News Letter - April 2004
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Editorial
Behind the scenes at Worldwide Travel and Cruise One of the questions we are constantly being asked is - how does Worldwide manage to handle the research, purchasing, and delivery of all the cruise programs it is involved with, not to mention actually finding the time to market and run the corporation that is Worldwide. With this in mind a decision was made to try and put together a "behind the scenes" look at the day to day operation of Worldwide and to try and focus on areas which most benefit our clients in terms of growing their own business and cutting back on unnecessary expense and the waste of their staff's valuable time as well as an indication of the considerable expense in both dollars and time, invested by Worldwide on their clients behalf. One of the areas which most benefit our clients is undoubtedly the constant visiting, viewing and sailing our staff does on cruise products. This huge investment allows Worldwide to discuss and offer the best ship choices for our clients programs. The intimate knowledge we glean from all the hours spent thus, is huge in terms of benefit for our clients. Worldwide is able to discuss in a totally unbiased manner, the pro's and con's of any vessel which might be under consideration for our clients programs and then recommend the one that best suites in every way, the requirements of the program. As an example - From the end of March to the end of April Worldwide will have made the following investments:
As you might imagine, at most of the above events we are accompanied by senior cruise line staff and management which gives Worldwide an excellent opportunity to network with them regarding all sorts of issues and insights. The above represents an approximate total of 549 man hours spent on cruise ships and with cruise line's management as well as a further 168 hours of land program and some 10 hours of meetings. All time which benefits our clients in many ways. The question we ask ourselves is - does your company have the staff, time, to say nothing of the expense of keep in touch and being on top of the when, what and who in the specialized areas of the cruise industry? A very large proportion of the enquiries Worldwide works on are in fact referrals. These come from past clients, other industry leaders, people in the cruise industry and trade publications, add to these past clients and new business and one quickly sees that things are generally pretty busy at the "office". Steve, Jim Huff and Leon field most of the enquiries and deal with them accordingly using their experience and insider knowledge to guide our clients to the best choices for their programs and negotiate the most favorable terms. Once the deals reach the contracting stage they move to the "back office' where Jim Castle puts together the contracts and gets them out to the clients. When the contract and deposit comes back, Jim Castle closes out the paperwork with the supplier, deposits get made and contracts exchanged. From here the paperwork moves over to Operations - where Diana Bloss will follow the deal through its initial payment stages and then working with your in-house people, to the final planning and operational negotiations with the cruise line for meeting space, meals, air and the myriad of other requirements that go into the successful delivery of the clients program. Of course whilst all this is happening on the surface. Several of these people wear other hats and are actually officers of the company performing their day to day duties of managing the company, its finances and other more mundane requirements. Marketing, trade shows and other promotional events are overseen by Jim Castle with input from the sales team. Electronic marketing, newsletters and web site are a joint venture between Leon and Jim Castle. Promotional materials from all of our suppliers are being order and stored in readiness to forward to our clients for their own promotions. Meet your team at Worldwide Worldwide exhibits at four trade shows a year, roughly one every quarter, these trade shows are an important contact point between Worldwide and its clients and it's generally at one of these shows you will meet our sales team. This year Worldwide has been at the UK Show CONVEX, attended by our UK representative - Martin Dock. In Canada at the CMITS in August, at Chicago for the IT&ME Show and then in December in Barcelona, Spain at the EIBTM show. Throughout these shows our staff are meeting with not only our clients, but also DMC's, cruise line people, hotel people, tour operators and others who all have a bearing on our industry and are able to assist our clients in one way or another. All this information is made available to our clients on a no fee basis, nothing Worldwide sends you is copyrighted so it can be used for your own promotional purposes. Worldwide even has toll free numbers for you our clients to contact us - there is literally no charge or expense in using our services, we do however ask for some customer loyalty and hope that you allow us to quote (free) on any program which we assist you with. New Construction News:
Worldwide's Idea of the month. Operate up to a three tier program on the same ship. The Royal Caribbean Jewel of the Sea will be offering for the first time a rotation of 8 nights Saturday to Sunday, 7 nights Saturday to Saturday and 6 nights Sunday to Saturday. Sailing from Fort Lauderdale the 8 night itinerary includes San Juan, Antiqua, St. Maarten, St. Thomas and Nassau.
This month Ship Inspections: The MSC Lirica and the Crystal Symphony which was the subject of a one week client site inspection - reviewed by Jim Huff. We feel that Crystal's three ships are perfect for corporate groups and charters and would like to draw your attention to the following 7 day sailings which we feel are worth serious consideration for any corporate business you are working on now or in the future.
