Royal Caribbean and the next wave of communication

By Tom Stieghorst
When cruise lines have something to say to the world, there are a growing number of channels to deliver the message.

An example is the Google Plus Hangout session that Royal Caribbean International used to tout its entertainment program on the Quantum of the Seas.

I wasn’t familiar with Google Plus Hangout, although a (younger) work acquaintance said she used it heavily to plan her recent wedding. It is a mash-up of several Google products that enables 10 people to have a video exchange, while being able to display content on the Internet and holding a simultaneous chat conversation with a (world) wide audience.

I think we’re going to see more of these and less of traditional announcements, media briefings, press releases and the like.*TomStieghorst

They allow for both the social media component, important for attracting users who swim in that ocean, and a lot of multimedia morsels, such as videos, live webcasting and audio.

Royal reached several audiences at once with its Hangout, including past passengers, the media and interested travel partners.

Those audiences were reflected in the half-dozen people that Royal picked to participate on video feeds, such as an editor from Backstage magazine and a Crown & Anchor Society member.

Also included was a social media “influencer” (someone who is tracked and followed by many devotees of Facebook, Twitter, Instagram and the like) and a former Royal cast member who has moved on to a touring production of “The Book of Mormon.”

It was evident throughout that the Hangout was aimed in part at recruiting new performers. Broadway singer Kristen Chenoweth, the Quantum’s godmother, lent her credibility to the effort, describing how Royal’s entertainment innovations work for the performers as well as for the guests.

Nick Weir, vice president of entertainment at Royal, noted that unlike Broadway, entertainers don’t even have to take a taxi to get to their jobs on a ship.

Las Vegas entertainers were also in Royal’s sights. Weir and Chenoweth twice mentioned the Hyde nightclub at the Bellagio Hotel, which hosted the chat. Along with a full-length Broadway production of “Mamma Mia,” the Quantum will offer acts such as Santa Fe and the Fat City Horns, a band popular in Las Vegas that will appear remotely on video screens in Quantum’s Two70 lounge.

So the Google Plus Hangout, for those who saw it, provided an intriguing new launch pad for Royal’s Quantum entertainment package. Royal may have been first to explore it, but I’m guessing it won’t be the last.

Quantum’s repositioning itinerary sails the globe

By Tom Stieghorst
RCCL-QuantumoftheSeas-render410Royal Caribbean International said it will offer a 53-day cruise in 2015 to reposition Quantum of the Seas from New York to China, and that guests can also book five discrete segment cruises along the way.

The 4,100-passenger ship will leave Cape Liberty in Bayonne, N.J., on May 2 for Shanghai. It’s first call will be in the Azores, on an 11-day cruise that includes Cartagena and Palma de Mallorca, Spain, terminating in Barcelona.

That is followed by a 16-day segment that transits the Suez Canal to finish in Dubai. A third segment departs Dubai on May 29 on a 14-day voyage to Penang, Malaysia.

After a three-day short cruise roundtrip from Singapore, the trip concludes with a nine-day exotic Asia itinerary departing June 15 from Singapore to Shanghai.

The cruises go on sale to Crown & Anchor Society members on May 20 and on May 22 to the general public.

China and the cruise industry’s ongoing globalization

By Tom Stieghorst
*InsightThe news that Royal Caribbean International is putting its new ship in China made a big splash. But sometimes it takes a surprising development to show an underlying trend that has been slowly taking shape for years.

The North American share of the world cruise passenger base has been declining, even though in absolute terms it is growing and it still remains far larger than any other source market.

Cruise lines are hungry for new growth, and China is the current gravy train that everyone is hoping to ride. But it isn’t only China. While the Quantum of the Seas is headed for Shanghai, Royal’s Voyager and Rhapsody of the Seas are spending a good part of the year taking Australians on vacations from Sydney.

And Royal is hardly alone. Carnival Cruise Lines is sending its Legend of the Seas to Australia later this year too.*TomStieghorst

Some higher-end cruise lines, such as Azamara Club Cruises, draw more than 50% of their passengers from outside North America.

The international sourcing of passengers is drawing industry attention and resources away from its historical roots in the U.S. and Canada. Cruise officials take pains to assert that North America remains a vital interest for the cruise industry and takes a back seat to no region.

It is obviously true, and yet there is a shift going on that can’t be ignored. It has implications for passengers, for travel agents, suppliers and employees of the cruise lines.

Driving the decision to diversify internationally is the public ownership of the big North American lines. The loyalties of the management of those companies isn’t to country, region or tradition as much as it is to the shareholders that they work for. As Royal Caribbean Cruises Ltd. President Adam Goldstein told me, it is the shareholder’s interest in long-term profit growth that was the primary factor in deploying the Quantum full time to China.

Ironically, as Royal and other U.S.-based cruise lines are looking abroad, privately owned MSC Cruises is knocking on the door, trying to gain more purchase in North America.

MSC is the line adding to its sales force, making its pitch to travel agents here to funnel clients to its small but growing North American capacity. So even as the U.S. loses a new ship (after a short season in New York) it may soon gain a new ship from a Swiss company with an Italian product.

Call it two faces of the same coin, both manifesting the further globalization of the cruise industry.