Cruise Newsletter - March 2004

Editorial:

Soon after going to press with our January newsletter our team sailed on the new Queen Mary 2 (QM2).  This was a short three day program (which in fact rounded out to be only 40 hours on-board) barely enough to even start to get a feel for this huge ship.  Since then we have all been trying to put our thoughts of the ship together and an interesting set of varied impressions we all came away with.  Needless to say it has been interesting trying to collate all these impressions into a comprehensive ship report.

Our report on the QM2 is now available on our web site - follow this link   QM2

Many of you may have seen Steve Bloss, WWTCA's President of Sales of the television recently.  Steve was interview on-board the QM2 by a television crew on his impressions of the ship and how he thought the corporate market would receive it.  The program ran in our area in mid February and then hit certain national markets across the states.

Perhaps of more interest to our corporate clients are our thoughts on how best to utilize this exciting new ship for incentive programs (and other corporate functions).  Steve Bloss contributed the following as a primer for how he sees the ship's potential for the corporate market.

QM2's Incentive Potential: compliments of Steve Bloss

By now I am sure you will have seen and heard about the Queen Mary 2 in the media. I most admit we have never seen a cruise ship get so much press coverage. You are more than likely aware that she is the biggest and most expensive cruise ship ever built and is actual the first real ocean liner built since the QE 2.

Your first impression upon entering the port area is that this ship is HUGE.  It's a 26 story floating Luxury Palace that carries only 2,620 compared to the other MEGA ships that carry 3,114 passengers.  Needless to say there is a tremendous amount of space for the lucky guests.  I must admit that after taking the two night inaugural cruise I was unable to actually visit and enjoy every public room on the ship.  I can see how a passenger on the six night trans Atlantic cruises might need four days just to experience the ship.  The vast majority of the 14 bars, lounges, showrooms and 10 restaurants are located on decks 2, 3 and 7. Without a doubt the most impressive passenger decks are numbers two and three.

This ship features numerous magnificent rooms and venues. The two level Britannia Restaurant is truly on one the most elegant and impressive dining rooms at sea.  Twin winding stair cases, mural ceilings and a huge tapestry are all reminiscent of the "Floating Palaces" of the Titanic era.  As in all dining room custom designed Wedgwood China and Waterford glasses enhance every table. This dining room has two private small rooms holding around 60 each for groups both of which can be utilized for corporate dinners.

The Queens Room is another one of the eye catching rooms that speak pure understate elegance. This room houses the largest ballroom at sea. The "band stage" is huge and is the deserved focal point of the room. The Royal Court Theater is more contemporary but still refined and elegant. All of these rooms can, by prior reservation, be made available for corporate functions.

The QM 2 still has a class system for dining with the highest priced suites dining in the Queens Grill.  The Princess Grill on the other hand is tied into the Jr. Suites which are very affordable and all the same.  The Princess Grill holds 178 guests and should be considered for either groups or a take over of the entire dining room.  I believe the "class" system will work in our favor as its definitely makes your participants feel a cut above the rest.

For meetings and presentations the QM 2 is second to none.  A purpose built area onboard houses 7 different meeting areas that seat up to 227 or smaller rooms holding 40 guests.  Built in coffee and food stations and even bathrooms make this an idea area.  Adjoining this are is the 493 seat Illuminations (normally the Planetarium at night) which can be used for larger groups and high tech a/v presentations.

So what is this ship all about for your incentive groups?  In one word its Ego!  To begin with your client and participants more than likely have heard all of the buzz around this ship so you have a ton of free PR right off the bat.  The ship has been positioned by the Media as the most expensive and luxurious ship at sea.  Partially correct but certainly very affordable for groups.  Last but certainly not least is that your participants will talk about this constantly both before and after their cruise.  This is a cruise of a life time with all of the romance and glamour of days gone by.

State of the industry:

  • Recent quarterly statistics issued by MARAD on US cruise passenger traffic noted that the top 10 cruise lines carried 8.3m passengers on 3,840 North American cruises in 2003, up 8% over 2002.  72% of passengers in 2003 chose Caribbean and Bahamas destinations. However, Alaska passed the Southern Caribbean as the fourth most popular destination last year.

  • First European's woe continue;  Confident that there will be a positive outcome ‘in the next few days’ of restructuring negotiations currently being held with Italian and French banks, Festival has announced new departure schedules for its three premium ships and Caribe. The European Vision should resume its Caribbean program from Pointe ŕ Pitre on March 12, European Stars its program from Genoa on March 16 and Mistral - also from Genoa - on March 19 says the line. These three ships remain arrested in port. Meanwhile Caribe’s cruises should resume on March 10 from Havana.

  • Start-up cruise venture Elysian Cruise Lines, the purchaser of Festival’s Flamenco has chartered the ship, to be renamed Elysian Flamenco, to Spain’s Travelplan. Technical managers for the vessel are Ravenscroft Shipmanagement, based in Florida.  The ship which will operate for the next month in the Canaries had an unfortunate start this week when it was arrested in Lanzarote on Wednesday. Two parties, believed to be Festival creditors, arrested the vessel claiming unpaid amounts due to them. However one of the arrests was subsequently withdrawn yesterday as soon as it was understood that the ship had been sold to new owners in auction.  There is no doubt that the vessel has passed though a judical auction in Gibraltar and there is no doubt that Festival retains no ownership whatsoever.  The released ship subsequently sailed to its next port in the scheduled itinerary.

