Taking Ritz-Carlton to sea Page 24 Taking Ritz-Carlton to sea Page 24 EDGE Transforming Celebrity Cruises Page 43 EDGE Transforming Celebrity Cruises Page 43 LNG comes of age Page 52 LNG comes of age Page 52 Royal Caribbean’s Fain on what’s driving growth Page 30 Royal Caribbean’s Fain on what’s driving growth Page 30 EPICENTER OF EDGE Inspired by transatlantic liners, the Grand Plaza of the Celebrity Edge mixes simplicity and modernity, with a striking chandelier over the Martini Bar rising three decks to the ceiling above. CruiseBusiness.com CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine Winter 2018/2019 C ru is e B u sin e ss .c o m M a g a zin e W in te r 2 1 8 /2 1 9 425x297%20kansi 2 .indd 1 31.1.2019 11.21
Follow the Sun SunStone currently has 10 vessels in its managed fleet, and has ordered four new INFINITY class vessels with options for an additional six. As the largest tonnage provider for the expedition market, SunStone offers vessels on charter to cruise companies, tour-operators and travel companies World-Wide. SunStone specializes in commercial management of passenger ships and is responsible for the buying, selling and chartering of the SunStone fleet. Embark on a never-ending exploration of the globe, with the direction and hands-on experience of SunStone Ships. Introducing INFINITY, a brand new class of expedition cruise vessels joining the SunStone fleet starting in 2019 Wherever Your Destination… SunStone Can Take You There. www.sunstoneships.com M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V VICTORY II The Best Way To P redict The Fu ture Is To C reate It M/V SEA SPIRIT M/V OCEAN ATLANTIC M/V SEA ENDURANCE M/V OCEAN NOVA M/V OCEAN ADVENTURER M/V SILVER DISCOVERER M/V VICTORY I G U I D A N C E • I N N O VAT I O N • S E R V I C E wulffentre.com | sales@wulffentre.com | +358 10 6335 500 Wulff Entre Ltd. provides a completely stress-free solution for all local or international trade show needs. We are trade show specialists providing expertise, stand design, and project management services to help you save time and effortlessly reach your exhibiting goals. Seatrade Cruise Global Copenhagen Shipping Summit NEW OTC Nor-Shipping Cruise Ship Interiors Expo NEW Marintec South America SPE Offshore Europe Neva Marintec Indonesia Seatrade Offshore Marine & Workboats Middle East Inmex SMM India Kormarine ADIPEC The International WorkBoat Show Europort Marintec China Meet our team at Seatrade Cruise Global 2019 and get a free consultation to take your trade show exhibiting to the next level! MARITIME & OFFSHORE EXHIBITIONS 2019 Ninni.Arion (at) wulffentre.com + 358 50 3967 560 Satu.Pekkala (at) wulffentre.com +358 50 3967 537 CBM-kansi SEK.indd 1 31.1.2019 9.58
When your guests cruise in and out of Port Everglades, they’ll save time getting to their ship and starting their cruise vacation. We’re just 3 minutes from Fort Lauderdale Hollywood International Airport (FLL), and we’re easily accessible from South Florida’s major highways. Plus, our newly renovated modern terminals are designed for ef? ciency. That all adds up to less time traveling and more time cruising. Visit porteverglades.net or call 800-421-0188. SAY BON VOYAGE SOONER PEV116_Cruise Biz Review_FP_Cruise Lounge_Mech.indd 1 11/21/18 10:52 AM 3-4-5.indd 1 31.1.2019 7.21
wulffentre.com | sales@wulffentre.com | +358 10 6335 500 Wulff Entre Ltd. provides a completely stress-free solution for all local or international trade show needs. We are trade show specialists providing expertise, stand design, and project management services to help you save time and effortlessly reach your exhibiting goals. Seatrade Cruise Global Copenhagen Shipping Summit NEW OTC Nor-Shipping Cruise Ship Interiors Expo NEW Marintec South America SPE Offshore Europe Neva Marintec Indonesia Seatrade Offshore Marine & Workboats Middle East Inmex SMM India Kormarine ADIPEC The International WorkBoat Show Europort Marintec China Meet our team at Seatrade Cruise Global 2019 and get a free consultation to take your trade show exhibiting to the next level! MARITIME & OFFSHORE EXHIBITIONS 2019 Ninni.Arion (at) wulffentre.com + 358 50 3967 560 Satu.Pekkala (at) wulffentre.com +358 50 3967 537 6-7 .indd 2 31.1.2019 7.23
Ph oto cre dit : Te ijo Ni em elä CruiseBusiness.com Magazine Winter 2018/2019 7 8 Editor’s Commentary 10 Upfront 18 As expedition market grows, business models may change 24 Taking Ritz-Carlton to sea 30 RCCL’s Fain on what’s driving growth 36 Rising tide lifts Silversea Cruises 43 Edge takes Celebrity to the next level 52 LNG comes of age 58 Germany looks toward further growth 62 Europa 2 leads Hapag-Lloyd’s international ambitions 66 Piraeus push for passenger growth CONTENTS – WINTER 2018/2019 6-7 .indd 3 31.1.2019 7.23
Editor Teijo Niemelä Publisher Cruise Media LLC Copy Editor M.T. Schwartzman Sales and Production Christer Gorschelnik Sales – North America & Caribbean Scott Brown Art Director Julle Järvinen, Julle Oy COMPANY ADDRESS Cruise Media LLC 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 E-mail cruisemediallc[a]gmail.com SALES OFFICE FINLAND ChrisGo Consulting Pahtankatu 10 as 10 FIN-21200 Raisio, Finland Telephone +358-440-159 554 E-mail christer.gorschelnik[a]kolumbus.fi SALES OFFICE USA Scott Brown 10763 Traders Court Davidson, NC 28036 USA Telephone +1-843-340-5896 E-mail sbrown33[a]carolina.rr.com FEATURED CONTRIBUTOR Susan Parker has been writing about the cruise industry for over 25 years. As editor of Lloyd’s Cruise International, she created one of the leading titles of the 2000s. Since then Susan has been writing freelance for specialist cruise publications on subjects ranging from ports and destinations to environmental efficiencies. PRINTED IN FINLAND – PUNAMUSTA OY, HELSINKI www.cruisebusinessmagazine.com Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access 9-11 April 2019 Visit us at Booth # 4200 D uring the last few months, we have seen two South Florida rivals – namely Port Everglades and PortMiami – inaugurate new cruise terminals. Port Everglades opened the completely rebuilt Terminal 25, while in PortMiami Terminal A was built in a new location. Both cruise terminals are dedicated to Celebrity Cruises and Royal Caribbean International, respectively. “Branded” cruise terminals such as these are now making inroads in North America. In Europe, Costa Cruises has been a pathfinder for its own, dedicating facilities in major embarkation and disembarkation ports, such as in Savona and Barcelona. In the late 1990s, Star Cruises invested heavily in its own port facilities in locations like Laem Chabang in Thailand and Port Klang in Malaysia. In the case of PortMiami, more is yet to come: During 2018, the port announced agreements with both Norwegian Cruise Line and Virgin Voyages for dedicated facilities. And at the end of 2017, a new facility was opened for MSC Cruises’ operations in PortMiami. W hile shiny new terminals are more functional, comfortable and aesthetically pleasing than ever before, cruise lines are also doing their best to ensure that cruise guests don’t have to spend any unnecessary time shore-side before embarkation. Both Carnival Corporation and Royal Caribbean Cruises Ltd. have been at the forefront of developing new technologies to minimize queuing EDITOR’S COMMENTARY BRANDED CRUISE TERMINALS – ADVENTURE BEGINS ASHORE and check-in procedures at the terminals. It is important to minimize wait times, as – in the case of Terminal A – these new terminals may host ships capable of carrying over 6,000 passengers in one departure. In the case of Terminal 25 at Port Everglades, Celebrity has invested in “Frictionless Arrival” to make the check-in process nearly seamless. Suite Class guests, in particular, can enjoy a singular experience, with an exclusive lounge, elevator lobbies, screening areas and even a private rooftop terrace. What’s more, Terminal 25 features the first purpose-built crew lounge of any RCCL terminal, offering complimentary WiFi connectivity, TV access, optimized storage, quiet places for employees and more. Meanwhile, Carnival Corp. has been engaged in the ongoing process of launching its OceanMedallion guest experience platform, which is designed to make embarkation hassle-free. Even before arriving at the terminal, passengers can prepare for check-in procedures by scanning their passport and photo in the comfort of their homes, so actual check-in takes just seconds if wearing OceanMedallion wearable device received before leaving home. Once aboard the ship, the OceanMedallion allows keyless cabin entry and the ability to place food and beverage orders throughout the vessel. OceanMedallion is currently available onboard the Caribbean Princess and Regal Princess, but will be progressively introduced throughout the Princess fleet. Teijo Niemelä JANUARY 2019 HOW TO FOLLOW US Twitter.com/cruisebusiness facebook.com/CruiseBusinessUSA Instagram/niemelateijo CruiseBusiness.com Magazine 8 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 8-9 .indd 2 1.2.2019 6.57
Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access 9-11 April 2019 Visit us at Booth # 4200 8-9 .indd 3 25.1.2019 12.46
? 10 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 rolls-royce.com Propulsion systems optimised for the mission and the environment Rolls-Royce is widely recognised for its propulsion system solutions for a broad range of vessel types. These comprise propellers and thrusters, diesel and gas engines, stabilisers, rudders, steering gear, automation and control systems. We have a strong focus on research and development and our hydrodynamic research centre offers a unique resource which enables us to deliver system solutions fully optimised for the vessel’s operation. www.rolls-royce.com/marine C & P_ Pr op ul si on _1 _1 _0 12 01 8 Trusted to deliver excellence C & P_ Pr op ul si on _1 _1 _0 12 01 8 Trusted to deliver excellence The Celebrity Edge, Celebrity Cruises’ first newbuild since 2012, officially joined the fleet in a November ceremony, during which the ship’s godmother, Nobel Peace Prize Laureate Malala Yousafzai, was joined by all onboard to “bless this ship and all those who sail upon her.” At 130,818 gross tons, the Celebrity Edge is the first of four Edge-class newbuilds. It will be joined by the Celebrity Apex in 2020 and two additional sister ships in 2021 and 2022. Pictured from left are godmother Malala Yousafzai and Celebrity Cruises President and CEO Lisa Lutoff-Perlo. UPFRONT 10-13 .indd 2 25.1.2019 12.49
CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 19 rolls-royce.com Propulsion systems optimised for the mission and the environment Rolls-Royce is widely recognised for its propulsion system solutions for a broad range of vessel types. These comprise propellers and thrusters, diesel and gas engines, stabilisers, rudders, steering gear, automation and control systems. We have a strong focus on research and development and our hydrodynamic research centre offers a unique resource which enables us to deliver system solutions fully optimised for the vessel’s operation. www.rolls-royce.com/marine C & P_ Pr op ul si on _1 _1 _0 12 01 8 Trusted to deliver excellence C & P_ Pr op ul si on _1 _1 _0 12 01 8 Trusted to deliver excellence 10-13 .indd 3 25.1.2019 12.49
12 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 28-29 May 2019 ATHENS GREECE DOMOTEL KASTRI CONFERENCE CENTER & Sea Tourism Event The Premium Cruise in the East Med & Sea Tourism Event The Premium Cruise in the East Med Member of www.PosidoniaSeaTourism.com Bronze Sponsors Silver Sponsors Cruise Business Review_210x297 14-12-18 18:08 ™ÂÏ›‰· 1 UPFRONT Carnival Cruise Line and Meyer Turku Shipyard cut the steel for the line’s newest class of ship and revealed new livery for the 180,000-gross-ton XL vessel – named the Mardi Gras – which will be the first-ever cruise ship operating in North America to use LNG as a fuel source. This marked the official start of construction for the largest Carnival cruise ship ever built, to be delivered in 2020. A second XL ship will start construction in 2020 for delivery in 2022, in time to mark the 50th anniversary of Carnival Cruise Line’s founding. Virgin Group Founder Sir Richard Branson and Virgin Voyages President and CEO Tom McAlpin were joined in November by Miami-Dade County Mayor Carlos A. Gimenez, Chairwoman of the Miami-Dade County Economic Development and Tourism Committee Rebeca Sosa, and other local government officials to announce plans to build a new cruise terminal for Virgin Voyages. With this new terminal and a long-term commitment to PortMiami, Virgin Voyages also announced that its first ship, the Scarlet Lady, will sail to the Caribbean from Miami throughout 2021. The company’s second ship will sail from Miami during the fall/winter cruise season of 2021/22. In October, Virgin Voyages announced it had ordered a fourth newbuild from Italian yard Fincantieri. Carnival Corporation & plc, the world’s largest leisure travel company, welcomed AIDA Cruises’ new AIDAnova into its fleet at a celebration in Bremerhaven, Germany, as the world’s first cruise vessel to be powered at sea and in port by liquefied natural gas (LNG), the world’s cleanest-burning fossil fuel. The AIDAnova became Carnival Corp.’s fourth new ship of 2018. Shown from left are AIDA Cruises CEO Felix Eichorn, Captain Boris Becker, Costa Cruises Group CEO Michael Thamm, and Managing Directors Tim Meyer and Bernard Meyer from German shipyard Meyer Werft. ? Ph oto cre dit : Ch ris ter Go rsc he lni k 10-13 .indd 4 31.1.2019 15.25
CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 21 28-29 May 2019 ATHENS GREECE DOMOTEL KASTRI CONFERENCE CENTER & Sea Tourism Event The Premium Cruise in the East Med & Sea Tourism Event The Premium Cruise in the East Med Member of www.PosidoniaSeaTourism.com Bronze Sponsors Silver Sponsors Cruise Business Review_210x297 14-12-18 18:08 ™ÂÏ›‰· 1 10-13 .indd 5 25.1.2019 12.49
14 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 UPFRONT Originally founded as Star Cruises in 1993, Genting Hong Kong celebrated its silver anniversary in Singapore on December 14, marking 25 years since the first departure of the Langkapuri Star Aquarius. During its first quarter of a century, the company has become a leader in the Asian cruise business and now comprises three cruise brands – Star Cruises, Dream Cruises and Crystal Cruises – and also owns shipyards in Germany under the banners of MV Werften and Lloyd Werft. Among the nearly 500 guests representing government, travel agents and business partners, notable attendees at the 25th anniversary celebration included Chee Hong Tat, Senior Minister of State for Trade and Industry and Education. Genting Cruise Lines representativ es at the event included Tan Sri Lim Kok Thay, Chairman & Chief Executive Officer; Colin Au, Group President of Genting Hong Kong; and other senior executives and staff from the company. Held at MV Werften’s Stralsund yard on August 21, the keel-laying ceremony for the Crystal Endeavor marked another important milestone in the production of the luxury expedition yacht. German Chancellor Angela Merkel, Prime Minister Manuela Schwesig, Minister of Economic Affairs Harry Glawe, Genting Hong Kong Executive Chairman & CEO Tan Sri Lim Kok Thay, and Crystal President and CEO Tom Wolber – as well as hundreds of employees wearing matching "Team Endeavor" shirts – attended the ceremony in the Stralsund shipbuilding hall. TUI Cruises took delivery of Mein Schiff 2, a fresh take on a long series of ships from Meyer Turku shipyard. The delivery took place in Kiel, Germany, as the newbuild departed shipyard early before completion in December to avoid icy conditions in the Baltic. Main Schiff 2 is the sixth newbuild for TUI Cruises built at Meyer Turku, and its order book includes one more, Mein Schiff 7. From left: TUI Cruises CFO Frank Kuhlmann, CEO Wybcke Meier, Captain Kjell Holm, Meyer Turku CEO Jan Meyer and Tom Degerman. 14-15 .indd 2 29.1.2019 9.36
CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 15 UPFRONT Lindblad ExpeditionsNational Geographic officially launched the newest addition to their fleet, the National Geographic Venture, at a dockside christening ceremony in San Francisco Bay on November 30. The occasion marked a major milestone for the line, as the Venture became only the second newbuild in the company’s history. Senior Vice President and 40-year Lindblad veteran Pamela Fingleton joined CEO Sven Lindblad on the bow for the traditional toast and breaking of the champagne bottle. The 50-cabin coastal vessel was built entirely in the U.S. and operates under the U.S. flag. VRETA (Virtual Reality Emergency Training Application) has been developed for onboard training on passenger ships and can be used to simulate emergency situations in areas normally used by passengers or in situations not possible to demonstrate during normal operations. Simulated scenarios can be standard or ship-specific consisting of 360-degree photos. Additional digital elements may include audio and sound through speakers or headphones . An assessment tool allows for evaluation of crew competence. Here our Captain Christer Gorschelnik testing the app. More info at www.vreta.c o Shipyard De Hoop in the Netherlands launched the hull of the Celebrity Flora in January. In a few weeks’ time, the newbuild was to be transferred to Rotterdam for final outfitting. The 100passenger Celebrity Flora is specifically designed to operate in the Galapagos Islands, with its first departure expected in May 2019. MSC Cruises and Fincantieri on November 26 cut the first steel for the MSC Seashore, the first of two Seaside EVO ships currently on order at Fincantieri. Present at the ceremony in Monfalcone , Italy, were MSC Cruises’ Executive Chairman Pierfrancesc o Vago and Fincantieri’ s Chief Executive Officer Giuseppe Bono. Coming into service in spring 2021, the 169,400 gross ton MSC Seashore will be the first of its kind and represent an evolution of MSC Cruises’ Seaside class of ships. 14-15 .indd 3 29.1.2019 9.36
