Rumoured sale of Cunard and Seabourn denied by Carnival Corporation

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Carnival Corporation has scotched speculation that luxury brands Cunard and Seabourn could be sold as the cruise giant seeks to navigate recovery from the Covid-19 pandemic.

The company was responding to a specialist media report.

Global shipping news service TradeWinds claimed a sale could be prompted by ageing passenger demographics and a need to generate higher returns.

But a Carnival Corporation spokesman said: “There is no truth to this rumour.

“Cunard and Seabourn are iconic brands for our company, and both lines have a strong track record of success over the years.”

The company announced that it is to dispose of a further two ships, in addition to the disposal of 13 ships across its brands and the delayed delivery of new vessels announced earlier this month.

Four older Holland America Line ships have been sold, including two to Fred Olsen Cruise Lines, while P&O Cruises’ Oceana has left the fleet and Greek line Celestyal Cruises acquired Costa Cruises’ Costa NewRomantica.

In June, Carnival Corporation said it was speeding up the disposal of ships after a registered $2.4 billion adjusted net loss in the three months to May 31.

It has raised at least $10 billion through a series of financial transactions since March, and had “taken significant actions to preserve cash and secure additional financing to maximise its liquidity”.

It also confirmed $8.8 billion of credit facilities to fund ship deliveries originally planned through to 2023.

Cunard sailings by Queen Mary 2 and Queen Victoria are suspended until November 1 and Queen Elizabeth until November 23.

Seabourn’s five-ship fleet is on an extended pause in operations into October and November.

The brand had previously announced a suspension of its global ship operations from March 14 until June 30.

The Future of U.S. Cruises to Cuba

Havana Cuba.
Havana will soon be bustling with U.S. cruise passengers

Although U.S. laws still prohibit leisure travel to Cuba, cruise lines are waiting with plans in hand for the green light. Since last month’s announcement that Fathom, Carnival Corporation’s new social impact brand, was granted a license to sail from the Port of Miami starting next May, the floodgates seem ready to open.

Although Fathom is accepting bookings, negotiations with Cuba are not yet complete, and settling on ports of call remains up in the air. Rates for Cuba cruises, which start at $2,990 per person, are double those for Fathom’s originally announced Dominican Republic sailings, and Cuban fees will be tacked on to the cruise fare.

Meanwhile, Tom Baker, co-owner of Houston-based Cruise Center, has found land tours extremely high-priced in comparison to cruises.

“We’re looking at around $1,000 per day for a destination that is not a luxury experience,” he said. “I’m sure the tour operators are doing wonderful things, but they are still left with mediocre hotels, terrible roads and buses that may or may not maintain air conditioning. So I went to Cuba Cruise, where the highest-priced staterooms run around $3,000 for two people on a weeklong cruise, including shore excursions and an all-inclusive beverage package. You don’t have to take long bus rides, and both food and accommodations are going to be comfortable, at the very least.”

Baker originally booked a people-to-people cruise for himself, then decided to see if a LGBT group he was working with wanted to go as well. Now, he has more than 200 clients sailing on a Jan. 1 cruise, and the number of passengers continues to grow, all with little marketing.

Bonnie Habel, president of Fuller Travel in San Antonio, sees the current requirement for cruise passengers to interact with locals on the ground as another positive selling point.

“A lot of work and thought goes into those excursions, and it’s not just shopping and seeing a historic site,” she pointed out. “And with the cruise, people get a predictable level of food and lodging.”

One of the most intriguing aspects of the Fathom announcement is that president Tara Russell is also tasked with finding social impact cruise opportunities for other brands in Carnival Corporation’s huge fleet.

Habel and others believe they could sell the highest-level accommodations on a luxury ship in Cuba.

“If Carnival is smart, they will put Seabourn Cruise Line in there,” Habel said. “The highest-priced accommodations would fly out the door.”

Cuban-born Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings Ltd., called the Carnival move a “critical first step.”

“Cuba will shine new light on the Caribbean, still the biggest cruise destination in the world,” he said.

According to Del Rio, Cuba has five or six ports with qualities “as different as New York and Texas,” and he believes all three of his brands — Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises — could differentiate themselves enough to more than satisfy the desires of various clienteles.

In addition to Fathom, a group of Florida ferry companies has been approved by the U.S. government to operate service to Cuba, including United Caribbean Lines, run by veteran cruise executive Bruce Nierenberg. His company is working with Haimark Ltd. to put the 210-passenger Saint Laurent into operation as the first small ship operated by a U.S. cruise line to circumnavigate Cuba in more than four decades. The line will offer nine-night roundtrip departures from Miami to Cuba beginning Feb. 20, pending final government approval.

 

Seabourn forms culinary partnership with Thomas Keller

Seabourn has partnered with Michelin-starred chef Thomas Keller, who will create menu items for the Odyssey, Sojourn and Quest cruise ships beginning in early fall.

Thomas Keller
Thomas Keller

Also, Seabourn and Keller will collaborate on a restaurant that will debut on the Seabourn Quest next year before being expanded to the rest of the fleet, including the new Seabourn Encore, which is due to enter service in late 2016.

Keller has been awarded three Michelin stars for two of his restaurants: The French Laundry in Yountville, Calif., and Per Se in New York. Another restaurant in Yountville, Bouchon, has received one star.

Keller has also authored five cookbooks and is publisher of Finesse Magazine.

“There is really no chef more accomplished or held in higher esteem than Chef Keller, and we are both honored and delighted to have a restaurateur of his stature take our onboard culinary offerings to an even higher level,” said Seabourn President Richard Meadows. “His culinary talent and sophisticated cuisine are beyond compare and the perfect match for our guests. We have no doubt our guests will be as excited as we are to taste and enjoy Chef Keller’s dishes on our ships.”