Carnival and Fincantieri explore building cruise ships in China

American based Carnival Corporation, the world’s largest cruise company, and Fincantieri, an Italian company with the accolade of the world’s largest shipbuilder, have been reported to be considering building cruise ships in China for the Chinese and Asian cruise markets.

A Carnival Cruise Line vessel sailing the ocean

Both companies have recently signed a Memorandum of Understanding to support cruise industry growth in China.

The intention of this Memorandum is to explore opportunities for the two companies to explore the construction of cruise ships especially for the booming Chinese market.

Carnival Corporation had previously signed a Memorandum of Understanding with China's largest shipyard, China State Shipbuilding Corporation (CSSC), in mid-October 2014 to work together on a potential collaborative joint venture focused in shipbuilding in China.

Both of these Memorandums point to Carnival Corporation investigating building cruise ships in Cina for the Chinese market. The American-Italian-Chinese collaboration could see China’s first world-class cruise ships constructed in the country.

It is understood that Carnival Corporation are calling on the expertise of China State Shipbuilding Corporation and Fincantieri for ship-building design and expertise to create the vision, definition and overall specifications. After all, this project is about building a Chinese cruise ship for the booming Chinese cruise market. Whilst China State Shipbuilding Corporation has a reputation for delivering quality industrial vessels Fincantieri’s role is to help adjust their practices and processes to deliver quality passenger cruise ships.

Arnold Donald, CEO of Carnival Corporation is quoted as saying "This new agreement with Fincantieri gives us the opportunity to work with our long-time partner to further explore a formal joint venture that could forever change the landscape of shipbuilding in China".

It doesn’t take much to see why this is a sensible strategic move by Carnival Corporation. The Chinese Ministry of Transport projects China to be the second largest global cruise market after the United States of America in the next several years based on economic growth, increased spending power of Chinese consumers and growing demand for cruise vacations.

By 2020 the Chinese Ministry of Transport projects the country could see 4.5 million cruise passengers and ultimately it could quickly become the world's largest cruise market. Many existing cruise lines will want to be a part of this boom as early as possible.

(Photo credit to Carnival Cruise Line)

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Seabourn Signs Formal Deal For New Ship

We have been eagerly awaiting the news of the formal signing of the contract for Seabourn to confirm a fourth new ship, and here it is today.

And the confirmation includes the details that the latest ship from their 2009 Odyssey-class series will be their biggest to date at 40,350 tons and is due for delivery in mid-2016.

The contract for construction of a new ultra-deluxe, all-suite vessel continues the fleet modernisation the company began with the launch of Seabourn Odyssey (above) and followed up with Seabourn Sojourn (2010) and Seabourn Quest (2011), and which has been widely recognised as a game-changer in the luxury cruise sector.

The configuration of the as-yet unnamed vessel will be based on the 32,346-ton Odyssey-class, with one additional deck and new expanded public areas. The ship will be built by Fincantieri S.p.A. in Italy, and is expected to carry  604 guests, based on double occupancy of the all-suite lower berths, as compared to the Odyssey trio's 450. However, the design will maintain Seabourn’s high ratio of space per guest and enable highly personalised service by nearly one staff member per guest on board. In addition, every suite will feature a private veranda. 

Seabourn president Richard D. Meadows insisted: “The new ship will continue the evolution that began with Seabourn’s fleet expansion, adding modern design elements and innovations consistent with Seabourn’s reputation for understated elegance. With its delivery, the most highly rated cruise line in the world will also offer travellers the newest fleet of ships in the luxury segment.”

The new vessel will replace capacity - Seabourn Pride, Legend and Spirit - that is being transferred to new owners Windstar Cruises in April 2014, April 2015, and May 2015, respectively. The contract with Fincantieri also continues a longstanding relationship of more than two decades between Seabourn’s parent company, Carnival Corporation & plc and the Italian shipbuilder.

More info: call 0843 373 2000 or visit www.seabourn.co.uk.

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Britannia's The Name For P&O

P&O Cruises has announced that its new 141,000-ton ship, scheduled to enter service in spring 2015, will be named Britannia.