L ike many entrepreneurial ventures, it all started with a cup of coffee and a simple idea. Colleagues Javier Calle, Greg Walton, Jorge L. Mesa and Yohandel Ruiz came together with one goal in mind – to strip away corporate constraints and strict processes that stifle design, creativity and motivation and replace it with an environment of open exchange of ideas and fearless innovation. So with a roll of the dice, Studio DADO was born as a boutique design firm bringing new insights, new energy and new ideas to shake things up in the hospitality and cruise ship design industry. Here we speak with Jorge L. Mesa, one of the four founders of Studio DADO, the only creative hospitality design firm to launch within the cruise industry in the last few decades. Since its inception two years ago, Studio DADO has already proven to be a major force and is well poised to help bring cruising to a whole new generation. “We saw a major opportunity in the market and decided to make the leap of faith. Fast-forward two years, 14 employees, a brand-new design studio and one pretty remarkable recognition for our company – debuting as number 58 in Interior Design Magazine’s annual ranking of top hospitality design firms in the world – we haven’t looked back,” notes Mesa. A s the demographics and tastes of cruisers – and all travelers – continue to evolve and skew toward enhancementrich experiences, so too must design evolve and address changes in what customers expect from travel. Studio DADO keeps an eye toward solution-based cruise design that eschews a cookie-cutter approach for an end result that is an eye-turning product, which provides value to clients and their consumers. Mesa notes that understanding who the guests are for any ship is a key factor in the design, as well as knowing the brand being designing for. The brand’s specific message to its guests must be fully understood in order to begin the design process. “We understand design, feasibility, operations and always look at it from not only the guest perspective, but also from the client’s perspective. We look for opportunities where we can create features that generate a buzz in the industry as well as seek underutilized or overlooked spaces that can generate revenue for our clients,” adds Mesa. It is this design approach that has led to major contracts for Studio DADO, including the recently announced $100 million partnership with Oceania Cruises to do a comprehensive redesign of the staterooms, suites and several public spaces of the upper-premium line’s four Regatta-class ships: the Insignia, Sirena, Regatta and Nautica. “The Chocolatier display at Cocos onboard the Norwegian Bliss is a great example of how we approached design with functionality. Originally, we were commissioned to create a chocolate fountain that’s main purpose was to serve as the focal point of the space,” notes Mesa. “We took that concept further by designing a display that gives the illusion it creates freshly made chocolate in front of their eyes – giving guests that unique experience that has been often referred to as ‘Instagram-worthy’.” L ooking toward the future, Mesa notes that technology is the single biggest trend affecting design. Designers are seeing the constant evolution of technology-driven tools, which single-handedly map how they will deliver the design to clients and how the user interacts with the space. “Millennials and Echo Boomers/ Generation Z have always had technology at their fingertips; it’s completely second nature to them, and as the Millennials become the biggest populous of travelers, their innate demand for technology becomes clearer and clearer.” Mesa notes that another positive trend is today’s careful and mindful approach to a design’s environmental impact. “From plastic consumption to the food we eat, the consumer is demanding this change and corporations are responding,” said Mesa. “We are thrilled to be part of an industry taking serious steps to combat the environmental impacts of travel and strive to make ethical environmentally conscious decisions in our design whenever possible.” THE NEW GENERATION DESIGN FIRM DADO Studio ADVERTORIAL 16-17 21.1..indd 2 24.1.2019 8.58
DADO 16-17 21.1..indd 3 24.1.2019 8.58
D e s p i t e its rapid and ongoing growth, the expedition cruise market remains a very small part of the cruise industry. However, it is not necessarily an easy task to define exactly what constitutes expedition cruising, noted Ben Lyons, CEO of Expedition Voyage Consultants Ltd. in the U.S. “I don’t have the number off the top of my head for how many passengers travelled. Does that include Galapagos? Would it include a Lindblad charter of Sea Cloud? How are we defining expedition? However, I think it is fair to say that the The expedition cruise market continues to grow at a fast pace: The products appeal to a wide range of customers, some of whom would not go on a mainstream cruise. As the market expands, business models may change. Unlike mainstream cruising, time and voyage charters play a significant role in the expedition segment. Executives that CruiseBusiness.com Magazine spoke to differed somewhat in their opinions regarding if this would continue to be the case in the future as well. By Kari Reinikainen AS EXPEDITION MARKET GROWS, BUSINESS MODELS MAY CHANGE MARKET REVIEW Untitled-1.indd 1 10.2.2017 10:57:54 Ben Lyons Activity platform of SunStone’s Infinity-class newbuild Greg Mortimer. In November 2018 the company signed a contract to build fourth and fifth ship 18 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 18-23 .indd 2 25.1.2019 12.52
? CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 19 overall trend in expedition travel will certainly increase. And why not,” Lyons told CruiseBusiness.com Magazine. “Expeditions provide a thrilling kind of travel, and one that is hard to duplicate in one’s normal environment. It isn’t too challenging to go to a beach; it is far more out of the ordinary to watch a polar bear walk across the ice. And with the overall quality of the ships increasing with the new tonnage flooding the market, more and more traditional cruisers will look towards the expedition market. So it will continue to grow,” he said. The face of the expedition segment is changing as a result of its growth, as people from fairly new source markets continue to make their impact. “Of course, the Chinese market will continue to grow; they are now the number two nationality coming to Antarctica. I think they will likely not grow as quickly, though, in the non-polar expedition destinations. But certainly, expedition clients will continue to come from the U.S. and Europe, and the Australia market – which already had a small core following through Orion – will grow as well,” Lyons pointed out. New ships transform expedition cruising The type of clients booking expedition cruises has changed somewhat. Fifteen years ago, expedition clients were certainly more hard-core enthusiasts of wildlife. Perhaps they didn’t care about the comforts of the ship; they wanted the destination only. “The newer facilities on the ships being launched now, I think, will certainly create a new type of expedition traveler – the ones who have gone on small, luxury conventional cruises and now want to go somewhere new. The old-style expedition cruiser will undoubtedly remain. The market will just segment itself more than it is now,” Lyons continued. The expedition cruise market has long differed from mainstream cruising in that there has been an active time charter and voyage market in the expedition segment. This has comprised both full-ship charters to groups that also occur in the mainstream segment, but also longer time charters whereby one charterer operates a program of cruises – for example, in Antarctica – and then another operator takes the ship for a series of cruises elsewhere. Lyons believes that the landscape here will be changing in the future. “Many of the time charters are older ships being split between many companies. What we are seeing from the rush of new tonnage is far more geared to ships being operated on an exclusive basis by one company. As the expedition market becomes more competitive, companies are looking more and more to establish their own brand and features. It is much easier to do so with your own ship than sharing a ship with competitors for different parts of the year,” he said. When asked if it would it be reasonable to assume that, as some companies want to employ their ships year-round by themselves, this could create increasing opportunities for some others to provide tonnage to operators for limited periods, Lyons was cautious. “I do think there is a market there, yes; although that market may be closing more swiftly given that so many operators are building new ships themselves. Five years ago, a fleet of modern expedition ships that would be shared between companies would have done well. Five years from now, I think there will be less opportunities for just such a model,” he said Demand to exceed supply in near future Mark Spillane, Sales & Marketing Manager for Crystal Yacht Expedition Cruises, took a very optimistic view on the future outlook for the business. “The expedition cruise market is really booming. There are no less than 28 new expedition ships scheduled to launch between June 2018 and mid-2022, and I don’t expect it to slow down. These 28 new expedition ships represent about the same number of berths as one or two of the new megaships, so there is plenty of room for growth as expedition ships tend Untitled-1.indd 1 10.2.2017 10:57:54 18-23 .indd 3 25.1.2019 12.52
to be much smaller, around 100 berths,” he told CruiseBusiness.com Magazine. “Add in the need for expedition ships for all kinds of travelers, from entry-level to ultra-luxury, and I foresee the demand exceeding supply for at least the near future,” he said, noting that assessing the exact size of the market today is difficult. “Since expedition cruises are wrapped up into the total cruise numbers reported, it is hard to say, but it is a small segment of overall cruisers. The main reason is the limited number of expedition options to date, although this is changing quickly.” Spillane noted that expedition cruises attract a younger, more adventurous guest than the mainstream cruise industry in general. “Many of those who take an expedition cruise may never consider a traditional cruise, as they prefer a more active trip to remote destinations. These guests come from all over the world, so destination has a lot of influence on who you may see onboard.” The business models of the expedition segment are not likely to change very much, in the view of Spillane, who sees a continued role for the time charter business as part of the picture. “I don’t believe this will change too much, at least in the near future. Since expedition ships tend to be smaller, they are great for charter, and due to their purpose-built abilities, there will always be tour operators who are looking to charter a vessel for a specific group or destination,” he pointed out. Smaller companies lack in-house knowledge SunStone Ships, the Miami-based company that provides tonnage for third parties on contracts of various durations, sees a bright future for the charter market in the expedition cruise business as well. “There are quite a number of operators in the expedition market. Many of these are smaller companies, which do not have the in-house knowledge or expertise to build vessels themselves, and do not have the financial capabilities to order a newbuilding. Due to this, we expect that the charter market within this cruise niche will continue to be strong. We believe that SunStone will continue to be the leading tonnage provider in the expedition market,” said Niels-Erik Lund, CEO of SunStone Ships. He noted that companies building ships to their own specifications are unlikely to charter them out to third parties. “I believe that the companies that have ordered new ships, such as Hurtigruten, Hapag-Lloyd, Scenic, Crystal, etc., all plan to operate these vessels themselves with their own brand, and these vessels will not be available for seasonal or long-term charter.” Another aspect of the charter market is the fact that some tour operators include a number of expedition cruises in their product portfolio, but they do not offer these products year-round and only need the ships for limited periods of time. “There are some travel companies, which have a limited number of expedition cruises as part of their overall product line. Such travel companies are not expedition companies, but more general tour operators. These companies will continue to charter expedition vessels on voyage charters, and many of the newbuildings will not be available for such voyage charters,” Lund concluded. Expedition operations require experience and expertise The expedition cruise market has been an integral part of the business of HapagLloyd Kreuzfahrten, the Hamburg-based company that operates both expedition and luxury market ships, and it is hardly surprising that the TUI AG group member is growing its footprint here. “The expedition sector has always been a very strong and essential part of our company strucNiels-Erik Lund HANSEATIC nature 20 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 ? 18-23 .indd 4 25.1.2019 12.52
WWW.PORTOFTURKU.FI Turku is Finland’s oldest city, located on the southwestern coast right behind a unique archipelago. The port has plenty of berths available for small and medium size cruise vessels. Smaller vessels and yachts can berth on the beautiful riverbank within walking distance from the city centre. Turku offers a wide range of sights and excursions for visitors. We specialize in personal service and welcome cruise visitors to Turku also in wintertime. CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 21 18-23 .indd 5 25.1.2019 12.52
ture. Most of our expedition cruises are booked out months or even years in advance,” said Karl J. Pojer, CEO of HapagLloyd Kreuzfahrten. “Expedition cruising requires vast expertise and experience and is highly regulated. Lately, the market for expedition cruises has expanded and the market potential is considerable. Right now, the demand is three times higher than the offer. It was a strategic move to extend our capacities in this field with three new expedition ships: Hanseatic nature, Hanseatic inspiration and Hanseatic spirit, currently under construction. Grouping our vessels in an ‘expedition class’ is also based on the idea that even if the ships are each a little different, our guests can expect the same DNA and the same quality standards onboard for which Hapag-Lloyd Cruises is known,” he told CruiseBusiness.com Magazine. With respect to the source markets for future expedition passengers, Poijer said the Hanseatic inspiration, launching in October 2019, will be the company’s second fully international, bilingual cruise vessel after the luxury-market Europa 2. “We experience very high demand in the expedition segExplore more training possibilities >> aboamare.fi IGF Code, Basic and Advanced IGF Simulator Training corresponding to 30 days of seagoing experience required by STCW Polar Code, Basic and Advanced Training by Experienced Instructors Our IGF training is a result of the cooperation between Aboa Mare, Wärtsilä Land and Sea Academy and other partners. Arctic Shipping Forum 2-5.4.2019 ? Crew Connect Europe 9-11.4.2019 ? Sea Asia 9-11.4.2019 Meet us at: www.aboamare.fi ment from outside Germany, Austria and Switzerland. Sales activities for the Hanseatic inspiration concentrate on our selected target markets, in which the Europa 2 is already successfully positioned. These markets are North America including Canada, United Kingdom, Belgium, Holland, Scandinavia and Australia,” he said. However, Poijer added that the new Hanseatic ships – which have been designed to combine the requirements of modern expedition cruising with the high standards of comfort expected by new customers from the luxury segment – will allow HapagLloyd to tap into potential new customers for its expedition fleet. “Guests as a whole are increasingly focused on experiences. Unique and authentic experiences are seen as true luxury. Our small expedition ships with a shallow draught will be able to travel to remote regions where other ships would have long since given up and will offer our guests their personal ‘once-in-a-lifetime’ experiences which they long for,” he said. Finally, moving on to the question of future business models, Poijer agreed that there could be a change in the charter market. “The business of expedition cruises does not leave space for experiments. Requirements on nautical skills, crew experience and the hardware of the ship itself will play a major role in achieving success. Companies that have decided to invest in that business will make sure that the product and offer remains under close control throughout the year,” he concluded. n 22 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 Side view of National Geographic Endurance Model of Hurtigruten’s newbuild Roald Amundsen Exterior profile of Crystal Endeavor 18-23 .indd 6 25.1.2019 12.52
WE BRING THE NEXT LEVEL IN ENERGY EFFICIENT SHIPPING UNMATCHED ENERGY EFFICIENCY AC DISTRIBUTION SWITCH BOARDS DC-LINK SWITCH BOARDS VARIABLE SPEED PERMANENT MAGNET SHAFT GENERATORS SHORE CONNECTION BATTERY PACKAGE DC HYBRID PROPULSION AC POWER DC POWER Explore more training possibilities >> aboamare.fi IGF Code, Basic and Advanced IGF Simulator Training corresponding to 30 days of seagoing experience required by STCW Polar Code, Basic and Advanced Training by Experienced Instructors Our IGF training is a result of the cooperation between Aboa Mare, Wärtsilä Land and Sea Academy and other partners. Arctic Shipping Forum 2-5.4.2019 ? Crew Connect Europe 9-11.4.2019 ? Sea Asia 9-11.4.2019 Meet us at: www.aboamare.fi 18-23 .indd 7 25.1.2019 12.52
T he luxury brand is promoting its move into the cruise sector as one that is more akin to a yachting lifestyle. With 246 crew members looking after 298 passengers, the ratio will be the highest in the industry, according to TRCYC. “There will also be more space per passenger than anything afloat,” Prothero commented. At the launch, which was three weeks ahead of schedule, Jose Garcia Costa, Chairman of HDJB, highlighted the 125-year history of the shipyard, which has delivered 1,700 vessels. “Today is a milestone, a first for a cruise ship and for TRCYC. Some may think we were quite bold in taking on this project, but the world is made of dreams. We are on a Spanish voyage to build a luxury vessel like this one because R&D is part of Barreras’ DNA. We adapt to the needs of our clients and to a market that is highly competitive.” Explaining the background to this historic moment, Prothero said, “Six years ago, we started this project. We came up with the design. We then needed a shipyard. At just about the time, we got momentum and we were ready; suddenly, the downturn changed and all the slots disappeared. So we started looking at yards that don’t build cruise ships. We wanted a robust committed owner, very good steel work and a transparOn October 9, CruiseBusiness.com Magazine was one of a handful of international media outlets to be invited to the launch of The Ritz-Carlton Yacht Collection’s (TRCYC) first newbuilding, under construction at Hijos de J Barreras (HDJB) in Vigo, Spain. The owner and the shipbuilder are both newcomers to the cruise industry, and the vessel is “the most expensive, privately-built ship in Spain,” said Ritz-Carlton CEO Doug Prothero. “In cruise price per berth, we think this is probably the highest. If we had built in a superyacht yard, it would have cost far more.” By Susan Parker COMPANY PROFILE TAKING RITZ-CARLTON TO SEA 24 CruiseBusiness.com Magazine Winter 2018/2019 Marina Lounge 24-28+ .indd 2 24.1.2019 9.21
