Costa
Cruises recently laid off most of the line's South Florida
employees and reduced the number of Caribbean cruises it
will offer to focus operations in Europe.
Company officials said they can command higher cruise fares and better returns in Europe.
The cruise line cut 120 employees, including about 105 working at the North American sales office in Hollywood, to centralize operations at the company's headquarters in Genoa, Italy, said Maurice Zarmati, Costa's president and CEO of North America, on Thursday.
Costa will focus on selling European cruises and other cruises to European and global customers, the executive said.
"The Caribbean is saturated by the American operators," Zarmati said.
As companies like Carnival Cruise Lines and Royal Caribbean International introduce huge ships for Caribbean routes, it has become increasingly difficult for seasonal players to compete, he said.
"We didn't have the kind of yields in the Caribbean that met the company's goal objectives," Zarmati said.
He declined to comment specifically about cruise yields and company targets.
Costa is part of the world's largest cruise company, publicly held Carnival Corp., which is based in Miami.
In Europe, the company's chief competitor is Italian operator MSC Cruises, which recently launched new ships for Mediterranean voyages.
Costa plans to move the Costa Fortuna to Europe, and only the Costa Atlantica will remain as a South Florida ship, Zarmati said.
Instead of the 38 voyages offered in the 2009-10 season, Costa will offer 15 cruise itineraries. Most of those will be weeklong voyages to the Western Caribbean. Five cruises will depart from Fort Lauderdale between November 2010 and January 2011. The other 10 voyages will depart from Miami between January and March 2011.
Zarmati said about 38 Costa employees will remain at the company's Hollywood office. Their duties will shift to selling European and exotic destinations to customers in the United States and Canada, he said.
"We just don't have the same brand awareness as others" that cruise from South Florida to Caribbean ports, Zarmati said.
Costa is a big player abroad. The company has launched three new ships in the past 10 months and plans to unveil two new ships in Europe, one next year and another in 2012, Zarmati said.
"The Costa brand will be the third-largest [cruise] brand in the world," he said.
Company officials said they can command higher cruise fares and better returns in Europe.
The cruise line cut 120 employees, including about 105 working at the North American sales office in Hollywood, to centralize operations at the company's headquarters in Genoa, Italy, said Maurice Zarmati, Costa's president and CEO of North America, on Thursday.
Costa will focus on selling European cruises and other cruises to European and global customers, the executive said.
"The Caribbean is saturated by the American operators," Zarmati said.
As companies like Carnival Cruise Lines and Royal Caribbean International introduce huge ships for Caribbean routes, it has become increasingly difficult for seasonal players to compete, he said.
"We didn't have the kind of yields in the Caribbean that met the company's goal objectives," Zarmati said.
He declined to comment specifically about cruise yields and company targets.
Costa is part of the world's largest cruise company, publicly held Carnival Corp., which is based in Miami.
In Europe, the company's chief competitor is Italian operator MSC Cruises, which recently launched new ships for Mediterranean voyages.
Costa plans to move the Costa Fortuna to Europe, and only the Costa Atlantica will remain as a South Florida ship, Zarmati said.
Instead of the 38 voyages offered in the 2009-10 season, Costa will offer 15 cruise itineraries. Most of those will be weeklong voyages to the Western Caribbean. Five cruises will depart from Fort Lauderdale between November 2010 and January 2011. The other 10 voyages will depart from Miami between January and March 2011.
Zarmati said about 38 Costa employees will remain at the company's Hollywood office. Their duties will shift to selling European and exotic destinations to customers in the United States and Canada, he said.
"We just don't have the same brand awareness as others" that cruise from South Florida to Caribbean ports, Zarmati said.
Costa is a big player abroad. The company has launched three new ships in the past 10 months and plans to unveil two new ships in Europe, one next year and another in 2012, Zarmati said.
"The Costa brand will be the third-largest [cruise] brand in the world," he said.
