2/2017 www.cruisebusiness.com C R U IS E B U SIN ES S R EV IE W 2/ 20 17 S H IP S IN T H IS IS S U E M EIN SC H IFF 6 n M SC M ER A V IG LIA n N O RW EG IA N JO Y CRUISE BUSINESS REVIEW ?????? ? ? ? ? ? ? Viking Cruises From upstart to leader in 20 years archipelago Creating new cruise destinations Kyushu and the Japanese yards One step closer? MSC Meraviglia A ship for all seasons Cruise ships from Chinese w 424x297_CBR 217 kansi.indd 1 25.8.2017 12.23
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 THE EXPERTS IN MARINE ELEVATORS AND ESCALATORS Find out more at www.kone-marine.com or contact us at marine.info@kone.com 424x297_CBR 217 kansi.indd 2 25.8.2017 12.23
CONTENTS MAIN FEATURES Cruise Business Review 2/2017 5 20 DONALD LEADS CARNIVAL TO CHINA, CUBA AND RECORD EARNINGS Arnold Donald has been President and CEO of Carnival Corporation & plc since 2013. He talks with Fran Golden about the company’s turnaround and what’s next for the cruise giant. 27 LUTOFF-PERLO PREVIEWS CELEBRITY EDGE Celebrity Cruises is introducing its first new ship design in 10 years. President and CEO Lisa Lutoff-Perlo discusses the radical new Edge class with Fran Golden. 41 GIBRALTAR HOSTS 50th MEDCRUISE GENERAL ASSEMBLY MedCruise convened in Gibraltar in June for its 50th General Assembly. Kalle Id reports on the latest developments in the Mediterranean cruise market. 52 CHINESE-BUILT CRUISE SHIPS ONE STEP CLOSER Susan Parker interviews Fincantieri China CEO Fabrizio Ferri about the company’s part in establishing cruise shipbuilding in China. 69 NORWEGIAN JOY AND BLISS ELEVATE BREAKAWAY-PLUS PLATFORM Publisher Teijo Niemelä reviews the Norwegian Joy, NCL’s first purpose-built ship for Asia, and previews the Norwegian Bliss, the largest cruise ship to be deployed in Alaska to date. CRUISE BUSINESS REVIEW 2/2017 Upcoming Marine Exhibitions EUROPORT 2017 KORMARINE 2017 MARINTEC CHINA 2017 ASIA PACIFIC MARITIME 2018 OTC 2018 POSIDONIA 2018 SMM 2018 SMM 2018 wulffentre.com | sales@wulffentre.com +358 10 6335 500 Premium Exhibition Services 3-7 sisa?lto?.indd 3 28.8.2017 11.50
TECHNICAL 52 Chinese-built cruise ships one step closer 64 Jan Meyer on the future of Meyer Turku 66 New bridge design incorporates human factor International Registries (Far East) Limited in affiliation with the Marshall Islands Maritime & Corporate Administrators committed to the quality of the world fleet We are committed to upholding the values of safety, security, and environmental protection. This is evidenced through the quality of our fleet and outstanding port State control record as the only major international flag to remain on the United States Coast Guard’s Qualship 21 roster for 13 consecutive years. We achieve this goal through 24/7 service provided from 27 offices, staffed with experienced personnel, located in major shipping and financial centers around the world. hongkong@register-iri.com | blog.register-iri.com | www.register-iri.com 3-7 sisa?lto?.indd 5 28.8.2017 11.50
8 Cruise Business Review 2/2017 Publisher’s Letter HOW TO CONTACT ME ??? editor@cruisebusiness.com twitter.com/cruisebusiness youtube.com/cruisebusinessreview A s the major European cruise shipbuilders are enjoying record-strong cruise ship order books – with newbuilding deliveries reaching as far as 10 years into the future – several suppliers, smaller shipyards and designers have increasingly started to partner with Chinese shipyards. It was the Italian yard Fincantieri and Carnival Corporation & plc that paved the way toward developing complex cruise shipbuilding in China, starting with memorandums signed in November 2014. Carnival, which is a major cruise operator in the Chinese market, wanted to establish a sound foundation for cruise shipbuilding in China. Therefore, partnerships were formed between Carnival, Fincantieri and China State Shipbuilding Corporation. More about this can be read on page 52 of this issue, where Susan Parker interviews Fincantieri China CEO Fabrizio Ferri. Beyond this “mega-deal,” additional partnerships have been formed during 2017. In March, SunStone Ships, Inc. and China Merchants Industry Holdings Co., Ltd. (CMIH) signed a framework agreement for the construction of four expedition vessels with options for an additional six ships. The partnership includes Norway-based Ulstein Designs & Solutions, which will supply the vessel’s design and equipment package and supervise construction of the vessels. CMIH has also entered into an agreement with Finland-based Mäkinen, which will establish a cabin-assembly plant and interior workshop at the shipyard’s facilities. Another Norwegian company, Fosen Yard, announced a partnership with China’s Hantong Shipbuilding in July to form a joint venture for building ropax, roro and cruise ships. Fosen has previously built up-market passenger ships including the residential passenger vessel ms The World. Fosen possesses market-leading resources, know-how and technical and operational solutions to enable the joint venture to undertake a full scope of advanced projects within the roro, ropax and cruise sectors. Hantong will dedicate a modern shipyard facility to the joint venture. The partnership will be marketed as “Fosen Hantong” and projects shall, as per the agreement between the parties, be managed by Fosen. For an initial period of eight years, Hantong will cooperate exclusively with Fosen for all business that falls within the above described segments. Meanwhile, Viking Line, which raised eyebrows by contracting its next LNG-powered cruise ferry for its Finland-Sweden service from China’s Xiamen Shipbuilding Industry Co., Ltd., will receive extensive engineering and construction services from Finland’s Deltamarin Ltd. Deltamarin itself is part of AVIC Group, a listed Singapore company. W hen the China Cruise Shipping Conference (CCS12) convenes in Sanya, Hainan, on November 5-7, one of the hot topics will be cruise ship construction in China. Panel discussions and case studies will examine the path and strategy of cruise ship construction in China and analyze the failure of Japan’s Mitsubishi Heavy Industries to re-enter the business. Mitsubishi delivered the heavily-delayed second AIDA newbuilding to AIDA Cruises earlier this year, and reportedly has not sought further cruise ship projects. The CCS12 conference will also look at opportunities in China for European manufacturers and suppliers – many of them having already established a foothold in this important emerging market. Teijo Niemelä August 2017 EUROPEAN SUPPLIERS JOIN WITH CHINESE PARTNERS IN CRUISE SHIPBUILDING Teijo Niemelä photographed at the marina of Chestertown, Maryland. Chestertown is the newest U.S. cruise destination and currently also the home base for Cruise Business Review Ph ot o cr ed it: Ca ro ly n Sp en ce r Br ow n 8-9 pa?a?kka?ri.indd 2 25.8.2017 7.05
8-9 pa?a?kka?ri.indd 3 25.8.2017 7.05
10 Cruise Business Review 2/2017 HEADLINES Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access Cruise ship naming ceremonies in the usual and less traditional locations The Mein Schiff 6, the fourth newbuild from Germany’s TUI Cruises, was named in Hamburg on June 1 with the iconic new Elbphilharmonie concert hall as a backdrop. The head organist of the Elbphilarmonie, Iveta Apkalna, had the honor of breaking the traditional champagne bottle. MSC Cruises may change the location of its inaugural activities, but one thing that doesn’t change is the godmother. Screen legend Sophia Loren had the privilege of naming the MSC Meraviglia in Le Havre on June 4. With a gross tonnage of 171,598, the MSC Meraviglia is the largest cruise ship from a European shipowner and the largest to enter service in 2017. Palma de Mallorca on June 30 hosted the naming of the AIDAperla, the second 124,500 gross ton newbuild for AIDA Cruises from Japan’s Mitsubishi Heavy Industries. Godmother model and TV host Lena Gercke cheered with Captain Boris Becker after successfully breaking a 12liter bottle of Moët & Chandon champagne. 10-11.indd 2 25.8.2017 11.01
12 Cruise Business Review 2/2017 HEADLINES Viking Cruises’ third ocean ship – the Viking Sky – was christened during a public celebration in Tromsø, Norway, during the summer equinox on June 22. Located above the Arctic Circle, Tromsø was one of the more unusual locations for a cruise ship naming ceremony this season. Christening the vessel was the Viking Sky’s godmother Marit Barstad (right), sister of Viking Cruises Chairman Torstein Hagen (middle). The Majestic Princess, the first newly built Carnival Corporation cruise ship tailored for the Chinese market, was named in Shanghai on July 9. Yao Ming and Ye Li served as godparents and officially named the vessel during an inaugural ceremony. Yao Ming and his wife, Ye Li, were born in Shanghai and were both members of China’s national basketball teams. Yao Ming is an icon – one of the world’s best-known athletes, a global ambassador of basketball, an eight-time NBAAll-Star and, most recently, an inductee into the NBA Hall of Fame. Also attending the ceremony were Arnold Donald, President and CEO of Carnival Corporation & plc; and Jan Swartz, Group President, Princess Cruises and Carnival Australia. Norwegian Cruise Line celebrated the official naming of its first ship custom-built for China in Shanghai at the end of June. Executives from Norwegian Cruise Line Holdings Ltd., along with the Norwegian Joy’s godfather Wang Leehom and hull artist Tan Ping, took the stage during a gala ceremony. At 167,725 gross tons, the Norwegian Joy has a capacity for 3,883 guests and offers many innovations introduced for the first time on a cruise vessel. 12-17 headlines.indd 2 29.8.2017 7.20
16 Cruise Business Review 2/2017 ? Ranked one of the top cruise ports in the world, Port Everglades offers the speed, service and efficiency to help your business sail smoothly — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. SMARTER, FASTER, FRIENDLIER • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing is available. port.everglades | @porteverglades | PortEvergladesFL PEG798_Cruise Business Review_dolphin_FP_mech.indd 1 6/6/17 6:57 PM HEADLINES The Marina Bay Cruise Centre Singapore (MBCCS) celebrated its fifth anniversary with a bang on May 26. In its five years of operation, the MBCCS has achieved two other milestones: Welcoming its two-millionth passenger and handling its 500th ship call. From left are Sean Treacy, Managing Director Asia Pacific of Royal Caribbean Cruises, and Shirlene Ng, Sales Manager of Carnival plc (Singapore branch), receiving a plaque from Lionel Wong, CEO of SATS-Creuers (MBCCS terminal operator). The Asia Cruise Awards ceremony was part of the opening festivities of the Asia Cruise Forum Jeju on August 25. Awards were given in six different categories: Best Cruise Line went to Royal Caribbean International, Best Cruise Ship went to Princess Cruises for the Majestic Princess and Best Port-of-Call went to Okinawa. The Brodosplit shipyard in Split, Croatia, celebrated the first cut of steel for the Hondius of Dutch Oceanwide Expeditions. It will be the first vessel to be built to class LR PC6, meeting the latest and highest standards of Lloyd’s Register for Polar Class 6 vessels – the highest Polar Class notation for ice-strengthened ships. The Hondius will be 107.6 meters long, 17.6 meters wide and equipped with two main engines totaling 4,260kW, generating a speed of 15 knots. Passenger capacity will be 196 accommodated in 85 cabins. Meyer Werft and Royal Caribbean International marked the official start of construction for RCI’s new Quantum Ultra ship with the cutting of the first piece of steel in mid-August. The ship will officially be named the Spectrum of the Seas. Set to debut in 2019, the Spectrum will be designed specifically for guests in China and the Asia-Pacific region, with new features and amenities. ? ? ? 12-17 headlines.indd 6 29.8.2017 7.20
Ranked one of the top cruise ports in the world, Port Everglades offers the speed, service and efficiency to help your business sail smoothly — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. SMARTER, FASTER, FRIENDLIER • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing is available. port.everglades | @porteverglades | PortEvergladesFL PEG798_Cruise Business Review_dolphin_FP_mech.indd 1 6/6/17 6:57 PM 12-17 headlines.indd 7 29.8.2017 7.20
Solutions for saving costs and compliance with emission regulations FUELLING CLEANER SHIPPING Blue Ocean Solutions was established in 2010 with a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. blueoceansoln.com BOS Emulsi ed Fuel System is a practical solution to save costs and comply with emission regulations providing more e cient fuel consumption (2-5%) and cleaner emissions. The system is capable of handling multi-fuels like HFO, IFO, MDO and MGO without use of chemical additives. The reference installations include cruise ships, bulk carriers, container ships, tugboats, tankers, Ro-Ro ferries and car carriers. The results have been independently veri ed by classi cation societies and engine manufacturer. BETTER FUEL EFFICIENCY 2-5% fuel savings BE N EF IT S MRV / GHG R EG U LA TI O N S MDO/MGO Reduced OPEX 2-5% fuel savings Less maintenance C O M PL IA N C E & PR O FI TA BI LI TY SMALLER SCR The system reduces up to 20% NOx at source Smaller CAPEX Smaller OPEX LESS CO2 Reduced OPEX 2-5% fuel savings Less maintenance The system is MRV integrated SCRUBBER More than compensate for any reduced fuel efficiency Soot, smoke and PM are reduced at source NOx TIER III For new build SULPHUR CAP REDUCED NOx up to 20% Cooler combustion CLEANER ENGINE & IMPROVED OPACTITY Less soot, smoke and PM Note: Emission factors 1t of HFO = 3.1144t of CO2 1t of MDO/MGO = 3.2060t of CO2 Note BE NE FI TS RE GU LA TI ON S CO M PL IA NC E & PR OF IT AB IL IT Y BLUE OCEAN SOLUTIONS YOUR PARTNER IN SUSTAINABLE SHIPPING Blue Ocean Solutions has a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. Blue Ocean Solutions is a subsidiary of Keppel O?shore & Marine, one of the largest o?shore and marine groups in the world with a global network of yards and o ces. It is the leader in o?shore rig design, construction and repair, ship repair and conversion and specialized shipbuilding. BEYOND FUEL SAVINGS BOS EMULSIFIED FUEL SYSTEM Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: contact.us@blueoceansoln.com Finland Fredrikinkatu 61, 6th oor, 00100 Helsinki t: (358) 30 6363716 e: contact.us@blueoceansoln.com The only system in Emulsi ed Fuel Technology that runs on HFO and MGO/MDO without chemical additives. Blue Ocean Solutions May 2017_A4 20/04/2017 10:40 Page 1 2020 Emulsified MDO/MGO/ COMPLIANT FUEL Reduced OPEX ? 2–5% savings on high cost fuel Emulsified HFO and SCRUBBER Reduced OPEX ? 2–5% fuel savings ? Less maintenance Reduced soot, smoke and PM at source emulsified fuel supports scrubber and compliant fuel Finland Fredrikinkatu 61, 6 th ?oor, 00100 Helsinki t: (358) 30 6363716 e: bos@blueoceansoln.com 0.5% Sulphur Cap Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: bos@blueoceansoln.com 18 Cruise Business Review 2/2017 ???? ???????????????????? (MBCCS) ???? ??????????????????????MBCCS??? ???????????500?????? ??????????????????????????Sean Treacy????????????? Shirlene Ng ?? MBCCS? ??????SATS-Creuers???????????????? ???????????? ??“???”??????? ???????????? ???????????? ???????????? ???????????? ???????????? ??3883??? 167725? ??????????? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? “ ? ? ? ? ? ” ? ? ? ? ? ? ? ? ? ? ? “???? ?” ?Quantum Ultra Class?? ??????? ? ? ? ? ? ? ????2019 ??????? ??????? ? ? ? ? ? ? ?? ????? “????” ? ? ? ? ? ? ? ? ? ? ??????????? ??????????? ??????????? ??????????? ??????????? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ????????Arnold Donald? ?????? ??????????? Jan Swartz ?????? ?? ? 18-19 .indd 2 25.8.2017 10.58