Speaking today in London, P&O Cruises & Carnival UK chief executive officer David Dingle said: “Britannia is a most fitting name for the newest addition to P&O Cruises, which, with its long and famous heritage, remains Britain’s favourite cruise line. Britannia will capture both the contemporary spirit of P&O Cruises and the spirit of Britain today.

“Today’s Britain is a place of increasing style and sophistication, optimism and excitement. Britannia will reflect that feeling and will mark a new era of growth and success for the cruise industry. It will also underpin P&O's unique commitment to building ships specifically designed to anticipate the tastes of today’s Britain. It will be a modern classic, a ship for this and future generations offering authentic travel by sea in an enduringly contemporary setting.”

Britannia will boost P&O Cruises capacity by 24%. With a length of 1,082ft, it will carry more than 3,600 passengers and, at 141,000 tons, will be 25,000 tons larger than P&O's previous biggest, the 2008-built Ventura.

The new vessel will offer "the best of British contemporary design, with an unprecedented number of passenger facilities. It is being designed throughout by London-based Richmond International, creating “flowing” interiors which have a coherent feel while each area will have an individual identity, look and feel through shape, space and soft furnishings."

The ship will also be designed to both attract both newcomers to resonate and resonate with existing passengers. It will offer the “best of the best”, combining favourite classic features of ships such as Oriana and Aurora, the wide choice and contemporary variety of Ventura and Azura as well as many yet-to-be-announced new concepts in technology and entertainment. Dining options will reflect the continuing rise of British cooking on the world stage.

Following travelling trends and customer research it will also have more single cabins than any other cruise ship, many of them with balconies.
Dingle (pictured right with Captain Paul Brown, Carnival chairman Micky Arison and CEO Arnold Donald) continued: “At the same time, the ship will be our greenest yet and will be designed to deliver much greater levels of operational and environmental efficiency. 

"A new hull form will reduce unit fuel consumption by up to 20%. And, whilst the name Britannia has great historical resonance with P&O Cruises, most importantly, the ship will celebrate the forward-looking Britain of today and the future.”

There have been two previous ships named Britannia connected to the company. The first entered service in 1835 for the General Steam Navigation Company, which went on to become The Peninsular Steam Navigation Company. The second, which entered service in 1887, was one of four ships ordered by the company to mark the Golden Jubilee of both Queen Victoria and P&O itself. 

This Golden Jubilee class ship carried 250 first-class passengers and 160 second-class passengers and had a cargo capacity of approximately 4,000 tons. The young Winston Churchill sailed on this Britannia with his hussar regiment to Bombay in 1888 and then went on to fight on the North West Frontier. 

Britannia was also, of course, the name of the Royal Yacht for 44 years from her launch on Clydesdale in 1953. She is now docked in the Port of Leith (Edinburgh) as a major tourist attraction.

Now see our new Poll question on our home page and let us know what you think about the name for P&O's new ship!

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Cruise Shipping Miami - Day 2

After the strong but relatively sedate opening day to the world’s largest annual cruise convention, the second day is typically a much more dynamic, almost frenzied, affair as the main Exhibition opens, multiple press conferences take place (often at the same time!), and we have the State of the Industry address.

This latter is eagerly awaited by everyone in the industry and never more so than in the wake of the terrible Costa Concordia accident on January 13. It is a chance to hear from the key cruise chief executives and learn how they see the past, present and future of the business, often in fairly lively fashion.

Sometimes, they can be a bit snippy towards each other; often there is some robust jousting as all try to make a point or two at the expense of their rivals; but mostly it is an upbeat and almost rabble-rousing cry to the rest of the industry – the agents, suppliers, builders, port authorities and destinations – to be positive and forward-thinking in the months ahead.

Usually, they have a lot to be bullish about, with just about unbroken passenger growth across the board in the past 10 years and lots of nice, shiny new ships to be proud of.

But this year they had to deal with the 600lb gorilla in the room – the terrible circumstances of January 13 and the ongoing negative image of cruise safety has been raised in some areas of the media, with subsequent drop-offs in cruise bookings and the loss of all that heady positive momentum.

