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Mixed reports on Ambassadors International's performance

Ambassadors International suspended its quarterly dividend, announced that Mississippi Queen and Contessa will likely not sail in 2008 and acknowledged pricing and product mistakes in Alaska during today’s second quarter earnings call.
The company also cited a solid performance by Windstar Cruises and the pair of Columbia River vessels.

In Alaska, prices for Empress of the North were raised up to 20% while free airfare and group rates were withdrawn, resulting in sluggish demand that had to be attacked with discounting. The vessel was also out of service for eight weeks following a grounding.

Contessa, targeted at younger consumers as a private yachtlike experience, ‘missed the mark’ and operated at a loss, said David Giersdorf, president of Ambassadors Cruise Group. He added that the ship, acquired for $2.5m, is not consistent with the brand.

Pricing mistakes in Alaska probably impacted load factors by 10%, said Joe Ueberroth, chairman, president and ceo of Ambassadors International. He advised analysts that Contessa and the U.S. Heartland river vessel, Mississippi Queen, likely will not operate in 2008.

Mississippi Queen’s introduction previously had been delayed to March next year for major renovations. Its entry to service will probably follow the retirement of Delta Queen at the end of next year.

American Queen is operating at occupancies in the mid 70s and climbing. Passenger carry and total revenue are up this year with room for further improvement.

Acquired in April, Windstar Cruises is executing well. Gross daily ticket revenue averaged $380 in the second quarter, significantly improved from a year ago, according to Giersdorf. More than 30% of the sail-cruise brand’s capacity is booked in 2008 with pricing currently up 10% compared to 2007.

Post-retirement plans for the Delta Queen are not firm. Ambassadors has been approached by communities interested in tapping the vessel as a hotel or museum and by parties wishing to buy the paddlewheeler or operate it as a joint venture in a foreign jurisdiction, Ueberroth said.

Sea Cloud Cruises name Richard D. Galazio US Sales Manager

(Englewood, NJ August 17, 2007) - Sea Cloud Cruises, owner and operator of the legendary sailing yacht Sea Cloud and intimate luxury sailing and river vessels, has named Richard D. Galizio Sales Manager, U.S.  

Galizio has come aboard to further develop Sea Cloud Cruises’ group, meetings and incentives business for both the ocean and river products. 

“We are excited to have Rick join Sea Cloud Cruises as our new Sales Manager. His respectable sales management acumen, many years in the industry, and knowledge of the luxury market will make him a valued addition to our team.” said Maritza Bush, Vice President, U.S. 

Galizio has over 25 years of travel experience. Most recently, he was the Director of Sales for the Eastern United States for Trafalgar Tours of Anaheim California. Prior to his tenure at Trafalgar, Galizio was Director of Sales for the luxury safari company, Park East Tours, in NY and Director of Sales for Wildlife Safari of Morage, California.  

NCL Awash in debt narrows 2nd quarter loss - new partner buy's in for $1bn
NCL Corp. Ltd. reported a net loss of $24.6 million on total revenues of $553.1 million for its second quarter ended June 30, 2007 because of lower costs for its operations in Hawaii, this compares to a net loss of $35.1 million on $502.8 million for the same period last year. Net interest expense rose 25 percent to $40.8 million, reflecting higher borrowings after delivery of the ships Pride of Hawaii and Norwegian Pearl. Last week, NCL announced that Apollo Management LP would invest $1 billion for a 50 percent stake in NCL, giving it liquidity to pay down debt.

Revenues for the second quarter of 2007 increased 10 percent on a 13.6 percent increase in capacity days partially offset by a 2.5 percent decrease in net yields. The company said the decrease continues to be primarily driven by weakness in ticket pricing for the company's Hawaii business, as well as lower onboard revenues. Occupancy for the second quarter of 2007 was 107.5 percent compared to 107.3 percent in the same quarter last year.

NCL listed long-term debt of $2.4 billion and other long term liabilities of $1.7 billion on its balance sheet.

In the second half of the year, the company said it continues to experience pricing pressure in its Hawaii trade but the Caribbean trade has stabilized. Demand for the summer has been strong, particularly in Europe. "Our second quarter results reflect the challenges we continue to face in Hawaii," said Colin Veitch, president and CEO of NCL Corp. Ltd. "However, as we look out to 2008 we have positive indications that the measures we have implemented thus far are beginning to work. These indications, the success of our newbuilding program and our new shareholder and related equity investment makes it a very exciting time at NCL Corp." Apollo Management last week made a $1 billion investment in NCL.

Worldwide's comment; One of the measures mentioned being the reposition out of Hawaii to Europe of one of their Hawaiian ships which must have stemmed the flow of red ink from that area while improving the bottom line in what has proven to be a bumper season for European cruising in general.

Ambassadors Cruise Group hires sales vp
Ambassadors Cruise Group appointed Brian Clement as vp retail sales for Majestic America Line and Windstar Cruises, reporting to Diane Moore, svp sales and marketing.

Clement will work to develop national account relationships and will create tools for agent training and sales efforts while also managing field and inside sales staff for both brands.

Clement brings more than 20 years of travel industry experience, most recently serving as evp and md for International Cruise and Excursions, where he managed resort business development, yield management and the marketing and interlude departments. He also managed relationships with cruise and business partners, driving more than $300m in annual cruise sales.

Previously Clement served as senior director of Holland America Line’s air, documentation and reservations support departments. Prior to HAL, he spent a dozen years at American Airlines where he was responsible for 35 cruise accounts.

Natansohn Foundation to award grants

The Deborah L. Natansohn Foundation – which honors the late president of Seabourn Cruise Line – has scheduled an event to celebrate its first grant winners.
The foundation is supporting three programs in its first year, all related to causes that were championed by Natansohn, a high-profile senior industry executive who died Oct. 24 in Florida.

Foundation grants will fund the participation of an executive from a non-profit organization in a Commonwealth Institute forum of female CEOs, send a school principal to a Council for Educational Change leadership development program and provide a scholarship for a student in Florida International University’s School of Hospitality and Tourism Management.

The grant winners will be announced at a $200 per person event set for Nov. 8 at Fort Lauderdale’s St. Regis Resort that will feature celebrity chefs, live music and live and silent auctions.

‘It will be a really fun event for people who knew and loved Debbie,’ said her sister, Rena Natansohn Epstein, foundation chair. ‘We really think of it as a party and we want it to reflect Debbie’s joie de vivre and her love of good food, good wine and just fun.’

The non-profit Deborah L. Natansohn Foundation aims to further the advancement of women in society and business through mentoring programs, educational partnerships, scholarships and community outreach opportunities. Officers and board members consist of family, close colleagues and friends.

The foundation’s website (www.dlnfoundation.org) is set to go live later this week. Information is also available from Rena_Epstein@hotmail.com (write ‘DLN Foundation’ in the subject line.