  • In our last newsletter we mentioned the lunch Silversea's hosted aboard the Silver Shadow in Sydney recently.  We are happy to report that the event raised around A$70,000 for Barnardos Australia by the Peter Pan Committee. In real life, one good deed begot another as it has sparked interest in a special cruise for the prominent charity's members and friends.

River Ship Cruising:

  • The Danube is the most popular river cruise destination claiming over 30% of the market, almost 10% more than the Nile. Not withstanding the difficulties posed by low levels along the Danube, both port and ship operators posted impressive results for the 2003 season.  2004 season which starts in March will see 84 river ships cruising the Danube of these 9 are either new ships or cruising the Danube for the first time. 

  • New ships for this season include Bulgarian ship Rousse Prestige, operated by DCS Touristik which is cruising on the Danube and Main. ARC Touristik is chartering the brand new Johann Strauss for the entire season on cruises leaving from and returning to Vienna. Peter Deilmann has announced four new routes from Passau to the Black Sea Romanian port of Constanza aboard Mozart and Donauprinzessin, while Hapag Lloyd is offering an unusual  itinerary in its 2004 program, an eight day cruise from Regensburg to Budapest.

  • Passau is the most popular port of departure for Danube cruises recorded 132,383 cruise passengers or 13,383 more than the year before. Vienna saw 2,859 dockings by Danube cruisers bringing 132,282 visitors to the Austrian capital, an increase of almost 12% over 2002. The pontoon bridge at Novi Sad remained closed because of low water levels, hence the ports of Belgrade and Novi Sad in Serbia reported 260 arrivals and 45,000 passengers, including 7,000 from the US.  Romania received 33,000 cruise passengers last year even though it was hard hit by low water levels and these numbers are expected to almost double in 2004.

  • 84 river cruise ships are expected to ply the Danube during the 2004 season which starts next month. Nine of these vessels are new or will be sailing the Danube for the first time.

For many years now WWTCA has been promoting River Ship Cruising to our clients.  We consider a cruise to be not only an extremely economical way to visit Europe in a safe and secure way, but also a great way to travel, no packing / repacking, toting bags on and of transportation, no way to lose either participants or their luggage once on-board.  Add to that, the fact that most programs are of a size that lends itself to an exclusive charter which can be customized to the clients needs and you start to see the way these ships can be utilized for a program.

 

Amongst the many River Ship operators WWTCA feel very comfortable in offering the following companies products.  We have inspected a number of river ships in recent years - follow the link for the latest review of each lines product  and itinerary sailed.

  • Peter Deilmann's EuropeAmerica Line             

  • Sea Cloud Cruises                                                        

  • Viking River Cruises.                                                  -

Viking continue to construct new ships

 

Port News

  • The wild dolphins that swim with visitors were a major attraction when Hapag-Lloyd's Europa became the first international cruise ship to visit Monkey Mia in the remote Shark Bay World Heritage Region of Western Australia today. Monkey Mia is located about 850 km north of Fremantle, local tourism chief Alexandra Maslen said the arrival of the 28,600gt luxury liner has set a course that others will follow, including QE2 on her 2005 world voyage.

  • New York and Galveston surge ahead; The highest growth rates among the top 10 departure ports occurred in New York and Galveston, which recorded increases of 45% and 39% respectively in 2003. However, the traffic remains heavily concentrated at the major departure ports, which are located in Florida. Miami, Port Canaveral and Fort Lauderdale accounted for just under half of the total cruise passenger traffic.

  • The Port of Key West becomes the second in the US to test a new private-sector approach to waterborne anti-terrorism security when the SeaWolf Security Group initiates patrols of the port's harbor and waterways today using a variety of purpose-designed boats and specially trained operators. SeaSecure LLC is managing the pilot program, which first launched in the Port of Palm Beach.

  • During Queen Mary 2’s maiden call at Port Everglades last month, waterside security fencing ringed the ship in the first cruise application of technology that was developed to protect US Navy vessels and submarines from attack by terrorist boats laden with explosives. The barrier’s modules, made of steel and composite materials, rise nine feet above the water on pontoons which are anchored to the ocean floor. Like a gate, the PSB can be opened and closed, it can be used to ring multiple ships. There’s a lot of emphasis on physical barrier protection on land, including fencing and closed-circuit cameras, but a vessel sitting dockside is absolutely exposed.

  • Dutch Antillies;  It appears that the Dutch Caribbean Islands are shortly going be shifting their currency to the Euro.  Initially, they will accept Euro notes for payments but change will be given in local coinage. 

  • Barbados recently announced that only cruise passengers who are disembarking the ship to depart the island by other means will have to go through passport control and be required to have their passport examined on departure, regular cruise ship passengers who are continuing on with the ship do not need to go through the formality.