And deal with it they certainly did, starting with the first three speakers, who all mentioned Concordia in some way, most notably Carnival Corporation vice-chairman and chief operating officer Howard Frank (below), who not only made the proper acknowledgement of the profound impact of the incident but then went off-script to deliver a heartfelt defence of the Costa brand and its many loyal staff. The crew of Concordia, he insisted, were the “true heroes of this tragedy, and, as time unfolds, all their stories will be told.” Robust, feisty stuff.

Where that leaves the villain of the piece, Italian Captain Francesco Schettino – or Captain Gutless as many media have dubbed him – is anybody’s guess. But Frank did also go on to give a big shout-out to the people and country of Italy for their strong support in the wake of the incident.

Moderator Christine Duffy (above), the head of Cruise Lines International Association, also addressed the issue head on, but by pointing out cruising’s excellent safety record prior to Concordia and highlighting the industry’s strong growth since 2000 – when numbers have doubled worldwide – and the prospect of some 231 ships under the CLIA banner by 2015, representing 360,000 beds.

That led in to the main round-table (actually, a U-shaped table) discussion moderated by Duffy and featuring six senior cruise line heads, Gerry Cahill (Carnival Cruise Lines), Adam Goldstein (Royal Caribbean), Dan Hanrahan (Celebrity), Kevin Sheehan (Norwegian Cruise Line), Stein Kruse (Holland America) and Pierfrancesco Vago (MSC).

Each was given an opportunity to talk on the subjects raised by Duffy (probably carefully crafted beforehand, but still deftly handled by the CLIA chief, after only a year in the job) and each one made some significant, positive points.

The first three topics all covered health and safety issues either directly or indirectly related to Concordia, but then things gradually transformed into discussions on the new Environmental protection Agency Regulations that begin in August (and are dramatically reinforced in 2015), requiring ships to use low-sulfur fuels close to the mainland in the USA, Canada and Europe. Then it was on to new ships, the ever-popular subject of globalization, the travel agent community, destinations and reasons for optimism.

The two-hour session (below) flew by, and then it was on to a round of press conferences and interviews during the ‘lunch’ break (if swallowing half a sandwich and a coffee at lightning speed can be considered ‘lunch’!) .

We had the opportunity to talk to David Dingle, the chairman of Carnival UK (all the 5 main Carnival brands sourcing passengers out of Britain – P&O, princess, Holland America, Carnival and Cunard), on the subject of recent events and the effects on the UK market, and he was convinced cruising is already bouncing back and will get a major boost from two events this summer – the Queen’s Diamond Jubilee in June, which will feature a Cunard tribute, and P&O’s 175^th anniversary event in Southampton on July 3, which will feature all SEVEN of the line’s ships for the very first time.

A dizzying round of press conferences then followed, from Princess Cruises (announcing more details of next year’s new ship, Royal Princess), Hong Kong (mainly about their amazing new passenger cruise terminal due to open next year), Singapore and Indonesia (about cruise growth in south-east Asia and Singapore’s new terminal opening later this year) and then Copenhagen.

We also had a wonderful meeting with American Cruise Lines chairman Charles Robertson, who is eagerly promoting the advent of the new Queen of the Mississippi on the Mississippi and Ohio rivers this August and told us of the company’s growing interest from the UK and Australia. This dramatic classic paddle-steamer will bring traditional upscale river-cruising back to the Mississippi but also offer the most luxurious accommodations and style of any American river-cruiser.

It is a superb and should appeal to lovers of all things stylish in the river-cruise field, especially as the line has just placed an order for ANOTHER paddle-steamer as a result of the demand they are seeing for the Queen of the Mississippi.

The afternoon session saw us listening to David Dingle again, as part of the Opportunities In A Changing Europe workshop session, looking at the many reasons for continued growth in European cruising – and the challenges, like the EPA and some potentially serious taxation issues from the lame-brain mandarins of the European Community in Brussels who, if they have their way, will tax every cruise line out of European waters.

Short-sighted doesn’t even begin to describe it, but suffice it to say these unelected buffoons think cruising should be subject to VAT and other sales taxes for things like drinks on board, and cruise lines should also pay EXTRA taxes on things like the shore excursions they sell and casinos they run.

