Industry Insider

 

NCL name Kevin Sheehan as its new CEO, replacing Colin Veitch

Norwegian Cruise Line has named Kevin Sheehan as its new CEO, replacing Colin Veitch, who held the slot since 2000. Sheehan, who before being named to the new post was president and CFO of NCL, will continue in those capacities as well.

Prior to joining NCL, Sheehan served as chairman and CEO of Cendant Corp.'s vehicle services division, overseeing several companies, including Avis and Budget. Now, he is tasked with leading the "freestyle cruising line" through an economic morass, not unlike the one post-9/11.

In his favor, NCL reported a third-quarter profit of $171 million, compared to the same time last year, when it reported a loss of $8.6 million.

Also, NCL named Andy Stuart executive vice president, global sales and passenger services. Stuart previously was in charge of those areas, but during the past six months, he has worked as executive vice president and chief product officer, directing the expansion and upgrade of the "freestyle" concept.

Sheehan's appointment is another in a growing list of moves NCL has made since its 50-percent acquisition by Apollo Management last January. The line also redeployed two of its Hawaii ships to Europe. "We are extremely pleased with the revenue performance achieved in the [third] quarter and the significant improvement in our profitability," Sheehan said in a statement. "Our Hawaii operation is now profitable, the growth of our international fleet has had a very positive impact."

Sheehan also jumps in at a time when the line is in disagreement with Aker Yards in France over the construction of two NCL F3 ships; the dispute stemming from the cost of building. See news article - NCL.

Rick Sasso to assume CLIA Marketing chair

Rick Sasso, president and ceo of MSC Cruises USA, will succeed Dan Hanrahan as chairman of the Cruise Lines International Association Marketing Committee, effective Jan. 1. 

Hanrahan, president and ceo of Celebrity Cruises, has led the Marketing Committee for the past two years.

CLIA president and ceo Terry Dale said Sasso steps in at a time when the industry needs ‘dynamic, innovative leadership and strategic thinking.’

Dale added: ‘Marketing is going to be more important than ever in the months to come and we are extremely grateful that industry leaders such as Dan Hanrahan, whose service has been above and beyond the call of duty, and now Rick Sasso are willing to give CLIA much of their valuable time.’

David Giersdorf joins Paul Gauguin Shipping Ltd. as acting President and CEO

Industry veteran executive David Giersdorf joined Paul Gauguin Shipping Ltd. as acting president and ceo as the company assumes full operation of Paul Gauguin beginning in January 2010.

Giersdorf will lead the Paul Gauguin transition team for an initial period of six months. The plan is aimed at ensuring a successful transition of the ship, which is operating as part of the Regent Seven Seas Cruises fleet through 2009 and independently thereafter.

Giersdorf brings experience in small-ship cruising and the development of French Polynesia as a cruise destination. He said the immediate focus is to establish the reservations, sales and marketing resources to support the upcoming launch of Paul Gauguin’s 2010 itineraries.

Giersdorf most recently served as president and coo of Ambassadors Cruise Group. Earlier he was evp marketing and sales for Holland America Line. Other senior management and/or ownership roles were at Exploration Cruises, Windstar Cruises, Glacier Bay Lodge and the marketing services firm CF2GS.

He chaired Cruise Lines International Association for a short period.

With 9 major new ships being delivered next year - could the timing be worse?

There are nine major news ships arriving in 2009 to make up a total of 38 new ships being delivered between 2008 & 2012.  This represent an increase in the number of beds to sell from 262,000 at year end 2007 to 346,000 at the end of 2012, a 32% gain (not taking into account older ships likely to leave the market).

But it may just be what the industry needs as the new products may give travel agents a needed boost in tough times.

Certainly no other leisure travel segment is growing its product so dramatically. Harrah's and other Vegas hotels are bleeding financially. Many leading Hawaii hotels are now experiencing dwindling occupancies. On the all-inclusive side, there's a big growth in Jamaica, but air is a problem to the
Caribbean. Mexico all-inclusives should fare better, but there are no particularly exciting developments in product there.

Contrast that to changes in the cruise biz next year: newbuilds of relevance to the North American market in 2009 are Seabourn Odyssey, Costa Luminosa and Pacifica, MSC Splendida and Magnifica, Celebrity Equinox, Oasis of the Seas, Silver Spirit, and Carnival Dream.