? ent cooperative process. Then we would have our solution. We would create a new cruise ship shipyard. In TRCYC, trust is one of the words most used, and today was evidence that we put our trust in the shipyard.” This project is important not only for the principals involved, but for the larger region as well. For example, the outfitting subcontractor is Martinez Otero, located within an hour’s drive of the shipyard. Further afield, Interior Promo of Austria has been brought in for its expertise in project management and outfitting of superyachts. Cost is always a consideration, and in this respect things are going well, Prothero said. “We have a risk-averse investor [Oaktree Capital] and a Chief Financial Officer at TRCYC, Victor Cai, [formerly of Silversea Cruises] who likes to make a plan. We are running about three times ahead of plan on buying on this project.” In terms of the interiors, he said, “It is unheard of to design a ship with just one firm [Tillberg Design]. The result is a cohesive design. We were not a paying customer for a long time.” Fredrik Johansson, Partner and Art Director at Tillberg Design, told CruiseBusiness.com Magazine that what was supposed to be a 30minute meeting held six years ago turned into six hours. It was not until 18 months ago that the company, which has grown from 20 to 120 people in five years, was able to share the news. The Swedish company worked closely with Marriott’s Interior Design Manager Taylor Fidel, who said that her role was “to make sure that the design represents the RC brand well, that the ship is an embodiment of RitzCarlton and that it is brought to sea appropriately.” What was discovered along the way was that “we found we could not do all the same things at sea as on land.” First glimpse inside Prothero took the media group on a tour of the ship’s mockup cabins, making our contingent among the first to gain access and information. The first thing that became apparent was the attention to detail. Due to a number of changes made to the original mockup, a complete rebuild took place to make sure everything was just as it should be. Even then tweaking was taking place, such as the height of the vanity mirrors. The design of the whole ship errs towards the Scandinavian. To match the ship to the brand’s reputation for luxury comes at a price. “This is very expensive for a cruise vessel. Tillberg has never been given a creative freedom on a cruise ship before as they have here. Interiors – you don’t see this type of quality in cruise. Being the only designer, there is a flow throughout the ship,” he said. “We wanted to keep the design [of the suite] as open and clean as possible, so it feels large. There is no interruption of the sightline [from the interior to the terrace],” he continued. What has also been a major consideration is to bring a sense of timelessness to the design: “It will be easily kept in fashion for quite a long time,” Prothero said. Flexibility has been built into the design of the cabins so that two units can be used as one. There are 149 suites, but these can be reconfigured to 106 – for example, to accommodate charter or incentive groups, if the need arises. There are 90 terrace/standard suites measuring 35 square meters (379 square feet) including private terrace; 27 signature, 14 grand, 12 loft, four oceanview and two owner’s suites (157 square meters). By removing soundproof wall sections, these suites can be combined in various configurations. For example, a fold-up bed arrangement in the terrace suite and a hidden cupboard to store unwanted furniture means that it can be used as a living area for an adjoining suite. In addition, the interconnected, movable wall panels have been cleverly designed to make the openings seem totally natural whilst being soundproof so often difficult to achieve onboard. To avoid the clutter of room service and bulky trolleys, the compact coffee table can be enlarged by the use of a stowaway table top. All meals can be served in-suite 24/7. Research has revealed that only 14% of guests actually use in-room coffee machines, so these are out of sight in a pull-out drawer. Outside the cabin interior, the teak finish atop the balcony rail is a fine example of the company’s aim to have ships more akin to yachts than those in the industry today. This thinking also means that the RC ships have no show lounge or casino. There will be live performances, but they will take place amongst small groups. Many will be destination-oriented, with local artists/ performers coming onboard as part of the brand’s immersion ethos. Another highlight of the mockup suites are the high ceilings throughout. Not so long ago, high ceilings were deemed impossible to achieve on a cruise ship due to all the cabling/equipment that had to be installed above them, but over time this has changed. TRCYC has broken down another barrier by CruiseBusiness.com Magazine Winter 2018/2019 25 Artist’s rendering of Azora 24-28+ .indd 3 24.1.2019 9.21
• • • WWW.TILLBERGDES SWEDEN POLAND USA SINGAPORE IGN.COM bringing this improvement to the cabins as well as to the public spaces. “The technical team have worked tirelessly on this project. Full credit goes to them,” Prothero said. Shore excursions will also offer up unique experiences. For example, in Vigo passengers will be offered the chance of visiting the shipyard and discovering how the ship was built. TRCYC is in the fortunate position of being able to tap into Ritz-Carlton hotel concierge teams in 40% of the ports (400 in 65 countries) being visited for assistance in planning tours. A reverse advantage will be that the ship will be able to host hotel clients onboard. The plan is also to have overnights and evenings in destinations with relatively short sailing distances in-between. This has the added advantage of reducing fuel use. Although the design of the hull has been optimized for a service speed of 16 knots, it is likely that the ship will be sailing at relatively low speeds during overnight island-hopping in the Caribbean, whilst running closer to service speed when in the Mediterranean. Entry into the cruise sector Turning to TRCYC’s entry into the cruise sector, the brand is setting itself apart from, rather than in competition with, the rest of the industry. “We don’t focus a lot of our time on where we sit in the cruise space. Land travel is really our competition; for example, safaris and the Seychelles.” However, if Prothero were to name a competitor today in cruise, it would probably be Seabourn Cruise Line. When it comes to bookings, Prothero said the profile of the line’s cruise clients is turning out somewhat differently than expected. “So far, it is skewing 10 years younger; new to cruise at about 50% is bigger than we first thought and TRC [guests] is showing more than 33%. We are doing far better than we all thought we would.” As is the case with other luxury lines, the majority of passengers (80%) are coming from North America, followed by the UK, Germany, Austria, Australia and New Zealand. Asia is also booking, with Taiwan “going well.” In terms of group bookings, the numbers will be limited to 10% of the total. Although only about 3% of passengers overall are expected to be children, TRCYC will have a dedicated kids program and center onboard. One of the topics central to the company’s core is the environment, so there will be a shipboard ocean stewardship program for children and adults. Discussions with the authorities are ongoing to eliminate the use of single-use plastic water bottles. The company is also working on limiting the amount of packaging brought onboard, thus further reducing waste. Prothero had previously mentioned that the expectation of service was probably the most challenging aspect of brand delivery. Choosing and training the crew is therefore vital to its success. Crew will be sourced from the luxury cruise sector, but trained in the RC brand. With delivery of the line’s first ship due in late 2019 and the first cruise embarking in February 2020, there is a long lead-in period to get this right. He also was keen to point out that crew members will be given the added opportunity of going on to work in the group’s hotels should they want to move shore-side. This may be the first ship for the brand, but Prothero is looking ahead. “The ideal size of the fleet would be between six and eight. I can envision six, but I can’t see more than eight.” This would mean being able to position four to five in the Atlantic and two to three in the Pacific. The initial order placed with Barreras was for one, plus one, plus one option. The company is already engaged in discussions with regard to placing the option in Vigo, with consideration resting on a number of criteria including whether the engines can be delivered in time. “We have one [being delivered] in 2021 and now we want two in 2021,” Prothero explained. TRCYC will formally take to the waters on February 5, 2020, in Miami, at which time the first ship will be christened. The name is due to be revealed this December. Technicalities At the shipyard, CruiseBusiness.com Magazine caught up with Marcus Salters, Senior Technical Superintendent and Chief Engineer for TRCYC, who is in the fortunate position of being able to bring years of experience (Cunard Line, ResidenSea, Hebridean Island Cruises) to developing systems. One of the first things that stood out was that this is a company unshackled by cruise tradition, seeking solutions beyond the go-to maritime companies. Energy efficiency, space saving, redundancy and worldwide availability of parts have been major driving factors in the design of systems and selection of suppliers for this vessel, he explained. He then commented on how it has been working with a new-to-cruise shipyard: “There is very good rapport between the builder and owner. On a daily basis, challenges come up. We have spent a lot of time working together to find a compromise that suits both parties. The steelwork on this ship is to a very high standard – some of the best I have seen. We are a newcomer into the market. They have not built [a cruise ship] before, nor have we. They know how to build commercial vessels, and we know what we need to fulfil the requirements of a luxury cruise yacht, making for a good partnership for the two newcomers to the industry.” 26 CruiseBusiness.com Magazine Winter 2018/2019 Marcus Salters with Azora in background Aqua Restaurant ? 24-28+ .indd 4 24.1.2019 9.22
Cruise Business Review 2/2017 49 • • • WWW.TILLBERGDES SWEDEN POLAND USA SINGAPORE IGN.COM 24-28+ .indd 5 24.1.2019 9.22
AZORA Technical information Gross tonnage 26,500 Length oa 190m Length bp 162m Breadth Moulded 23.8m Design draught 5.65m Passengers 298 Crew 246 Max allowable on board 560 Classification society DNV Flag Maltese Engines 4 x MGO only MAN 6L32/44CR32 common rail engines complete with SCR. 750rpm (50Hz), 3.6mW each, 14.4mW total output Maximum speed 17.8 knots Service speed 16 knots Propulsion package 4 x ABB AMG 710 SM08 alternators, each generating 6.6kV, 50Hz, 350 A. ABB Unisec 6.6kV switchboard, propulsion transformers & converters delivering power to 2 x DO1250 fixed pitch permanent magnet Azipods, with each pod delivering 4.6mW Machinery space package Alfa-Laval comprising of MGO, lub oil, bilge and sludge centrifuges; plate heat exchangers; natural circulation oil-fired and exhaust-gas boilers; technical water evaporator Salters named Alexandra Salgado Roman (GAs, interiors, HVAC&R, safety & classification related works) and Ana Taboada (machinery and piping systems) from the shipyard’s technical department as being “instrumental in turning the owner’s visions into reality, regularly putting me in my place and bringing my technical development concepts down to an achievable level.” One example of something that has benefited from Salters’ rethinking of the traditional way of doing things is the ship’s HVAC system. “We have designed the HVAC to be very efficient. We are utilizing demand-based localized cooling. Without this, we would need bigger ducts and units. As a result, we have minimized the footprint. We have tried to think outside of the box, blending cutting-edge, land-based technologies into a marine environment. This means we are not tied to one traditional marine supplier and will be able to get parts worldwide. We have also minimized cooling in the galley by an innovative in-house redesign of exhaust hoods.” Working closely with Paul Barrow, Technical Director of refrigeration wholesaler and pack builder FSW, Salters developed an energy-efficient refrigeration plant comprised of space-saving, commercially available equipment customized for marine applications. The duo also designed a waste heat recovery system utilizing waste heat from the vessel’s air-conditioning plant to provide a heat source for hot potable water. Waste heat has also been harnessed for heating the vessel’s pools, as well as machinery space systems. Said Salters, “Based on 20-plus years of sea-going experience in various ranks, including chief engineer and chief refrigeration engineer, as well as both landand marine-based work as an HVAC&R installer, I was enthralled to be given the opportunity to utilize my specialist knowledge in this field to carry out the basic design of the ship’s refrigeration and air-conditioning systems.” The use of electric re-heating has been minimized throughout the vessel, replaced by remote and localized hot water air reheaters supplied by waste heat sources. The supply of conditioned air to the onboard laundry and galleys has been significantly reduced by utilization of fresh outside air whilst not effecting temperature and comfort factors. Air-conditioning for the ship’s public rooms has been designed on loadbased demand, ensuring a constant comfort level whilst minimizing energy expenditure during low occupancy. “HVAC detailed design and equipment selection has been challenging; however, with the support of the shipyard, we continue to make progress,” Salters said. In terms of the electrics, the focus again has been more towards land-based solutions, making spare parts easier to access. Salters worked with Senior Electrical Superintendent Richard Karlsson on developing a five-wire TN-S electrical distribution network, where the star point of the distribution transformer is brought out and earthed to create a neutral, providing 230V 50Hz single-phase from a 400v three-phase supply, eliminating the need for additional transformers. He commented: “This is the safest of all types of distribution system with the lowest earth fault loop impedance and removes the need for extensive use of RCD breakers. We also distribute 120v 60Hz single phase throughout the vessel. Not only does this cater for the personal appliances of both our American and European guests, these chosen voltages and frequencies significantly increase the availability of off-the shelf commercially available equipment, avoiding the need for custom-built appliances for standard marine voltages.” For cold ironing/shore connections, the ship has been fitted with the cabling but not the final connection box, since no worldwide standard for making such hookups is yet in place. “The backbone is in,” Salters noted. “Once a uniform system has been decided upon, we can install it later.” As for the industry’s increasing movement to LNG as a fuel source, Salters said that “LNG will become more relevant in coming years than cold ironing for larger cruise ships with regular itineraries, due to a reduced investment needed for port infrastructure, environmental drivers and economies of scale. We are still several years away from this being a commercially viable option for the smaller boutique vessel circumnavigating the globe on exotic voyages of discovery.” For advanced wastewater treatment, the company has chosen Evac for its “very advanced” membrane bioreactor plant certified to meet both the IMO MEPC 159(55) and the new IMO MEPC 227(64) with nutrient removal, and also has river Rhine certification and U.S. Coast Guard approval. Whilst theoretically, discharge will be possible even in the Baltic Sea, in practice Salters said this is not something that the line intends to do. The vessel is designed for three days treated waste water holding capacity within designated tanks, based on full ship occupancy. This can be further increased by utilizing alternative tanks. Evac is also supplying two potable water production reverse osmosis plants, complete with energy recovery. n 28 CruiseBusiness.com Magazine Winter 2018/2019 Doug Prothero, third from right 24-28+ .indd 6 24.1.2019 9.22
There is nothing quite like Castellón The province of Castellón on the Costa del Azahar – the Coast of Orange Blossom – is both a captivating and hospitable cruise destination. With its languid air scented by the sweet perfume of lasting orange blossom and a mellowing landscape baked by the fabulous Mediterranean sun, the region is probably Spain’s best-kept secret, especially for those who seek new cruise destinations and experiences. Another Spain While the Flamenco of Andalucía, the emblematic medieval cathedrals, the numerous varieties of mouth-watering jamons, and Don Quixote de la Mancha may typify the core cultures of Spain, the province of Castellón also quietly dazzles its visitors with its shimmering calm sea, delicious cuisine, intoxicating alchemy of tapas bars and citrus groves. The bilingual city of Castellón de la Plana was founded by Don Jaime I, the Conqueror, on 8 September 1251, based on the principle of liberty, in an effort to free its inhabitants from the tenacious grip of the feudalism of the time. Today, the resplendent city and its populace are still the living embodiment of that same spirit. Intrepid visitors from near and far will find history echoing in every corner of the pulsating city. Beyond the city, the region’s history continues at the Valltorta Museum, a UNESCO World Heritage Site situated in the nearby hills, where Spain’s famous vivid prehistoric cave paintings are found. Since the 17th century, the region around Castellón has also been home to the country’s ceramic tiles industry. Nothing quite represents Spain so absolutely as those ubiquitous and colorful tiles, which are sold all over the world. This is another Spain – a Spain where its proud citizens also speak the melodious language of Valenciano, a Spain of fiestas and street parties and a Spain that enjoys a temperate climate of 300 glorious sunny days each year. If all this is still not enough, the pristine sandy beaches, the surrounding historic towns of Morella, Peñíscola (one of three Papal cities in the world), Benicàssim and Villafamés will keep the most fastidious visitors enthralled and thrilled for days. Castellón is a perfect destination where lasting orange-blossom-scented memories are made. While its ancient streets reverberate with the sounds and smells of a rich heritage, the varied landscape of the region affords endless excursion opportunities. Perfect alternative With a dedicated cruise pier capable of receiving passenger ships up to 300 meters long and its proximity to Barcelona, Valencia and Madrid, Castellón – as yet a lesser-known destination on the Mediterranean cruise trails – is a perfect alternative to the more crowded ports and destinations in its neighborhood. Geographically the city is ideally located for a multitude of relaxing itineraries, with excellent rail, road and air links. PortCastelló, a member of MedCruise, and its partners have been doing their best to prepare and develop the port and destination for cruise business. The results of these efforts speak volumes. Cruise ships and their passengers will receive warm welcomes and hospitality second to none. In truth, there is nothing quite like Castellón. ADVERTORIAL Valltorta Museum is a UNESCO World Heritage Site Benicassim Beach 29 castellon.indd 1 24.1.2019 9.04