How do you spell barmy? How about B-R-U-S-S-E-L-S.

Another two hours went by quickly and then it was time for us to take a quick look at the exhibition floor, notably some of the destinations with high-profile booths, notably Hong Kong, Alaska and Chile. There is a LOT to take in here and we will be back on Thursday for a more in-depth look.

 
Finally, we had been invited to a press reception at the Van Dyke Café on nearby Lincoln Road with Norwegian specialist cruise line Hurtigruten, one of our big favourites here at World of Cruising. It was mainly their US office but it was good to hear that this innovative adventuring company with the authentic Norwegian style has a strong following on both sides of the Atlantic and they continue to see good growth especially for their Arctic and Antarctic voyages.

Then it was time to grab a quick bit of dinner and head back to our hotel (the wonderful Grove Isle Resort & Spa in Coconut Grove) and get some work done before turning in for the night. Tomorrow, we start at 8.30 with a Norwegian Cruise Line press conference before heading into a morning session on Luxury Cruising.

Definitely two to look forward to…

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Cruise Shipping Miami - Day One

I promised we would report back 'live' from the big Cruise Shipping Miami convention this week and, a little later than hoped, here is a run-down of Day One at the world's biggest passenger shipping conference.

The convention basically has two main sections, the workship-style conference sessions into various aspects of the cruise business, and the Exhibition hall, split into Cruise Suppliers and Destinations. The exhibition is not open on the first day (they were still setting up when we peeked inside), hence the opening session is all about the workshops.

But first a quick gripe. Much to our surprise there was NO WiFi available to the media today (or, possibly, for the rest of the convention). Apparently it is a cost-cutting measure on the organisers' part. So they obviously don't want us to Tweet, blog and send 'live' reports back from the conference. An odd choice when there is an official Twitter hashtag for the convention (#CSM2012). There was also nothing to eat (apart from plain croissants and muffins) anywhere in the South Beach Convention Center, hence we needed to dash out to the nearest Starbucks to grab a quick sandwich (and get online) during the lunch break. Not very impressive for a so-called 'convention' venue.

Those are obviously minor quibbles, but it does make you wonder if Miami is no longer the ideal choice for this kind of thing. We would certainly give Orlando a big advantage on this score, especially as there is no actual need to be near a port!

Anyway, we did get straight into business mode in the morning, with an excellent seminar on Global Source Market Trends. This two-hour session featured six significant industry experts, including Britain's Bill Gibbons - head of the Passenger Shipping Association - and Tim Marking, the secretary general of the European Cruise Council.

A packed audience (it was standing-room only) heard first from Marking, who offered the latest stats on European cruisers - over 6 million in 2011, up 9% on 2010, and more than double the numbers of just eight years ago. Next up was Gibbons (below), who supplied similar data from the UK market, including the fact British passenger growth has slowed but still hit a record 1.7 million.

Cruising continues to out-perform all other sectors of the UK holiday market, though, with round-Britain voyages showing special growth and the percentage of first-time cruisers up to a whopping 40%.

Brazilian Ricardo Amaral of the South American cruise commission Abremar made some fascinating observations for the potential of growth in his home area, including the likes of MSC Cruises and Costa bringing their largest ships to Brazil this winter, lengthening the season to almost 6 months (when it used to be just three) and making his country the fifth-largest source market ih the world. Clearly, there is room for more significant cruise growth here.

Then we heard from Orion Expedition Cruises (and Australia Cruise Alliance) founder and chief executive Sarina Bratton on the continued strong growth of cruising Down Under while Melvin Yu, from Singapore, spoke about the potential explosion of domestic cruising in Asia, notably in China. Amaral, Bratton and Yu all provided a particularly fresh and dynamic approach to the forum.

It provided a lot of food for thought - Brazil as a major cruise destination; huge growth in China; more opportunities in Australia and the South Pacific? - and set up an equally enthralling afternoon session looking at New Destination Development.