Solutions for saving costs and compliance with emission regulations FUELLING CLEANER SHIPPING Blue Ocean Solutions was established in 2010 with a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. blueoceansoln.com BOS Emulsi ed Fuel System is a practical solution to save costs and comply with emission regulations providing more e cient fuel consumption (2-5%) and cleaner emissions. The system is capable of handling multi-fuels like HFO, IFO, MDO and MGO without use of chemical additives. The reference installations include cruise ships, bulk carriers, container ships, tugboats, tankers, Ro-Ro ferries and car carriers. The results have been independently veri ed by classi cation societies and engine manufacturer. BETTER FUEL EFFICIENCY 2-5% fuel savings BE N EF IT S MRV / GHG R EG U LA TI O N S MDO/MGO Reduced OPEX 2-5% fuel savings Less maintenance C O M PL IA N C E & PR O FI TA BI LI TY SMALLER SCR The system reduces up to 20% NOx at source Smaller CAPEX Smaller OPEX LESS CO2 Reduced OPEX 2-5% fuel savings Less maintenance The system is MRV integrated SCRUBBER More than compensate for any reduced fuel efficiency Soot, smoke and PM are reduced at source NOx TIER III For new build SULPHUR CAP REDUCED NOx up to 20% Cooler combustion CLEANER ENGINE & IMPROVED OPACTITY Less soot, smoke and PM Note: Emission factors 1t of HFO = 3.1144t of CO2 1t of MDO/MGO = 3.2060t of CO2 Note BE NE FI TS RE GU LA TI ON S CO M PL IA NC E & PR OF IT AB IL IT Y BLUE OCEAN SOLUTIONS YOUR PARTNER IN SUSTAINABLE SHIPPING Blue Ocean Solutions has a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. Blue Ocean Solutions is a subsidiary of Keppel O?shore & Marine, one of the largest o?shore and marine groups in the world with a global network of yards and o ces. It is the leader in o?shore rig design, construction and repair, ship repair and conversion and specialized shipbuilding. BEYOND FUEL SAVINGS BOS EMULSIFIED FUEL SYSTEM Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: contact.us@blueoceansoln.com Finland Fredrikinkatu 61, 6th oor, 00100 Helsinki t: (358) 30 6363716 e: contact.us@blueoceansoln.com The only system in Emulsi ed Fuel Technology that runs on HFO and MGO/MDO without chemical additives. Blue Ocean Solutions May 2017_A4 20/04/2017 10:40 Page 1 2020 Emulsified MDO/MGO/ COMPLIANT FUEL Reduced OPEX ? 2–5% savings on high cost fuel Emulsified HFO and SCRUBBER Reduced OPEX ? 2–5% fuel savings ? Less maintenance Reduced soot, smoke and PM at source emulsified fuel supports scrubber and compliant fuel Finland Fredrikinkatu 61, 6 th ?oor, 00100 Helsinki t: (358) 30 6363716 e: bos@blueoceansoln.com 0.5% Sulphur Cap Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: bos@blueoceansoln.com 18-19 .indd 3 25.8.2017 10.58
20 Cruise Business Review 2/2017 INTERVIEW n GLOBAL CRUISE OPERATIONS ? Cruise Business Review: Last time we talked back in 2014, you were about six months on the job and full of ideas. What are you most proud of having accomplished since then? Arnold Donald: Two things, parallel: Continuing to exceed guest expectations across all of our 10 brands and the way the organizations have come together and aligned around common objectives; the way our brands have begun to communicate, collaborate and coordinate with each other. When I came in, the brands largely operated on their own. Now they’re working much more closely together, accelerating best practices, innovating together, legitimately leveraging the scale of all the diverse thinking we have as well as the scale of the assets we have. CBR: Yet brands such as Carnival Cruise Line, Holland America Line and Princess Cruises continue to differentiate themselves? Donald: In fact, they are much clearer on what their identities are than they were when I first came in. They’re much more focused on staying true to servicing the guests that they most resonate with. DONALD LEADS CARNIVAL TO CHINA, CUBA AND RECORD EARNINGS DONALD LEADS CARNIVAL TO CHINA, CUBA AND RECORD EARNINGS Under the leadership of Arnold Donald, Carnival Corporation and plc last year achieved its highest full-year earnings in the company's 44-year history. Donald talked with Cruise Business Review's FRAN GOLDEN about the tremendous turnaround since he was named President and CEO of the company in 2013 and what’s next for the cruise giant. SOLUTIONS BEYOND YOUR WILDEST DREAMS? merima.fi Tatti 10, 00760 Helsinki, Finland +358 9 350 9300 Since 1987 , our mission has been to realise cutting-edge marine interior solutions that inspire and amaze. We offer complete solutions from design to the implementation. Whether new buildings or conversions , our top project management guarantees the finest quality and flexible solutions. Don’t hesitate to be creative and challenge us. 20-25 .indd 2 17.8.2017 7.30
SOLUTIONS BEYOND YOUR WILDEST DREAMS? merima.fi Tatti 10, 00760 Helsinki, Finland +358 9 350 9300 Since 1987 , our mission has been to realise cutting-edge marine interior solutions that inspire and amaze. We offer complete solutions from design to the implementation. Whether new buildings or conversions , our top project management guarantees the finest quality and flexible solutions. Don’t hesitate to be creative and challenge us. 20-25 .indd 3 17.8.2017 7.30
22 Cruise Business Review 2/2017 CBR: When you talk about exceeding guests’ expectations, I assume you’re basing that on surveys? Donald: Well there’s one telltale way to tell even without surveys, and that’s occupancy and yield. The ships are sailing even more full and at much higher yields than they were three or four years ago. That’s testimony to demand being created, and you can’t create demand without having a great product. But we’ve also implemented a common Net Promoter Score assessment tool. So yeah, we’ve got the evidence in many different ways that our guests are wowed by the vacation experience that they have onboard. CBR: Let’s talk about China, an emerging market last time we talked. Is the market growing at the rate you expected? Donald: The market is growing at the rate we expected. We’d like to see even stronger yields out of China than what we see. But in terms of the ships, the ships are sailing with pretty high occupancy. However, we only have so many ships we can send to China, so the market is limited in how fast it can grow today. CBR: Which explains discussions of a Chinese brand and building new ships in China? Donald: Like any other place in the world, the market is going to grow faster with local ownership. Whether it’s a Chinese brand remains to be seen, but Chinese ownership – defining a brand that way – is mandatory. We’d rather partner with local ownership because local ownership will help drive the evolution and development of the market. Clearly, for China to grow over time and realize the potential it has, we have to have more ships available. Having China enter into the shipbuilding industry for cruise ships is a step in that direction. That’s why we want to be a part of that. We are looking forward to the first locally built ship to be completed by 2023 through our joint venture with the China State Shipbuilding Corporation (CSSC) and Fincantieri. CBR: Do you see in China a desire on the part of guests to have Chinese-style ships? Donald: We have the first purpose-built ship for China in the Majestic Princess. That ship presents the Princess Cruises brand and the essence of Princess, but it has a number of aspects that have been modified to cater more to Chinese tastes. There’s much larger retail space and the buffets have been reorganized with some of the comfort foods that the Chinese pallet prefers. We have mahjong tables and they’re automatic, which is pretty cool. It’s all about providing the guest what they want with our various brands. We want to make sure there are things that cater to the Chinese taste from a comfort and familiarity standpoint. CBR: Carnival Cruise Line recently announced plans to develop a new port on Grand Bahama Island. How important is it to own your own port facilities? Donald: We’re excited about the new port. The Caribbean is the most popular destination in the world in terms of the number of people cruising there. Having destinations to accommodate more and bigger ships and more passengers is very relevant for us. At the same time, we love investing in destinations that enhance our guest experience. When we build destinations, we want to provide a resort experience but also give our guests good access to authentic local experiences. CBR: Any plans to build new ports in Asia? Donald: More destinations are needed for the China market. Whether they need us to help develop them or not is a question, but probably not. They have lots of capital. But they might enlist our ideas of what to put where and how to build them so that guests can have the greatest experience. CBR: With the Adonia now returned to the P&O Cruises fleet, what is the future of your impact-focused Fathom brand, which only had the one ship? Donald: Fathom experiences are now being offered by our other brands that visit Amber Cove in the Dominican Republic. So it dramatically expands the base of guests that could be involved in www.scanship.no Innovations to change shipboard waste management and provide the real environmental impact Solutions for fuel reduction and elimination of pollution to sea We will help you meet your sustainability target! C M Y CM MY CY CMY K 216x303_scanship_press.pdf 1 28.06.2017 15.32 ? ? China is increasingly important market for Carnival Corporation. Its Princess brand recently introduced brand-new Majestic Princess for the Chinese customers 20-25 .indd 4 17.8.2017 7.30
www.scanship.no Innovations to change shipboard waste management and provide the real environmental impact Solutions for fuel reduction and elimination of pollution to sea We will help you meet your sustainability target! C M Y CM MY CY CMY K 216x303_scanship_press.pdf 1 28.06.2017 15.32 20-25 .indd 5 17.8.2017 7.30
volunteering and supporting the communities there. Fathom is also looking at many other places around the world to potentially develop similar impact programs. CBR: So would you categorize Fathom as a success? Donald: Clearly for us it was a success. The reality is that we garnered a lot of positive media attention. That wasn’t why we did it, but it helped. It was no accident that we were the first ship to visit Cuba in 50 years. Part of it was because we had the Fathom brand – which got us in front of the queue for approvals when we needed them. Then there has been impact, which is the real purpose of Fathom. In the Dominican Republic, our guests have helped with reforestation, English training, providing water filters and more. And our guests were also themselves dramatically impacted. Fathom has the highest Net Promoter Score out of any of our brands. So Fathom is an ongoing story. We have to see long-term how successful it’s going to be. But I’d say we feel very good about what we’ve been able to accomplish. CBR: Speaking of Cuba, how fast will you expand visits there? Donald: We were so honored and privileged to have been the first to go into Cuba and to be referenced when they made their national proclamation ending the longstanding practice that no one born in Cuba could come or go by sea. It was a huge moment for us as a company and a significant moment in terms of progress in U.S. and Cuba relations. Having said that, there are port issues in Cuba. Only certain size ships can fit into Havana today. So we’re restricted in terms of size on how many ships we have that can go. We’ve increased the number of guests we can take to Cuba dramatically with the 2,052-passenger Carnival Paradise starting in June, and starting in December, Holland America Line will also sail to Cuba with the 1,350passenger Veendam. That's the first move. We do have some additional smaller ships that will be able to go. CBR: Why did Carnival Corporation decide to make a huge investment in Ocean Medallion, the personalized guest experience platform you’re debuting on Regal Princess in November? Donald: I think it’s the way, potentially, anyone will want to cruise in the future. It’s elevating the guest experience, allowing guests to genuinely feel as if their vacations were specifically engineered for them. The technology behind it makes things possible, but it’s not about the technology. The most important benefit is helping our crew do what they do well now, but even better in terms of hospitality and attention to detail and really having the insight to give the guests what they want. We set up an innovation center and looked at how we could further exceed guest expectations. This is one of the concepts. Now we have to have people experience it. I believe it's going to work. But to be honest with you, if it doesn’t we’ve learned so much and benefited so much already from it, we’ll just go on to the next innovation. CBR: Carnival Corporation is at the forefront of developing ships powered with liquefied natural gas (LNG). Is this the future? Donald: LNG is a potential solution to a problem that we are a very small part of, but we want to do our part, and that is emissions. LNG is the cleanest-burning fossil fuel we can use to reduce our carbon footprint. At the same time, LNG is not proven yet in terms of infrastructure, availability, what the relative cost will be and so forth. Several of our ships currently on order will be LNG, but we haven’t declared LNG for the future on everything we do because the world hasn't declared that. If the LNG infrastructure is not in place and you have an LNG-only ship, that ship is now restricted on where it can go and how you can move it. So having a few of those is okay, having a lot of those if the infrastructure is not in place is not okay. CBR: In your role at Carnival and as Chairman of the Cruise Lines International Association (CLIA), you've put a lot of effort into educating the public about cruising and dispelling myths. Is that paying off? Donald: I think it’s paid off tremendously. The industry is enjoying perhaps the golden age right now. Everybody’s doing well, the ships are full. But we also know that there is room for growth. We know that we're a much better value than land-based vacations. We would like to catch a little bit more MKN Maschinenfabrik Kurt Neubauer GmbH & Co. KG Phone: +49 (0) 53 31 89-207 km@mkn.de | www.mkn.eu MKN Galley Solutions TOP QUALITY ON BOARD Enjoy Cooking with FlexiChef and FlexiCombi. 24 Cruise Business Review 2/2017 Arnold Donald and Princess Cruises President Jan Swartz introduced the Ocean Medallion technology in January ? 20-25 .indd 6 17.8.2017 7.30
MKN Maschinenfabrik Kurt Neubauer GmbH & Co. KG Phone: +49 (0) 53 31 89-207 km@mkn.de | www.mkn.eu MKN Galley Solutions TOP QUALITY ON BOARD Enjoy Cooking with FlexiChef and FlexiCombi. of the value that we deliver. Creating more and more demand allows us to close the gap. We know we have something great, but we have to be even better as an industry at sharing that in a way where others who have not experienced a cruise can grasp it. By creating more demand we’ll be able to improve our financial performance, which the industry has already been doing for the last several years. CBR: As we speak, Carnival Corporation has 10 brands. Are there plans for more? Donald: We don’t have any immediate plans except for our joint venture in China with CSSC and China Investment Capital Corporation (CIC Capital), the sovereign fund there. The reality is that while our brands are very different from one another, we don’t cover the complete market. But we have to look at scale and impact for our shareholders. Another brand that doesn’t have a greater purpose like Fathom did – one, two, three ships – wouldn’t necessarily move the needle for us. Still, we’re constantly looking for opportunities. If we saw something of scale that was available, then obviously we would move to that. CBR: You mean to buy it? Donald: To create it, or potentially buy it – if it was outside of the cruise industry. We already have almost 50% global share and from an antitrust standpoint, it’s difficult for us to acquire another significant oceangoing company. CBR: Right, but if there’s something outside of a cruise company? Donald: Outside of cruise, that's a whole other ball game. We’re always looking at the future and we are always examining other opportunities to take our core competencies and leverage that for greater shareholder return. We’re always exploring other possibilities outside of cruise directly. Might be cruise-related, but not an oceangoing cruise. CBR: Might that be river cruise? Donald: We looked at river cruise many times, and one of the challenges for us with river cruise has been finding one that is large enough or has enough synergy with the rest of our business that it would materially impact the bottom line. But we continue to look at it. River cruise has been a successful vacation option, and if we found one that had some other potential synergistic values, that’s not out of the question. We continue to explore that. CBR: What do you see as the main challenges for the industry today? Donald: I’d say the primary challenge today is the same as when I came in four years ago, and that is having those who have not cruised understand better what a cruise is. Having said that, are there regulatory challenges around the world? Yes. There’s the whole emission thing. As I mentioned, we’re a tiny part of emissions. But we can be impacted by regulations all over the world with significant added costs. We live with typhoons, hurricanes and cyclones, geopolitics, unfortunately with terrorism, fluctuating fuel prices, falling currencies, bad economies – that’s all just normal state of business. But, the thing that we all need to pay attention to first as citizens of the world, and then obviously for our business, is people need to have freedom to travel. Anything that restricts travel or anything that makes travel impossible obviously would hurt the industry. While we can’t control these things, what we do – taking people to different places and getting people together on ships – helps people discover what’s common. They learn to celebrate their differences rather than fear them. That’s what travel does. That’s what we do. n Cruise Business Review 2/2017 25 20-25 .indd 7 17.8.2017 7.30