INTERVIEW RCCL’S FAIN ON WHAT’S DRIVING GROWTH CruiseBusiness.com Magazine’s Fran Golden talked with Richard Fain, Chairman of Royal Caribbean Cruises Ltd., shortly after the launch of the Celebrity Edge in December. It had been a busy year for the company, which also acquired ultra-luxury line Silversea Cruises, added the Azamara Pursuit for Azamara Club Cruises and introduced the world’s largest ship, Symphony of the Seas, in North America. CRUISE NEW ORLEANS A JOURNEY & A DESTINATION It’s no secret that New Orleans is one of America’s most vibrant and exciting cities. Most passengers sailing from Port NOLA enjoy two vacations in one by staying in New Orleans before or after their cruise. So launch your cruise from the Big Easy! Carnival, Norwegian and Royal Caribbean International sail weekly to destinations in the Eastern and Western Caribbean and Bahamas, and we proudly welcome Disney Cruise Line in December 2020. • Aquarium of the Americas • 1,000+ 5-star restaurants • Historic French Quarter • Audubon Zoo • Swamp tours • World War II Museum • Antebellum plantation homes • World-class shopping and art • Steamboat excursions Cruise New Orleans and Enjoy 2 Vacations In 1 | portnola.com 30 CruiseBusiness.com Magazine Winter 2018/2019 ? Richard Fain 30-35 indd.indd 2 24.1.2019 9.10
CRUISE NEW ORLEANS A JOURNEY & A DESTINATION It’s no secret that New Orleans is one of America’s most vibrant and exciting cities. Most passengers sailing from Port NOLA enjoy two vacations in one by staying in New Orleans before or after their cruise. So launch your cruise from the Big Easy! Carnival, Norwegian and Royal Caribbean International sail weekly to destinations in the Eastern and Western Caribbean and Bahamas, and we proudly welcome Disney Cruise Line in early 2020. • Aquarium of the Americas • 1,000+ 5-star restaurants • Historic French Quarter • Audubon Zoo • Swamp tours • World War II Museum • Antebellum plantation homes • World-class shopping and art • Steamboat excursions Cruise New Orleans and Enjoy 2 Vacations In 1 | portnola.com 30-35 indd.indd 3 31.1.2019 11.30
CruiseBusiness.com Magazine: Celebrity Edge really is a cool ship, obviously designed to appeal to millennials. Do you think it’s emblematic of what we’re going to see in the future? Richard Fain: First of all, I am biased, and as are you – as you just sailed on her. I hope you had a good time. CBM: I did, but I felt a little old on that ship. Fain: What has been the strength of our industry has been that it’s not one size fits all. It’s not that this is better, and everybody should copy that. I think Edge very much fits into Celebrity’s target market, and I think there are some really cool features of the ship that will get copied. But I think it is still a unique product for a unique target market, and that’s the way it should be. CBM: By target market, you’re talking millennials? Fain: The millennials are something everybody talks about. What we’re seeing in our comments – from our guests and from our market research – is that the interest of millennials in cruising, in particular in our cruising, is actually higher than many other groups. CBM: That would mean a bright future in cruising. But are we going to get to a point where the demographic of guests really comes down? Fain: What was particularly nice to me looking at the reaction to Edge – and the same thing was happening with Symphony – was that it was appealing to different age groups. That it appealed to the baby boomers, but it also appealed to the millennials. It was really both. CBM: How was the app received? Were people enjoying opening their stateroom doors with their phones? Fain: Part of what makes Edge successful was the technology. It was easy to use, and that’s the secret to making good technology. People expect greater convenience. They expect more technology to make the cruise easier. I think we’re just giving people what they are saying they expect. CBM: Yes, but opening your blinds remotely is not only cool, it is probably going to be the biggest prank that everybody does to their roommate. Fain: I don’t know about that. But we were blown away by the fact that on the inaugural cruises – the first revenue cruises – the percent of people that used their phone app to open their curtains and turn on their lights was 40%. CBM: That’s amazing. Fain: That’s amazing because you don’t need to do this. You can just go to the button on the wall. But 40% were using the app to do it. That says it’s really working. CBM: We’ll see more functions when we’re past the beta stage of the app, correct? You’ll be able to have food and drinks delivered anywhere, and so forth? Fain: Exactly. And we want to be device agnostic. Soon you’ll be able to make charges on your phone, on a wearable – you can have a wristband or whatever you want. If you want to put it into a tie clip, we’ll do that, for those who wear ties. CBM: On another subject, we’re seeing signs that Royal Caribbean may be looking at new private island concepts, including in Asia and Oceania. What are you thinking in terms of investments in additional private destinations? Fain: Nothing has really changed there. We’re quite proud of the private destinations that we have. I think when you see Perfect Day at CocoCay [undergoing a $200 million redevelopment with a new waterpark debuting in the spring], you’ll see that’s really taking it to the new level. I think our guests are looking for experiences, and I think this is one way we can provide those. CBM: Yes, but are you looking to expand the island concept around the world? Fain: We always have been. There’s nothing new there. CBM: Getting close anywhere? Fain: You know we don’t talk about things until we actually have something in hand. CBM: But it’s a goal to have more island destinations? Fain: In general. It’s a goal. I think we want more island destinations, but we also want to do more working with the local communities that we serve. It’s actually one of our World Wildlife Fund partnership initiatives – to enhance sustainable tourism. One aspect is potentially more private destinations. Another is to take the destinations that we go to and work with the local communities to give our guests an even better experience. CBM: Around the world? Fain: Very much around the world. CBM: Let’s talk about the partnerships with ports, particularly in building new terminals. You’ve made some pretty significant investments recently in the U.S. Fain: I noticed that, actually. CBM: Miami, Fort Lauderdale, Galveston. Are there similar plans in Europe and elsewhere? Fain: Always. CBM: Necessitated by growth or technology or both? Fain: I think it’s driven by growth, but also by a desire to enhance the experience. We really talk about the experience as not starting when you get onboard the ship, but starting back when you leave home. The more pleasant we can make that experience, the better off we are. CBM: Like in Miami? Fain: Terminal A is the first time we have ever done a complete terminal by itself that is a branded terminal. We essentially have a ground lease, and we built our terminal on it. Because it was ours, we were able to make it physically more unique. It is aesthetically quite spectacular. It is technologically very efficient and easy. And all of that allows us to make it a better experience for our guests. That, to me, is the direction that we’re going in. CBM: So, if you’re looking at top ports in the world, I would assume you’re looking at a Rome (Civitavecchia) or Barcelona as a future place to do the same thing. Would I be incorrect to assume that? Fain: I think when you’ve seen one port arrangement, you’ve seen one port arrangement. Every place we go is unique. Part of our success has been that we work with the local communities to come up with a structure that works for them and works for us. Miami is one example of doing something that hadn’t been done before, but turns out great for both sides. I don’t know what it is, but we will be doing that in other ports around the world, too. 32 CruiseBusiness.com Magazine Winter 2018/2019 ? SIVU 30: — Jatkonuoli puuttuu. KUVATEKSTI: SIVU 32: — Tasaa valilinja tekstin kanssa; — Toiseksi viimeinen kysymys mennyt kiinni vastauksen kanssa; — Siirra viimeinen kysymys samalla sivulle vastauksen kanssa; — Lisaa jatkonuoli. SIVU 34: — Liikaa tilaa tullut vasemman palstan viimeisen kysymyksen ja vastauksen kanssa. KUVATEKSTI: 30-35 indd.indd 4 24.1.2019 9.10
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CBM: There are some markets seeing more North American ships this year, including Turkey and the Middle East. What is the potential in these markets? Fain: These things move in and out. But I think there’s a potential, and I would say at this point we’re just watching. CBM: Watching, but you have ships going in. Fain: Yes, but one could do more. There could be more decisions next year or the year after. In today’s world, I don’t think too many people are going to make predictions about the socioeconomic/ geopolitical climate far out. CBM: Other potential markets where you feel you are underserved? Fain: We feel we are underserved everywhere. The demand continues to grow and continues to grow nicely. It’s actually always a little bit of a problem selecting from among good destinations and good places for source markets. More people are learning about cruising, and that’s a good thing for us. And with Silversea, we feel there is a lot of potential in the expedition market as well. CBM: With new ships on order, the shipyards are pretty full through 2026. Are you finding enough places to build ships fast enough for your growing market? Fain: We do have 15 ships on order today. That’s a very impressive number, I think. Yes, shipyards have a very big orderbook, and so that’s one of the balancing factors as we’re looking forward. CBM: If you could build more ships than the 15, would you? Fain: I don’t know. We think we’ve got a pretty balanced orderbook. CBM: I know you’re continuing efforts to bring more international cruisers onboard. Are you still seeing that rapid increase in international? Fain: This comes back to the comment I was trying to make earlier, which was all of our markets are growing. We tend to focus on the ones that are growing the fastest. We made a big push for international growth. You’ve seen that very successful in Europe. And you’ve seen it very successful in Asia. The China market is an exceptionally good one for us. Australia and New Zealand have been very powerful for us. The Southeast Asia market is still embryonic, but I think that will grow in time as well. CBM: For Southeast Asia, is geography an issue? Fain: The source markets in Southeast Asia are a little further away than some of the other itineraries we might do. Out of China, out of Hong Kong, out of Singapore, it’s just a very long trip to get to Vietnam, the Philippines, etc. CBM: How is 2019 shaping for Royal Caribbean? Fain: We’ve made it clear on our various calls that ’19, in terms of forward bookings, looks to be a very positive year. I really do attribute that to more and more people understanding what cruising has to offer, and the cruise industry accommodating that demand. As an industry, we have changed our product to appeal to a hunger for experiences. And we think that’s proving itself in the demand that we’re seeing. Our opportunities are to continue to do a better job of explaining what cruising is all about. I am feeling quite bullish about 2019. CBM: When you talk about experiences, you are talking onboard and off? Fain: Yes, the cruise vacation. That very much includes the experience when the guest goes ashore and in the communities that we serve. We very much want to ramp up what we are doing there. CBM: What sort of ramping up? Fain: I think it is the personalization, the ability to cater the cruise itself and the shore excursion to what individuals want rather than one size fits all. Also, just leaving the stereotypes behind has been a big help. Part of the reason we are so popular with the millennials is because they don’t have those stereotypes and simply have to rely on the facts. It’s an unusual concept, but when they rely on the facts cruising comes out very well. CBM: The stereotype that you are regimented and it’s old and it is all about bus tours, and that you have no time in port to learn anything about the destination? Fain: Exactly. CBM: So what keeps you up at night? Fain: Right now, the thing that is on the mind is my seven gorgeous grandchildren and the world that they will inherit. I am proud of the role that we are playing in trying to make sure that the world they inherit is a good one. We spend a lot of effort on sustainability, environmental. We have a lot of challenges ahead of us – the whole issue of global warming and overfishing and basically the health of our oceans. These are the things that we work on and that very much are a concern. It may not be a concern for 2019, but it is definitely a concern for my grandchildren. CBM: And something Royal Caribbean will continue to focus on? Fain: It’s not just me worrying about it. It is culturally something that people care about here, and, in the end, you really only make real progress if everybody is involved. I think the whole industry has a good track record on this, and we are certainly working on moving that forward. n 34 CruiseBusiness.com Magazine Winter 2018/2019 Together we will turn the tide • WASTEWATER PURIFICATION • FOODWASTE TREATMENT • GARBAGE HANDLING • WASTE TO ENERGY • CARBON CAPTURE www.scanship.no C M Y CM MY CY CMY K A4_2019011_press.pdf 1 14.01.2019 11:40 Celebrity Edge is the first newbuild for Celebrity brand since Celebrity Reflection delivered in 2012 30-35 indd.indd 6 24.1.2019 9.10
Together we will turn the tide • WASTEWATER PURIFICATION • FOODWASTE TREATMENT • GARBAGE HANDLING • WASTE TO ENERGY • CARBON CAPTURE www.scanship.no C M Y CM MY CY CMY K A4_2019011_press.pdf 1 14.01.2019 11:40 30-35 indd.indd 7 24.1.2019 9.10
36 CruiseBusiness.com Magazine Winter 2018/2019 Rising tide lifts Silversea Cruises The past 18 months have been a whirlwind for Silversea Cruises. As the brand approaches its 25th anniversary, Silversea is moving aggressively to realize perceived opportunities in the ultra-luxury and expedition markets. The company has introduced its first new ship in eight years, ordered two sister ships, stretched another of its ships and expanded its expedition cruise program. Now, the line’s growth strategy is being further bolstered by the sale of a controlling interest to Royal Caribbean Cruises Ltd. By Allan E. Jordan A t a time when the cruise industry was focused on growth with bigger ships aimed at the broad market, Silversea Cruises was created to focus on a perceived gap in the business. Cruising’s high-end, ultra-luxury segment was focusing on small, yacht-like experiences when Silversea launched in 1994, offering the features of larger cruise ships with the luxuries of all-suite accommodations, personalized service, and a size that would permit it to reach out of the way destinations. “Silversea Cruises conceived purpose was to become an ultra-luxury cruise line of intimate ships with a truly global reach,” explains Manfredi Lefebvre D’Ovidio, Executive 36-41 .indd 2 24.1.2019 9.13
Rising tide lifts Silversea Cruises Chairman of Silversea Cruises Ltd. “From this overarching principle has developed a remarkable fleet and a passion for sharing the beauty of our world.” The Lefebvre D’Ovidio family was no stranger to the shipping industry, as Manfredi’s father Antonio Lefebvre D’Ovidio, a maritime lawyer, university professor and entrepreneur, had owned cargo ships and ferries in the Adriatic Sea. In 1988, after the death of his friend Boris Vlasov, the founder of Sitmar Cruises and the head of V.Group, Antonio Lefebvre acquired a controlling interest in Sitmar from the Vlasov family trust. One of the pioneers of the modern cruise industry, Sitmar would merge later that same year with P&O Princess Cruises. Antonio Lefebvre continued to be attracted to opportunities in the burgeoning cruise industry, and so began discussions with V.Ships, a shipping management company that had emerged from the Vlasov operations. CruiseBusiness.com Magazine Winter 2018/2019 37 ? Ph oto cre dit : Sil ve rse a Cr uis es Dignitaries at Silver Cloud christening in 1994 Silver Wind under Tower Bridge 36-41 .indd 3 24.1.2019 9.13
Led by industry veteran Mauro Terrevazzi, who had played an instrumental role in Sitmar, V.Ships was developing designs for a new 40,000-gross ton cruise vessel when discussions began in 1991 with Lefebvre. Terrevazzi would go on to become the first chief executive officer of Silversea, and, in fact, it is said that the company’s name was derived from Silver Line, a successful British commercial shipping outfit owned by Vlasov that later became part of V.Ships’ Commercial Division. Creating the vision A team of industry veterans was assembled to help shape the new company, and soon critical differences were emerging in the plans for Silversea that would define the future of the ultraluxury market. John Bland, the former President of Sitmar, who became Silversea’s first President and Chief Operating Officer, contended that to be a luxury product it should offer an inclusive fare, incorporating wine, alcohol and other beverages, gratuities, travel insurance, port charges and shore events. Bland also argued to make The Bar the social hub of the ship instead of placing it off in a corner of the lounge, and – unlike previous yacht cruise products – he gave the Silversea ships a multi-level showroom. The business plan projected per diems of $500 to $525 per person, up to 25% lower than its competitors. Silversea would also target European travelers for up to 30% of its business, versus competitors that were focused almost entirely on North America. “The intimate feeling of our luxury ships is a trademark feature of Silversea,” explains Manfredi. The design of the first two ships, which would become the Silver Cloud and the Silver Wind, was developed by noted marine architect Petter Yran of Yran & Storbraaten, who had also designed vessels for Sea Goddess and Seabourn Cruise Line. Silversea’s 16,800 gross ton ships would accommodate just 296 passengers, creating a space ratio of nearly 57 – significantly higher than Sea Goddess’ 38 and Seabourn’s 47 ratios. Furthermore, while private verandas had been introduced a decade earlier on Princess Cruises’ Royal Princess, Silversea expanded the concept and brought it to the ultra-luxury market with three-quarters of its suites offering private verandas. Some in the industry questioned if Silversea Executive team from left: CEO Roberto Martinoli, CMO Barbara Muckermann and Manfredi Lefebvre D’Ovidio 36-41 .indd 4 24.1.2019 9.13
