Royal Caribbean has big technology ideas, some close to reality

Royal Caribbean’s vision of the inside cabin of the future, with virtual balcony.

BROOKLYN, N.Y. — On the cruise of the future, check-in counters, guest services desks and in-room phones will be relics, replaced by facial recognition, virtual reality and artificial intelligence.

Royal Caribbean Cruises Ltd. (RCCL) last week showcased the various ways that passengers on its three brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises — will experience technological innovations going forward, some much sooner than others.

Passengers on some Royal Caribbean cruises this year (the Oasis and the Allure of the Seas) will be able to check in, order drinks and reserve shore excursions and dinner reservations on their smartphones, using the cruise company’s new app, which will debut this year on 13% of the line’s ships, half of the fleet in 2018 and on 100% of its ships by 2019.

The app, the first consumer-facing piece of the Excalibur technology initiative, is for passengers to do tasks they would normally do at the guest services desk or from their stateroom phone, in addition to checking into the cruise, tracking their luggage, opening cabin doors and texting fellow passengers.

RCCL also demonstrated the evolution of “smart staterooms,” which Royal Caribbean International president Michael Bayley said allows the room to “take care of the guest.”

On display was a Sky Suite, one of the cabin categories on the upcoming Celebrity Edge, which will have some of the features of smart speaker systems like Amazon’s Alexa. Guests will be able to make some commands, such as having the lights turn off and shades close by simply saying, “Computer, good night,” and a “good morning” command in the morning to turn them back on.  Passengers also will be able to control all of the room’s lighting, temperature and the shades using their smartphones or a control panel on the wall, including preset options like “movie” which will close the shades and turn down the lights for optimal movie watching.

As the technology gets better, Bayley said, passengers could be lying in bed and announce that they’d like a coffee, which will then be ordered.

Many of the ideas RCCL showcased are still just that, ideas that may or may not make their way onto ships. One is a “virtual restaurant” experience where passengers put on VR masks while they are eating. Diners would enjoy Japanese food while looking at cherry blossoms in Kyoto.

Another is RCCL’s vision for the inside cabin of the future, in which high-definition videos create the illusion not only of a real balcony with the ocean going by outside — complete with the appropriate weather — but a screen on the floor that shows the sea below and a moonroof ceiling that opens to the “sky.”

How will Virgin Voyages navigate adults-only cruising?

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Built to carry more than 2,700 passengers at double occupancy, Virgin Voyages ships will be the largest that won’t cater to families.

The line said last week that it won’t book passengers under age 18. Virgin Voyages is due to launch its first ship in 2020.

“We have seen it work successfully with Viking Ocean’s 18-plus policy,” said Vicky Garcia, COO of Cruise Planners. “Also, on the land side, there are many adults-only resort models that work well when targeted so that the clients know what to expect.”

Most cruise lines that sail with children have an area of the ship that is adults-only, such as the Solarium on Royal Caribbean International’s largest ships, the Sanctuary on Princess Cruises and the Serenity areas on Carnival Cruise Line.

“Virgin Voyages is looking to attract those who probably are averse to cruising because of their impression that cruising is too focused on kids and families, with water slides, rock climbing and such,” Garcia said.

While Virgin could be going after a “party-hearty” demographic, several mainstream cruise lines fill that niche already, especially in the short-cruise segment.

Virgin’s plan calls for seven-day Caribbean cruises from Miami on its first ship.

Some expect Virgin to be aimed at the more sophisticated and lucrative end of the singles/couples continuum.

“I’m foreseeing a very South Beach-style vibe that will attract new-to-cruise passengers,” Garcia said. “It’s hard to know exactly what other vacations their target is currently aimed at, but the brand’s focus on the yacht-like design is unique and super sexy.”

The first renderings of the Virgin ships’ exterior design demonstrated some of Branson’s typical flair.

The ship’s colours will be silver-grey with red accents, including a red funnel. The aft below the promenade deck will be red with the familiar Virgin logo in large white letters centred in the middle.

Virgin also unveiled an image specific to Virgin Voyages: a sexy mermaid with blonde hair and a red tail trailing a flowing Virgin banner in one hand. The mermaid will appear at a modest size on the side of the ship’s bow in line with the bridge.

Virgin said the mermaid was inspired by figureheads on historical vessels and was designed by the London-based artist Toby Tinsley.

The overall shape of the vessel shares some angles and features with recent Fincantieri designs, such as MSC Cruises’ upcoming MSC Seaside and Norwegian Cruise Line’s Project Leonardo ships.

Renderings show a broad promenade at the aft contrasting with a slim tower of upper decks and a bow with a strong vertical aspect. Virgin said that 86% of all cabins will feature a balcony, and 93% will offer an ocean view.

Virgin has begun accepting $500 refundable deposits that will enrol prospective passengers in a presale that takes place before Virgin Voyages goes on sale to the public.

Hurricanes cost Royal Caribbean $55M, but Q3 profit still rises

Royal Caribbean’s three Oasis-class ships.Royal Caribbean Cruises Ltd. reported an 8.6% increase in third-quarter net profit despite costs from the most destructive hurricane season in its history.

Net income rose to $752.8 million from $693.3 million. If not for five hurricanes in September, including two in the Pacific, Royal Caribbean said that net profit would have been $55 million more.

“That made it by far the most expensive hurricane season in our 45-year history,” chairman Richard Fain said in a conference call with analysts.

Royal Caribbean said strong close-in demand for cruises in July and August and higher onboard spending helped it offset hurricane-related costs and lost revenue from cancelled cruises and a decrease in bookings.

Fain said demand fell “precipitously” during September, both for cruises that month and for future bookings. The softness lasted about six weeks but bookings for virtually all itineraries are back to normal now, Fain said.

Fain said he thinks that travellers have become “inured” to disruptions such as hurricanes or terror attacks so that they are affecting booking patterns for shorter time periods than in the past.

Royal Caribbean said its forecast of adjusted full-year earnings of up to $1.59 billion still holds.

In the third quarter, revenue advanced slightly to $2.57 billion from $2.56 billion a year earlier.  Onboard revenue was up 5%, led by increases in internet usage and shore excursions.