Royal Caribbean and the next wave of communication

Posted on 19 June, 2014 by Spacejunkie2

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.

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.

Norwegian Cruise Line pricing weak, equity analyst says

Posted on 19 June, 2014 by Spacejunkie2

By Tom Stieghorst

Norwegian Cruise Line’s prices are sagging, according to SunTrust Robinson Humphrey analyst Patrick Scholes, who reduced his 2014 earnings estimate as a result.

“Based on our survey data, we remain concerned about the persistent direction of pricing trends,” said Scholes, who downgraded his recommendation on the stock from “buy” to “neutral.”

Scholes said a periodic survey of pricing done in May showed prices down in the mid-single digits over the next 12 months. Advertised sailings 1-3 months out were down 5% from last year, an improvement from April, but the fifth consecutive month of decline, he said.

Prices for cruises 4-6 months out were down 6.5%, compared with 8% in April, the second month of decline, while prices 7-12 months out were down 6% for the second straight month.

Contributing to the declines was a narrowing of the premium Norwegian gets on its newer ships, Scholes said, with Norwegian Getaway selling for 3-5% less in May than other ships in the fleet that sail to similar destinations.

In addition, Scholes said onboard spending per passenger has been flat to down for three quarters “suggesting either the newer ships are not as productive as planned or the older ships are fading faster than expected.”

He reduced his 2014 earnings estimate to $449 million from $457 million previously.

Norwegian did not have any comment on the report, a spokeswoman said.

Separately, Scholes said Royal Caribbean International is on track to exceed its own forecast of profits for 2014, with pricing up double digits in May, according to survey data. Carnival Corp. prices were up 8% in May from a year earlier, “as the company laps the easy compares that resulted from the Carnival Triumph incident last year,” Scholes said.

Quantum of the Seas damaged in ship fire

Posted on 14 June, 2014 by Spacejunkie2

Quantum of the Seas, the next addition to Royal Caribbean’s fleet, has suffered damage after a fire broke out on one if its decks.

The vessel is still being built at the Meyer Werft shipyard in Papenburg, Germany, and is due to enter service at the end of October, with an initial season scheduled in the Bahamas over the winter before it relocates to Shanghai in China from next spring.

According to reports, the blaze broke out in a cabin on deck three of the 167,800-ton vessel, which will be capable of carrying up to 4,180 passengers.

Local fire services were called to the shipyard and were able to tackle the fire in a short amount of time, however two people were transferred to the local hospital in Papenburg to be treated for smoke inhalation.

It is estimated that the damage to Quantum of the Seas will cost approximately €50,000 (£40,300) to remedy.

The first Quantum-class vessel from Royal Caribbean, it will be followed next spring by sister ship Anthem of the Seas, which will sail out of Southampton.