This provided even more evidence of the 'globalisation' of the cruise business, with Luis de Carvalho of cruise specialists Consult-DC offering an especially intriguing look at possible West and Central African destinations. This was followed by a more traditional destination, the Atlantic Alliance (a conglomeration of cruise ports from Hamburg to Lisbon), with Nadine Palatz highlighting how this region has transformed itself from a 'transit area' to a series of major cruise ports.

Nigel Lingard, formerly of Fred. Olsen Cruise Lines and now a specialist consultant for AD Cruising (who include Swan Hellenic, Voyages of Discovery and Hebridean Island Cruises) got out his maritime crystal ball to predict a few other intriguing destination possibilities, including Madagascar, north-east South America, Indonesia and the Phillippines, and Anthony Lau of the Hong Kong Tourist Board wrapped things up in style with a fascinating look at major developments in his region, including the fact this could become a major cruise hub to rival the likes of Miami in future.

A Q&A session followed each workshop and there was also input from Royal Caribbean's Middle East expert Helen Beck, who offered some thoughts on the growth of Dubai as a winter cruise hub.

All in all, it was a genuinely insightful and well-presented look at the possible future(s) of cruise shipping, and sets things up nicely for Day Two, which kicks off with the main highlight of the State of the Industry session featuring the likes of the CEO's of Carnival, Royal Caribbean, Holland America and Norwegian Cruise Line.

In the wake of the recent Costa Concordia tragedy, it will be fascinating to hear what the real head honchos think of things and the apparent dip in cruise bookings since January 13.

Stay tuned, folks...!

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P&O Go From Small to Large!

After welcoming the smallest ship in their fleet - Adonia, last month - P&O Cruises have revealed plans to build their LARGEST-ever ship, a whopping 141,000-tonner (artist's impression, above) for service in 2015. It is quite a contrast after the small-scale of their boutique newcomer but it promises to being in a whole raft of innovation and new features. Here is today's full press release:

P&O Cruises today announced that it will expand its fleet with a 141,000-tonne cruise ship, built by Italian shipbuilder Fincantieri, scheduled to enter service in March 2015.

The as-yet-unnamed 3,611-passenger vessel will be the largest in the P&O fleet, as well as the largest cruise ship built specifically for the British market. To be built at Fincantieri’s Monfalcone yard, the all-in cost is approximately €155,000 per lower berth. Ushering in an exciting era for P&O, the ship will offer a stylish and innovative new design and an unprecedented number of passenger facilities, along with many of the brand’s classic and iconic features. Specifications and new product innovations will be announced at a later date.

Carnival Corporation & plc’s chairman and CEO Mickey Arison said: “P&O Cruises is Britain’s number one cruise operator, and is synonymous with high quality holidays that celebrate its rich British heritage. The UK continues to be a key growth market and innovative vessels such as this new ship – targeted specifically to British clientele – underscore our commitment to leading the expansion of this important cruise region.

"With a progression of highly successful new ships introduced over the last 15 years, P&O is uniquely experienced in designing vessels to meet the specific needs and aspirations of British passengers. This newly ordered ship will underline its position as Britain’s favourite cruise line.”

P&O Managing Director Carol Marlow added: “This next-generation ship will deliver the ultimate P&O Cruises experience, with ‘sophisticated wows’ and new features to attract thousands of newcomers to our brand, and equally to resonate with existing P&O Cruises passengers by giving them the ‘P&O-ness’ they recognise and love. She will offer ‘the best of the best,’ combining the favourite classic features of Oriana and Aurora, the choice and variety of Azura and Ventura, and a host of new ideas and concepts which together will deliver to our passengers the holiday of a lifetime, every time they travel with us.”

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Re-Branding Is All The Rage

Following hard on the heels of the recent 'relaunch' of Azamara Cruises as Azamara Club Cruises, Princess Cruises have decided they need to spruce themselves up for the UK market.

For many years, Princess have been seen as the 'American' arm of P&O, and yet that is a gross over-simplification of the relationship between the two sister companies, who both became part of the giant Carnival conglomerate in 2002. There has always been an element of cross-over from P&O to Princess, and vice versa, since the 'Love Boat' cruise line started sending ships over to Europe more than 10 years ago. Their style appealed to passengers on both sides of the Atlantic, and the differences between the two fleets provided plenty of contrast.