was being too ambitious with its use of verandas. Today, of course, verandas are an industry standard, and luxury ships such as 2017’s Silver Muse offer verandas in 95% of their accommodations. “A sense of being at home while away is skillfully created in all Silversea suites,” the first Silversea brochure proclaimed. “Warm woods, pleasant fabrics and fine furnishings provide a comforting welcome each time you enter.” All the suites would feature marble bathrooms, walk-in closets, and luxuries of the day such as video cassette players, refrigerators and minibars. Similar styles carried over to the public areas, ranging from the Restaurant to the Panorama and Observation lounges. Any luxury operation, however, is defined by its staff, which on the Silversea ships included European stewards and cabin stewardesses. In 2005, the line introduced personalized butler service for the larger suites, and today all suites are serviced by a butler. “Our crew is the lifeblood of the company,” says Manfredi. “Their commitment to the enjoyment of our guests is quite remarkable.” Guests, as Silversea calls its passengers, are greeted by name; the crew learns individual preferences and provides services from packing and unpacking to presenting meals in guests’ suites. The Silver Cloud was christened in Monte Carlo in April 1994 followed by her sister ship the Silver Wind at the beginning of 1995, and the accolades soon followed for the new company. In 1996, it won World’s Best Small Ship Cruise Line and, even more impressively, World’s Best Overall Vacation Experience in the Condé Nast Traveler Readers’ Choice Poll. But Antonio Lefebvre’s ambitious plans and dreams for his new company did not stop there. Even before the Silver Cloud entered service, Silversea was rumored to be negotiating to build two more ships that would be 50% larger and able to accommodate up to 325 passengers. Nothing came of those discussions, and, while the company went through a number of management changes, the product continued to win praise. By 1998, talks had been abandoned with Kvaerner Masa-Yards for the newbuilds, but finally a contract was signed with T.Mariotti, which had built the first sister ships. While larger at 25,000 gross tons, the new ships – which would become the ms Silver Shadow and ms Silver Whisper – only increased passenger capacity to 382 while increasing the percentage of suites with balconies to 85%. The ships would have an industry-leading space ratio of 74, further redefining ultra-luxury cruising. These new ships were launched in 2000 and 2001, and while the future looked bright, the company was about to be challenged by the tragedies of 9/11 and a dramatic downturn in luxury travel. In the turmoil that followed, Silversea assured the travel community that it had the financial resources necessary to continue operations as usual. However, to reduce inventory and maintain standards, the dramatic decision was taken to lay-up the Silver Wind. It would remain idle until the middle of 2003. ? All suites are serviced by butlers 36-41 .indd 5 24.1.2019 9.13 www.telenormaritime.com
New initiatives “Maintaining the initial principles that were laid out at the launch of the company has been the biggest challenge,” contends Manfredi, who became chairman in 2001. “In an ever-evolving industry, which has become increasingly competitive, preserving our icons of luxury has been a challenge at times. Another challenge is to keep innovating with regard to our itineraries and sailed destinations.” By 2003, Silversea had expanded its international marketing, seeking to source up to half its passengers from Europe. While sales grew 15% in 2003, load factors were only 65%. Occupancy grew to 74% in 2004, but still well below the goal of 85%. Silversea and many of the cruise industry’s other luxury brands were optimistic that 2005 would be a turnaround year, but one Silversea executive admitted to the travel trade: “We can’t continue not to be profitable…We’re not in business to subsidize clients’ vacations.” A number of new initiatives were launched to help Silversea resume its growth, including enhancing the Italian flair onboard its ships and new cruise itineraries such as the 2007 World Cruise aboard the Silver Shadow. New amenities were also introduced to help guests personalize their cruise experience. “The luxury cruise market has been shaped by a changing understanding of luxury,” explains Manfredi. “In increasing measures, we see understandings of luxury shifting from owning to experiencing. This will guide our evolution.” Encouraged by a rebound in the market, in 2007 Silversea ordered its next cruise ship from Fincantieri, the 36,000 gross ton and 540-passenger Silver Spirit. While this new vessel maintained Silversea’s standards, it was the next move that would be truly unique for the cruise industry. In September 2007, Silversea acquired the idled World Discoverer – a smaller expedition ship with an ice-strengthened hull. “It was not uncharacteristic of Silversea to re-imagine the expedition industry in 2008,” says Manfredi. “It was a matter of intuition. I am an avid traveler, and I love to visit the more remote destinations and experience the world, but in luxury.” With the World Discoverer’s re-launch in June 2008 as the Prince Albert II, Silversea became 40 CruiseBusiness.com Magazine Winter 2018/2019 Silver Cloud in Antarctica Silver Explorer in Arctic 36-41 .indd 6 24.1.2019 9.13
the first ultra-luxury cruise line to enter the expedition market, offering destinations including the Arctic and Antarctica. R e n a m e d t h e Silver Explorer in 2011, this adventure vessel was augmented by the acquisition of a Galapagos tour company and its ship – which became the Silver Galapagos – and a third expedition ship, which became the Silver Discoverer. Recently, the Silver Cloud also joined the expedition fleet. Building on the growing interest in expedition travel and luxury vacationers’ desire to experience new places, Silversea has expanded its destination focus. By 2014, it was boasting of visiting over 500 unique destinations—a list that has only continued to grow. Now, according to Manfredi, “We unlock more than 1,000 of the world’s most spectacular destinations – more than any other cruise line – on our fleet of intimate ships.” As he explains it, the goal is to marry immersive, deep travel experiences with comforts and luxuries to create truly memorable voyages for guests. Accelerating growth Silversea is continuing to grow its share of the expanding luxury market by building on its three core principals of luxury, value and experience. In 2014, the line ordered a sixth ship from Fincantieri for the worldwide classic fleet. An expanded version of the successful Silver Spirit, the new ship – the 40,700 gross ton and 596-passenger Silver Muse – also introduced a number of evolutionary ideas to the ultra-luxury segment. Key among them was to abandon the main restaurant in favor of eight different dining venues, including two extra-tariff specialty restaurants. Based on the strong reception from its guests, Silversea subsequently confirmed orders for two sister ships, the Silver Moon due in 2020 and Silver Dawn due in 2021. The line also began a “Museification” of the fleet and modeled a 49-foot lengthening of the Silver Spirit in 2018 on the Silver Muse. Despite its recent successes and a strong market, Manfredi Lefebvre has faced significant challenges to fulfill his father’s dream to grow Silversea to a 12-ship fleet. The line was reportedly exploring a bond offering and possibly attracting a minority investor to the family owned company when discussions began with Royal Caribbean Cruises Ltd. The idea of an investment evolved, and on June 14, 2018, Royal Caribbean announced that it had agreed to pay nearly $1 billion to acquire a 66.7% stake in Silversea. At the time, Manfredi said that Royal Caribbean’s financial and operational strengths would allow Silversea to grow at an unprecedented pace and increase the value of the company to a level it could never reach if it remained standalone. For Royal Caribbean, the investment added an ultraluxury and expedition brand to round out its portfolio of cruise lines. Since completing the transaction, Silversea has leveraged Royal Caribbean’s strengths by accelerating new initiatives, including launching Project Invictus to systematically enhance the current fleet. A Memorandum of Understanding was signed in October 2018 with Germany-based Meyer Werft for two new vessels in a new “Evolution Class” expected to launch in 2022. Silversea also entered into a contract with Dutch shipbuilder Shipyard De Hoop to construct a new expedition vessel, named the Silver Origin, which starting in 2020 will operate in the Galapagos Islands. “Our strategy for the future is of evolution, never revolution,” Manfredi says. “We want to be up-to-date but never too modern or stylish. For us, it’s not about having the latest design or to follow the latest trends, it is about the comfort of our guests.” n Silver Spirit christening at Fincantieri’s Palermo shipyard CruiseBusiness.com Magazine Winter 2018/2019 41 Silver Muse is currently newest ship in the fleet Dolce Vita onboard Silver Muse 36-41 .indd 7 24.1.2019 9.13
T h e a r t o f d e c k i n g No limits in ship decks for: Cruise ships ? Ferries ? Mega yachts ? Rivercruise vessels ? Cattle carriers ? Fishing vessels ? OPV’s ? Offshore platforms ? Tugs & Workboats ? Navy vessels www.bolidt.com Cruise Business Review.18-07-26.indd 1 12-12-2018 12:07:17 42-51 .indd 2 31.1.2019 8.56
T h e a r t o f d e c k i n g No limits in ship decks for: Cruise ships ? Ferries ? Mega yachts ? Rivercruise vessels ? Cattle carriers ? Fishing vessels ? OPV’s ? Offshore platforms ? Tugs & Workboats ? Navy vessels www.bolidt.com Cruise Business Review.18-07-26.indd 1 12-12-2018 12:07:17 SHIP REVIEW EDGE TAKES CELEBRITY TO THE NEXT LEVEL EDGE TAKES CELEBRITY TO THE NEXT LEVEL Introduced in November, the Celebrity Edge was among the most anticipated new cruise ships of 2018. Built at Chantiers de l’Atlantique in France, the Celebrity Edge represents more revolution than evolution. For megaship cruising, there are notable innovations such as infinite verandas and the Magic Carpet – a platform that traverses the exterior of the ship. What’s more, the dining plan is completely new for Celebrity Cruises, with multiple dining rooms and new specialty restaurants. By Teijo Niemelä ? Rooftop Garden is a multipurpose outdoor space. The ship’s funnel is now X-shaped Ph oto cre dit : Al l ph oto s Ce leb rit y Cr uis es an d Te ijo Ni em elä CruiseBusiness.com Magazine Winter 2018/2019 43 42-51 .indd 3 1.2.2019 7.02
44 CruiseBusiness.com Magazine Winter 2018/2019 ? T he 130,818 gross ton Celebrity Edge is the first of four newbuilds that Royal Caribbean Cruises Ltd. (RCCL), the parent company, has ordered from the French yard Chantiers de l’Atlantique in St. Nazaire. It represents first new ship for the Celebrity brand since 2012, when the Celebrity Reflection – the fifth unit of the Solstice class – was delivered from Germany’s Meyer Werft. With the Edge class, Celebrity has chosen to modestly increase gross tonnage from 125,366 for the Reflection (the largest member of Solstice class) to 130,818 gt for the Edge. Compared again to the Reflection, the Edge is actually a bit shorter at 306 meters, compared to the Reflection’s 319 meters. The extra interior space comes from an increased width, from 37.4 meters for the Reflection to 39 meters for the Edge. With its shorter length, it will be easier for the Edge to dock in ports-of-call. During its inaugural year, the Celebrity Edge will sail in the Caribbean and the Mediterranean. The second ship in the series, the Celebrity Apex, will be based in Southampton during its first season in 2020. In designing the Edge platform, Celebrity wanted to make the destination experience even more immersive. As a result, the Celebrity Edge has a unique, outward-facing orientation that breaks from traditional ship design. The intention is to make passengers feel more connected to the sea and destinations visited, whether it is from the infinite balconies in the cabins or from the terraced main pool deck. Another attractive feature is an increased ceiling height to create an airy feeling noticeable in many public rooms including the Ocean View Cafe, the ship’s buffet on the top. Fresh take in design In creating the Edge class, Celebrity worked with partners that in some cases had no previous experience designing a cruise ship, including internationally renowned interior designer Kelly Hoppen Eden, which spans three deck aft of the Edge, is the ship’s “living room” with cafe, bar and restaurant. It provides seating for 327 guests Celebrity Edge at night – Magic Carpet parked on Deck 5 42-51 .indd 4 31.1.2019 8.56
46 CruiseBusiness.com Magazine Winter 2018/2019 MBE of Kelly Hoppen Interiors and architect Tom Wright of WKK. American designer Nate Berkus served as the Edge’s “design ambassador.” Also working at sea for the first time was designer Patricia Urquiola, who teamed up with Celebrity and Royal Caribbean veteran Scott Butler of Wilson Butler Architects to create the Eden, which spans three decks at the ship’s stern and is an evolution of the Two70 lounges found aboard the Quantum class vessels operated by sister brand Royal Caribbean International. When asked to sum up all the vessel’s onboard firsts, Celebrity Cruises President and CEO Lisa Lutoff-Perlo named the infinite veranda cabins, Magic Carpet, Eden, Constellation sound system in the theatre and Edge Launches [tenders]. She also praised the double-height glass windows in the Ocean View Café, intended to bring the ship’s destinations into focus. “We paid a lot of attention to the architecture,” she said. Meanwhile, enhanced automation in the cabins enables guests to control everything from lighting to window shades, interior temperature and room service with simple touch-screen operations. Infinite verandas The Celebrity Edge accommodates 2,918 passengers (double occupancy) in 1,467 cabins. The public rooms and cabins are spread through 14 decks, serviced by two main stair towers and two elevator lobbies. In total, there are 12 passenger elevators, but none are glass-enclosed. As a matter of fact, Celebrity Cruises has elimi? Starboard side of Pool Deck offers private cabanas There are total of 918 cabins and suites with infinite verandas 42-51 .indd 6 31.1.2019 8.56
YOUR TRUSTED PARTNER IN CRUISE EQUIPMENT MOORING & ANCHOR WINCHES DOORS & PLATFORMS PASSENGER GANGWAYS CARGO LIFTS AND LOADING PLATFORMS TTSGROUP.COM TTS,????????????????? CruiseBusinessReview_3_2018_TTSMarineAB.indd 1 2018-10-16 07:47:48 Sovereign of the Seas, Seaward, Seabourn Pride, Star Princess, Seabourn Spirit, Club Med I, Fantasy, Westerdam, Nordic Empress, Crown Princess, Horizon, Silja Serenade, Ecstasy, Regal Princess, Monarch of the Seas, Hanseatic, Silja Symphony, Majesty of the Seas, Dreamward, Zenith, Royal Viking Queen, Club Med II, Crown Jewel, Gruziya, Costa Allegra, Barfleur, Normandie, Windward, Crown Dynasty, Costa Romantica, Kazakhstan II, American Adventure, Kong Harald, Richard With, Nordlys, Oriana, Legend of the Seas, Century, Splendour of the Seas, Sun Princess, Carnival Destiny, Galaxy, Costa Victoria, Grandeur of the Seas, Nordkapp, Rhapsody of the Seas, Dawn Princess, Mercury, Enchantment of the Seas, Nordnorge, Vision of the Seas, Grand Princess, Sea Princess, R One, R Two, Voyager of the Seas, R Three, R Four, R Five, R Six, R Seven, R Eight, Norwegian Sky, Seven Seas Navigator, Explorer of the Seas, Aurora, Costa Atlantica, Millenium, Infinity, Adventurer of the Seas, Carnival Spirit, Radiance of the Seas, Norwegian Sun, Summit, Brilliance of the Seas, Constellation, Coral Princess, Navigator of the Seas, Island Princess, Crystal Serenity, Mariner of the Seas, Serenade of the Seas, Carnival Miracle, Jewel of the Seas, PontAven, Caribbean Princess, Carnival Valor, Pride of America, Norwegian Jewel, Carnival Liberty, Pride of Hawaii, Freedom of the Seas, Crown Princess, MSC Musica, Norwegian Pearl, Liberty of the Seas, Emerald Princess, MSC Orchestra, Norwegian Gem, Ventura, MSC Poesia, Independence of the Seas, Ruby Princess, MSC Fantasia, Celebrity Solstice, MSC Splendida, Oasis of the Seas, Celebrity Equinox, MSC Magnifica, Carnival Dream, Silver Spirit, Azura, Celebrity Eclipse, Le Boreal, Norwegian Epic, Queen Elizabeth, Allure of the Seas, L’Austal, Disney Dream, Carnival Magic, Celebrity Silhouette, Disney Fantasy, Carnival Breeze, MSC Divina, Celebrity Reflection, MSC Preziosa, Royal Princess, Mein Schiff 3, Regal Princess, Quantum of the Seas, Mein Schiff 4, Britannia, Anthem of the Seas, Carnival Vista, Ovation of the Seas, Harmony of the Seas, Mein Schiff 5, Silver Muse, Seabourn Encore, Majestic Princess, MSC Meraviglia, MSC Seaside, Symphony of the Seas, MSC Seaview, Seabourn Ovation, Mein Schiff 1, Aida Helios, Celebrity Edge, Mein Schiff 2, Costa Venezia, MSC Belissima, Spectrum of the Seas, Sky Princess, MSC Grandioza, Carnival Panorama 42-51 .indd 7 31.1.2019 8.56
FULL CRUISE CONTROL WITH Sika? oor® Marine SOLUTIONS High-performance systems for acoustic ? ooring, primary deck covering, visco-elastic damping and A-60 ? re rated ? oating ? oors. SIKA SERVICES AG Tue enwies 16 · CH-8048 Zurich · Switzerland Phone +41 58 436 40 40 · Fax +41 58 436 55 30 www.sika.com/marine nated the standard multi-deck atrium in favor of a smaller, more intimate three-deck Grand Plaza, crowned by a three-story chandelier. A high percentage of cabins (81%) feature balconies [or infinite verandas]. Just 10% of the accommodations are ocean view and 9% are inside cabins. There are a total of 21 suite and cabin categories, the largest share being the Edge Stateroom with Infinite Veranda [a total of 512 plus 16 single cabins]. The Celebrity Edge is the first major cruise ship where infinite verandas have been incorporated in large numbers. They are common on many river cruise ships, but the Edge is the first oceangoing ship to have the feature on a large scale. With the touch of a button, guests can lower the upper part of the window and make the entire living space “outdoors.” There is, however, an option to close off the living area to keep it air-conditioned. According to Lutoff-Perlo, “We wanted to give 23% more living space, but still offer the ‘French Balcony’ experience.” Bathrooms are 10% larger, too. With the Celebrity Edge, the brand has more than doubled the number of suites available and introduced new public spaces exclusively for suite guests. This includes room-key access to a private sun deck at the top forward part of the ship called The Retreat Sundeck, which includes the exclusive Retreat Lounge and Suiteclass restaurant Luminae @ The Retreat. Aqua Class guests have access to their exclusive own restaurant called Blu, which was first introduced aboard the Celebrity Solstice. Re-thinking dining In its recent newbuilds, Celebrity Cruises has become known for its grandiose, double-deck dining rooms. The trend these days, however, is to move away from these cavernous spaces toward smaller, more individual and themed main restaurants. This could already be seen with Royal Caribbean International when the sister brand launched its Quantum of the Seas in 2014. Celebrity has now taken a similar step with the Celebrity Edge, which has four complimentary main restaurants – each offering seating for 340-plus guests at a time. Some of the names and themes of the decor have been borrowed from the specialty restaurants aboard the Millenniumand Solstice-generation ships: For example, the Tuscan Restaurant for authentic Italian cuisine, Normandie for contemporary French cuisine, the Cyprus Restaurant for Mediterranean ? ALWAYS TO BE TRUSTED We take pride in the relations we build with our customers, and we take pride in the products we deliver. This gives us the confidence to state that we are always to be trusted. www.jetsgroup.com Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway – Tel.: +47 70 03 91 00 – E-mail: post@jets.no Tuscan Grille is one of the four main restaurants French-themed Le Grand Bistro 42-51 .indd 8 31.1.2019 8.56
