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Cruise Newsletter November 2004 Trade Shows: Coming up in a few days time (November 30th to December 2nd) is the EIBTM Show, the venue of which has moved from Geneva to Barcelona. Steve & Diana Bloss from our Florida office as well as Martin Dock our UK associate will be manning our booth (L265) and will have Mike Beale of Viking River Cruises, Maggie Mantia and Blanca-Stella of RSSC as well as Tanya Barnette of Seabourn Cruises and Stuart Gardner of Gardner & Associates (your man in Florida) in attendance at the booth to answer any questions you might have. We hope to see you there. Possible due to the change of venue this year's show appears as though it will be well attended. Our on-line calendar is close to being filled with appointments, but do not be put off - we always have time for old friends, colleagues and new business opportunities.
Special Offers available ONLY through Worldwide: WIND SURF Worldwide has a five days window of opportunity on the Wind Surf... Dates: May 15 to May 20, 2005. Embarkation: Rome Debarkation: Nice Call us directly on this - as part of an unused charter we are able to make this an offer not to be missed.
Recent ship reviews.
Several of our team have
NCL's - Norwegian Sun. Crystal Cruises - Crystal Serenity.
Both of these reports can also be found on our website - www.cruiseco.com
State of the Industry. Two of the worlds largest cruise lines both reported exceptional earnings for the last quarter. Not withstanding the disruption of business due to the spate of hurricanes which caused numerous cruises to be cancelled, delayed and re-routed both Carnival Corp. and RCI announced huge increases in revenues.
Carnival Corp. which is awash in cash will raise its dividend 20 percent (increasing the return from $0.125 to $0.15 a share and starting in 2005 commence a program to buy back up to $1B of its stock. With fewer new ships coming on line over the next few years they expect to generate at least $2b a year of net revenue which will enable them to increase their dividend payout. With 14 new ships on order through the year 2009 Carnival Corp. has long term debt of around $.6.9B at the end of 2003. Before you rush out to buy their shares I should mention they are trading at a near record high of $50.68 a share as I write this.
Royal Caribbean, which operates 29 ships carried more passengers at higher per diems through the last quarter which helped the company generate a 37% rise in profits. Profits and dividends rose over the last year with expected dividend net payouts going from $0.097 to $0.133 a share. Again, shares are near a record high at 49.79 a share.
Commentary: There is a real reason why these cruise lines are positing record profits. Besides delivering a great travel package the price of which is pretty much locked in at an affordable purchase price (sometimes even years in advance) they also offer something your clients want - a great experience to take home and talk to their friends and neighbors about. If this does not convince you that you should be offering your buyers a cruise option for their programs - then read on.
More wealthy American's plan to cruise... A recent survey by the AARC - (American Affluence Research Center) shows that one in four (about 6 million Americans) plan to vacation outside of the USA, with the most popular destinations being, Europe (43%), The Caribbean (22%), Canada (14%), and the Far East/Asia (13%). Of these travelers, over 800,000 intend to take a cruise, the biggest number ever recorded since the survey was started. The length of the average vacation is around 11 days and these traveler will spend more than $600 per night not including gambling and shopping. Amongst the high rollers with a net worth in excess of $6m, the average cost of their vacation will run over $1,200 per night.
Europe is hot, hot, hot with cruise prices being locked into the US Dollar at a level far above its current value.. the ONLY way to experience Europe without being lucky enough to fall into the bracket surveyed above - is to take a cruise. You can even lock in your shore excursion prices, so all you need to go into your pocket for is - shopping off the ship, maybe some snacks or an ice cream or two.. just go and enjoy the European experience at a dollar rate you won't see again for several years.
News from Holland America As we recently reported, Holland America Line is investing $225 million in its Signature of Excellence program to provide unparalleled product and service enhancements to its fleet. The comprehensive enhancements focus on five areas vital to Holland America's guest experience: spacious, elegant ships and accommodations; sophisticated five-star dining; gracious, unobtrusive service; extensive enrichment programs and activities; and compelling worldwide itineraries. Enhancements have been started on all ships and will be completed by the end of 2006.
In addition to the investment being made in upgrading the ships on-board facilities, Holland America Line is also investing in its shore-side equipment and experiences with exciting new activities at its award-winning private island - Half Moon Cay. New activities will includes such things as "Swimming on Horseback", a "Stingray Adventure", as well as a guided personal watercraft tour and a fun-filled aqua park. These new activities augment Half Moon Cay's extensive array of existing excursions which already include scuba diving tours to explore the marine life, catch-and-release deep sea fishing trips in the island's beautiful waters, eco tours by glass-bottom boat, kayak trips and parasailing.
Half Moon Cay is the highest rated port of
call on Holland America Line's Caribbean itineraries. Located on 55 acres of the
2,400-acre Little San Salvador Island, an international bird sanctuary in the
Bahamas. The island paradise is accessible only to guests of Holland America
Line and Windstar Cruises. It is a destination on most Caribbean itineraries and
on Panama Canal cruises sailing roundtrip from Fort Lauderdale. For the past
five years, Half Moon Cay has won the annual Editor-in-Chief Award for "Best
Private Island" from Porthole Cruise Magazine. The cruise line worked directly
with the Bahamian government to ensure that new facilities were designed to
minimize their environmental impact and preserve this island paradise in a
manner consistent with its natural beauty. As a result, Half Moon Cay is listed
with the Bahamian National Trust as a site of environmentally sustainable
tourism.