  • Cruise ships turning around in New Orleans had to scramble for alternative docking facilities over the weekend after the entrance to the Mississippi River was closed to oceangoing vessels. The mouth of the river was closed while rescue teams searched for the crew of a supply boat that sank early Saturday after colliding with a container ship.
    Carnival Conquest substituted Gulfport for New Orleans on Saturday, while Norwegian Dream cruised up the alternate Mississippi River Gulf Outlet to a cargo terminal. But Grandeur of the Seas, scheduled to leave New Orleans on Sunday, was ‘stranded’ in the city during the weekend of parades leading up to Mardi Gras, the AP reports.

Ship News

  • A $3.5m major refit of Carnival Cruise Lines’ Jubilee to prepare her for entry into the Australian market as Pacific Sun.  Operating under P&O Australia flag, Pacific Sun will start cruising in October 2004.

  • Pullmantur, the new owner of Superstar Aries, hopes to have the vessel in Spain by April after she ends her cruise season in the Straits of Malacca. A new name has yet to be announced for the 37,000gt ship which is due to start seven day cruises from Barcelona in June. The itinerary includes calls at Villefranche, Livorno, Civitavecchia, Naples, Tunis and back to Barcelona. The operator intends to change a few onboard areas to adapt the vessel for the Spanish market.

  • Star Cruises, the parent company of Norwegian Cruise Line increased revenue in the fourth quarter nearly 8.6% to $400 million, but recorded a $128.9 million loss. The loss would have been $14.8 million, but one-time events, including a $95.5 million impairment charge for the write-off and retirement of older ships, led to the wider loss.  The company is looking to unload older tonnage and replace it with mid-size Norwegian Cruise Line ships as NCL brings in new builds for itself.  The net loss in the fourth quarter of 2002 was $18.9 million.  For 2003, Star Cruises' revenue increased nearly 2.9% to $1.6 billion, but non-recurring events turned what would have been a $7.3 million net profit into a $101.4 million net loss. In 2002, the line recorded net income of $73 million.  It seems probably that the Norway and the USS America projects are going to be abandoned in favor of new ships.

  • The Pride of America,  which was recently towed to dry-dock after sinking in a storm at the Lloyd Werft shipyard in Bremerhaven, Germany,  is to undergo a complete and thorough survey to ascertain the extent of the damage from which the Lloyd Werft yard, NCL and insurers are to produce a new "work plan," first for the repair and replacement of equipment and interiors that have been submerged for the past month, and second, for the completion of the ship.   The line said the assessment should take the next few weeks, "at which time Lloyd Werft and NCL should be in a position to conclude their ongoing discussions regarding completion of the ship," and a new delivery schedule will be finalized.   Star Cruises noted that the banks underwriting the vessel have the right to call in the loan under specified circumstances. If the lenders take that action, then Star said it could default on the Pride loan or other loans "due to cross-default clauses contained in this loan facility." Star added that it is "in the process of seeking a waiver from the syndicate of banks and expects to obtain such a waiver."  Norwegian Cruise Line’s recently announced that the company is planning to add another ship to its Hawaii fleet in 2006. 

  • The Diamond Princess the first Princess Cruises ship to emerge from a Japanese shipyard and the largest Princess ship to date, will be christened Thursday by Yoshiko Tsukuda, the wife of Mitsubishi Heavy Industries president Kazuo Tsukuda.  Mitsubishi Heavy Industries constructed the Diamond Princess and its sister, the Sapphire Princess, which debuts in May. Princess said the christening will be "a spectacular send-off" and include traditional Japanese dance, music and dress. The 116,000-ton, 2,670-passenger ship sails to Los Angeles the day after the naming ceremony and debuts in the U.S. March 13, with cruises to Mexico.

Cruise Opportunities:
From time to time WWTCA is able to offer some last minute deal, cancelled charter opportunities and other deal of particular interest. This month we have the following which, if the dates work for your programs - represent amazing value.

These following dates are all on smaller, 5 star ships (pax count from100 to 400)
March 19-24, 2004, 5 nights - Caribbean
April 5-9, 2004, 4 nights - Caribbean
April 9-14, 2004, 5 nights - Caribbean
May 5-12, 2004, 7 nights Europe (Atlantic seaboard)
August 16-23, 2004, 7 Eastern Med.
October 11-18, 2004, 7 night Eastern Med.
November 13-17, 2004, 4 nights Caribbean
November 17-22, 2004, 5 nights Caribbean
November 29 - December 5, 2004 Caribbean

Another small ship opportunity;
March 11 – 13, 2004, 2 nights Caribbean
May 8 – 13, 2004, 5 nights South France etc.
May 12 – 13, 2004, 1 night South France etc.

Top of the line smaller ship
August 30, 2004, 7 nights Med.
September 01, 2004, 7 Nights West Coast USA
September 22, 2004 , 7 nights South of France etc.
October 06, 2004, 7 nights Italian Riviera
February 8, 2005, Western Caribbean
February 24, 2005, Central Caribbean

Finally
November 6, 2004, 7 nights Western Med.
November 7, 2004, 7 nights Western Med.
November 14, 2004, 7 Nights Western Med.