52 Cruise Business Review 3/2016 Smart Cruise NEC Smart Cruise solutions www.nec-enterprise.com > Communication Making & Receiving Calls plus Messaging > On-the-Go Personal Services Mobile Butler, Concierge, Reservation Center > Near Field Communications RFID, Cabin Door Opener, Mobile Payments > Guest & Staff Safety Alarming, Location Services, Access Control > Customer Service Management Quality Control & Guest Satisfaction > City Tour Guide Audio Guide Excursions Looking to uplift your revenues and customer loyalty? Contact us at GlobalMarine@emea.nec.com or call +31 35 689 1058 Transform the experience of guests with the latest wearable technology from NEC. Jewel connects very easily to the guest’s smart phone making use of onboard services. Offering safety, functionality, comfort and simplicity to your valued guests. Available in different sizes and colours for all age groups to enjoy the new interactive experience. NEC Jewel Cruise wearable NEC_NS_Smart_Cruiseships_Jewel.indd 2 03-07-17 16:03 26-31 .indd 2 18.8.2017 8.40
Cruise Business Review 2/2017 27 ? Smart Cruise NEC Smart Cruise solutions www.nec-enterprise.com > Communication Making & Receiving Calls plus Messaging > On-the-Go Personal Services Mobile Butler, Concierge, Reservation Center > Near Field Communications RFID, Cabin Door Opener, Mobile Payments > Guest & Staff Safety Alarming, Location Services, Access Control > Customer Service Management Quality Control & Guest Satisfaction > City Tour Guide Audio Guide Excursions Looking to uplift your revenues and customer loyalty? Contact us at GlobalMarine@emea.nec.com or call +31 35 689 1058 Transform the experience of guests with the latest wearable technology from NEC. Jewel connects very easily to the guest’s smart phone making use of onboard services. Offering safety, functionality, comfort and simplicity to your valued guests. Available in different sizes and colours for all age groups to enjoy the new interactive experience. NEC Jewel Cruise wearable NEC_NS_Smart_Cruiseships_Jewel.indd 2 03-07-17 16:03 INTERVIEW n GLOBAL CRUISE OPERATIONS LUTOFF-PERLO PREVIEWS CELEBRITY EDGE LUTOFF-PERLO PREVIEWS CELEBRITY EDGE Lisa Lutoff-Perlo, a 32-year veteran of Royal Caribbean Cruises Ltd., was appointed President and CEO of the company’s Celebrity Cruises in 2014. While overseeing a 12ship fleet (including three expedition ships), she’s also spearheading the introduction of the four-ship, $5 billion Celebrity Edge class built by STX France. By Fran Golden Cruise Business Review: Celebrity is making radical industry changes with the Celebrity Edge, which debuts in December 2018. Why the decision to go bold and different? Lisa Lutoff-Perlo: It’s been 10 years since Celebrity Cruises designed a new class of ship. I think that we set a standard and really transformed the brand with the five-ship Solstice class, and we have another opportunity to do that with the Edge class. We wanted to make a real impact in the marketplace and to attract new people to cruising. CBR: In the past, Celebrity has been known as design-forward and culinary-forward. Is that where you’re continuing to go in the future? Lutoff-Perlo: Destination is also a big focus as we increase our capacity and as we become more of a global brand. We’re interested in taking people to as many places as we possibly can and opening up the world to them. The design of our ship, and how it interacts with the destination, is really as important as where we take them. People often think 26-31 .indd 3 18.8.2017 8.41
28 Cruise Business Review 2/2017 of destination as when you get off the ship, but not about how to enable guests to experience the destination from the ship. I think Celebrity Edge has a very unique perspective on that. Even how you leave the ship has been thought through in a meaningful way. CBR: You’re talking about the Magic Carpet, the open-air, multipurpose space that climbs up and down the side of the ship? Lutoff-Perlo: When we go into port we have the Destination Gateway [and] the Magic Carpet. We’ll also be announcing enhancements and improvements to the tender experience when you go into port. We’ve really upped our game in that regard. We’ve also taken into account the point of view from the chaise lounges on the pool deck and on the rooftop garden. We really want guests on Celebrity Edge to experience everything around them in a powerful way, whether they are at sea or in port. CBR: How did the idea for the Infinite Veranda develop? Why change the traditional cruise ship balcony? Lutoff-Perlo: We thought long and hard about what Celebrity Edge was going to be and what it was going to mean for the brand and the guests and how to bring new people into the cruise category. People ask us for more space in their room, a bigger bed, a bigger bathroom and more storage, which are all hard to accomplish without more real estate. They also wanted a closer connection to the sea. So we came up with the Infinite Veranda. CBR: Push a button, windows open and your seating area becomes an open-air balcony right on the edge of the ship? Lutoff-Perlo: One of the things Richard Fain, Chairman & CEO, Royal Caribbean Cruises Ltd., has said about Celebrity Edge is that in his long career and for all the ships that have been introduced into the marketplace, there have probably only been six or seven ship classes that have transformed the industry. Many of them belonged to Royal Caribbean. One of them belonged to Princess Cruises, when they went with a large percentage of balcony cabins. And one of them is Celebrity Edge. We have completely transformed the architecture and design of the stateroom. CBR: Was the idea for the Infinite Veranda borrowed from river ships? Lutoff-Perlo: As Richard said during the reveal of Celebrity Edge in Miami, nothing we have done on this ship is new. What we have done is created an experience. We’ve taken the best of what has been done and put it together in a way no one else has. Yes, some river ships have these types of windows, but let me tell you the engineering and the prototypes that need to be developed to do this on an oceangoing vessel far surpasses what is already out there. CBR: What's the thing you personally pushed most for and got on the Celebrity Edge? Lutoff-Perlo: I have to say the Infinite Veranda. That was not in the original plan. When I came into the brand, some permeation of that had been floated and discarded. I saw the concept and said, ‘We have to have this on Edge Class.’ Fortunately, I get to work with people like Harri Kulovaara, Executive Vice President, Maritime & Newbuilding, Royal Caribbean Cruises Ltd., and Richard, who made it become a reality. But we had to think long and hard about it. It wasn’t easy to accomplish, but it was the thing I thought was really special and important for the ship. CBR: Your most recent reveal for the Celebrity Edge is called Eden. What is it exactly? Lutoff-Perlo: Eden is a new venue – a magical place on the ship three stories high with floor-to-ceiling windows that span three decks in height and has more outward-facing glass than any other venue at sea. It is a space that transforms throughout the day and it really is like the Garden of Eden. It makes you feel connected to the sea and nature and the environment in a beautiful way. In the morning it's a beautiful living room; there's a café, a wonderful restaurant too on the lower deck. There are playful events during the day and also performance art. At night it becomes a little bit sinful. We have worked with incredible world-class designers to create Eden. CBR: Will it have live plants? Lutoff-Perlo: Yes, at the heart of the restaurant is the Tree of Life, which continues the tradition on our Solstice class of having a sculptural tree with living elements. Also, there’s an 18-foot Library of Plants that towers over the bar, so we'll have a living garden, and bartenders will actually be able to cut the herbs off and make drinks. It will be a very special and beautiful place. CBR: Why the decision to expand the number of suites on the Celebrity Edge? Lutoff-Perlo: We’re under indexed in suites for a modern luxury brand. We doubled the percentage of suite accommodations for Celebrity Edge. Starting with a clean slate gave us the opportunity to create The Retreat Deck, the private pool deck, and to re-imagine and re-create the Retreat Lounge exclusive for suite guests, plus continue with the Luminae suites-only restaurant concept – which our suite guests love – and to make it in closer proximity to the suites. We’ve also added two new categories, Edge Villas and Iconic Suites. The suites have been selling like hot cakes. CBR: In bringing out so many changes with the Celebrity Edge, how do you keep the rest of the fleet from seeming dated? ? Edge will feature the new public room called Eden spanning of three decks and featuring more outward-facing glass than any other ship and enhanced pool areas (below) 26-31 .indd 4 18.8.2017 8.41
The presenT and The fuTure a n important member of the Finnish cruise ship cluster as maker of external and internal balconies plus sliding doors, Jukova is an international player from manufacturing to installation. Or as Managing Director Hannu Suna puts it, “We are a project company that provides turnkey solutions for the marine market.” Jukova’s products are used industrywide. “Our best known marine brand is Meridian, and our premium-brand products are modular balconies, which include – or can be sold separately – sliding doors, windows and upper-deck glazing. The latter is for open areas such as pool decks and other public spaces at the outside of the ship. Our customer is the shipbuilder. We supply all major shipyards in Finland, France and Germany that are building luxury cruise ships. Our biggest project at the moment is Symphony of the Seas, which will be the next addition to the Oasis-class fleet. In fact, we have been involved in all four Oasis-class ships built so far.” Symphony of the Seas – the world’s largest cruise ship – has over 2,000 balconies in all, with 500 so-called inside balconies, which have a view of the vessel’s Boardwalk or Central Park, as well as over 1,600-plus ocean-view balconies as well as sliding doors. Symphony is a major project for Jukova and a great addition to its already long list of references, as Jukova is one of the pioneers in the field and has supplied over 25,000 modular balconies over the years. Jukova to the rescue “Typical preparation time for a turnkey balcony project is one year, but we are also able to react rapidly to sudden customer expectations. Recently, we have supplied 1,500 balcony modules in six months with a build-up project time of only ten weeks, which must be a world record in modular balcony building,” Suna says. Flexibility and agility have always been important factors to Jukova, as finding optimal solutions to customer’s problems often requires outside-the-box thinking. futuristic and environmentally friendly “Ships’ balconies look much the same, but in reality there are many differences such as steel type and dimensions,” observes Suna, “We try to integrate as much as possible. For example: Solar-panel balconies that use see-through technology replacing the balcony glazing can produce energy, as cruise ships tend to follow the sun. This power source can supply a cabin’s lights and the television, so it is a step in the right direction toward saving energy and reducing emissions at the same time. These modules should be on the market in early 2018, but there other aspects to look at. Our R&D is looking into improving modularity with more integrated features. Now we prefabricate separately and deliver in kits for assembly at the yard. Our next-generation will be all-in-one modules that are installation-ready on site. That saves time and costs.” The materials used will evolve, too: “Aluminum is our main element, but composites are coming, and we want to ensure we have the right material in place and not everything made of just that material. It is our background to develop. We have the best in-house knowledge, and it makes sense to change material in order to have the best possible product that customers will want,” Suna concludes. advertorial www.jukova.com Royal Suite Balcony Presidential Suite Balcony jukova.indd 1 7.7.2017 15:28:56 26-31 .indd 5 18.8.2017 8.41
Present and future of the cruise industry Sponsorship opportunities now open 2017 NOV. 2017 30 th & 29 th The International Cruise Summit is a registered Brand and Product of: REGISTER NOW! Early bird fee until August 31st 2017 Reserve your room with ICS special rate www.internationalcruisesummit.com Artwork ICS 2017 Cruise Times.indd 1 14/6/17 11:20 Lutoff-Perlo: We have been very careful to make sure Celebrity Edge doesn’t get all the attention. Certainly when you design a new class of ship 10 years later, no matter the brand, it’s newer and different and some people think that's better. It’s our obligation to also think about how you modify or upgrade your fleet over time, and we’ve got a plan for that. Some of the things we’ve already put on the fleet, such as A Taste of Film and Sushi on Five, have come about based on our thinking about Celebrity Edge. So we’ve already started that transition. CBR: Other elements will migrate once they prove popular on the Celebrity Edge too, right? Lutoff-Perlo: Absolutely. For instance, as we think about how to upgrade the fleet and go into the staterooms, we’ll adopt renowned designer Kelly Hoppen’s look and feel created for Celebrity Edge in the soft goods of other ships. The fleet will transition with Celebrity Edge. CBR: Who is the Celebrity Cruises passenger? Lutoff-Perlo: We’re the affluent vacation brand. We carve out a niche that straddles premium and luxury. It’s a unique spot in the industry. We want affluent vacationers and affluent families. We’re also looking to grow the cruise category, and we’re succeeding. When Celebrity Reflection came out we knew 80% of the people who booked the ship. With Edge we know 60%, which means we’re bringing new people to the brand or the category, and that is very exciting for us. CBR: What are you doing specifically to attract families on the Celebrity Edge? Lutoff-Perlo: I think there is a misperception that Celebrity is not a brand for families. We don’t have waterslides, but we do have a great children’s program and we believe there are families who care about the things we care about. We want families to know they will be very comfortable and children will have an amazing time on Celebrity. We are doing a lot of direct mailing to families and email campaigns to families and making families more prevalent on our websites and in brochures. We are a brand that welcomes families. CBR: You mentioned the importance of destination – are there any new destinations on your radar? Lutoff-Perlo: It’s a little premature to talk about, but we will have some big announcement in the fall for deployment changes for the second half of 2019 into 2020. We are looking at different destinations and changing the capacity we have in different markets where we see big opportunity for us. We’re thinking about the second season of Celebrity Edge. We’re also looking at the length of our cruises to make sure affluent vacationers and modern luxury travelers find itineraries that suit them and work for them. We’re doing a lot of research to find their sweet spot. CBR: How important to your passengers is time in port, such as overnights and two-day stays? Lutoff-Perlo: Immersion in port, really experiencing the destination, is quite important. We try to make the experiences as authentic as possible, and not just a drive-by, if you will. You will continue to see more overnights. You will continue to see us stay longer and go farther and to enhance our shore excursions and our port experiences. All of those have proven to be the right moves for the brand. CBR: Is China in the picture? Lutoff-Perlo: Asia is in the picture. China is important to us only if we can find Chinese who want to travel internationally versus China cruises for Chinese cruisers. We are looking at Singapore, Hong Kong and India as three markets where we believe there is a lot of opportunity for our brand and affluent vacationers. We have expanded our sales force and our sourcing strategy to include those areas. CBR: As one of the first female cruise line CEOs, and also having named Kate McCue the first American female captain of a megaship, what do you see women bringing to the industry that men don’t? Lutoff-Perlo: I think the conversations are better, the outcomes are better, the results are better, the ideas are better, and I think there’s a nuance women bring that men don’t. The way I look at diversity of all kinds is it makes us all stronger, makes everything better and adds more dimension and thought to the decisions made. I believe in inclusivity. Women are accepted wonderfully in this company, which is just so beautiful. And our results are pretty good too! n 30 Cruise Business Review 2/2017 Creating the new Edge class, from left: Scott Butler AIA, Architect, Wilson Butler Architects; Patricia Urquiola, Designer, Architect, and Founder, Studio Urquiola; Richard D. Fain, Chairman and CEO, Royal Caribbean Cruises Ltd.; Lisa Lutoff-Perlo, and David Ley, Director, Variety Worldwide 26-31 .indd 6 18.8.2017 8.41
