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Saga Looking Into ‘Partnership’ for Cruise Business

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Saga has confirmed its looking into potential partnerships for its ocean cruises business based on reports in British media.

“We are looking at how we can offer more cruises to more guests in the future,” Saga Cruises CEO Nigel Blanks said in a statement shared on social media.

“This comes on the back of exceptional demand for our boutique ocean cruise offer,” he continued noting that the Spirit of Discovery and the Spirit of Adventure are operating “close to capacity.”

“With this in mind, we have been looking into the possibility of entering a partnership arrangement for our ocean cruise business as the best way to support further growth,” Blanks said.

The move would also create value for the company’s shareholders, he noted, pointing out to Saga’s “unique business, with a strong brand and committed team.”

“We are still in the early stages of the process of exploring opportunities,” Blanks said, noting that transactions of this nature “usually take months rather than days or weeks.”

Earlier this month, Sky News reported that Saga was looking into a range of potential options for its cruise operations, which included selling a stake in the business.

According to Sky News, the debt-challenged tour operator was working with advisers and also considered selling its two cruise vessels or offloading the entire business under a licensing arrangement.

After initially entering the cruise business with second-hand vessels, Saga Cruises took delivery of two new cruise ships in 2019 and 2020.

Sailing from different ports in the United Kingdom on a year-round basis, the Spirit of Discovery and the Spirit of Adventure were built by the Meyer Werft shipyard in Germany.

Designed to offer a boutique cruise experience, the 55,000-ton sister ships can accommodate up to 999 guests in double occupancy.

Carnival Corporation Cruise Brands Ramp Up Ad Spending

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Carnival Corporation is ramping up advertising spending across its portfolio of brands, according to President and CEO Josh Weinstein, speaking on the company’s year-end and fourth-quarter earnings call.

He said it was a move to support future demand.

“I’ve actively been working with each brand on their strategies and road maps,” Weinstein said. “As a result, I’ve authorized our brands to take a significant step up in advertising activities, including a nearly 20 per cent increase in our investment this past quarter over 2019, to elevate awareness and consideration and to drive demand for both the near and the longer term. This should be particularly impactful with those new-to-cruise, where we draw about one-third of our guests, as we position to take share from land-based alternatives.”

For example, Weinstein said that Princess Cruises would source more heavily in North America than in prior years due to source market disruptions elsewhere.

And the results have been good, Weinstein noted, with record Black Friday and Cyber Monday sales results at a number of brands.

“We think that advertising has a good amount to do with that, to really reach first-timers, generate awareness, generate consideration, and do so in a meaningful way. We’ve got great brands, and we’ve got tremendous brands, but we need to do a better job getting the voice out. And this is a good way to do it. And it helps not just us, it helps our trade partners, it helps the bookings across the board.”

P&O Forced to Cancel Cruises Due to Lack of Crew

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Citing crew availability issues, P&O Cruises UK has cancelled seven cruises on the Arcadia, extending through a June 23 departure to the Norwegian fjords.

The ship had just restarted service for the brand in late March, marking the Carnival-owned company’s return to full operations.

“The impact of Covid upon airlines and general disruption has necessitated the cancellations as we need to move crew from Arcadia to other ships in the fleet,” P&O said, in a social media post.

With the Arcadia going into a pause state, the ship now returns to service on July 5 for a two-week journey to Iceland, sailing roundtrip from Southampton, England.