Tag Archives: Regent Seven Seas

Regent Seven Seas Cruises offers first view of new ship

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Regent Seven Seas Explorer renderingRegent Seven Seas Cruises has released a rendering of the Seven Seas Explorer, a first look at the ship since it was ordered in July 2013.

The blue and white vessel, which will accommodate 750 guests, doesn’t appear radically different in size or appearance than the line’s three other ships. It will be 12.5% larger than Regent’s biggest ship, but carry only 7% more passengers.

However, the ship looks more streamlined and the lines of the deck more horizontal because the balconies appear to have glass or translucent railings without partitions between the cabins.

Regent spokesman Jason Lasecki said there are partitions between the suites in the ship’s actual design. “It is still a rendering, so the finer details are not necessarily reflected,” he said.

The ship also has a blue accent stripe that starts at the bow and dips stylishly one deck as it approaches midship.

Regent has launched a microsite to provide updates and information about the ship, which is due for delivery in the summer of 2016.

Jason Montague, the newly named president and chief operating officer of Regent Seven Seas, said the line’s partisans have been clamoring for details about the ship.

“This dedicated microsite provides us with a platform to provide our passionate brand advocates with the latest updates,” he said.

Included in the site is a two-minute video setting expectations for the ship, Regent said.

Regent Seven Seas Explorer Video

Regent Seven Seas Explorer Video

Seven Seas Explorer will be the first new ship for Regent in 13 years. Reservations will open Jan. 19, 2015, the company said.

Travel agents seek details on Norwegian-Prestige merger

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By Tom Stieghorst
Norwegian EpicNorwegian Cruise Line moved up its regular Wednesday webinar by one day this week to address the agent implications of its $3 billion acquisition of Prestige Cruise Holdings.

Agents listening to the webinar asked Norwegian’s executive vice president, Andy Stuart, and Prestige President Kunal Kamlani about its effect on commissions, about how the loyalty programs will be handled and whether they will see a cheapening of Oceania Cruises and Regent Seven Seas Cruises to make the acquisition produce financial savings.

Both said several times that it will be “business as usual” for agents and consumers. “In our minds, it all starts with the clients,” Kamlani said.

On commissions, Kamlani said there are no plans in the next three months to change commissions for 2015. He said this is the traditional time of year to review agency agreements but that nothing should change because of the merger. “It is business as usual,” he reiterated.

The two executives said that how or whether to make Norwegian’s past guest loyalty benefits available to Oceania and Regent cruisers, and vice versa, was high on the list of things to consider but no decisions have been made.

Kamlani said in response to a question that he doesn’t expect to begin offering solo cruise rates after the merger. “We probably would never measure very well on that metric,” he said.

A question about merger savings hurting product quality at the Prestige brands drew a strong response from Kamlani.

“That travesty will not occur on any of our watches of anyone involved in this transaction. That’s as direct as I can be,” he said.

Norwegian Cruise Line to acquire Prestige Cruise Holdings

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Updated: Norwegian Cruise Line to acquire Prestige Cruise Holdings

By Tom Stieghorst

Oceania RivieraNorwegian Cruise Line has announced it will acquire Prestige Cruise Holdings for $3.03 billion in cash, stock and assumed debt.

Norwegian said it will issue more than 20 million shares to help finance the purchase.

Prestige includes Oceania Cruises and Regent Seven Seas Cruises.

Prestige shareholders are entitled to an additional contingency payment of $50 million “upon achievement of certain 2015 performance metrics,” a statement said.

Apollo Global Management controls Norwegian through a 20% ownership stake and rights to nominate a majority of the board of directors. Two other partners in Norwegian, Genting Hong Kong and TPG Pacific, have assented to the deal.

Merging Norwegian and Prestige would create a company that can appeal to a broader market swath than Norwegian can on its own, Norwegian CEO Kevin Sheehan said.

“The combination of three distinct brands, each serving a different market segment, under one umbrella immediately creates an industry-leading cruise operator with an unmatched growth trajectory and a portfolio of products that allows us to appeal to guests at every stage of their life cycle,” he said.

After the merger, Frank Del Rio will remain chairman of Prestige Holdings, the statement said. The companies expect the deal to close in the fourth quarter.

In a teleconference, Norwegian CEO Kevin Sheehan said he sees opportunity to use the business model from Oceania and Regent to do a better job of marketing Norwegian’s Pride of America ship in Hawaii. Pride of America is a one-off product with an unusual itinerary, which lends itself to some of the Prestige approach, he suggested.

Sheehan emphasized he has a long list of potential synergies beyond an initial $25 million but that implementing them cannot damage the guest experience.  He said the synergies will remain “behind the curtain” and invisible to guests.

The synergies Sheehan identified in the call are in areas such as purchasing, crew recruitment, port relations, fuel and insurance sourcing, maintenance and dry dock contracts and marketing sponsorships and partnerships.

Sheehan said there may also be consolidation of the two shoreside organizations, which are located within five miles of each other in western Miami-Dade County.

Prestige chairman Frank Del Rio, who turns 60 in two weeks, said he was committed to remain with the company through the end of 2015. “After that, we’ll see what happens,” he said.

Del Rio said the Prestige brands are best at executing a good cruise but haven’t been as sharp on cost savings because of the company’s small size.

Sheehan suggested that negotiations with Del Rio over the deal were at times acrimonious. “We had our moments in the negotiation process, but at the end of the day we’ve shaken hands and are best buddies again,” he said.

Sheehan suggested that the $50 million contingency payment was a way of building into the deal the Prestige view of its future performance, while not paying for it upfront in case it proves less than forecast.