Cruise Business Review 3/2016 57 Present and future of the cruise industry Sponsorship opportunities now open 2017 NOV. 2017 30 th & 29 th The International Cruise Summit is a registered Brand and Product of: REGISTER NOW! Early bird fee until August 31st 2017 Reserve your room with ICS special rate www.internationalcruisesummit.com Artwork ICS 2017 Cruise Times.indd 1 14/6/17 11:20 26-31 .indd 7 18.8.2017 8.41
32 Cruise Business Review 2/2017 W ith CMV’s unwavering emphasis on traditional cruise values, it is the classic and elegant experience that best encapsulates the “ex-UK, no-fly” operator’s essence. This approach sets CMV apart, making it stand out as “Britain’s leading independently owned cruise line,” thus carving a distinctive niche in today’s mass-market dominated cruise business. At a time when its peers are rushing to build new and modern ships, CMV continues to offer ambience, grace and sophistication on smalland medium-sized vessels. The company operates the oldest vessels in its segment. The oldest unit in its expanding Cruise and Maritime Voyages A TALE OF TRADITION, EXPANSION AND SUCCESS COMPANY PROFILE n EUROPE With two major recent additions to its bourgeoning fleet, the success of Cruise and Maritime Voyages (CMV) – the UKbased independent cruise operator – is built on steadfastly upholding traditional values and shrewd business strategies, as it marches down the path of expansion and a continuing quest for more ships. By Alan Lam fleet, the ms Astoria, was built in 1948; its latest and youngest addition, the ms Columbus, was built in 1989 – making it a year older than the ms Carnival Fantasy, for example, the oldest ship in the Carnival Cruise Line fleet. A sense of exclusivity and formal dress code at the recent Columbus naming ceremony were ref lective of CMV’s commitment to the best of the classical cruise tradition, which no doubt appeals to a more discerning clientele. “One of our key niches,” said Chris Coates , CMV’s Commercial Director, “has been offering a more traditional cruise experience within the smaller to mid-sized vessel range and delivering high standards of service and a more personal and attentive approach, matched by high guest-satisfaction levels. We believe that a move above the 2,500-passenger capacity ship would require some amendment to our programming and marketing approach.” To many of its customers, the name CMV is synonymous with tradition. Perhaps it is this quality that best differentiates the brand. This approach has served both the company and its loyal customers well. CMV has gone from strength to strength since its inaugural season in 2010, when it operated only two ships and carried 36,000 passengers. In 2017, CMV expects to carry 124,000 passengers, increasing to 130,000 in 2018. With a projected group annual turnover of £200 million, the company now operates five Chris Coates Ph oto cre dit : Te ijo Ni em elä 32-35 .indd 2 17.8.2017 7.25
Cruise Business Review 2/2017 33 ? ocean cruise ships – offering a total capacity of 5,000 lower berths – and one river cruise vessel. Its ocean fleet ranges from the smallest, the 16,144 gross ton and 550-passenger Astoria, to the largest, the 63,86 gross ton and 1,400-passenger Columbus. After the 1,250-passenger ms Magellan became the company’s flagship in 2015, CMV went on to acquire the slightly larger Columbus, which was christened on June 8 in her base port of London Tilbury. “We are immensely proud of this sustained growth and development of the CMV and TransOcean cruise brands [TransOcean operates as the German branch of CMV],” Coates told Cruise Business Review. Planning for growth The Magellan and Columbus mark the beginning of CMV’s transition from a small-ship line to an operator of midsized vessels. Mindful of future growth potential, the company is still looking towards further capacity increases in the near future. “As we continue to build our brand, grow the business and develop existing and new source markets, we are constantly monitoring vessel availability within the second-hand market, with two larger ships joining the fleet since 2015,” Coates said. “We are now actively seeking to add another ocean ship and more capacity to our fleet, and are now in an advanced planning stage for summer 2019 and winter 2020 vessel deployment options based on sustainable growth. Newbuilds are certainly of interest too; however, as of today no firm commitments have been made.” Unlike in most other segments of the ocean cruise business, there is a notable restraint in CMV’s expansion plans. In terms of tonnage acquisition, it sets a sensible limit to ship size. This is partly due to the nature of CMV’s product. “Based on our current scenicand destination-intensive cruise programming, which include more remote and diverse ports not always accessible to larger vessels, we believe that both vessels [the Magellan and Columbus] are of the optimum size in terms of their specification, passenger capacity and to meet our commercial and operational requirements,” Coates said. Apart from ship size, CMV has several other practical requirements for sourcing new tonnage: “While the vessel’s size, layout configuration, price and final deal are all principal factors, the other main requirement for CMV is the vessel’s condition – both technically and from a hotel perspective – matched by a sound maintenance record and investment program,” Coates said. “We take immense pride and care in looking after our ships, supported by an in-house, shore-side team of highly skilled engineers and technicians to ensure that the highest possible standards are met.” Meeting such strict criteria raises the question of tonnage availability in the second-hand market, a question that CMV has carefully considered. “We believe that with the escalation of new ships being built, with over 70 ships listed [on the orderbook], adding 154,000 new lower beds into the market and largely fueled by the top six cruise groups that now account for almost 95% of global capacity, we will continue to see a steady supply of second-hand vessels into the marketplace,” Coates predicted. Focused marketing As a niche operator, CMV clearly does not benefit from the same economies of scale as do the large contemporary brands. It has only about 10% of ex-UK market share in 2017, rising to a projected 12% in 2018. In 2017, the company operates 87 ex-UK cruises, offering more than 1 million bed nights; in 2018, it will operate 92 such cruises, offering over 1.2 million bed nights. The line’s principal source markets are the United Kingdom and Ireland, Germany, Australia and the United States. This is reflected by having sales offices located in London, Sydney, Frankfurt and Fort Lauderdale. “We have successfully developed an international framework of offices across the world,” Coates said, “covering Europe, the Americas, Australasia and Asia Pacific, so we are always close to our operating routes.” The average age of CMV’s clientele is 65 – although this is changing, as the 55to 65-year-old market grows rapidly. Apart from having a markedly different customer base, as a small independent operator CMV has to contend with another disadvantage in its business operations: “We see that the key differences [between CMV and large contemporary cruise lines] are focused mainly on fleet purchasing power, with their greater economies of scale and much wider range of onboard income generating profit centers that can help to support ticket yields – particularly within shoulder [season] trading periods.” For this reason, CMV acknowledges that it needs a different emphasis in its marketing and revenue-generation efforts. Keenly aware of the relatively older age of its existing customers, the company is now actively targeting a younger audience. “From a forward marketing perspective, we see continued demand and growth within our sector and the emerging younger and established grey markets that we target,” Coates said. To maintain cost effectiveness, the company follows a regional marketing strategy, he continued. “Our marketing focus tends to be on more cost-effective regional campaigns to support our regional-based cruise programs.” With the introduction of larger midsized vessels of up to 1,400 passengers, the company’s two brands have become more established. This has brought about a structural change to its business. “Our distribution base has been significantly broadened,” Coates said, “and market penetration increased with a much wider product appeal.” Correspondingly, CMV’s market share has risen. “We have experienced a steady and increased migration of guests within the 60-plus age group sailing with us,” Coates said, “having previously cruised onboard the larger resort megaliners within the contemporary-brand sector.” CMV believes that its approach to cruising will eventually win the company many more loyal customers within its segment. “While our Astor operates seasonally in the Australian market 32-35 .indd 3 17.8.2017 7.26
34 Cruise Business Review 2/2017 ship’s onboard facilities may be more limited, many of these guests have indicated to us that they prefer the more leisurely ambience and togetherness, some of the older maritime traditions and cruising to a greater range of ports that can be more inaccessible to larger ships,” Coates said. Managing guest expectations is another powerful weapon used by CMV. “Our guest satisfaction levels strongly indicate that we continue to either match or exceed expectations,” Coates said, “which is one of CMV’s core measurements and mission requirements. We believe that our customers’ expectations are broadly similar [to customers of other cruise brands] from an onboard delivery point of view, including the dining experience, entertainment and cabin accommodation, whilst our guests acknowledge that cruising on smaller, less glitzy ships means that the choice of amenities and dining experiences are more limited. Sometimes, too much choice and variety can also become more daunting and impersonal, affecting the general ambience.” More ports-of-call CMV’s cruise operations require much more scrupulous planning than is typical for the larger cruise companies, because the line calls at many more ports than does a major contemporary brand. “Varied and diverse programming, requires meticulous planning from both a marine, bunkering and provisioning perspective,” Coates said. “Operating traditional vessels can provide greater operational challenges than newer tonnage, but our highly experienced inhouse ship management team of 80 staff members, based just north of Athens in Greece, have become accomplished specialists in this sector.” In a world where port berthing policies and service provisions are often deemed to be overwhelmingly in favor of bigger ships from bigger lines, CMV faces multiple operational challenges not usually experienced by major operators. “In 2016, securing preferred berth availability at key marquee and hot-spot ports has been a challenge, but as we continue to expand our operations with increased passenger volumes, frequency and forward planning, the problem has now largely receded,” Coates reported. Operating older ships also means environmental compliance challenges. “We are also very aware of ever-evolving environmental and emission requirements,” Coates continued, “and work very hard to ensure that we continue to fully comply with all the international regulations and conventions by frequently renewing machinery and equipment.” As with other operators, CMV’s management must keep in mind infrastructure and geopolitical concerns. “We are less dependent upon infrastructure development,” Coates said, “because our smallerto midsized vessels offer much more flexibility with less infrastructure demands placed on passenger services, volume flows and turnaround times. As the megaliners continue to reach new heights in tonnage – up to 227,000 gross tons – and in passenger capacity terms up to 6,300 passengers, so the port and tourism infrastructure beAfter a seven-year absence, the Port of HaminaKotka by the Gulf of Finland welcomes four cruise calls this year. The attractive island town and its neighbour Hamina expect to become regular ports of call for Baltic Sea cruises in the coming years. By Kalle Id T he port city of Kotka in southern Finland re-entered the cruise business with a bang this summer, when it welcomed the Costa Mediterranea and AIDAmar simultaneously on 10 July. The last time the port welcomed a cruise ship was in 2010, but this summer it receives four calls, bringing in approximately 9,000 passengers and 2,500 crew members. ”Our return as a cruise port is the result of a dedicated and passionate sales and marketing work that we started in 2014”, Petra Cranston, the Head of Sales and Marketing for Cruise Port Kotka, explains. ”For 2018, we have 12 reservations as of today, of which three are confirmed. If all reservations will be confirmed we expect to have approximately 30,000 cruise guests in Kotka-Hamina region next season. We have also received some bookings for 2019 and 2020.” Cranston describes Kotka as a ”hidden gem” on the Gulf of Finland. The Kotka and Hamina ports are located within overnight sailing distance from Saint Petersburg and offer five berths for cruise ships. Two are adjacent to Kotka’s city center in the dedicated cruise port in Kantasatama; one can accommodate ships up to 270 meters and the other up to 200 meters, both with a draught of ten meters. Two are in Kotka’s commercial port of Mussalo, 15 minutes by bus from the city center, and one is in Hamina; there three can accommodate even the largest of today’s cruise ships. ”The port offers all the infrastructure any ship needs, including LNG fuel”, Cranston points out. ”The nature and history of the region give opportunities for great excursion possibilities”, Cranston explains. ”Our most popular excursion is Kotka and Hamina by land and sea, alongside river excursions, where we offer rafting for the adventurous guests