Industry Insider

 

Arison Discusses Fuel Issues

Micky Arison, board chairman and CEO of Carnival Corp. & plc, was onboard for the inauguration of Eurodam and discussed the critical issue of fuel costs and the global economy.

"The fuel surcharges our brands have imposed have not even been close to recapturing the increases," he said. "We are now a global company with 88 ships. This is a much more complex issue for us - which is being dealt with on a brand level."

He said Carnival has special teams looking into the fuel issue.

"We have teams both at the corporate and at the brand level," he said. "We are looking at everything including all viable fuel alternatives."

But he acknowledged that initiatives to date have only been successful in cutting fuel costs "in the single digits," and no more than 4% apiece.

"This is an unprecedented situation," he said.

And the nuclear option?

"We are not sure at this stage we are considering nuclear cruise ships," he smiled. "But we are looking at our itineraries. At today's $140 fuel, we are looking at everything."

Arison added that after 2010 and 2011 the industry will see a slowing on ship deliveries because, at today's fuel pricing, "the return is not exceeding the cost of capital" on newbuilds.

He noted that even with all options on the table regarding fuel alternatives, that the cruise industry today is basically powered by "fossil fuel" engines. In other words, at least for the near term we are an industry, that must deal with the spiking cost of oil without an alternative fuel in immediate sight.

His comment about the issue of nuclear-powered cruise ships in the future was tongue in cheek, of course, but the seriousness of the fuel issue clearly is top priority for cruise executives touching everything from itineraries, pricing, financial planning and ship design.

He acknowledged that there are no new Carnival newbuilds on order - "I haven't signed an order for a newbuild for more than a year," he said. "What you are seeing now in newbuilds is a result of decisions made 3-5 years ago."

He said "it is not justified today" to order a ship for a dollar based brand.

"And for brands in euros and pounds the margins are starting to narrow. Now, the return would not even exceed the cost of capital," he declared.

Equally important, and with one factor driving the other, is the matter of the global economy.

"In my 35-plus years, I've seen similarities in terms of the economy, but now with 88 ships as a global company there are many more complex issues. Our context in the global economy is different."

HAL's Kruse added that, especially today, cruising offers an unprecedented value to the leisure traveler.

"We are selling cruises today for about the same prices as 20 years ago. It is an incomparable value today, he said.

"Even with the impact of the macro-economic picture today, it is still positive. Some people may be trading down and taking shorter trips. But their basic behavior is not changing. They want to travel."

"The price of oil today is driving us crazy, with a lot of other folks," Arison acknowledged. But he pointed out a recent MSNBC Europe analysis that showed Carnival stock is a three-times greater value now than GM. "Our stock may be getting hammered, but others are getting hammered more," he said.

Christian Sauleau Rejoins Silversea Cruises as Exec VP of Fleet Operations

Silversea Cruises is pleased to welcome back Christian Sauleau, who rejoins the ultra-luxury cruise operator today as executive vice president of fleet operations, overseeing marine, technical, hotel, crewing, entertainment and land programs. He reports to the company's CEO, Amerigo Perasso. Sauleau was the line's senior vice president of operations in the mid-1990s, and was instrumental in developing the award-winning company's exceptional reputation for personalized service and hospitality. He will be based in the Fort Lauderdale office.

"We are very pleased to welcome Christian back," said Perasso. "He is dedicated to the highest standards of quality and service excellence, and will bring more than three decades of experience in the hospitality and cruise industries to our team. His appointment will reinforce our commitment to strengthening our leadership position in the ultra-luxury cruise segment as we continue to grow and expand our fleet."

Sauleau was recently the executive vice president of operations at Regent Seven Seas Cruises, where he played an integral role in the expansion of their fleet, overseeing construction of new vessels. His career also includes several years at Royal Viking Line in both shipboard and shoreside capacities. As vice president of hotel operations at Royal Viking Line, he supervised purchasing, entertainment, shore programs and meet-and-greet services.

A native of France, Sauleau attended hotel management school in Paris. He holds a degree in international business from the University of Miami and was enrolled in their MBA program. He has also guest lectured at Cornell University.

The company also expects to finalize a management agreement shortly with V. Ships for technical management (including newbuild supervision), marine operations and crew management services. It is anticipated that a number of operations employees in Silversea's Monaco office will move to V. Ships as a result of the reorganization.