2004 Harmony - Caribbean 10/24 to 10/31 & 10/31 to 11/7 Symphony - Caribbean 12/15 to 12/22 Serenity - Caribbean 11/20 to 11/27 - Mediterranean 6/29 to 7/6 & 7/6 to 7/13
2005 Harmony - Mexican Riviera 02/6 to 02/14 & 09/28 to 10/05 & 10/15 to 10/22 11/01 to 11/08 & 11/18 to 11/25 - Alaska 05/21 to 05/30 - Coastal 05/28 to 05/30 (Vancouver - San Francisco) Symphony - Caribbean 03/10 to 03/17 & 03/17 to 03/24 -Mediterranean 05/14 to 05/21 - New England/Canada 10/09 to 10/16 Serenity - Mediterranean 05/09 to 05/16 & 06/16 to 05/23
More kudos
On-going saga. While lawyers for Renaissance Cruises' liquidating trust continue to wrestle travel agents over commission recalls, they also are suing former officers and directors of the defunct line to recover more than $100 million in compensatory damages and other claims. A complaint filed by the trust, which also seeks unspecified punitive damages, claims that Renaissance filed for bankruptcy "as a result of the defendants' recklessness, conscious disregard for the best interests of Renaissance and its creditors, and other wrongdoing." The liquidating trustee is also acting as an assignee for Ocean Bank, which acted as the credit-card processor for Visa and MasterCard in connection with Renaissance and has paid out about $75 million in advance deposits on cruises that never sailed, the bank has a $44 million general, unsecured claim against the Renaissance estate. About 30 parties are named in the suit, including former co-CEO Frank Del Rio; former CEO Ed Rudner; Peter Gram, who acted as chairman after the company received financing from Malvern Maritime, and other former directors, attorneys and Credit Suisse First Boston Advisory Partners. The complaint alleges that Renaissance directors and their advisors created "untested and excessively risky" policies, such as bypassing traditional retailers with a direct-sales strategy. Other allegedly risky policies included an expansive building program, the use of passenger deposits to pay for short-term costs and deep discounting "to generate quick cash." Later, after Rudner was removed from the company in what the suit called a "coup," the suit says, The defendants knew of Renaissance's financial crisis; yet they kept selling the cruises, receiving advance passenger deposits, sending out confirmations of cruise purchases, and advising creditors that all was well with the company. The suit further alleges that Malvern Maritime, which provided $67.5 million in convertible debt to the line in April 2001, shortly before Renaissance's demise, was merely a front for shipbuilder Alstom, which built the R-class ships. The suit also claims Del Rio began working on plans for his current line, Oceania Cruises, during his Renaissance tenure. Ronald Neiwirth, an attorney for Del Rio, disputed that, saying Del Rio started the line over a year-and-a-half after Renaissance filed for bankruptcy. saying the complaint, which is about 350 pages long, is "excessive and redundant." A hearing on the case has been scheduled for June 23. The Trust has filed the suit because they have "an obligation to analyze potential sources of recovery" on behalf of creditors, and, "this case is unusual in the sense of multiple layers of self-dealing, self-interest that were being perpetrated".
NCL's woes continue. It would seem that NCL is suffering more than their share of problems, adding to their run of bad luck one of their newer ships the Norwegian Dream bound for Europe had mechanical problems and is operating on one engine after a broken crankshaft affected the other engine. Norwegian Cruise's announced that the Norwegian Dream's Trans-Atlantic itinerary was adjusted, calls in Madeira, Spain, and Genoa, Italy were canceled and a call in Gibraltar was added. The line has offered a $50 per-person onboard credit as compensation. A new crankshaft has been ordered, beyond that NCL is still assessing the situation . It is not expected to affect the Dream's next three European cruises. On a more positive note; NCL has purchased the equipment needed to complete the "Project America 2" which was under construction at the Ingalls yard, no word yet on when and where the ship will be completed.
South Africa itineraries: MSC Cruises has signed a gsa agreement with Starlight Cruises of South Africa to operate cruises on the Rhapsody, out of South Africa this winter, starting in November. Starlight was forced to suspend its 2004 program on the their chartered ship, the Olympia Countess when it was arrested in Durban this January. (the Royal Olympic ship has since been sold to Greek owners). The Rhapsody is currently in Naples undergoing a €5m technical refit and interior restyling along the lines of MSC flagship, the Lirica -prior to re-positioning to the North European market this summer. It is expected that the ship will sail from Genoa on June 10 to its summer base at Copenhagen, returning to the Med in September prior to sailing to South Africa.
Port News
Retiring: Sun Cruises owners, the MyTravel Group- is in the process of downsizing its fleet of cruise ships from four to two. At the end of September 2004 they plan to retire the Sundream (ex - Song of Norway) which has been operating for Sun Cruises since 1997. Whilst Sun Cruises has not formally identified the other ship being retired but it is expected it will be the Seawing.