and more relaxing river journeys.” Naturally for an island town, numerous options for exploring the Kotka archipelago by boat are also available. For independent explorers, the seaside town of Kotka, known for its numerous parks and the impressive National Maritime Museum Vellamo ”is a super cool place to explore.” Cranston admits to being surprised at how many people from Kotka’s first cruise visits this year opted to stay in town; only 20% of guests chose excursions to the more well-known Helsinki (less than two hours away by bus) and Porvoo (about an hour by bus). According to Cranston, the feedback from passengers was overwhelmingly positive: ”they loved the KotkaHamina small cities.” While Kotka and Hamina occupy a similar niche as Helsinki and Tallinn in terms of itinerary planning, being conviniently located on the route to St. Petersburg, Cranston does not see Kotka as a competitor to any existing port: ”In this business we are are all partners”, she stresses. The Port of HaminaKotka is heavily committed to cruising as a part of their long-term strategy. By 2020, the port expects to welcome 15-20 cruise calls per year, bringing in circa 30,000 cruise guests www.cruiseportkotka.fi www.haminakotka.fi www.visitkotkahamina.fi advertorial Ph ot o C re di t: ve sa H ov i/v ek ku va Ph ot o C re di t: Pe kk a va in io Kotka Returns as a Cruise Port kotka.indd 1 14.8.2017 21:20:03 comes much more challenging, with the port selection process becoming much more limited,” Geopolitics seem to have less of an impact on CMV, too. “Looking ahead to 2017-18, we believe that our predominantly North European five-ship summer program will not be adversely affected by infrastructure needs or geopolitical events,” Coates flatly stated. Coates acknowledged that broadly speaking, CMV faces the same set of challenges as other cruise operators, such as oil price movements, Brexit, taxation and other industrywide concerns. “Until the terms of Brexit are agreed, there will continue to be a period of some operational uncertainly within the shipping sector covering freedom of passenger and crew movements, international voyage status and taxation implications. Sterling’s devaluation has increased our overall operating costs, although lower oil prices, increased occupancy and per diems through a buoyant market within the mainly no-fly sectors we operate in have limited the impact,” he said. Thriving against the odds In the midst of all these operational issues and against all odds, the company has thrived. This is probably because CMV has not lost sight of its main objective. “The constant focus is on income generation, yield management and running a cost effective operation,” Coates emphasized. “The hands-on executive management team are crucial, together with all stakeholders with complimentary skill sets, and we see this as a big strength in realizing our desired margins and a meaningful return.” Operating in a niche cruise market can be a precarious affair – as the recent demise of several smalland medium-sized operators would attest, with the latest casualty being the All Leisure Group. CMV’s success can be partly attributed to its management’s keen understanding of the business, which puts it on a firm footing in a highly competitive marketplace. “Operating much smaller, older vessels with their associated higher unit costs requires firmly established and trusted brands and niche markets to generate much higher premium per diems, supported by high levels of repeat business,” Coates said. As a smaller operator with only a few vessels, the company’s deployment decisions must be weighed carefully too, Coates continued. “All segments and niches within the global cruise industry remain very competitive, with so much choice, product differentiation, value and quality at the consumer’s disposal. Like most of the wider tourism industry, cruising is a seasonal business with high, low and shoulder periods, which make deployment decisions very important.” In some ways, though, CMV regards itself as having an advantage over the major brands. “Operating small to midsized vessels also means that many more ports are accessible to us, which is a big advantage in both itinerary and contingency planning,” Coates concluded. n Columbus was drydocked at the Damen Shiprepair Rotterdam before its entry in the service 32-35 .indd 4 17.8.2017 7.26
Cruise Business Review 3/2016 35 After a seven-year absence, the Port of HaminaKotka by the Gulf of Finland welcomes four cruise calls this year. The attractive island town and its neighbour Hamina expect to become regular ports of call for Baltic Sea cruises in the coming years. By Kalle Id T he port city of Kotka in southern Finland re-entered the cruise business with a bang this summer, when it welcomed the Costa Mediterranea and AIDAmar simultaneously on 10 July. The last time the port welcomed a cruise ship was in 2010, but this summer it receives four calls, bringing in approximately 9,000 passengers and 2,500 crew members. ”Our return as a cruise port is the result of a dedicated and passionate sales and marketing work that we started in 2014”, Petra Cranston, the Head of Sales and Marketing for Cruise Port Kotka, explains. ”For 2018, we have 12 reservations as of today, of which three are confirmed. If all reservations will be confirmed we expect to have approximately 30,000 cruise guests in Kotka-Hamina region next season. We have also received some bookings for 2019 and 2020.” Cranston describes Kotka as a ”hidden gem” on the Gulf of Finland. The Kotka and Hamina ports are located within overnight sailing distance from Saint Petersburg and offer five berths for cruise ships. Two are adjacent to Kotka’s city center in the dedicated cruise port in Kantasatama; one can accommodate ships up to 270 meters and the other up to 200 meters, both with a draught of ten meters. Two are in Kotka’s commercial port of Mussalo, 15 minutes by bus from the city center, and one is in Hamina; there three can accommodate even the largest of today’s cruise ships. ”The port offers all the infrastructure any ship needs, including LNG fuel”, Cranston points out. ”The nature and history of the region give opportunities for great excursion possibilities”, Cranston explains. ”Our most popular excursion is Kotka and Hamina by land and sea, alongside river excursions, where we offer rafting for the adventurous guests and more relaxing river journeys.” Naturally for an island town, numerous options for exploring the Kotka archipelago by boat are also available. For independent explorers, the seaside town of Kotka, known for its numerous parks and the impressive National Maritime Museum Vellamo ”is a super cool place to explore.” Cranston admits to being surprised at how many people from Kotka’s first cruise visits this year opted to stay in town; only 20% of guests chose excursions to the more well-known Helsinki (less than two hours away by bus) and Porvoo (about an hour by bus). According to Cranston, the feedback from passengers was overwhelmingly positive: ”they loved the KotkaHamina small cities.” While Kotka and Hamina occupy a similar niche as Helsinki and Tallinn in terms of itinerary planning, being conviniently located on the route to St. Petersburg, Cranston does not see Kotka as a competitor to any existing port: ”In this business we are are all partners”, she stresses. The Port of HaminaKotka is heavily committed to cruising as a part of their long-term strategy. By 2020, the port expects to welcome 15-20 cruise calls per year, bringing in circa 30,000 cruise guests www.cruiseportkotka.fi www.haminakotka.fi www.visitkotkahamina.fi advertorial Ph ot o C re di t: ve sa H ov i/v ek ku va Ph ot o C re di t: Pe kk a va in io Kotka Returns as a Cruise Port kotka.indd 1 14.8.2017 21:20:03 32-35 .indd 5 17.8.2017 7.26
36 Cruise Business Review 2/2017 GREECE-BASED LINE EXPANDS GLOBALLY Viking Cruises goes from upstart to leader in 20 years Few people would ever have predicted that river cruises could overtake the ocean market to become the fastest-growing segment of the industry. Yet, founded just 20 years ago with four modest riverboats and a home office consisting of two cell phones, Viking River Cruises has successfully leveraged the river market to achieve industry-leading growth. Now it is poised to become the world’s largest small-ship cruise line. Cruise Business Review traces the rapid growth of Viking Cruises. By Allan E. Jordan, Viking interviews by Teijo Niemelä T wenty years ago, the cruise industry was in the midst of a major growth spurt. With everyone focused on the arrival of the first 100,000 gross ton ship and the coming era of the megaliner, the acquisition of four Russian riverboats by a small group of investors led by industry veteran Torstein Hagen largely went unnoticed. Despite river cruising’s long heritage, few in the industry could envision the potential to transform a niche market into the industry’s fastest-growing segment. Viking River Cruises was established in August 1997 in Leningrad with an $8 million investment to acquire the four ships. Hagen admits they were simple ships by today’s standards, but adds, “It was something you could get cheap with a huge upside.” He liked Russia and its tourism opportunities. From these rather humble beginnings, Viking began to build the new line with orders for new vessels along with several additional acquisiIn 2014 Viking named 18 river ships in three ceremonies over five days. Chairman Torstein Hagen holds the Guinness World Record certfificate 36-39 .indd 2 18.8.2017 12.23
Cruise Business Review 2/2017 37 tions. However, it was the 2000 acquisition of KD River Cruises – Europe’s oldest and best-known river cruise line – that drew the most attention to the fledgling company. “KD’s ships were old,” Hagen concedes, “but it gave us the docking spaces and volume necessary to develop the customer base.” Viking became the world’s largest river cruise line, overseeing the operation and management of 26 vessels offering 36 different itineraries on the Rhine, Danube, Elbe and Rhone rivers. While the plan was to continue to focus on distributors including Uniworld in the United States, Noble Caledonia in the United Kingdom and KD in Germany, Viking also opened an office in California. Educating consumers “When we started this company, modern river cruising was still unknown to most travelers,” Hagen recalls. Therefore, as Viking began its expansion efforts, the company focused on both improving the product and on beginning to educate the consumer. For example, it installed hotel-style beds instead of folding bunks on its vessels and added a promenade that permitted passengers to walk or sit on deck without being concerned about low bridge clearances on the river. The renowned Norwegian design firm of Yran & Storbraaten Architects, which had designed luxury cruise ships for Silversea Cruises and Seabourn Cruise Line, was retained, but was later replaced by Rottet Studio. The resulting designs were bright, airy and modern, featuring soothing coral and light-blue color schemes and wood accents. The now familiar modern look of Viking’s ships started to emerge. To market the new operation, Viking in 2001 retained its first advertising agency of record, beginning what has become one of the industry’s most respected and successful advertising and direct-marketing programs. To appeal to the American consumer, Viking made its ships non-smoking and in time elected to focus on the English-speaking market predominately from North America. New destinations were added including, in 2004, Viking’s first partnership in China. All of these factors helped Viking to achieve growth rates that were the envy of the cruise industry. In 2001, Viking carried 120,000 passengers with $25 million in sales. By 2005, the company reported that it had averaged a 52% growth in passenger counts and a 60% growth in revenue. As Viking marked its first decade, it was operating 23 ships with itineraries in Europe, Russia and China and earning top accolades in consumer polls conducted by both Travel + Leisure and Conde Nast Traveler magazines. Overall, river cruising was growing at an amazing 23%, three times faster than ocean cruising’s growth rate of less than 8%. Whereas in the early 2000s, Western and Central European river cruising had been third behind the Nile and Russia, by the end of the decade it was pulling ahead to become the largest market segment. The addition of new competitors, including Amadeus, AMA and Avalon, only helped to spur the overall industry. In 2010, Viking enjoyed a 97% occupancy rate, and travel agents were reporting that customers often had to book trips a year or more in advance. Tipping point Despite the dramatic growth rate of river cruising, many in the industry believed that it was just the beginning. In fact, in a 2011 interview Hagen said that river cruising was at “a tipping point.” A convergence of two events would drive the next phase of growth: Viking announced plans to build at least eight new ships, along with refurbishing others, and to increase advertising and consumer awareness efforts. The first of the Viking Longships was introduced in the spring of 2012. An innovative design, it dealt with both size constraints, due to the bridges and locks on the rivers, and with a growing demand for further luxuries, such as balconies, based on consumers’ experience with ocean cruising. Unique elements, including squaring the bow and shifting the placement of the cabin corridor, meant that Viking could offer two large suites, seven veranda suites, and 39 veranda cabins while increasing total capacity to 190 passengers in 95 staterooms. The Longships featured a highly efficient design and, with 30 more passengers per ship, gave Viking an economic advantage over its competitors. The original plan anticipated four Longships in 2012, followed by three each in the following two years. However, the success of the design and strong response from the industry and travelers prompted Viking to accelerate and then expand its plans. In 2013, the company simultaneously christened 10 Longships for a Guinness World Record. This was followed in 2014 by naming 18 ships in three ceremonies over five days, and in 2015 by launching 10 Longships and 2 ships for the Elbe River. Today, Viking operates 45 Longships, which make up 70% of its river fleet. There are also five “baby” Longships in operation – two on the Elbe and three on Portugal’s Douro River. This dramatic growth would not have been possible without an equally important milestone for the company. In 2011, Viking became a sponsor of the Public Broadcasting System’s Masterpiece Theatre just as it began airing the phenomenally popular “Downton Abbey” series. Richard Marnell , Viking’s Senior Vice President for Marketing, recognizes that it was “central to raising awareness for river cruising,” permitting Viking to “show images of how beautiful and tranquil the rivers were,” to an audience that was “culturally aware, educated and curious.” The more than nine million viewers watching Downtown Abbey were perfectly targeted, helping to raise awareness and associate Viking and river cruising with history, elegance and sophistication. As the successes continued to mount for river cruising, Viking in 2013 unveiled an equally ambitious plan to launch an ocean cruising operation. Following a trend in other segments of the luxury travel industry, Viking was setting its sights on leveraging its growing brand awareness and high levels of consumer satisfaction to fuel both ocean and river cruising. Previously, only the German Deilmann and A’Rosa brands had attempted this alignment, but Viking pursued it on on a much larger scale – initially ordering two 47,800 gross ton and 930-passenger vessels and quickly ? 36-39 .indd 3 18.8.2017 12.23
