Tag Archives: USA

‘Positive Signs’ as Holland America Moving Six Ships Toward U.S.

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Holland America Line is preparing for a gradual restart and is said to be moving six cruise ships toward the U.S. citing positive signs and a new conversation around the return to service.

The news came in a letter sent to crew from President Gus Antorcha, reported by Crew Center, and also obtained by Cruise Industry News.

“Following in-depth discussions with the CDC, other government agencies, and medical and science authorities, we have decided to start moving six Holland America Line ships toward U.S. waters over the next several weeks to begin completing the requirements for conditional sailing,” Antorcha said in the letter sent to the crew.

The ships heading to U.S. waters are the Koningsdam, Nieuw Statendam, Nieuw Amsterdam, Westerdam, Zuiderdam, and Noordam. Holland America did not specify port information but the line has traditionally had a strong presence in the winter from Port Everglades and Tampa, which would pull from a large drive-to market.

“While there is still much to be done, this is an important first step toward our goal of resuming cruise operation,” the letter said.

“Holland America Line will continue to work with the CDC on our eventual return to guest cruise operations. We are fully aligned with the CDC on our top priorities for compliance, protecting the environment, and the health, safety, and well-being of our guests, the people in communities we touch, our crew, and shoreside employees.”

Carnival: Optimistic For Restart in the U.S. By Year’s End

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Carnival Breeze

“At this time, we have every reason to be optimistic we will be sailing in the U.S. before year’s end,” said Arnold Donald, president and CEO of Carnival Corporation, on today’s third-quarter earnings call.

The company’s Costa Cruises brand has already returned to service with two ships in the Mediterranean, soon to be joined by a third ship, the Costa Smeralda, according to Donald. They are sailing weeklong cruises from different Italian homeports. The sister brand, AIDA, is set to launch service later this month, also in the Mediterranean, with German passengers.

Donald explained that the ships are sailing with lower occupancy levels enabling the cruise lines to test and assess their health and safety protocols.

With national brands, Donald said Carnival is ideally positioned for a phased-in return to service, as each brand can be restarted independently, and in most cases with ready access to drive-to markets.

Also, with a small percentage of the fleet entering service, for now, he said, there will be less reliance on new-to-cruise, compared to all previous growth cycles that required the brands to tap more new passengers.

In addition, as Carnival is disposing of some 18 older ships and right-sizing its shoreside organization, Donald said a leaner and more efficient company would emerge.

“All initiatives going forward will be focused on maximizing cash generation and creating shareholder value. The delivery schedules of new ships have been stretched out and there is only one new ship on order for 2024 and one for 2025. This will further reduce our capital expenditures and allow us to repay debt,” he added.

Added David Bernstein, CFO and chief accounting officer: “We are focused on assets that are cash generative, so we can pay down debt, rebuild our balance sheet and get back to investment-grade rating.

“We are working through a number of different financial scenarios, but there is a lot of uncertainty involved so it is difficult to give (financial) guidance. (However), we expect over time to build occupancy up to generate positive cash flow and reduce the cash burn. The start-up occupancy level is less than 50 per cent. Over time, once we know we have things right, we will increase occupancy, while keeping social distancing in mind as well.”

Bernstein noted that the break-even point ranges from 30 to 50 per cent occupancy for different ships.

MSC Cruises USA’s Rick Sasso

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MSC Cruises USA’s Rick Sasso

By Tom Stieghorst
Rick SassoRick Sasso was appointed president of MSC Cruises USA in 2004. Earlier this month he spoke about MSC and its 3,502-passenger MSC Divina’s year-round presence in North America with cruise editor Tom Stieghorst. 

Q: Can the importance to MSC of homeporting Divina in Miami be overstated?

A: We’ve been gearing up for this for about a decade now as we started to introduce ships during the winter season only. Now we’ve made that decision to position our strongest hardware, a remarkable ship, and she’ll be very competitive here in this market. 

Q: How have agents reacted to the Divina?

A: We’ve just recently concluded an advisory board meeting, which represents about 80% of the cruise traffic that gets produced here in North America, and these very select, high-profile sellers of travel are very enthusiastic with us. They have offered their fullest support knowing that we’re bringing such a magnificent ship and we’re going to be here with some continuity. 

Q: What type of agents are you focusing on the most?

A: You have to have more than one front. You have to make sure you’re with the online producers, because that’s what the consumers are using very frequently to search for cruises, to book cruises. So you have to have your hand very tight on the big online guys. But there’s also a lot of opportunity in the group arena and the retail arena. We have done a good job penetrating the likely producers of groups and those who are looking for magnificent ships in the premium-plus category, and even those who want a luxury component, because we have Yacht Club on the Divina, as we do on the other three ships that also feature the Yacht Club. So I think we’re now able to set up a little more penetration for those who are looking for a very high-quality product. 

Q: Agents say they have to focus their business, and that means selling the cruise lines that have a big presence in North America. Your response?

A: I don’t think that’s something unusual. When you have the gorillas in the marketplace that have dozens of ships in one marketplace like North America year-round, there’s certainly a lot activity going on and a lot of relationships. But we offer an extraordinary alternative, because we are a serious group of managers, there’s incredible talent in our organization, so they like working with people they can trust. They also know that we are growing, that we have a presence in Europe, we’re the No. 1 cruise line in the Mediterranean in Europe. And that alone is a lot of source [business] in North America that’s going on for those products. 

Q: A travel agent said, “I did send some of my clients over on MSC and they came back and said, ‘This isn’t our cup of tea.'”

A: I think that was probably very, very true three years ago, not so true two years ago and a lot less a year ago, and today we have taken the steps to actually re-engineer the product. So there’s very few places to smoke on board. There is a very strong emphasis on all the culinary items that an American would want, whether they’re cruising in Europe or cruising in the Caribbean. We’ve super-trained our crew in fluent English, there is an abundance of TV channels in the cabins, and we really take quality and service as a main priority now. 

So I think we are a different cruise line than we were 12 months ago, and if you have some comments of a historical perspective, they can now start seeing the new MSC. And [after] Divina comes on Nov. 20, people are going to start talking about that