Royal’s Quantum heads to UK for trade preview

Royal's Quantum heads to UK for trade previewRoyal Caribbean International took delivery of new ship Quantum of the Seas ahead of a trade preview sailing from Southampton at the weekend.

The formal handover in Bremerhaven from its German shipyard came ahead of the 4,180-passenger ‘smart ship’ arriving in the UK on Friday.

More than 500 agents have been invited on a two-night inaugural sailing before Quantum of the Seas accepts its first passengers on Sunday for a transatlantic crossing to Bayonne, New Jersey.

Quantum of the Seas will then sail from New York to the Bahamas and the Caribbean for her inaugural season before departing for her new homeport of Shanghai (Baoshan) in China next May.

This weekend’s preview will allow agents to gain an insight into the facilities to be offered by sister ship Anthem of the Seas which will be based in Southampton from April 2015 for a summer of Mediterranean itineraries.

The Quantum-class ships feature the line’s largest cabins, including interior accommodation with virtual balconies offering real-time views of the ocean and destinations.

Additional bandwidth allows the ships to offer 500 times more connectivity than any other cruise ship, Royal Caribbean claims, in addition to technology designed to speed up the boarding process with passengers able to track their luggage.

Other features include the first skydiving simulator at sea, a viewing pod that lifts passengers more than 300 feet above the ocean, the SeaPlex indoor sports and entertainment complex with bumper cars and roller skating, and a Bionic Bar featuring the world’s first robotic bartenders.

When cruise lines went global

By Tom Stieghorst
*InsightIt is easy to forget that the cruise industry was not always the global, or even national business that it is today.

In the early period of modern cruising, the airlines were still regulated and selling cruises was mostly a drive-port business. I was reminded of that in talking with Carnival Corp. COO Alan Buckelew, who began his career in the 1970s at Sitmar.

Buckelew’s latest assignment takes him to China, where he will function as Carnival’s point person in that key emerging market. Buckelew said China in many ways reminds him of the cruise market in North America back in its infancy.

In the mid-1970s, Buckelew recalls, each part of the U.S. had its own cruise players.*TomStieghorst

“There were a couple of brands in Miami, one or two in New York, one in L.A., and they pretty much kept to their own neighborhoods — the Miami guys in the Caribbean, New York in the Caribbean as well, the L.A. guys in Alaska and Mexico.”

With the deregulation of airlines in 1979, flying became more affordable.

“As cruise lines began to create an air package program and began flying, more ships came into the business, and it became more of a national business rather than a regional business,” he said. “And now it’s a global business.”

As it played out, the regional cruise lines consolidated in Miami. Princess Cruises, which merged with Sitmar, and Holland America Line became part of Carnival Corp. As did Cunard Line. Another big player in the New York market, Celebrity Cruises, became part of Royal Caribbean Cruises Ltd.

Now the competitive arena has shifted to China, where, Buckelew says, “we’re back in the 1970s.”

“It’s still pretty regional, not that many guests flying to the ships,” he said. Hong Kong, Shanghai and Tianjin all draw passengers from their own geographic areas.

One big difference, however, is the scale. China’s population is four times that of the U.S. There are 24 million people in greater Shanghai alone. “When I go back home to L.A. or Miami, they seem like little villages in contrast to Shanghai,” Buckelew said.

Comment: Cruise industry must take China’s rise on board

Comment: Cruise industry must take China's rise on boardFollowing the announcement of the deployment of Royal Caribbean’s newest ship year-round from Shanghai next year, David Selby assesses the significance of the decision and the impact on established markets

China is vast – it has a population over 20 times that of the UK and is the world’s second largest country by land mass.

Between 2007 and 2011, its economy grew at the rate of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States combined – and while we dither in the UK about where the next commercial airport capacity will be situated, around two-thirds of the world’s airports are being built in China, with 55 planned between 2013 and 2015!

Shanghai is China’s biggest city, with a population of over 22 million, according to the last National Population Census in 2010. While a significant number of residents still have insufficient income or interest in cruising, it was perhaps only a matter of time before a major international cruise line would announce year-round deployment from the city, as Royal Caribbean has done.

The fact that it is its newest and “shiniest” ship, Quantum of the Seas, does make it interesting. It goes against the traditional idea of growing “new to cruise” markets typically using older tonnage, and keeping the key markets fresh with the newest innovation hardware.

During last week’s announcement, Adam Goldstein, Royal Caribbean’s president and chief operating officer, said: “Every trend we are seeing in China tells us we can achieve real long-term competitive advantage and appealing returns on our investments in this fast-growing market by accelerating our presence there. We will have to be nimble, but the ability to move fast is one of our strengths.”

I agree! It comes from having – in my view – the strongest single international cruise brand in the world.

Meanwhile, analysis commissioned last year by the Asia Cruise Association predicts a market size in Asia by 2020 of 3.8m, of which China will be 1.7m – just below what the UK is today. Cruises are typically of short duration and to serve 3.8m cruisers on 5 night voyages, the region will need the equivalent of eighteen 3,000 berth ships sailing in the region year round. It is unlikely to stop there.

Where will they come from, and what of traditional core markets?

Well, Royal Caribbean points out that the ports of Florida (with ships sailing to the Caribbean – the most popular cruising destination), will be operating with record levels, while from New York passengers will have the chance to cruise on ships not previously deployed from there.

In the UK of course, we look forward to seeing Anthem of the Seas – Quantum’s sister-ship – sailing from Southampton after she is launched next year. Longer term however, we could see a general shift away from current core markets unless there is an acceleration of new-build activity.

For the remainder of this year, apart from Quantum, there are just three ships over 2000 berths being launched worldwide – for Princess, Costa and Tui in Germany. Next year there are five, in 2016 there are six and in 2017 there are so far just three. While this may increase, it is barely enough to cover the Asian growth over the next six years.

Therefore, the challenge is on for the industry in traditional markets to keep the product and marketing fresh, to drive value and deliver exceptional levels of customer service – and the same goes for the destinations the ships visit.

Looking even further ahead – once the Chinese have tried cruising at a local level, they will without doubt be cruising further afield and coming to Europe.

So while we sort out the runway problem, it would be a good idea to sort out the UK Visa situation at the same time.