38 Cruise Business Review 2/2017 contracting for two more, while simultaneously taking options for a fifth and sixth ship. More recently, Crystal Cruises and Fred. Olsen Cruise Lines have copied this model as they, too, sought to enter the river market. Viking philosophy Introduced in April 2015, the company’s first oceangoing ship, the ms Viking Star, was met with universal praise from the travel industry and consumers for its understated elegance with a comfortable, residential ambiance. Viking Ocean Cruises quickly garnered recognition for the industry’s highest service levels and dining, along with leading overall scores from Cruise Critic, Travel + Leisure magazine and Berlitz. Like the river product, the ocean cruises began to achieve industry-leading customer satisfaction ratings, beating more established competitors. At the heart of this success was a business philosophy that focused on offering a highly inclusive product targeted to a specific audience, exemplified by no casinos onboard, no children, and most of all, no upselling and extra charges. The Viking Star was followed by the ms Viking Sea in April 2016 and the ms Viking Sky in February 2017. The fourth ocean ship, the ms Viking Sun, is due to enter service in late 2017 and highlights another of Viking’s business approaches: With both the Longships and now the ocean ships, Viking has employed high levels of standardization even in décor, which creates a familiarity for passengers and higher efficiency in shipbuilding. Hagen prefers not to make any design changes, noting that his philosophy is that “I do not want surprises on the ships,” instead preferring to keep the passengers focused on the port experience. Therein may be found another of the unique approaches that Viking is taking with both its ocean and river cruises. “Our perspective is that the destination is the reason,” Marnell says. “Our goal is to provide as much of the experience of the destination as possible.” Passengers’ fare includes one shore excursion in each port. On a river cruise, Viking might take passengers into a local market to experience the cuisine and foods, while on the ocean cruises Viking Star and Viking Sky met in Leknes, Lofoten earlier this summer Ph oto cre dit : Te ijo Ni em elä Richard Marnell Unique bow design of Viking Longships 36-39 .indd 4 18.8.2017 12.23
Cruise Business Review 2/2017 39 the company has developed more port-intensive itineraries with longer times in port and overnight stays. Viking has been featuring what it calls “quiet season” Mediterranean cruises promising “fewer tourists and more opportunities to maximize your local time,” and recently announced plans for the Viking Sky in 2019 to cruise far north in Norway’s winter to provide a unique view of the northern lights phenomenon. Expanding markets As Viking Cruises marks its 20th anniversary, it has over 5,000 employees serving over 350,000 passengers each year and produces close to $2 billion in revenue. Viking’s success has not gone unnoticed by the financial markets, including oversubscribed bond offerings in 2012 and 2015, a $500 million investment from TPG Capital and the Canadian Pension Plan Investment Board in 2016 and a capital-leasing program for the ocean ships with China Merchant Bank Financial Leasing. Many in the industry believe that Viking has just begun to realize the opportunities in its markets. One industry analyst points out, “River cruising is still not mainstream and is still on the earlyadopter side of the demand curve,” a view very much shared by Viking. “Awareness has grown,” Marnell says, noting Viking’s brand awareness is nearly four times greater than its nearest competitor. Between 2010 and 2015, Viking doubled its share of the river cruise market, drawing 49% of North American-sourced passengers, yet Marnell points out, “product-adoption is still very low.” When asked about the future, Hagen quips: “You must know me by now,” adding that his vision is “infinite.” He has spoken in the past of his ambition to offer a product on the Mississippi River, noting recently that while it is difficult, it is likely that Viking will eventually be there. Viking has also begun sourcing clients from China, dedicating riverboats and using a unique approach focused on direct marketing and building travel agent relationships. The entry into the China market might also signal a future course for the expanding ocean fleet. Currently, Viking has four more ocean ships on order, for a total of eight by 2022 with options for two more. In the past, Hagen – with a glint in his eye – has spoken of a goal of 100 riverboats. “To look at the company today and see what has been created out of nothing, it inevitably makes us proud. No doubt of that,” Hagen says. “I think we have taken a few people by surprise” – and there maybe a few more surprises yet to come. n Scandinavian comfort on the Viking Sky's in 36-39 .indd 5 18.8.2017 12.23
42 Cruise Business Review 2/2017 a radical decline in passenger numbers. This effect has been felt even in ports located in countries removed from areas of unrest, such as Greece and Bulgaria. Suggestions for improving port operations In the last session of the General Assembly, cruise line representatives Spyros Almpertis of Silversea Cruises, Paul Britton of Disney Cruise Line and James Gardiner of Carnival UK outlined their suggestions on what ports should do to improve their cruise operations. At the top of their wish lists were transparent tariffs in ports and the need to know berth availability (if not the exact berth) at least 18 months in advance. Gardiner also highlighted the need for clear signage and transportation between the ports and destination towns, while numerous cruise line representatives emphasized the importance of first impressions when passengers decide whether or not to go ashore in any given destination. To this end, Britton suggested that everyone working even peripherally with cruising should go on a cruise to gain a better understanding of guest expectations. On a purely technical side, the creation of LNG-fueling infrastructure was highlighted as being vital due to the increasing number of LNG-powered cruise ships under construction, as well as the European Union's expected future restrictions on maritime emissions in the Mediterranean. Italy reorganizes its ports A radical reorganization in the governance of Italy's international and key national ports has taken place in an attempt to increase efficiency. As Guido Vettorel of the new Central Adriatic Ports Authority (consisting of Pesaro, Falconara, Ancona, San Benedetto del Tronto, Pescara and Ortona) explained, there are now 15 Port System Authorities, all governed by management boards selected by public bodies, overseeing 57 ports. In contrast with the previous situation, the Italian government now has a strong coordinating role, with the aim of better allocating investments in accordance with national priorities and to avoid doubling up investment. Despite the stronger role of the state, the new port authorities remain autonomous. However, this change will also have an effect on MedCruise, as the formation of fewer port authorities means a drop in the number of MedCruise memberships. Status of individual ports THE BALEARIC ISLES – Ports in the Balearic Isles, particularly Palma de Mallorca, are suffering from a negative public perception of cruising. Despite the fact that cruise guests make up only a small percentage of tourists to the isles, they are perceived as a particular problem by the locals. Attempts at changing this perception are underway. While a new cruise terminal will open at Palma de Mallorca next year, particularly to serve turnarounds (which account for about 40% of the port's cruise traffic), there are no plans to radically increase the cruise capacity of the port, which received 517 calls last year, with 537 projected for 2017. Cruise growth in the Balears is focused on Alcúdia on the island of Mallorca, which offers an alternative to Palma for vessels up to 215 meters in size, and Mahón on the neighboring island of Minorca, which can accommodate vessels up to 275 meters. Minorca is currently not well known to cruise passengers but has the potential to grow into a major Balearic destination alongside Mallorca and Ibiza. The latter island is expected to record a 35% increase in cruise passengers this year. Together, the islands received 1.96 million cruise movements in 2016 and are expecting 2.04 million this year, with further growth projected for 2018. THE CANARY ISLES – The Port Authority of Santa Cruz de Tenerife manages the ports of Santa Cruz de Tenerife, Santa Cruz de La Palma, Los Cristianos, San Sebastián de La Gomera and La Estaca in the Canary Isles. This year, the isles are expecting approximately the same total number of calls as last year, but passenger numbers are expected to increase by 5% due to larger Brand new AIDAperla is homeported in Palma de Mallorca Ph oto cre dit : AI DA Cr uis es 40-46 .indd 4 16.8.2017 15.09
Cruise Business Review 2/2017 43 tonnage. For 2018, both the number of calls and cruise guests are expected to increase further. Berthing policy offers the same terms for everyone, with berth allocation made two years in advance. In terms of investment, the Canary Isles are following the growth of their customer lines, which are mainly European brands. In La Palma, new berths have been introduced allowing for three ships to call simultaneously, leading to a 15% increase in calls and a 13% increase in passenger numbers. At Santa Cruz de Tenerife, a new cruise terminal was successfully opened late last year. For AIDA Cruises’ ms AIDAprima, LNG fueling by truck was introduced in November; the port’s LNG fueling infrastructure will increase further next year in conjunction with the arrival of AIDA's new Helios-class. COSTA BRAVA – The Costa Brava region in northwest Spain, just south of the French border, offers two cruise ports: Palamós and Roses. Palamós is the larger of the two, offering two cruise quays of 386 and 150 meters, respectively, located just a 500-meter walk from the town center, to which a shuttle bus service is provided. Roses offers one cruise quay for ships up to 317 meters in length, located just 250 meters from the town center, as well as the possibility of anchoring at the UNESCOlisted Roses Bay. The Roses port is expecting seven cruise calls this year. FRENCH RIVIERA – The French Rivera Cruise Club – a network organization of the cruise ports of Cannes, Nice, Villefrance-sur-Mer and Antibes plus the local businesses and cruise operators of the area – celebrates its 10th anniversary this year with 326 cruise calls. Nice can welcome cruise ships alongside on five piers of up to 210 meters in length. Cannes has a pier of 140 meters and, like the other ports in the network, can accommodate ships of any size as a tender port. GIBRALTAR – With a location right off the main shipping lane through the Strait of Gibraltar, the Port of Gibraltar is ideally positioned to receive cruise calls. A dedicated cruise quay can receive two big ships or three medium-sized ships simultaneously. All but the very largest cruise ships can be received by the port, with draught being the limiting factor. This year, the port is expecting some 250 calls (up 10% from 2016) bringing approximately 400,000 passengers HUELVA – The Port of Huelva in southwestern Spain – a relative newcomer to cruising – received 17 cruise calls last year and expects 10 this year. The sheltered port, located close to the main shipping lane though the Strait of Gibraltar, is also the most convenient gateway for visiting Seville by sea, as the famous Spanish city is less than an hour away by bus. Huelva itself offers numerous attractions to cruise guests and has been named the Spanish Gastronomy Capital in 2017. Ships can berth in two locations: the Levante Quay at the city center is accessible during high tide by a six-meter-deep canal and can accommodate ships up to 200 meters in length. No such restrictions apply to the South Quay, which is 750 meters long and has a depth of 13 meters. A shuttle bus service is offered from the South Quay to the town center. LIMASSOL – While the Port Authority in Limassol remains public, port operators are private. DP World operates the Limassol Cruise Port, which offers 1.6 kilometers of cruise ship berths with a minimum depth of 11 meters throughout. A new 7,000-square-meter cruise terminal opens this year, allowing for both transit and turnaround calls. The latter benefit from having two international airports – Larnaka and Paphos – within a one-hour drive. In addition to the new cruise terminal, road upgrades around the port mean speedier access to excursions, while a new coastal promenade from the cruise port to the Limassol Marina and Old Port is in the planning stages. The new operator has introduced simplified tariffs for cruise ships: €5 per passenger on transit calls and €12.50 per passenger on turnaround departure or arrival, with no added other fees. Despite these investments, Limassol has been one of the ports that have suffered from the political instability in the Eastern Mediterranean region. While in 2000 Limassol welcomed 800,000 cruise guests, this dropped to just 160,000 in 2016. LIVORNO – The Port of Livorno is currently undergoing a privatization process, with 70% of the port to be sold to a consortium of the Mediterranean Shipping Company (which own 30% of the consortium) and ferry operator Moby Lines (70%), with the Livorno Port Authority and Chamber of Commerce re? 40-46 .indd 5 16.8.2017 15.09
44 Cruise Business Review 2/2017 CANARY ISLANDS MADEIRA ISLANDS SPAIN AFRICA FRANCE UNITED KINGDOM PORTUGAL 20ªW 40ªN 20ªN T R O P I C O F C A N C E R CABO VERDE taining a 30% share (approximately 15% each). The new owners are committed to investing €100 million into the port in the long term, with a new marketing campaign for cruises to be launched following privatization. In 2016, the port received some 800 000 cruise guests on 403 calls. For this year, the number of calls will decrease to a forecasted 345, with a similar drop in passenger numbers, due to the geopolitical issues elsewhere in the Mediterranean. For future-generation LNG-powered cruise ships, provisions exist for converting an existing LNG terminal for cruise ship refueling. MARSEILLE – The well-known port town in southern France can accommodate no less than seven cruise ships at a time – six at the cruise port some eight kilometers from the city center and one ship of up to 200 meters in the city center. Following expansion of the breakwater at the cruise port in 2016, it can accommodate ships up to Oasis-class size. Free shuttle bus service is provided from the cruise port to the city center, while motorway access directly from the cruise port allows for quick transfer to excursions all around the Provence region. As an additional incentive, Marseille also houses the thirdbiggest ship repair yard in the world. PIRAEUS – In 2016, the Port of Piraeus was privatized as a part of Greece's ongoing austerity measures, with COSCO emerging as the buyer. The new owners are making large-scale investments in the port: €300 million will be spent over the next five years, with roughly half of the sum invested in improving the cruise facilities, which will include the construction of a new cruise terminal and a 50% increase in cruise quays. The Southern Port will be expanded to accommodate the largest recentgeneration cruise ships, and particular attention will be paid to improving turnaround facilities. At the same time, operations will be streamlined so that it will no longer be necessary for cruise lines to deal with numerous ministries. Whereas previously, berth allocation was confirmed at the last minute, the aim for the future is to provide confirmation 18 months in advance. Furthermore, thanks to the COSCO connection, Piraeus aims to become a facilitator for the development of the Chinese cruise market in the Mediterranean. TANGIER – The former container port in Tangier was moved to Tanger-Med by Royal decree in 2010, after which the port in Tangier was redeveloped as a yacht and cruise harbor with a sizeable marina and entertainment area. As Morocco has been spared the unrest of the Arab Spring, Tangier offers a safe and peaceful port-of-call in Northern Africa, located right next to the main shipping lane through the Strait of Gibraltar. The ? Gruta de las Maravillas (The Cave of Wonders) is one of the attractions accessible from Huelva Ph oto cre dit : Po rt of Hu elv a Preparing for a cycling excursion in the Port of Tangier Top of the Rock, Gibraltar Ph oto cre dit : Ka lle Id 40-46 .indd 6 16.8.2017 15.09
Cruise Business Review 3/2016 65 CANARY ISLANDS MADEIRA ISLANDS SPAIN AFRICA FRANCE UNITED KINGDOM PORTUGAL 20ªW 40ªN 20ªN T R O P I C O F C A N C E R CABO VERDE 40-46 .indd 7 16.8.2017 15.09