Valmet supplies automation, energy management and SOx scrubber systems to the maritime market. Our Valmet DNA automation system ensures maximum performance for your control and monitoring needs, and the energy management system helps you to save energy. With our innovative SOx scrubber, emissions will be in accordance with regulations. valmet.com/marine Moving automation, energy management and sustainability solutions forward FULL CRUISE CONTROL WITH Sika? oor® Marine SOLUTIONS High-performance systems for acoustic ? ooring, primary deck covering, visco-elastic damping and A-60 ? re rated ? oating ? oors. SIKA SERVICES AG Tue enwies 16 · CH-8048 Zurich · Switzerland Phone +41 58 436 40 40 · Fax +41 58 436 55 30 www.sika.com/marine 42-51 .indd 9 31.1.2019 8.56
www.antti-teollisuus.fi | tel. +358 2 774 4700 fare and Cosmopolitan Restaurant for New American cuisine with global influences. With at least 15 various dining venues aboard, the Celebrity Edge reflects the current trend toward offering more venues with smaller capacities throughout the ship. In several cases, dining venues may be part of a larger entertainment complex. Such is the case with Eden, for example, and the Rooftop Garden, which is fitted with a large video screen, dance floor, live band and open-air restaurant. For its high-end dining venues, the Celebrity Edge features an all-new roster. According to Brian Abel, Senior Vice President of Hotel Operations, the company wanted to elevate the dining on the Edge and looked closely at what was happening in the restaurant business around the world – not only in cruising but on land as well. The results are mouth-watering: Overlooking the Grand Plaza, there is the Fine Cut Restaurant serving premium steaks and seafood with indoor and outdoor seating for 120; cover charge is $55. Another newcomer is Le Grand Bistro, which serves breakfast, lunch and dinner with cover charges ranging from $10 to $25. Raw on Five serves fresh seafood with a la carte pricing. Its menu is also available on the Magic Carpet when positioned on Deck 5 to provide extra capacity for the restaurant. Destination Gateway and Magic Carpet Destination Gateway on Deck 2 is a new multi-purpose area designed specifically for trouble-free embarkation and disembarkation. It comes alive when the Magic Carpet is positioned there and Edge Launches [tenders] are used for taking passengers ashore and back. Both Destination Gateway and the Magic Carpet have transformed tendering and made it enjoyable again. The Magic Carpet itself is perhaps the most provocative feature aboard the Celebrity Edge. Perched on the starboard side, the 240-ton Magic Carpet is an open-air, panoramic platform that can be used for tendering on Deck 2 [it becomes an extension beyond security for those going ashore] or as a dining and cocktail venue on Decks 5, 12 and 16. It can accommodate a maximum of 100 persons in an area totaling 1,937 square feet. When the Magic Carpet is moving between decks, it’s not open to the public. In my experience, our farewell dinner was reserved for the Magic Carpet, but – due to heavy winds – service was unsustainable on Deck 16. Yet just by moving the Magic Carpet to Deck 12, there was enough shelter to experience an enjoyable dinner. When asked about any major operational challenges with the Magic Carpet that could occur, Harri Kulovaara, RCCL Executive Vice President of Maritime, said, “Doing this kind of features requires tremendous focus on processes – we call it novel technology. We spent one-and-a-half years studying all kinds of risks – going through them one by one – that it [Magic Carpet] will meet expectations. We have gone through over 100 cases that can go wrong, and the systems have been extensively tested during the sea trials. We have very high redundancy,” Kulovaara concluded reassuringly. n In the next issue of CruiseBusiness.com Magazine we will take a closer look for the technical innovations of Celebrity Edge. CELEBRITY EDGE Technical information Gross tonnage 130,818 Length oa 306m Length bp 295m Breadth 39m Design draught 8.425m Passengers 2,918 Crew 1,320 Classification society DNV Flag Maltese Engines 2 x Wärtsilä 8L46F, 2 x Wärtsilä 12V46F and 1 x Wärtsilä 12V32E/E2 Propulsion 2 x Azipods Bow thrusters 4 x Brunvoll FU115 42-51 .indd 10 31.1.2019 8.56
52 CruiseBusiness.com Magazine Winter 2018/2019 TECHNOLOGY LNG COMES OF AGE Liquefied natural gas (LNG) has come of age as a fuel source in the cruise business, as AIDA Cruises’ 183,900 gross ton and 5,200-passenger AIDAnova – the first cruise vessel to be fully powered by LNG – entered service in December. By Susan Parker T here are currently 20 LNG-powered large-scale newbuildings on order for delivery through 2026: Ten for Carnival Corp. & plc (two more for AIDA and two each for Carnival Cruise Line, Costa Cruises, P&O Cruises and Princess Cruises); three for MSC Cruises (one Meraviglia class and two World class); three for Disney Cruise Line; two for Royal Caribbean Cruises Ltd. (two Icon class) and two for TUI Cruises. ConAIDAnova is the first cruise ship powered with LNG 52-57 .indd 2 24.1.2019 9.16
? CruiseBusiness.com Magazine Winter 2018/2019 53 struction of these vessels is taking place at all the major cruise shipbuilding yards including Meyer Werft (Germany), Meyer Turku (Finland), Chantiers de l’Atlantique (France) and Fincantieri (Italy). Meanwhile, Viking Ocean Cruises has not revealed whether its two newbuildings on order at Norway’s Vard will be LNG-powered, despite industry speculation. It is also interesting to note that, so far, Norwegian Cruise Line has not chosen to go down this route with its forthcoming Leonardo class. On the other hand, size is no longer the limiting factor it once was in employing LNG as a fuel source. At the smaller end of the spectrum, for example, Ponant has ordered an electric-hybrid polar expedition ship to be powered by LNG – the 30,000 gross ton Le Commandant Charcot – from Vard Soviknes for delivery in 2021. The benefit of using LNG, of course, is to be in compliance with environmental regulations in Emissions Control Areas (ECAs) worldwide, and looking ahead to 2020, to meet the 0.5% global sulphur cap. Compared with other fuels, LNG goes beyond these restrictions by addressing all local pollutants including SOx, NOx and PM (particulate matter). LNG for AIDA AIDA’s journey to a cruise ship fully powered by LNG began with the AIDAsol, which is powered by energy via an LNG hybrid barge while berthed at Hamburg’s Hafencity Cruise Terminal. In 2017, the 124,100 gross ton AIDAprima was delivered from Mitsubishi Heavy Industries, which became the first cruise ship to routinely use LNG while in port. One of its four 12-cylinder MAK V type engines, manufactured by Caterpillar, is dual-fuel (DF) running at 10,800kW and catering to the 5mW to 6mW hotel load. Carnival Corp. signed a contract with Shell Western LNG to supply the AIDAprima and its sister ship, the AIDAperla, from a truck at the berth in Hamburg, and entered into a similar deal with Molgas in the Mediterranean and GALP in Madeira. In Southampton, Le Havre, Zeebrugge, Rotterdam, Barcelona, Marseille, Civitavecchia, Tenerife and Funchal, all the stakeholders have worked together to make this possible. But as Tom Strang, Carnival Corp. Senior Vice President of Maritime Affairs, explained, the process is a complicated one. “Bunkering in nine ports in Europe means there are nine different regulatory areas to deal with. Carnival is trying to standardize this.” In terms of construction, the AIDAnova has been built in accordance with the IMO’s IGF code and certified by RINA and the Italian authorities. When asked what it was like to be working on such a groundbreaking project, Strang told CruiseBusiness.com Magazine: “As we begin to understand it [the code] better, I am sure there will be Tom Strang 52-57 .indd 3 24.1.2019 9.17
54 CruiseBusiness.com Magazine Winter 2018/2019 ? some things where there are opportunities for improvements. As with any first-time round, there may be areas where interpretation needs clarification, but there is nothing in particular right now.” He was keen to highlight that on the safety side, extreme care has been taken to the point where, “We may have been over-onerous.” The engine room modules for the AIDAnova were constructed at German shipyard Meyer Werft’s Rostock facility. The units contain the entire engine room for the ship, complete with four DF Caterpillar/ MaK engines, the LNG bunker tanks and all related machinery systems and installations. The vessel’s bunker tank arrangement is composed of two tanks with a length of about 35 meters, a diameter of 8 meters and a capacity volume of 1,500 cubic meters each. A third, small tank with a diameter of 5 meters is 28 meters long and has a capacity volume of about 520 cubic meters. With one LNG tank fill-up, the AIDAnova can be powered for up to two weeks. The LNG storage volume required is about 1.8 times that of standard diesel tanks. The natural gas is liquefied to reduce its volume, and then kept at a temperature of 260 degrees below zero. To supply LNG to the AIDAnova, a new contract with Shell has been put in place to supply LNG by bunker vessel/barge in different locations. Said Strang, “We have permission from Rotterdam and Eemshaven [a delivery of about 3,500 cubic meters LNG was made on October 18 and again on November 26] for deliveries, but once she is in service we [will] need a port in the Canaries and Atlantic Islands.” The initial plan was to bunker in Tenerife, where Shell is still in the process of finalizing details with the port authorities and other interested parties. “At the end of the day, as for any bunker vessel, Shell has to get a license to operate within the port confines,” he added. When the vessel moves into the Mediterranean, permission has already been granted to bunker in Marseille, with Barcelona also being looked at. But bunkering barges themselves are limited in number due to the still restricted use of LNG industrywide. Shell’s converted multi-gas carrier the Coral Methane and its first purpose-built LNG bunker supply ship the Cardissa are likely candidates to supply the AIDA ships. Strang was keen to point out that “the last mile, getting the LNG from storage via bunker barge to the vessel, is a key component of the discussion.” The successful outcome is “all about choosing partners and people with experience who can provide us with a safe and reliable fuel chain.” Discussions at Seatrade Med At the Seatrade Med conference held in Lisbon in September, there was much talk about the role of ports in providing relevant LGN infrastructure. The first consideration is the capacity range required, which is between 2,500 to 4,000 cubic meters. “We have to look at where LNG is stored in bulk and how it is transported to the port. Those ports that already have LNG storage will have a competitive advantage. If you have to truck or bunker in from long distances, then this is obviously not so competitive.” Strang named Rotterdam, Singapore and Jacksonville as being leaders in terms of LNG supply, from whom lessons are being learned. Stockholm, where Viking Line’s Viking Grace takes on fuel on a regular basis, has experience with numerous operations taking place safely. While getting LNG to the ship is presently accomplished by truck or bunker barge, there is another possible solution to the infrastructure conundrum, which could come in the form of the Universal Transfer System (UTS) recently developed with Connect LNG and Gas Natural Fenosa. This would bring bunkering infrastructure to a vessel using a floating platform connected to the shore by Cryoline cryogenic floating hoses, which can be retracted when not in use. With no need for heavy infrastructure, it is said that the UTS would bring down capital expenditure for bunkering facilities significantly. It would also allow LNG transfer to occur in locations that would otherwise be inaccessible for large vessels. “It is a very interesting concept,” Strang said. “Right now, with the type of supply chain we have and the flexibility we need, it makes more sense to use the bunker vessel, but if a port in the Baltic or wherever was to develop a terminal where we could load like this, then why not?” He also alluded to the fact that being berthed alongside an LNG terminal with floating pipelines might not be the most attractive place for a cruise ship to dock. Speaking on behalf of Cruise Europe member ports, Chairman Michael McCarthy made the following observations: “By 2025, European Tier 1 core network ports will have an obligation to provide whatever bunker fuel a vessel requires. The provision covers the ability to be able to bunker 52-57 .indd 4 24.1.2019 9.17
ALWAYS TO BE TRUSTED We take pride in the relations we build with our customers, and we take pride in the products we deliver. This gives us the confidence to state that we are always to be trusted. www.jetsgroup.com Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway – Tel.: +47 70 03 91 00 – E-mail: post@jets.no CruiseBusiness.com Magazine Winter 2018/2019 55 from, preferably, a floating barge/vessel rather than road. The requirement for safety regulations handling LNG bunkers is onerous.” He would like to see closer dialogue between the cruise lines and port associations, such as Cruise Europe and MedCruise, which would result in identifying about 12 ports in each region where vessels could take on LNG. For example, on an “Around Britain & Ireland” cruise, the vessel could be provided with LNG by shuttle tanker from Southampton or Milford Haven. There are similar examples throughout the Cruise Europe region. McCarthy said he believes it would be “a simple exercise” to identify these core ports, which could then request funding from the European Union for LNG infrastructure as part of the EU Motorways of the Seas/ Alternative Fuel Directive. He emphasized, however, that it is no longer a case of us and them, owner and supplier, but that the way forward has to be joint. To this end, there must be closer cooperation between ports and cruise lines to mitigate the cost of changing infrastructure requirements. MSC World class MSC Cruises is not taking delivery of its first LNG-powered World-class ship until 2022, which means that the company still has time to work out the particulars. Bud Darr, MSC Executive Vice President of Maritime Policy & Government Affairs, said, “The c o l l a b o r a t i ve design process started several years ago in advance of the prototype. We are still in ongoing discussions with the yard [Chantiers de l’Atlantique] on what details will be in the final design. There is a lot that has been learned from gas carrier construction that can be applied to gas as a fuel in construction. There is a great deal in terms of safety, design, operation management and experience in decades – not only as a cargo and as a fuel, but definitely for those using [LNG] as a fuel.” Touching on costs, he said, “There is definitely a capital expense premium [to LNG ships], as you know. The total cost is roughly € 1 billion per ship for these.” With reference to the engines he continued, “Relatively speaking, to make an engine dual-fuel, there is not a real substantial cost involved. Generally speaking, the technology is changing rather than the prime mover, which is much more expensive.” One of the most challenging aspects of operating an LNG-powered ship is fuel storage. “Not only do we have to accommodate conventional fuel, but also lower density LNG in different [C-type] tanks and hence different volumes.” The use of these tanks, located in the hull of the ship, comes with new controlled spaces and systems, which are taking up machinery spaces that would normally be used for other equipment. “We are configuring in a way that minimizes wasted volume in the machinery spaces. We can sometimes align pieces of equipment to minimize wasted space. We are certainly placing emphasis on those vendors who can deliver the same [equipment] in a smaller package,” Darr said. In every instance, compliance with Safe Re? Bud Darr 52-57 .indd 5 24.1.2019 9.17