In conjunction with these organizational changes, Rocco Auteri, senior vice president of fleet operations, and Silvio Rossi, vice president of hotel operations, are leaving Silversea. The company recognizes their important contributions in strengthening the onboard product and helping Silversea continue receiving such important accolades as Travel + Leisure's "World's Best" award for 2008. All at Silversea wish them the very best in their future endeavors.

Silversea Cruises is recognized as an innovator in the luxury segment, offering guests large-ship amenities aboard four intimate vessels, Silver Cloud, Silver Wind, Silver Shadow, and Silver Whisper, all designed to offer an atmosphere of conviviality and casual elegance. With the addition of the regal expedition ship Prince Albert II, the company's itineraries encompass all seven continents.

easyCruise appoint new CEO

easyCruise has announced the appointment of Mr Fotis Kalatzis as its new CEO. The appointment follows the successful launch of easyCruise’s second ship, easyCruise Life, two months ago and the very positive response that it has received from both media and travel agents alike. It also heralds the company’s intention to expand.

Mr Kalatzis has a proven track record in business with many years experience as a CEO for large international companies, most recently with Procter & Gamble as President and CEO of the Prestige & Professional Care division at The Wella Corporation.

Stelios Haji-Ioannou, who will now act as Non-Executive Chairman, said of the appointment: “Fotis brings to the table a wealth of knowledge selling and promoting products and services at an emotional level and that is what we need to do with easyCruise. We now have an offering that is carving its way into a niche area, offering the best of Greece in one cruise. We have a great brand which is getting rave reviews and now is the time to push forward and grow the business, which is where Fotis will come into his own. We welcome him to the team.”

Commenting on his new role Mr Kalatzis said: “Being a Greek national myself, I was very excited when I was asked to get involved with easyCruise. I believe the easyCruise concept is unique. No one else can offer you the chance to enjoy so much of Greece in just one week, with the opportunity to stay at each destination for so long each day. Since it began sailing in Greek waters, easyCruise has won more and more fans and the arrival of easyCruise Life has only continued this trend. My role will be to further the growth of the brand, refining our image and ensuring its continued success.

Susan Hooper to Leave Royal Caribbean

As Royal Caribbean Cruise Line continues to expand in Europe, as well as Asia and Latin America, the company announced today that Susan Hooper, managing director, Europe, Middle East and Africa (EMEA), will be stepping down from her position, effective 1 September 2008.

Hooper, who joined the company four years ago, has been instrumental in the region’s rapid growth and success. The region has achieved record growth under her leadership and is poised for even greater growth in the future.

Hooper attributed her departure to new professional opportunities and the needs of her family.

“In the four years Susan has driven the EMEA management teams of the Royal Caribbean Cruise Line brands, she has achieved the fastest growth in the history of the business,” said Michael Bayley, senior vice president, International, Royal Caribbean Cruise Line.

“She leaves behind a legacy of outstanding management and performance that sets very high standards for our organisation as we move forward,” he added.

Hansa becomes a brand in the Delphin Group
A restructuring has taken place within Germany’s Delphin Group. Bremen-based Hansa Kreuzfahrten GmbH, formerly an independent venture, has been formally merged with Delphin Kreuzfahrten GmbH, a company based in Hamburg with a branch office in Bremen.

Notwithstanding this formal change, the well-established name of Hansa Kreuzfahrten will be retained as a brand of Delphin Kreuzfahrten.

It is also understood from market sources that Horst Kilian, md of Hansa Kreuzfahrten, continues as director under the new scheme whilst Heinz-Herbert Hey has been appointed sole md of Delphin Kreuzfahrten.

Keeping its own identity, Hansa Kreuzfahrten is now trading as a brand of Delphin Kreuzfahrten.

Senior Exec's shuffle at Regent (RSSC)

Ten-year Regent Seven Seas Cruises hotel executive Andre Nordseth is leaving the company, and vp Alex Sharpe is taking on a new role.

Sharpe was appointed vp national and key accounts after serving as vp destination and revenue management for the past year. Previously he was director of product management. Over more than a decade with Regent, he has worked in various sales and product capacities.

Nordseth had been promoted from senior director to vp cruise hotel operations in June last year, and was responsible for overseeing all on-board operations, product quality control, shore excursions and land programs. He had for many years reported to Christian Sauleau.

Franco Semararo, svp operations at sister company Oceania Cruises, will oversee Regent hotel operations. Bernhard Klotz and Stephane Armengol, both directors of operations, will report to him.