Tangier cruise port can currently receive two large cruise ships with a length of 360 meters and depth of 11 meters; an expansion to allow three is currently in the works. TARRAGONA – Tarragona is another relative newcomer to the cruise scene, having only created a cruise strategy in 2013. The port has grown quickly, rising from just three calls in 2014 to 40 this year. Two berthing options are offered for cruise ships: the Levante Breakwater Berth, with a dedicated cruise terminal and no size restrictions, and the more centrally located Marina berth for ships up to 140 meters in length. VALENCIA – The Valencia cruise port currently offers a terminal with two cruise quays of 395 and 379 meters, respectively. The Port Authority of Valencia (PAV) has an investment plan for a new €15 million cruise terminal to be funded in a PPP model, with half the investment coming from the PAV and half from the winner of the tender to construct and operate the new terminal. During 2017, Valencia expects 204 cruise calls, bringing 430,000 passengers. VAR-PROVENCE – The Var-Provence Cruise Club (VPCC) represents 12 cruise ports in both Provence and the French Riviera, giving cruise lines a single point of contact with the ports and tour operators of the area: Saint-Cyr, Bandol, Sanary, Six-Fours/Les Embiez, the ports of Toulon Bay (Toulon and La Seyne-sur-Mer), Hyères, Porquerolles, Le Lavandou, Cavalaire, St-Tropez, Fréjus and St-Raphaël. The VPCC enjoyed its best year to date in 2016, with a total of 278 cruise calls (up 3.3% from 2015) bringing 362,479 guests (up 12.7%). The lion's share of both figures were received by the ports of Toulon Bay – the only ports in the region with dedicated cruise quays (the others being tender only) – which received 52% of calls and 80% of passengers. For 2017, the other ports in the region are making gains: Porquerolles expects a 314% increase in passengers, while Cavalaire and Fréjus will receive their first cruise calls; at the same time, the number of calls in Toulon Bay will decrease. The VPCC works together with local shopkeepers and leisure providers to better develop cruise business in the area and has introduced the “Cruise Friendly” quality label, which represents more than 300 members in six cities that are working together with local tourism providers to offer innovative excursions – especially those highlighting the trend for immersive local experiences. n 46 Cruise Business Review 2/2017 Ph oto cre dit : La ur en t Pe rri er/ Vi lle de To ulo n Ferrari Land is a new attraction close to Tarragona The Ports of Toulon Bay will host the next MedCruise General Assembly October 11-14, 2017 40-46 .indd 8 16.8.2017 15.09
Cruise Business Review 2/2017 47 DESTINATION REPORT n NORTH AMERICA ? A t the annual Alaska Travel Industry Association (ATIA) media event in New York City this past spring, the word that kept coming up in meetings with cruise lines and ports in attendance was “opportunity.” Said Patti Mackey , President and CEO of the Ketchikan Visitors Bureau: “The cruise lines don’t go places unless there’s interest from their customers, and there are people from all over the world who are looking at Alaska as their next place to cruise. There are more ships and there’s more capacity, so there’s more opportunity for Alaska.” Echoing that sentiment was Michelle Glass , Vice President of Sales for Alaskan Dream Cruises, who said “2018 will be our eighth season, so it’s very easy for us to see growth. The continuing interest Alaska is being seen by us and is driving Seabourn and Windstar to return, because that’s what their guests want. 2018 is the earliest we’ve ever been in the market [with our LINES SEE OPPORTUNITY IN ALASKA Suddenly, everyone wants to go to Alaska – not just cruise passengers, but cruise lines too. Between now and 2019 five lines – Seabourn, Windstar, Cunard, Viking and Azamara – will have returned to Alaska after a long absence or entered the market for the first time. The state’s biggest operator – Princess Cruises – will increase capacity by 15% in 2018 and bring its Ocean Medallion wearable technology to Alaska aboard the Island Princess. Also in 2018, Norwegian Cruise Line’s 167,800 gross ton and 4,000-passenger Norwegian Bliss will become the biggest cruise ship ever to sail in Alaska. And there is talk of even more, with perhaps MSC Cruises entering the fray. On the small-ship side, UnCruise Adventures will add capacity by bringing its 88-passenger SS Legacy back to Alaska in 2018, while American Cruise Lines will more than double its capacity in the Pacific Northwest next year by adding its newest vessel, the 175-passenger American Constellation. By M.T. Schwartzman Brian Badura Princess is the largest cruise brand in Alaska Ph oto cre dit : Te ijo Ni em elä 47-51 .indd 3 16.8.2017 15.12
48 Cruise Business Review 2/2017 brochure] because the demand is there. We’ve added a new 10-night itinerary because people want to travel longer,” she added. Brian Badura , Director of Public Relations and Strategic Initiatives for Seabourn Cruise Line, picked up on that thought, noting that the line’s shortest Alaska itinerary is 11 nights and the longest is 14 nights. The line’s return to Alaska after a 15-year absence is a matter of increased capacity, he continued. “The basic driver behind it is fleet capacity. We just took delivery of a new ship in January. It gives us the ability to expand out and explore new itineraries. Alaska is one of those markets where we saw opportunities. The luxury infrastructure in Alaska is very hard to come by.” The idea, he explained, is to combine Seabourn’s established reputation for onboard luxury with an adventure-oriented off-ship experience custom designed for Alaska. “We see it as a bridge between those two worlds.” For its part, small-ship operator UnCruise Adventures is seeing the same strength in the Alaska market as the bigship and luxury lines. “We have a lot of demand in Alaska; we feel that the demand is greater there than on the rivers,” the line’s Director of Communications Sarah Scoltock told Cruise Business Review, explaining the decision to reposition the 88-passenger SS Legacy in Alaska next year from April through mid-August for the first time since 2014. The Legacy will arrive in Alaska newly equipped with kayaks and skiffs to better fit the UnCruise program of adventure sailings and will be part of a larger seven ship deployment with a choice of five new itineraries. Opportunities for ports-of-call More than half (55%) of Alaska’s summer visitors arrived by cruise ship in 2016, according to the latest research from the ATIA – a figure that will likely grow as bigger ships are deployed and more brands enter the market. For the ports-of-call represented at the Alaska NYC event, this represents an opportunity to grow their share of the market. Liz Perry, President and CEO of Travel Juneau, said the announced increases in capacity and increasingly bigger ships vindicated the capital city’s decision to build two new Panamax-size floating berths, the second of which opened in May. “The city saw fit to put those Panamax docks in, which speaks well to our ability to handle cruise passengers,” she told CBR. At the same time, the city is also taking steps to ease congestion downtown, which has plagued Juneau for years. “We want to manage traffic better with the increased number of passengers in town, but we have some infrastructure projects on the way that will mitigate that.” Chief among these, she said, was a project to widen South Franklin Street (the main shopping thoroughfare near the cruise docks) to make it more pedestrian friendly and a new airport shuttle making its debut this season. Ketchikan is also planning for its future, as it looks for ways to expand the capacity of its four existing berths on the waterfront downtown. The most likely solution, the KVB’s Mackey said, is to overhaul the barge portion of berth 3 (among the city’s newer berths north of the tunnel along with berth 4), as the older and more centrally located berths 1 and 2 have more significant physical limitations. However, the city has also authorized removal of the “pinnacle,” a partially submerged rock in the harbor just offshore that constrains the flexibility of berths 1 and 2. Most everything is still in the planning or design stages at this time, she added, as the port continues to study its available options. Meanwhile, the surge in deployments to Alaska is benefitting not only Tier 1 ports like Ketchikan and Juneau, but also Tier 2 destinations like Haines. The small community, which lies just 15 miles south of Skagway, sees itself as more of a boutique, adventure port-of-call. “What fits more with Haines are the smaller, high-end ships,” said Tourism Director Leslie Ross , although she noted, “We get Holland America every Wednesday and a few of the Princess ships. The smaller of the larger cruise lines need a place to put their ships, so we’ll probably benefit from overflow. We’re excited to have Seabourn [this year], and Windstar and UnCruise next year – those are all new. The smaller ships are a great fit for us in having that intimate experience.” Further north, Anchorage – Alaska’s largest city, which only gets around eight to 12 direct ship calls each season – sees a great benefit from passengers passing through as they embark or debark ships in nearby Seward and Whittier. “We love the Anchorage calls because a lot of people in Anchorage don’t think of us as a cruise destination,” explained Julie Saupe , President and CEO of Visit Anchorage. “From an economic perspective,” she continued, “the ships that come into Seward or Whittier have more opportunity because those passengers have the option of staying overnight, as opposed to just 10 or 12 hours off the ship. So if you’re a hotel, you like the Seward or Whittier calls better. If you’re a museum or shop, you like the Anchorage calls,” she reasoned. Opportunities for homeports As the main gateways for the Inside Passage, Seattle and Vancouver are two of the main beneficiaries of this surge in deployments to Alaska, and both homeports are predicting record seasons for 2017. The Port of Seattle is predicting its “biggest cruise season yet” with over one million revenue passengers on 218 calls, making Seattle the biggest cruise port on the West Coast. According to the port, the cruise industry in Seattle is responsible for over $500 million in economic impact to the region, providing more than 4,000 jobs and $18.9 million in state and local taxes, with each homeported vessel generating $2.7 million to the local economy. New for Seattle this year is the opening of the port’s renovated Pier 66 cruise terminal, which has been upgraded in anticipation of next year’s debut of the Norwegian Bliss. It will serve Norwegian Cruise Line for the next 15 years under an agreement signed last year. The $30 million investment includes an expansion of guest check-in space by 300% to more than 150,000 square feet and a new VIP lounge. Also new for 2017, Seattle is introducing a valet luggage service for passengers, making it easier for them to spend additional time in the city and see the sights before flying home. Meanwhile, the 2017 cruise season is expected to bring record volume to Vancouver’s Canada Place cruise terminal as well. The port is predicting apPh oto cre dit : Ce leb rit y Cr uis e s 47-51 .indd 4 16.8.2017 15.12
proximately 840,000 revenue passengers on 237 ship calls, which would be a 2% increase in passenger volume over 2016. “Vancouver cruise passenger volumes have been strong and steady since 2013,” said Robin Silvester , President and CEO of the Vancouver Fraser Port Authority, who added, “This year, we are forecasting our highest passenger volumes since 2010.” Each cruise ship that docks at the port of Vancouver contributes, on average, $2.85 million to the local economy, which in 2016 generated nearly 7,000 jobs across Canada, $300 million in wages, and contributed $840 million to national GDP, the port estimates. Opportunities on the West Coast Further down the West Coast, a ripple effect can be seen from the increase in capacity to Alaska. For example, Long Beach, California – the private embarkation facility owned by Carnival Corporation – has announced a 41% capacity increase in weeklong cruises beginning in January 2018, when the ms Carnival Splendor moves to a year-round schedule of 7-night Mexican Riviera cruises, taking over this deployment from the ms Carnival Miracle. The Carnival Splendor will join the ms Carnival Inspiration and ms Carnival Imagination, which both offer 3and 4-night Baja cruises from Long Beach. With the addition of the Carnival Splendor, the line will carry upwards of 700,000 guests annually from Southern California, operating nearly 250 3to 14-night cruises a year. On its way to Long Beach, the Carnival Splendor will offer a special 13-night Panama Canal cruise departing Miami, becoming the first Carnival ship to transit the newly opened Panama Canal locks. Additionally, the Splendor will operate three 14-night Carnival Journeys cruises roundtrip from Long Beach in 2018: A one-time only Alaska cruise in August and two Hawaii cruises in October and December. Also new for 2018 in the Los Angeles area will be Princess Cruises’ first ever Alaska roundtrips from the World Cruise Center in San Pedro, with two 12-night departures scheduled aboard the ms Emerald Princess or ms Golden Princess. “We are excited to see Princess doing an L.A. to Alaska itinerary in 2018,” commented the port’s Marketing Manager Chris Chase . These cruises will be part of the line’s largest Alaska deployment ever, featuring 130 cruise departures aboard seven ships sailing from five homeports, which in addition to Los Angeles will include Seattle, San Francisco, Vancouver and Whittier. In addition, Los Angeles will receive calls in 2018 from the Norwegian Bliss. “This will be the largest ship in terms of passenger count ever to call Los Angeles,” Chase noted. The rising tide of Alaska cruising could benefit San Francisco, too, according to the port’s Maritime Marketing Manager Michael Nerney . “Most cruise ships passing along the West Coast visCruise Business Review 2/2017 49 47-51 .indd 5 16.8.2017 15.12