More recently, P&O vessels have started to look more like their Princess counterparts - less traditional, more glamorous and all with a common starting point from the shipyard.

However, there obviously remains a 'difference' both from the Italian roots of the Princess line (many of their original vessels having been merged in from the Med-based Sitmar Line) and their predominantly American clientele, so it is a little surprising to hear the 'US' version needs to re-brand itself for British consumption.

You would think UK cruisers would be sophisticated enough to know the difference, and to understand the attractions, of cruising with Princess rather than the P&O option, but it seems that is not the case.

Among other things, Princess intends to present a 'fresh look' that has an 'emphasis on high standards' and will provide a ‘rejuvenating and relaxing retreat’ at sea.

Hmm. Call me old-fashioned, but I would pretty much say those should be the cornerstones of every cruise line today. Most ships are relatively new (or heavily refurbished); most cruises offer high quality in terms of food, service and entertainment (especially when compared with similar-priced land alternatives); and ALL cruises should ultimately be a relaxing experience (unless you try to take in every onboard activity and every excursion at every port of call!).

Princess already have excellent ships, with a genuine variety in their fleet and some superb service enhancements (like their Movies Under The Stars facility - see above). They offer great dining options and some far-reaching itineraries, as well as a distinctive Italo-American gloss that sets them apart from main rivals Holland America and Celebrity.

So I'm left wondering if this 're-brand' is primarily a marketing exercise aimed at making Princess better known to those who have yet to sample a cruise rather than anything substantial in terms of their product delivery.

Then again, perhaps I need to take a Princess cruise sometime soon to find out! Here's their press release in full:

13 April 2010 – In a bid to grow its business in the UK, Princess Cruises is re-launching the brand with the introduction of its new 2011/12 brochures. Based on extensive customer research, the brand will increase the emphasis on the high standards of its food and service and the relaxing and rejuvenating ambiance onboard. The new brochures, starting with the Mediterranean & Scandinavia 2011 edition, which is due out next week, will highlight the new positioning with a completely fresh look. The growing success of Princess in the UK has taken it to the number four position in the UK market, with a very loyal following. The research reveals that despite its positioning in the market, Princess is not as widely known as other UK brands. The new brand positioning for Princess will create more stand-out from other cruise lines, and increase its presence in the UK through a drive of marketing and sales initiatives.

Trustworthiness, excellent food and high standards onboard were the top priorities for British cruisers choosing a cruise line. Princess’s new look for the brand in the UK will highlight the exceptional dedication of its crew to maintaining the highest standards and the excellent quality of its cuisine, with all food freshly prepared from scratch every day. The new brochures have a calmer and more relaxed feel, illustrating the brand’s promise of providing a ‘rejuvenating and relaxing retreat,’ which research proved to be appealing to consumers.

“I am very excited about the beautiful new brand our marketing team has created. The new look illustrates Princess as the consummate host and the perfect retreat from which to explore the world,” said Pieter van der Schee, Princess Cruises’ head of brand marketing. “We have ambitious plans to grow the number of Princess passengers from the UK to our many destinations around the world and our increased activity and new identity for the brand are important in our quest.”

Princess Cruises’ new look in the UK can first be seen in the Mediterranean & Scandinavia 2011 brochure, out next week. The new design will then be rolled out to all other brochures and marketing literature and will be supported with increased direct marketing activity and more joint marketing with agent partners.

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Is Costa Taking Italian Connection Too Far?

OK, it's fairly evident Costa Cruises are keen to maintain their Italian 'heritage,' despite being owned by the giant Carnival Corporation. But is there any real need to take the names of their next two ships ever more firmly into Italian territory?

To my mind (and eye), the names of Costa Favolosa (2011) and Costa Fascinosa (2012) are just plain awkward and clunky - unless they are intended purely for the Italian market.

Following hard on the heels of Luminosa (May this year) and Deliziosa (January 2010), it is definiutely a trend of Romanesque proportions, and I'm not so sure it is a trend which will sit comfortably with their English-speaking clientele.

Or am I just being Italian-ist?

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