56 CruiseBusiness.com Magazine Winter 2018/2019 turn to Port has to be taken into account. Whilst the emergence of LNG has reinforced the need to become more creative in terms of space utilization, Darr said that the incentive is there anyway to release as much space as possible, which could then be used to generate revenue. “I think you are going to see better space utilization [generally] on the ship,” he noted. MSC’s intention is to use LNG with the limited exception of having MGO for certain, but limited, engine uses and to meet the regulatory redundancy standards. The ships will be fitted with SCR capability in order to meet Tier III requirements even when burning MGO (see engines, below). Pioneering LNG on cruise ships comes with many challenges, not least of which is the regulatory framework. “There is a certain baseline on the design side set up by the IMO, the IGF Code [International Code of Safety for ships using gases or other low-flashpoint fuels],” Darr said. Bodies such as the Society for Gas as a Marine Fuel and the International Organization for Standardization are also doing good work, according to Darr, who admitted that it is “tough to keep track on all that is going on.” He added, “It is important to make sure that we are relatively consistent in design and application, so we have some standards in terms of performance. Making this fit together is important.” MSC has yet to make a decision as to what its supplier arrangement will look like overall (cargo and cruise), Darr said. “With a cruise ship, we will have to bunker a very substantial amount of fuel at one time, so it probably makes it unfeasible to use trucks. The best available solution so far is barges, although there is some possibility from the berth. But this requires substantial investment and limits the flexibility in how the fuel can be delivered. Another dynamic is that we have to secure the supply of the actual fuel, but also a corresponding distribution of that fuel, and that has to come together in a variety of destinations. It is solvable, but not easy to pull that off. We do emphasize that it is not necessary for every port to supply LNG. We will work to have it in a number of ports where it is essential, although we do have to have sufficient ports to deliver on an itinerary.” While not prepared to name the ports it may be talking to or whether MSC may invest in port infrastructure for LNG, he did say that MSC will be working closely with all the partners involved in the supply chain. “When you look at the overall feasibility of LNG, it is important not just in terms of commodity and pricing, but the delivery is an extremely important component of how it all fits together, unlike conventional fuels. I think we are going to find more and more pragmatic solutions to suits everyone’s needs, but it does have to all come together.” Crew training Carnival Corp. is developing an LNG-related safety program at its training facility, the Center for Simulator Maritime Training (CSMART) Academy at the Arison Maritime Center in the Netherlands. Partnering with Meyer Werft and MaK Caterpillar, the company has been developing ship-specific training that will ensure all crew are fully ready when the vessels are delivered. In addition, Carnival’s partnership with Shell allows crew to get hands-on LNG experience where necessary and for them to witness operations first-hand, such as LNG bunkering and related LNG activities. Said MSC’s Darr, “These are systems that most ship staff have no experience of using.” He added that MSC would train people sufficiently both in advance of delivery and onboard the ships. “We will be taking people with basic marine engineering skills and adding LNG expertise. With the growth [in newbuildings] we are experiencing, we are hiring new engineers all the time. There will be a premium on LNG skills, but we will be training those in that position. What will not work is that a seafarer can just walk onto a ship. It has to be coordinated between basic skills and particular skills needed on a specific ship.” LNG engines When it comes to supplying dual-fuel (DF) engines, manufacturer Wartsila has some history. The first such engines, capable of operating on either gas or conventional diesel fuels, were introduced in the 1990s. In 2010, the company introduced its LNGPactm that includes the bunkering station, LNG tank and related process equipment and control and monitoring system. The following year, the company’s first conversion project from diesel to LNG fuel took place. This year, Wartsila has sold and produced 14 46DF engines for ferries. Its orderbook to 2020 and beyond lists two for ropax and 11 for cruise ships. It has also recently received a contract to supply Ponant’s polar class, 30,000 gross ton Le Commandant Charcot with four 14-cylinder and two 10cylinder 31DF engines as well as its LNGPac fuel gas supply system. Just confirmed is a contract for Balearia’s high-speed catamaran ferry, which will be equipped with four 31DF engines and LNGPac. The Viking Grace operating between Turku in Finland and Stockholm in Sweden is the largest passenger vessel in the world to be powered by LNG fuel. It is fitted with four 50DF engines and equipped with two 200-cubic-meter LNGPac systems, including a Wartsila-patented solution that uses the latent heat from the LNG evaporation process for the vessel’s HVAC system. As CruiseBusiness.com Magazine went to press, there were 90 vessels on the company’s LNGPac reference list, of which 60 are in operation. The DF engines, which can run on natural gas, marine diesel, HFO and biofuels, are Tier III compliant in LNG gas mode and Tier II in MGO diesel mode, explained Maikel Arts, Segment Sales, Cruise for Wartsila. If a company requests to have the engines Tier III, an SCR is needed in the exhaust pipeline for the diesel mode which, he said, is almost standard nowadays. Switching between gas and diesel mode is immediate without losing power or engine speed. When reversed from diesel to gas, this takes place within five minutes. At higher loads (>80% MCR), the engine will reduce the load to 80%, and then switch and return to the higher load. In terms of cost, Arts explained that in general the DF engine is more expensive than a normal diesel power plant. In addition, LNGPac needs to be purchased and installed. “On the other hand LNG is significantly cheaper than MGO and HFO and almost in line with HFO,” he pointed out. “LNG is the cleanest-burning fossil fuel on the market, with no SOx and no particulate emissions.” Wartsila is also delivering the LNG system handling equipment for bunkering vessels, such as a 3,000-cubic-meter capacity LNG barge being built in Romania, to be outfitted in the Netherlands for owners LNG Shipping. It will be chartered by Shell Western LNG BV operating out of Rotterdam. The company takes training seriously and is organizing LNGPac operation advanced and marine gas safety training at the Wartsila Land and Sea Academy. Classification Bureau Veritas (BV) has some background with classing LNG-powered vessels, including Tallink’s Megastar with LNG tanks below deck, the LNG power barge in Hamburg and Balearia’s Abel Matutes. On the current orderbook is the World-class series for MSC, a ferry for Brittany, a high speed catamaran for Balearia, the icebreaker for Ponant, as well as several LNG bunker ships for Skangas, Shell, MOL Total, Anthony Veder and others. BV is engaged at a very early design stage (type of tank containment system, location, quantity, assessment of risks associated with LNG) until operation (assessment of bunker operations with SIMOPS, commercial operation during bunkering) and more. Andreas Ullrich, Global Market Leader, Passenger Ships & Ferries for Bureau Veritas, said, “Currently, the majority of LNG orders will use type C tanks, as they are able to afford higher pressures and consequently easier vapor management. There are also other tank containment systems on the market, such as membrane tanks. One project where GTT's membrane tanks are to be installed will be Ponant's icebreaking cruise ship to be delivered in 2021. Our current orders will utilize Wartsila DF engines. Except for using a new fuel [LNG], and challenges such as segregation between gas dangerous spaces and safe spaces, fuel bunkering logistics, there is no huge difference compared to a diesel-electric-driven cruise vessel, from the technical and classification point of view,” Ullrich said. Maikel Arts 52-57 .indd 6 24.1.2019 9.17
“As related to fuels of the future, there are several options. First of all, it will depend on availability of alternative fuels, pricing and other factors like energy storage systems. What is quite sure is that any alternative fuel in the long-term should be produced using renewable energy [wind/solar]. Another solution would be hybrid or synthetic fuels produced from different sources.” What next? The International Maritime Organization’s requirement for a total CO2 reduction by the sector of at least 50% by 2050 is attracting more and more focus. “As of today, there is no fuel that could deliver that,” Carnival’s Strang told CruiseBusiness.com Magazine. “There is no infrastructure to supply that in the volumes that are necessary right now. LNG is not the silver bullet. It is clearly the best fuel widely available today, but if we are talking about zero carbon, we need to think about how we can achieve that. LNG has a part to play.” There are many different options being discussed such as methanol, biofuels, biogas, fuel cells and hydrogen. “If you use hydrogen,” Strang noted, “it produces water as a byproduct, so while it is not polluting, there can be some uncombusted hydrogen in the exhaust. So there is an issue there. It is also more difficult to carry and deal with than LNG. From my side, the key issue is that right now most hydrogen is produced from natural gas, and until there is both the suitable technology to transport and safely use it, that clean renewable energy is used to produce it, and there is a distribution infrastructure, it is not ready. That is not to say this won’t come, but it will be a while,” he said. Said MSC’s Darr, “At the moment, LNG CruiseBusiness.com Magazine Winter 2018/2019 57 is the most environmentally sound fuel we can choose from. SOx and PM are virtually eliminated. NOx meets Tier III and 20% or so carbon reduction from the ship, which contributes to our contribution to 50% reduction by 2050. It will take another breakthrough in propulsion fuel or both in order to get there. We are constantly looking for those solutions, but for now, we have to pick the best available solution.” RCCL’s LNG-powered Icon-class will be introducing fuel-cell technology based on hydrogen. The initial building phase of the first ship will start next year with the keellaying at Meyer Turku planned for October 2019 with delivery expected in 2022. “As the technology becomes smaller and more efficient, the possibility increases of using fuel cells in a significant way to power the ship’s hotel functions,” said Harri Kulovaara, RCCL Executive Vice President for Maritime and Newbuilding, when the contract was announced. “We will begin testing those possibilities as soon as we can, and look to maximize their use when Icon class debuts.” Hurtigruten, which has 17 ships in service, has announced that it plans to operate at least six of its ships on a combination of liquefied biogas from fishery and forestry waste, LNG and large battery packs by 2021. It is currently building three hybrid-powered cruise ships at Norway’s Kleven Yard for delivery in 2019 (Roald Amundsen), 2020 and 2021. Rolls-Royce together with Bellona has developed the hybrid solution. The MethaShip project, led by the research and development department at Meyer Werft in partnership with Flensburger Schiffbau-Gesellschaft and Lloyd’s Register, has come to the central conclusion that biomethanol is a fuel with a future. Although technical and financial details need to be clarified before it can be used more widely in shipping, in the medium-term a breakthrough is said to be possible if a statutory framework can be established for a holistic evaluation of CO2 emissions reduction. Whatever the future brings, Strang said he has no doubt that the demand for zeroemission ships presents the cruise industry with a great opportunity for innovation. “I think as we move forward into a zero-emission future, different sectors will see different solutions.” At this point in time, while noting that everyone in cruise is working on fuel-cell technology, he does not see one particular solution rising to the top. “We are all seeking innovative solutions to a set of problems/challenges. There are a number of different pathways to achieve those needs. With over 100 ships on order and a quarter if not more being LNG, it is a very exciting time,” he concluded. n Propulsion system of Viking Grace 52-57 .indd 7 24.1.2019 9.17
58 CruiseBusiness.com Magazine Winter 2018/2019 I t is, perhaps, well suited that the world’s first cruise ship fully powered by liquefied natural gas (LNG), the AIDAnova of AIDA Cruises, should enter service in this dynamic market, which in 2017 was almost three times as big as a decade earlier in terms of passenger numbers. In an effort to establish why the market – which also includes Austria and native speakers of German in Switzerland – has performed so well, a few key observations come to the surface. The first one relates to the economic environment. As is well known, the German economy has performed well for a long time, with a manufacturing sector heavily focused on exports as its backbone. As a result, even the financial crisis of 2008 did not derail the cruise industry’s growth track in the German market. MARKET REPORT The German cruise market has been a major success story. It is now the largest source market in Europe with just over two million passengers in 2017 and boasts a significant orderbook of newbuildings to enter service in the next few years. By Kari Reinikainen GERMANY LOOKS TOWARD FURTHER GROWTH Figures in thousands of passengers Source: CLIA Deutschland GERMAN OCEAN CRUISE MARKET PASSENGERS 2007-2017 Hamburg Cruise Days is a popular outdoor event among Germans every two years 58-61 .indd 2 31.1.2019 7.49
Secondly, Germany has been (perhaps with the exception of Spain) the only major cruise market in Europe where new companies have led the way to growth. In Britain and Italy, for example, this task fell to what had been trans-ocean liner companies that had moved on to cruising. AIDA Cruises and TUI Cruises had no glorious past to refer to, but neither did they have to strike a balance between attracting new customers and retaining old ones. Their respective products could be tailored to meet the needs of the present-day market. Everyone was a newcomer, and the market needed just that—more volume. Domestic brands gain market share A remarkable feature of the German cruise market has been the fact that the market share of domestic operators has grown in recent years at the expense of international brands. The passenger volume of the international operators declined both in 2016 and 2017, while that of the domestic operators continued to grow in both these years. Figures in thousands of passengers Source: CLIA Deutschland Both of the two major German domestic cruise companies, AIDA and TUI, have continued to add capacity to the market, which at least partly explains the growing share of domestic operators compared to their international competitors. ? CruiseBusiness.com Magazine Winter 2018/2019 59 Source: Tradingeconomics.com The German economy has performed well in the past decade, although the financial crisis resulted in a drop in gross domestic product (GDP) per person in 2009, but by 2011 the level of 2008 had already been exceeded. Measured in U.S. dollars, the German GDP per person was roughly 10.3% higher at the end of 2017 than at the end of 2008. Interestingly, there was no drop in cruise passenger numbers in 2009. German market outpaces global growth Fincantieri, the Italian shipbuilder, forecasts in its 2018-22 business plan that the global cruise market will grow from 25.6 million passengers in 2017 to at least 49 million passengers in 2030, an increase of 90%. If the German market follows the development of the global market as Fincantieri has forecast, it would mean that in 2030, the German market will have grown to 4.16 million passengers. Scenario Pax, 2017 Pax, 2030 Growth Growth / yr Baseline 2,190,000 4,160,000 1,970,000 151,500 High rate 2,190,000 6,130,000 3,940,000 303,000 However, CLIA Europe has pointed out that in the years 200617, the German market actually expanded at twice the rate of the global cruise market. Should this pace be maintained in the years to 2030, then the German market would exceed six million passengers, using Fincantieri’s growth projections as a guide. In the baseline scenario, in which the German market would grow in tandem with the global market, the annual growth in passenger GERMAN GDP 2008-2017 GERMAN OCEAN CRUISE MARKET BY OPERATOR AIDAcara, the first ship of AIDA met first time with the latest, AIDAnova in Tenerife late December 58-61 .indd 3 31.1.2019 7.49
60 CruiseBusiness.com Magazine Winter 2018/2019 numbers would be 151,500 over the review period and 303,000 in the high-rate scenario, which assumes that the German market continues to expand at twice the rate of the global market. In recent years, the average duration of cruises in the German market has been in the range of 8.5 to just under nine nights. Using a figure of 8.75 nights would mean that a ship would make 41 cruises each year. To meet the 151,500 passenger annual increase in volumes, the German market should add one 3,700 passenger ship that operates cruises of 8.75 nights in duration each year from 2017 to 2030 to meet the demand growth (3,700 x 41 = 151,700). If the high-rate scenario materializes, two such ships would be needed. Economic slowdown may dampen growth While both scenarios could be viewed as possible, it would be fair to raise doubts as to whether the German market really can continue to outpace the growth of the global market at the pace it did in 2006-17. Textbooks in marketing suggest that in the beginning, the demand for a new product – and cruising as a mainstream holiday product was relatively new in Germany in the first years of the millennium – grows slowly at first. If the product is successful, a period of rapid sales growth follows as the product becomes mainstream. At some point, diminishing returns start to set in: The demand either stabilizes, continues a slow growth or starts to decline. A revamped product can then start the cycle again. Another question mark relates to the German economy itself. In the third quarter of 2018, GDP fell by 0.2%—its first quarterly decline since 2015—as trade wars and problems in the automotive industry took their toll. Such a decline is by no means a catastrophe, and one quarter is too short a time to jump to far reaching conclusions. In 2017, exports accounted for 47.2% of German GDP – the figure was 43% in 2007 and 25.4% in 1997, according to globaleconomy.com – so that a less benign environment in that area must be seen as a source of concern, indirectly, for the cruise industry in Germany. However, TUI Cruises remains upbeat about the outlook. “With 2.19 million cruise passengers compared to 70 million travelers in Germany, we still see a lot of potential for the cruise industry,” said Godja Sönnichsen, spokesperson for the Hamburg-based company. “Cruising will stay popular – this way of traveling just meets the Zeitgeist. Sustainability will become more of an important topic, and at TUI Cruises, we take this responsibility very serious. We already have the most environmental cruise fleet,” she added. Principal German operators Rostock-based AIDA Cruises is the largest cruise operator with a main focus on the German-speaking market, with a fleet of 13 vessels following the entry into service of the AIDAnova at the close of 2018. Ship Year built Gross tons Passengers AIDAaura 2003 42,289 1,266 AIDAbella 2008 69,203 2,050 AIDAblu 2010 71,304 2,192 AIDAcara 1996 38,557 1,186 AIDAdiva 2007 69,203 2,050 AIDAluna 2009 69,203 2,050 AIDAmar 2012 71,304 2,194 AIDAnova 2018 183,900 5,200 AIDAperla 2017 124,100 3,286 AIDAprima 2016 124,100 3,286 AIDAsol 2011 71,304 2,194 AIDAstella 2013 71,304 2,194 AIDAvita 2002 42,289 1,266 Source: Shippax Guide 18 AIDA, which is part of the Carnival Corporation & plc group, has a further two ships of the same type as the AIDAnova on order. These will be delivered in 2021 and 2023, respectively. Hamburg-based TUI Cruises, which is a joint venture between the German travel company TUI AG and Royal Caribbean Cruises Ltd. (RCCL), was about to commission its seventh vessel—the 111,500 gross ton Mein Schiff 2—at the time of writing. The company has a third vessel of the same type on order from the Meyer Turku shipyard, which is scheduled for delivery in 2023. It is due to be called the Mein Schiff 7. The company has also contracted two 161,000 Three Phoenix Seereisen ships in Bremerhaven 58-61 .indd 4 31.1.2019 7.49
