able to accommodate 3,600 passengers, with total capacity for over 5,600 people including crew.

As an innovative prototypes for a new ground-breaking class of ship, “Regal” and “Royal Princess” stands out for their new “future-proof design”, not only in terms of layout and state-of-the-art performance, but also because they comply with the most recent regulations in shipping. These ships are the best proof that innovation and care of a customer like the Carnival Group, the market leader, are essential levers for tackling a crisis like that at present.

Among the keystones of this trend are the rational use of space, with the aim of avoiding any wasted tonnage that would otherwise increase operating costs, and energy saving to reduce emissions into the atmosphere and water. The ships will be able to adapt to every possible type of cruise, operating from Alaska to Australia, even in environmentally protected areas where navigation is restricted.

Fincantieri has built 63 cruise ships since 1990, including 13 only for Princess Cruises. Another 11 ships are being built or about to be built in the Group’s yards.