Other news from Holland America. Mr. Stein Kruse has been named chief executive officer for Holland America Line Inc., His appointment is effective December 1, 2004. Kruse will report to Micky Arison, chairman & CEO, and Howard Frank, vice chairman & COO, Carnival Corporation & plc. Kruse, who will serve as president and chief executive officer, succeeds Mr. Kirk Lanterman who led Holland America Line for more than 30 years. Lanterman, a cruise industry icon, will continue to serve as chairman of Holland America Line Inc. in a non-executive role and as a member of the board of directors of Carnival Corporation & plc.
The other side of the
coin: Chantiers Atlantique, the builders of the majestic QM2, are
facing heavy loss in 2005 as orders drop off. The yard has taken steps to reduce
its break-even point to two and a half cruise ships a year from around four. The
French builder currently has two cruise newbuilds on the books for delivery in
2006 and 2007, both for MSC Cruises. Meanwhile, Chantiers is getting help from
high places. The French finance minister Nicolas Sarkozy has vowed to keep the
yard afloat, and the government has encouraged state-owned companies to place
orders at Chantiers. But a plan by parent Alstom to merge Chantiers with
state-owned military ship builder DCN is not faring well.
The Cousteau Society and Carnival Corp. have
reached an agreement in principle to restore the Calypso, the legendary research
and expedition vessel of Captain Jacques Yves Cousteau. Once restored, Calypso
will become an exhibit and a center for science and the environment. The
Cousteau Society has been diligently working toward a successful solution for
this historic vessel and over the last eight months have put together a plan to
restore the former American minesweeper as authentically as possible. The
"Calypso" will be restored at a shipyard in Grand Bahama at an
The vessel's new location, following
refurbishment, is to be announced at a later date. The Calypso will
maintain its French flag and will remain a historic symbol of the extraordinary
work of Captain Cousteau and the Cousteau Society, which carries on his work in
science and education for public awareness, as well as for international
university research. The "Calypso" was heading towards a sad ending, after being involved in a mooring accident she sank in the harbor of Singapore in 1996. Captain Cousteau decided then that the vessel must be saved and arranged to have her transported back to France, writing to The Cousteau Society, "I want Calypso to remain at the service of science and education." He began a campaign to find a permanent shelter for the vessel and ultimately the city of La Rochelle, France, offered a program to secure Calypso's future. Unfortunately, the La Rochelle plans were never realized and the Calypso has remained there in a caretaker status, in an increasingly debilitated condition.
Ports & Ships Sydney, Australia: Following a A$35m makeover at Grand Bahama drydock Carnival’s 1,900-passenger liner, formerly the "Jubilee", now renamed the Pacific Sun, departed today on the published programs fourth cruise. The Pacific Sun's completion and departure for Sydney had been delayed by Hurricane Frances and Hurricane Jeanne. Carnival Australia’s president Gavin Smith said a naming ceremony for Pacific Sun, which has been painted in identical livery to Brisbane-based Pacific Sky, will now be held early February.
Oceania Cruises’ third ship, Nautica, will be christened in Istanbul on Nov. 22, 2005, The maiden voyage sails Nov. 27 from Piraeus to Singapore. Nautica will operate a series of 15 to 35 day Asia cruises, sailing from Singapore, Hong Kong, Laem Chabang (Bangkok) and Tianjin (Beijing). As with Oceania’s European itineraries, the Asia series will feature a high percentage of overnight port calls. Overnights are scheduled at destinations including Bangkok, Ho Chi Minh City, Hanoi, Hong Kong, Safaga (for Luxor), Dubai and Bombay. With the arrival of its third ship, Oceania had been considered Australia/New Zealand cruises or, perhaps an Australasia season, but research with past guests and top-producing agents showed there was serious interest in Asia. The region has been poorly serviced in recent times due to political unrest in Indonesia which has reflected badly on the area as well as the the SARS and Bird Flu outbreaks in 2003.
Bali & Indonesia: There have been 11
cruise ship visits to Indonesian ports so far this year, with a total of 5,000
passengers. In the past year Hanseatic, Columbus, Deutschland, Europa and Astor
have visited Indonesia and Silver Cloud is scheduled to call at Semarang on
December 24. Classic International Cruises’ confirmed today that Arcalia
Shipping Company’s 9,740gt Funchal will operate her scheduled cruises from
Australia to Bali and Lombok. After the September 9 fatal bomb attack on the
Australian Embassy in Jakarta, the Australian Department of Foreign Affairs and
Trade’s issued a travel warning (updated today) against ‘non-essential travel to
Indonesia as a whole, including Bali, however, there remains a lot of interest
and increasingly stronger demand for the area.
Savona’s (Italy) new cruise terminal:
Less than a year after cruise ships began calling at Savona’s new cruise
terminal, Palacrociere, funding has been approved to build an additional berth.
The €7.8m, 1050 ft pier will go up on the site of the current yacht marina,
which will be relocated. A public tender will be issued for the construction
contract, with work commencing in late 2005/early 06. The berth should be
operational in late 2007. A terminal extension is also planned, along with a
major parking expansion. The budget and blueprint for the terminal have not been
finalized. Palacrociere’s existing pier is 1500 ft long and can serve up
to two vessels at a time. Costa and the Savona Port Authority co-financed
Palacrociere, and Costa operates it under a long-term lease. |
been out visiting and inspecting some of the cruise ships we are happy to
promote to you for your programs. This months we have been on-board 
estimated
cost of $1.3 million, with work expected to be completed by the end of 2005.