gross ton LNG-powered vessels from Fincantieri, the first of which is due to enter service in 2024 with the second unit to follow two years later. Ship Year built Gross tons Passengers Mein Schiff 1 2018 111,500 2,894 Mein Schiff 2 2019 111,500 2,894 Mein Schiff 3 2014 99,526 2,506 Mein Schiff 4 2015 99,526 2,506 Mein Schiff 5 2016 99,526 2,506 Mein Schiff 6 2017 99,526 2,506 Mein Schiff Herz 1997 77,302 1,912 Source: Shippax Guide 18 Bonnbased Phoenix Seereisen operates a fleet of five deep-sea vessels plus a number of river cruise ships. The company’s fleet comprises units in the 20,000 to 45,000 gross ton range that are all second-hand vessels. The Deutschland is only operated for a part of each year by Phoenix, while it spends the winter season as a floating university for U.S. principals. The Amera, the company’s latest acquisition, was until recently known as the Prinsendam of Holland America Line. Ship Year built Gross tons Passengers Albaltros 1973 28,518 824 Amadea 1991 29,008 584 Amera 1988 38,848 835 Artania 1984 44,588 1,188 Deutschland 1998 22,496 604 Source: Shippax Guide 18 Other operators UK-based Cruise & Maritime Voyages (CMV) has a dedicated German brand called Transocean Cruises, which operates the 1987-built Astor of 20,636 gross tons. This vessel has spent the winter seasons cruising out of Australian ports, mainly Fremantle. However, the ship will remain year-round on the German market as of this year, following the entry into service of the Vasco da Gama in the spring. At 55,451 gross tons, it will be the largest ship in the CMV fleet. The vessel will operate summers in the German market and winters in the Australian market. Meanwhile, Munich-based tour operator FTI continues to offer the 1980-built FTI Berlin of 9,570 gross tons. Future prospects Looking ahead, the German cruise market emerges as a dynamic one, with major investments in the pipeline. Significantly, its major brands of AIDA and TUI both have cutting-edge newbuilds coming into service. Furthermore, German cruise operators have been innovative by introducing destinations such as South America, the Arabian Gulf and the Far East to their customers. In addition, the German market (together with the UK) is one of the few where destination-oriented operators that do not charge premium rates continue to offer worldwide itineraries, including some very long cruises, mainly on medium-sized, second-hand tonnage. However, it remains to be seen whether Germany can retain its position as the number two source market for cruises in the near future or whether China will surpass it in years to come. n CruiseBusiness.com Magazine Winter 2018/2019 61 Mein Schiff 2 is the newest vessel in German market Ph oto cre dit : Ka lle Id Heavy metal cruise on the TUI Cruises’ vessel 58-61 .indd 5 31.1.2019 7.49
62 CruiseBusiness.com Magazine Winter 2018/2019 EUROPA 2 LEADS HAPAGLLOYD’S INTERNATIONAL AMBITIONS SHIP REVIEW In September 2012, Hapag-Lloyd Cruises (HLC) held its first press conference in London to target the international market, specifically for travel aboard the Europa 2, but also on one of its expedition ships, the Hanseatic. The focus of the company has now turned to its forthcoming newbuild, the HANSEATIC inspiration, one of two expedition vessels under construction in Tulcea, Romania, for delivery in October 2019. Prior to stepping aboard the Europa 2 in Hong Kong this past April, I had visited the ship under construction in France and joined her inaugural cruise. It was clear from the start that this vessel was going to be different both in design and its target audience. By Susan Parker O wned by TUI, the Hapag-Lloyd brand has been performing well for its parent company. Karl Pojer, CEO of HLC, explained: “Last year we had the best financial results in the company’s history [125 years in 2016]. The highest rate of repeaters [65%], the highest rate of guest satisfaction [98%] and also the quality of the guest experience was the highest. In the Germanspeaking market, we are the quality and market leader with a very strong and loyal customer base.” However, he added, “Today we are very well off with German-speaking countries, but with the additional capacity, the international market is an add-on.” In this respect, the 500-passenger and 41,000 gross ton Europa 2 is positioned as casual, modern luxury with an international bias, while the original Europa is tailored to classic luxury and Germanspeaking passengers. From the very beginning, attention to detail was paramount. At the outset of the ship’s construction, Henning Brauer, Head of Project Management at HLC, said, “The general challenge is that the ship is the best floating on the seven seas.” Whether sourcing cabin furniture from highly-reputed German company Cor, or opting for 7,500 square meters of teak decking from French supplier Myg Decking, no corners were cut in Europa 2 in New York KOR-62-65 .indd 2 31.1.2019 8.59
? CruiseBusiness.com Magazine Winter 2018/2019 63 Tom Strang the Europa 2’s outfitting. Of the latter, Brauer explained, “It has taken almost a year to find the amount of trees that would fulfil the quality [required].” The design of the public spaces was meant to ensure that every passenger would find his or her own personal space onboard. “This is the basic design of the ship. We are basically wasting space on every corner, but this has been done on purpose,” Brauer noted. “For example, passengers won’t find the restaurants are booked up and they have to wait in line.” The size of the ship was also carefully chosen. “Luxury only works with a limited amount of passengers and, at the same time, a significant amount of crew, so we have the highest ratio of passenger to crew in the industry at 1.4:1 [respectively].” The numbers work: Not only is the level of service outstanding, but the choice of mostly young, Germans to work in the restaurants pays off handsomely. Their ability to switch languages and be attentive while not overbearing certainly adds to the ship’s ambience, which is a mixture of luxury, elegance and informality all rolled into one. Getting that right is no easy matter, but HLC appears to have achieved it thanks to a lot of hard work. KOR-62-65 .indd 3 31.1.2019 8.59
64 CruiseBusiness.com Magazine Winter 2018/2019 Top spot in Berlitz The company’s diligence has earned it the top spot in Berlitz Cruising & Cruise Ships 2018, whereby the Europa 2 and Europa are the only ships in the entire cruise fleet rated five-star-plus worldwide. While offering very different experiences, the common element of luxury is plain to see. This past April, I joined the Europa 2 on the “Diverse Asia, Relaxed Equilibrium” itinerary calling in Taiwan, the Philippines, Malaysia, Brunei and finally Singapore. Throughout the ship, public spaces are filled with natural light. Floor-to-ceiling windows leave you in no doubt that you are at sea. The main stairwell may be an extravagant use of space, but it opens the ship up to the water. With plenty of room to dine al fresco at the Yacht Club or linger on the pool deck, the ship is a must for ocean-lovers. In fact, all the spaces aboard err on the side of size – including the lobby/reception area, which spans the beam of the ship. With a sunken bar and comfortable seating, the actual reception desk is discreet along the back wall. At no time did I see a sign of a queue here. Entry-category suites are spacious with large bathroom, sitting area and balcony (35 square meters in total). Attention to detail is seen in everything from the Nespresso/minibar cabinet – the design of which took a year to perfect – to the customized cupboard space for women’s shoes and handbags. The TV acts as a guest portal for all things media and internet-related. To my surprise and delight, the signal was good even on sea days. Despite the relatively small size of the ship, there are seven dining options with opportunities to enjoy a range of cuisines including French, Italian and Asian amidst simple and tasteful surroundings. Director of Product Management Julian Pfitzner’s involvement in the Europa 2 from the very beginning has lent a high level of finesse not only to the food and beverage service, but also to other elements of the ship. I particularly liked the decor of the Italian restaurant Serenissima, where a subtle lime green features in the chandeliers, the glasses, chairs and window hangings. There are touches like this throughout Europa 2, which boasts a sophisticated but unassuming ambience. Quality food and beverage The quality and range of food and beverage is excellent. Whether in the main dining room Weltmeere with daily-changing menu or in the private dining Grande Reserve, passengers are able to choose from a wide range of cuisines and styles. The sushi in Sakura was one of my personal favorites. There is no need to dress up on this ship, although shorts and t-shirts are not welcome in the restaurants at night. HLC has made the sensible decision to charge for wine, explaining that passengers are used to pairing good wines with quality food, which would not be addressed by a package-only situation. However, the prices are extremely reasonable; for example, € 4.50 for cocktails and € 1.80 for beers. One inexplicable anomaly is that soft drinks are not free in the bars and restaurants, while coffees and teas are. For gin-lovers, there are 47 varieties to choose from. We took part in a fun gin-tasting session that paired different tonics and zests with different gins. My favorite was Fifty Pounds Gin, which is distilled four times. The naming is based on a tax law from the early 18th century, when bootleggers joined official distilleries in selling cheap gin of dubious quality. The government decided to levy a tax of fifty pounds, but after six years only two distilleries had agreed to pay it. We also donned aprons at the Miele Culinary School, where sous chef Dominik Spielberger patiently taught us how to make Vietnamese spring rolls, peanut dip, Pho Bo Asian noodle soup with beef and Lamba, spicy lamb. After all the chopping and cooking, we enjoyed sitting down to our dishes with a glass of wine or two. Belvedere library Pool Deck under a sliding glass roof Restaurant Element KOR-62-65 .indd 4 31.1.2019 8.59
CruiseBusiness.com Magazine Winter 2018/2019 65 In order to avoid putting on too many pounds, fitness classes and gym exercise were necessary evils. Classes such as back fit and cross-x, or the more leisurely stretch and relax, provided a nice mix of the energetic and the more sedate. For a bit of pampering, the 1,000-square-meter Ocean Spa is a must. There are four saunas, a hammam, an ice wall, a Kneipp pool and whirlpool – not to mention treatment rooms offering every imaginable spa service and product from an Asian foot massage priced at € 92 to Hyapur Hyaluronic serum for daily skin care (50ml/€149). For golfers there are two simulators, allowing players to try their hand at playing various famous courses, while customized golf packages are available under the watchful eye of the resident golf pro. Children are welcome onboard with programs designed for all age groups. A Knopf Club (twoto three-year-olds), Kids Club (fourto 11-year-olds) and Teens Club (11to 15-year-olds) and seven family apartments make life onboard easy for parents, with special day trips organized for families. Certainly on our voyage, the children were very much part of shipboard life, but unobtrusive and clearly enjoying their time at sea. Bilingual cruises In terms of catering to English-speaking passengers, the product still requires some refinement. Having almost non-existent German language skills, I was the perfect candidate to test the waters. My fitness class was in German, while a very good talk on Taiwan was in English. An international hostess, Shereen Sala, was on hand to help out by organizing receptions for English speakers and acting as an interpreter during some of the lectures – for example, when Chinese artist Ling Jian was giving a talk on the differences between Chinese and Western art as part of TheArtGorgeous theme of the trip. (The art collection onboard is spectacular, featuring 890 original pieces by Ling, David Hockney, Gerhard Richter, Eva Hild, Jeppe Hein and Damien Hirst, to name but a few.) Shipboard entertainment on the Europa 2 includes a champagne tasting by sommelier Tobias Lubasch (€95), summer breeze at the pool from the onboard band Cube – which also plays dance numbers in Club 2 – a pool party, caviar night and waffle time at the pool. The Belvedere Lounge hosts many of the talks and is also where fine teas and delicious small pastries are available in the afternoon. HLC is proud of its ability to put on individual shows and concerts, with invited artists ranging from acrobats to singers. There is a wide range of shore excursions to choose from, with prices on our trip ranging from € 59 for a city tour/walk through Manila’s old town or an evening boat trip and Singapore sling in Singapore to € 198 for The Art Gorgeous trip to the most precious gems of Chinese culture amongst the treasure troves of the Palace Museum in Taiwan. There is also a selection of bike tours available, with varying degrees of difficulty. These can only be booked onboard after a personal consultation to make sure passengers have the necessary fitness level to participate. For every port-of-call, we were given a handout with useful information such as how far the berth is from the city center, the currency plus exchange rate to the dollar and euro, where taxis are located together with a rough estimate of journey costs, suggested restaurants and the main sites highlighted on a map. Asia has long been a part of the world that has fascinated me. To have been able to explore parts of it from the elegance and luxury of the Europa 2 was a match made in heaven. n KOR-62-65 .indd 5 31.1.2019 9.00
66 CruiseBusiness.com Magazine Winter 2018/2019 PORT PROFILE PIRAEUS PUSH FOR PASSENGER GROWTH Now under new management and ownership that has maritime experience and financial assets, Greece’s premier port has set its sights high for the future. John Pagni reports. P iraeus has long been established on the Mediterranean cruise itinerary – commonly known as “the port of the Acropolis” – and as such is a must call. “We are one of the largest cruise terminals in the Mediterranean region, which is the second most popular only after the Caribbean,” says Nektarios Demenopoulos, “Annually we have one million cruise passengers on about 600 vessels.” As Deputy Manager in charge of PR, IR and Company Announcement’s at Port of Piraeus Authority (PPA), he knows a lot about its functions and future. “PPA has facilities for all sizes of cruise ships up to the Oasisclass due to its natural depth of 11 metres, so there are no heavy dredging costs. And it is very important to provide multiple services to provide a base so operators can revictual and bunker here.” “We cooperate with all the biggest cruise companies. Piraeus is [now] used mostly as a transit port, which makes up about 70% of throughput. Thus visitors arrive in the morning and leave in the evening after visiting the sights in Athens.” This simple explanation for this is that Piraeus is on the main Venice-Istanbul route that has decreased recently due to political uncertainty and that has affected the whole eastern Mediterranean. Before the downturn, cruise passenger numbers were 30% higher at 1.3 million. “If we attract more passengers, it affects all destinations – it is a holistic business,” Demenopoulos comments, “Cruise companies plan two years ahead and like to include many countries in their programs.” Planned terminal expansion Currently PPA has 2.,800 metres (3,062 yards) of dedicated quays for cruise ships with adequate parking areas alongside. Two permanent cruise-only reception facilities: Terminal A Miaoulis and B Themistocles are complemented by a third Terminal C Alkimos in-between to be used on busy days. The latter has a large semi-temporary tentlike structure. However, all three resemble airports with security, baggage handling, duty free sales, food and beverages facilities. However, change is afoot. In 2016, China’s COSCO Shipping Corporation (COSCOSC) bought a majority stake in PPA which included compulsory investment targets. Accordingly, a significant amount will be put into developing PPA’s cruise business. “Our investment plan calls for a new € 130m [$148m] cruise terminal at the passenger port’s entrance with two new berths totaling 400 metres [440 yards] each. The terminal building on top is intended to be a superb landmark for Piraeus as it is important to give a good impression to arrivals,” Demenopoulos explains. “There will be a shopping mall that will have a luxury focus and be accessible for both passengers and locals with different entrance-exit points and levels. Other projects planned feature four 4or 5-star hotels, cafés, restaurants which will completely change the Piraeus port area.” Pier and other construction work are to be completed by 2021 with bids for the various tenders to take place immediately. “Our target is to make Piraeus a major turnaround port and increase the figure from 300,000 to 1 million home port passengers.“ Tapping Asian potential “In order to succeed, we must take advantage of the COSCOSC brand to get access to the Chinese cruise passenger market – direct flights have already started. We know the Chinese love Greek islands and admire Greek history. It is positive for local and national economies.” Demenopoulos points out that many passengers that should disembark do not and the aim is to distinguish between Athens and Piraeus via better promotion. “After 2021, when the cruise projects are completed, we aim to see an [steady] increase of 50% in passengers,” states Demenoupulis. His confidence is based upon COSCOSC’s successful management of Piraeus’ container terminal, becoming not only the biggest in Mediterranean, but also the fastest-growing in the world. This part of the Mediterranean has quite a long cruise season running from April-November and peaking September-October. “Management intends to expand the season compared to Europe as Greece has a good climate so we can attract more off season where the numbers are small,” Demenopoulos concludes. n Nektarios Demenopoulos Ph oto cre dit : Jo hn Pa gn i 66 .indd 2 31.1.2019 9.36
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Taking Ritz-Carlton to sea Page 24 Taking Ritz-Carlton to sea Page 24 EDGE Transforming Celebrity Cruises Page 43 EDGE Transforming Celebrity Cruises Page 43 LNG comes of age Page 52 LNG comes of age Page 52 Royal Caribbean’s Fain on what’s driving growth Page 30 Royal Caribbean’s Fain on what’s driving growth Page 30 EPICENTER OF EDGE Inspired by transatlantic liners, the Grand Plaza of the Celebrity Edge mixes simplicity and modernity, with a striking chandelier over the Martini Bar rising three decks to the ceiling above. CruiseBusiness.com CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine Winter 2018/2019 C ru is e B u sin e ss .c o m M a g a zin e W in te r 2 1 8 /2 1 9 425x297%20kansi 2 .indd 1 31.1.2019 11.21