Featured Ship(s) of the month - Seabourn Cruise LineThis edition we are reviewing the three identical Seabourn mega-yacht vessels. Diana Bloss (Director of Planning & Operations) recently returned from a brief but very productive pre-con with one of our European Charter clients. Joining the Seaborn Legend on the last leg of her west to east trans-Atlantic crossing, she sailed from the very pretty Islands of the Azores to eventually disembark at Lisbon. Diana has contributed her experience to this editorial review of the Yachts of Seabourn from the view point of her charters clients first time experience. Seabourn's fleet consists of just three small but ultra-luxurious 10,000-GRT ships which between them have an accommodation capacity of only 624 berths, however, what Seabourn lacks in size is more than made up by the quality, service and on-board ambience. What really differentiates Seabourn and what makes it truly special from the other players in the luxury end of the cruise market is in how they approach the product and how they approach adding value to the guest experience. That's achieved through a highly inclusive product. Wine, cocktails, champagne, sodas and bottled water are included in the cruise fare. So are mini-massages on deck, use of water toys from the ship's onboard watersports marina, and in-suite aromatherapy baths that a cabin attendant will "draw" upon request. Nice small touches include waiters offering course-by-course dining in the guest's suite, or the line's complimentary selection of in-suite soaps by Hermes, Chanel, Bijan and Bronnle, another big perk for guests is the fact that gratuities for onboard crew and port charges (excluding government taxes and fees) are included. A dding to the impressive list of inclusions, Seabourn is also committed to offering one complimentary "Exclusively Seabourn" shore experience on every single cruise. In Turkey for example the line offers "a truly awesome event," an evening concert in front of the library at Ephesus, the ancient facade ablaze with lights.Seabourn pride themselves on having an innate service culture that just doesn't say 'no, with the emphasizes on exceeding the guest's service expectation on a daily basis. That means that when one guest casually mentions to another that a particular hors d'ouevre is "excellent," the waiter who overhears moves quickly to ask the guest if she'd like another. But it's the truly out-of-the-ordinary service experiences that bring Seabourn's product to life. One elderly guest on a holiday cruise had trouble remembering how to tie his tie for a black tie dinner, so his daughter went out into the corridor and corralled a male waiter, who came to the guest's suite, happily assisted and left with a smile, although clearly the task was far from his job responsibilities. A few days later the hotel director obliged at performing the same task with a smile. It is the cruise experience they deliver that distinguishes Seabourn from other luxury cruise lines. Seabourn's service is best described as gracious and professional, not stuffy. From room service waiters to the purser's desk staff and the maintenance crew, the shipboard staff delivers service not with the words "yes" or "okay," but with the phrase "my pleasure" and one feels that they they truly mean it. The Seabourn hardware is excellent, so the line is making the investment in software upgrades which are gradually being phased in with Seabourn spending a lot of effort on soft goods in general onboard their ships. Changing all the carpeting in passageways, landings and stairways which will be a nice blue and cream color to tie the look of the spaces in with the suite decor. The luxurious suites which range from 277 to 575 square feet, are receiving new bedspreads and Frette linens. The line has just changed all the mattresses as well, and will replace most marble tops in the bathroom sink areas with an elegant composite that is less prone to cracking and easier to maintain. In progress is a rolling re-upholstery project in the suites and public rooms with newly completed coverings on furniture in the ships' Veranda Cafes and The Club. The Veranda Cafes also have new Rosenthal China and down the road an upgrading of the suites electronic component is planned.
Seabourn has a loyal following of mature guests who love
traditional cruising, guests enjoy dressing up in elegant dresses and a tuxedo.
In recent years however, the line has made concessions to attract baby boomers
and generation x-ers who tend to prefer casual elegance. To satisfy both, Seabourn continues to offer a fairly elegant and dressy standard within the
dining room with several black tie evenings on each cruise, but at the same
time, its Veranda Cafe, always a popular destination for breakfast and lunch, is
now doubling as an evening casual dining experience, with eclectic themed
dinners and indoor and outdoor dining. Research has shown that even their most
loyal past passengers wanted a choice and wanted a change. So while Veranda Cafe
diners must still wear a jacket on formal nights, they don't need a tie. On less
formal nights in the main dining room, Veranda Cafe guests can dress even more
casually, but the line discourages shorts or jeans. The casual venue is now
fully booked almost every night , as guests responding to the changes the line
is finding that more and more of the clients they book are younger.
The strategic split of the marketing for Cunard Line and
Seabourn several years back has benefited both brands with better
differentiation. Since he came onboard several years back Rick Meadows (Seabourn's
senior vice president of sales and marketing) has also developed several
strategic branding alliances, including one with Tumi luggage and has upgraded
the product marketing. To further enhance the desirability of the Yachts of Seabourn, new and exotic itineraries have recently been announced for 2005 and 2006. For 2005, they are going back to Southeast Asia in the winter months with a very comprehensive program on Seabourn Spirit, things in Asia are looking better and better, and Asian countries are certainly becoming very proactive in how they approach the issues that affect travel.
For summer 2005 and 2006, Seabourn will put all three of its
ships in Europe during the summer. One will ply northern European and Baltic
waters, the others will sail within the Mediterranean. New for 2005, and also
not yet announced, is the fact that the Seabourn Legend will use Monte Carlo as
its summer turnaround point, rather than Nice, France. Worldwide wants to draw your attention to the summer sailings in the Med. in particular the departures from Monte Carlo are great charter opportunities with clients perception being high and Seabourn able to deliver the goods. |