50 Cruise Business Review 2/2017 I t seems so simple for somebody to wash their hands in a sink or step into a cubicle and take a shower, but quite hard to imagine how much work goes into the final delivery of the water for people to drink and wash with-and much more.“Certification to ensure that all the standards and regulations are met is a big issue demanded by the shipyards,” says Esa Varho, Oras Sales Manager with responsibility for maritime and on-shore business. Oras is a Finnish-based provider of advanced sanitary fittings, with the stated mission to make water usage easy while being sustainable. The company has an impressive record of racking up design milestones in faucet design and water flow, with over 30 years’ experience in producing electric faucets alone. The company’s latest landmark products are the Oras Optima family of faucets, which are mainly for domestic kitchens. The front of the faucet features a clear, digital water temperature display. With two easy-grip levers, you can quickly get cold or hot water. The Oras Signa is a faucet for kitchens and bathrooms for those with a longing for beautiful design and is available as both hybrid function and manually operated single-lever models. Both are manufactured of high-qualORAS FAUCETS: EVEN FLOW ON THE GO ity DZR chrome-plated brass, which results in enhanced safety and requires less maintenance while ensuring the water quality that is emitted by the faucet. Although Oras has a very long history of supplying shore-based customers, the company also has considerable experience delivering to large passenger ships, too, stretching back to the Seabourn Pride in 1998. Since then, over 40 cruise ships and cruise ferries have had Oras water-delivery equipment installed in all passenger, public and crew areas. These vessels have included the Oasis of the Seas and nine other RCCL ships, as well as the Norwegian Epic, Jade, Jewel and Spirit from Norwegian Cruise Line, plus 16 vessels for Carnival Cruise Line and its sister brands P&O Cruises and Holland America Line. The company’s most recent standout delivery was for 2013’s Viking Grace, which is still the largest LNG-powered passenger ship in the world and which set standards in the use of environmentally friendly technology. All its faucets and showers made by Oras combined touchless features with top-class hygiene and water-saving features, while cutting down on energy usage, too. The Oras Cubista washbasin faucet with its unique lean-forward design has a fixed spout incorporating an aerator. “Its flow is just five liters per minute at the low pressure of 300kPa,” explains Varho, adding that these figures stand out in the industry, although they are not widely appreciated by the public. Such low usage numbers are particularly important for ferries, which unlike cruise ships carry their own freshwater, as such scheduled ships do not make water onboard like their longer-haul cousins. “So less used is best,” Varho observes. However, although an important business segment, even large ferries like the Viking Grace have relatively small cabin totals (just 880) and public areas. This must be compared to modern cruise ships with their enormous capacities. For example, the Oasis-class ships accommodate up to 6,780 passengers (in 2,740 cabins) plus 2,300 crew – with each cabin having a minimum of one faucet and a shower attachment. Thus, the main maritime customers for Oras are the cabin makers, not the yards, so Meyer’s units in Germany and Finland are regular customers and vice-versa. Varho appears optimistic about the newbuilding orders that will be built in both countries, as well as the prospect of doing business with the industry’s newest shipbuilder, MV Werften. Oras’s high technology and ecological values are ingrained into its business model and products, as is proven by its position as the world’s largest manufacturer of electronic faucets that combine the two concepts. Product families such as the Oras Vega were specifically designed to save water and energy, and the company’s dedication to green building ashore is absolute, as energy and water resource usage are carefully monitored throughout an edifice’s lifecycle. www.oras.com ADVERTORIAL oras.indd 1 2.7.2017 17:43:14 it San Francisco on their way to or from Alaska, with our busiest months being May, September and October, at the beginning and end of the season. This pattern has been established for many years.” And, he added, “New lines entering the Alaska market are most welcome at San Francisco. What a bonus for the guests to sail under the Golden Gate Bridge and enjoy all that the city and region have to offer.” Finally, the ripples are being felt as far south as San Diego. Although no ships sail from San Diego to Alaska, the port is benefiting from the increasing number of ships going to and fro, according to Cruise Representative Adam Deaton . “We are seeing some positive impact in the shoulder months [April, May, September and October] when ships make their way between the Caribbean and Alaska,” Deaton told CBR. “Just this season, we welcomed the Eurodam for the first time as she made her way to Alaska. And in February 2019, MSC Cruises, which has never been on the West Coast, will call on San Diego.” On a related note, San Diego was the destination this past spring for the ms Disney Wonder, which in April became the first passenger vessel to use the Panama Canal’s new third set of locks. The ship passed through the canal as part of a 14-night voyage from Fort Lauderdale to the West Coast, where it has been operating cruises from San Diego to Mexico’s Baja Peninsula, before repositioning to Vancouver in the summer for its annual series of roundtrip cruises to Alaska. n B ooming interest in Alaska cruises couldn’t come at a better time for Holland America Line, which in 2017 celebrates its 70th year in the market. According to the company, “It all began in 1947 with a simple, spontaneous tour in Fairbanks and has grown into Holland America Line’s Alaska Land+Sea Journeys that combine a cruise with an overland adventure to Denali and the Yukon.” For 2017, Holland America once again has deployed seven ships to the region – including the ms Amsterdam, ms Eurodam, ms Nieuw Amsterdam, ms Noordam, ms Oosterdam, ms Volendam and ms Zaandam – offering a total of 135 Alaska departures, more than any other cruise line. The Oosterdam was originally scheduled for a European deployment, but was repositioned to Alaska based on the destination’s growing strength. “For 2017, we HAL CELEBRATES 70 YEARS IN ALASKA added the Oosterdam to support the increasing demand for Alaska summer cruises, bringing our ship count to seven this year,” said Beth Bodensteiner, Senior Vice President of Revenue Management, in a statement to CBR. “With the popularity of Alaska for first-time cruisers and families, and a desire by a large segment of those traveling from North America to vacation closer to home, I expect that Alaska will have a strong year for cruising. Also, the destination is among the top worldwide for cruisers, so as cruising grows in popularity in other countries and more ships are sailing, we see the effect on overall deployment to Alaska,” she concluded. Holland America is marking its 70th season in a variety of ways, including special onboard experiences, events and entertainment. For starters, a new “Alaska in Concert” multimedia production makes its premiere, combining live music set against a backdrop of footage from the BBC Earth television series “Wild Alaska.” Main dining rooms showcase special décor and customized menus that celebrate the cruise line’s Alaska heritage – including a specially created 70th Anniversary Baked Alaska. The company also is introducing two new exclusive Alaska-brewed beers: Holland America Line Pale Ale, created by the Juneau-based Alaskan Brewing Company, has been added to the line’s shipboard selection, while another exclusive anniversary beer from the Denali Brewing Company is available at Denali National Park for guests on the line’s Land+Sea Journeys this summer – who also will receive a commemorative backpack with a special native-designed logo upon arrival at the park, which is celebrating its centennial this year as well. n Ph oto cre dit : Ho lla nd Am eri ca Li ne Adam Deaton 47-51 .indd 6 16.8.2017 15.12
I t seems so simple for somebody to wash their hands in a sink or step into a cubicle and take a shower, but quite hard to imagine how much work goes into the final delivery of the water for people to drink and wash with-and much more.“Certification to ensure that all the standards and regulations are met is a big issue demanded by the shipyards,” says Esa Varho, Oras Sales Manager with responsibility for maritime and on-shore business. Oras is a Finnish-based provider of advanced sanitary fittings, with the stated mission to make water usage easy while being sustainable. The company has an impressive record of racking up design milestones in faucet design and water flow, with over 30 years’ experience in producing electric faucets alone. The company’s latest landmark products are the Oras Optima family of faucets, which are mainly for domestic kitchens. The front of the faucet features a clear, digital water temperature display. With two easy-grip levers, you can quickly get cold or hot water. The Oras Signa is a faucet for kitchens and bathrooms for those with a longing for beautiful design and is available as both hybrid function and manually operated single-lever models. Both are manufactured of high-qualORAS FAUCETS: EVEN FLOW ON THE GO ity DZR chrome-plated brass, which results in enhanced safety and requires less maintenance while ensuring the water quality that is emitted by the faucet. Although Oras has a very long history of supplying shore-based customers, the company also has considerable experience delivering to large passenger ships, too, stretching back to the Seabourn Pride in 1998. Since then, over 40 cruise ships and cruise ferries have had Oras water-delivery equipment installed in all passenger, public and crew areas. These vessels have included the Oasis of the Seas and nine other RCCL ships, as well as the Norwegian Epic, Jade, Jewel and Spirit from Norwegian Cruise Line, plus 16 vessels for Carnival Cruise Line and its sister brands P&O Cruises and Holland America Line. The company’s most recent standout delivery was for 2013’s Viking Grace, which is still the largest LNG-powered passenger ship in the world and which set standards in the use of environmentally friendly technology. All its faucets and showers made by Oras combined touchless features with top-class hygiene and water-saving features, while cutting down on energy usage, too. The Oras Cubista washbasin faucet with its unique lean-forward design has a fixed spout incorporating an aerator. “Its flow is just five liters per minute at the low pressure of 300kPa,” explains Varho, adding that these figures stand out in the industry, although they are not widely appreciated by the public. Such low usage numbers are particularly important for ferries, which unlike cruise ships carry their own freshwater, as such scheduled ships do not make water onboard like their longer-haul cousins. “So less used is best,” Varho observes. However, although an important business segment, even large ferries like the Viking Grace have relatively small cabin totals (just 880) and public areas. This must be compared to modern cruise ships with their enormous capacities. For example, the Oasis-class ships accommodate up to 6,780 passengers (in 2,740 cabins) plus 2,300 crew – with each cabin having a minimum of one faucet and a shower attachment. Thus, the main maritime customers for Oras are the cabin makers, not the yards, so Meyer’s units in Germany and Finland are regular customers and vice-versa. Varho appears optimistic about the newbuilding orders that will be built in both countries, as well as the prospect of doing business with the industry’s newest shipbuilder, MV Werften. Oras’s high technology and ecological values are ingrained into its business model and products, as is proven by its position as the world’s largest manufacturer of electronic faucets that combine the two concepts. Product families such as the Oras Vega were specifically designed to save water and energy, and the company’s dedication to green building ashore is absolute, as energy and water resource usage are carefully monitored throughout an edifice’s lifecycle. www.oras.com ADVERTORIAL oras.indd 1 2.7.2017 17:43:14 47-51 .indd 7 16.8.2017 15.12
52 Cruise Business Review 2/2017 I n July 2016, almost two years after the initial MOUs were signed, the Italian shipbuilder signed a further agreement “to design and sell cruise ships exclusively intended and specifically customized for the Chinese and Asian market.” The co-signatories were CSSC, CSSC Cruise Technology Development and Shanghai Waigaoqiao Shipbuilding (SWS). As part of the agreement, Fincantieri pledged “to provide specialized consultancy services and supply certain key components of the vessels to the joint venture and to SWS.” Said Giuseppe Bono , CEO of Fincantieri: “This new agreement … places us at the center of a project without equal in the world, supported directly by the Chinese government in the form of a very ambitious project. The presence of our main customer Carnival, which will purchase the vessels covered by the agreement, is also of fundamental importance for the project’s success. This result is a victory and an incentive to work even harder in the future. It confirms the group’s SHIPBUILDING n CHINA CHINESE-BUILT CRUISE SHIPS ONE STEP CLOSER It was in November 2014 that Fincantieri signed Memorandums of Understanding (MOUs) with both Carnival Corp. & plc (Carnival) and China CSSC Holdings Ltd. – controlled by China State Shipbuilding Corp. (CSSC) – to explore the possibility of joint ventures in cruise shipbuilding for the Chinese market. This led to further agreements that have culminated in the first order for Chinese-built cruise ships. Fabrizio Ferri, CEO of Fincantieri China, talked with Cruise Business Review about the company’s part in establishing cruise shipbuilding in China. ??: ??·???Susan Parker) 2014 ?????????????CSSC?? ??????Carnival Corporation)???? ???????????Fincantieri???? ???????????????????? ???????????????????? ???????????????????? ???? Fabrizio Ferri?????????? (Cruise Business Review)??? 2016 ?7???????CSSC?????????? ?SWS??????????????????????? ?????????????????????????? ?????????????????????? ???????????? Giuseppe Bono??“???? ??????????????????????????? ??????????????????????????? ??????????????????????????? ?????????????????????” ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??2015???????????2020????????4.5 ????????????????????????2030 ??????????????8???1???????? ??????? 2016?3?2???????????????????? ??????????????HRDD????????? ?????????????????????????? ?????????????????Fabrizio Ferri??“? ?????????????????????????? ?????????????????????????? ?????????????????????????? ???????????” 2016?9?23???????????????????? ????????????? ?CIC??????????? ??????????????????????????? 2017?2??????????????????????? ?????????????????????????? Sergio Mattarella??????????????????? ?????????????????????????? ?????Vista-class????????2023?????? ?????????????????????????? ?????? ???????????? Fabrizio Ferri, CEO of Fincantieri China, in the front of Vista-class model Ph oto cre dit : Te ijo Ni em elä 52-54.indd 2 24.8.2017 8.10
Cruise Business Review 2/2017 53 ? ability to be the first one to seize highly-strategic opportunities and a worldwide leader in all the sectors in which it operates.” Of significance at the time was the Chinese Ministry of Transport’s statement that the cruise market in China had expanded significantly in recent years, reaching 1 million passengers in 2015. It estimated growth potentials at 4.5 million passengers by 2020 – making China the world’s second largest cruise market – and 8 to 10 million passengers by 2030 – which would place China at the top of the world’s cruise industry. In a completely separate deal reached four months earlier on March 2, 2016, Fincantieri and Huarun Dadong Dockyard (HRDD) in Shanghai signed an exclusive cooperation agreement, with respect to ship repair and conversion for cruise ships based in China. The understanding included the development of technical skills, project management and logistics procedures. “This is another business that Fincantieri is developing in China,” said Fincantieri China’s CEO Fabrizio Ferri . “With the development of the cruise industry more and more ships will use Shanghai as port of call, so there is a need for support. We decided on this partnership, as HRDD is the most expert shipyard in this sector.” Then on September 23, 2016, came the announcement that Fincantieri and CSSC had signed a non-binding agreement with Carnival Corp. & plc and CIC Capital Corp. for the construction of the first cruise ships to be built in China for the Chinese market. This agreement was subject to the closing of the joint venture and financing. In turn, this understanding was followed in February 2017 by the historic binding Memorandum of Agreement signed by Bono; Michael Thamm , CEO of Carnival Asia and the Costa Group; and Wu Qiang , President of CSSC, for two cruise ships plus four options. The signing took place in the presence of Italian President Sergio Mattarella and Chinese President Xi Jinping at the Great Hall of the People in Beijing on the occasion of the 4th Italy-China Business Forum. The ships will be based on Carnival Cruise Line’s Vista-class platform and will be built by SWS (a facility of CSSC Group). The first vessel is due for delivery in 2023 and will sail under the new Chinese brand of the joint venture between Carnival, CSSC and CIC Capital, which will also operate the ships. Fincantieri’s man in China Fincantieri’s man on the ground is Ferri, who is no stranger to China. Prior to joining Fincantieri in 2012 as head of strategic marketing for the cruise business unit, he was based in Shanghai for three years working for a company belonging to the Russian conglomerate Severstal. He has closely followed the Chinese project from its beginning. Now back in Shanghai, he commented, “This initiative is the first of this size and quality to build cruise ships in China.” What is key here is that the project is driven directly by the government in Beijing, Ferri said, with Bono being a driving force on the Italian side. Ferri explained that the Chinese government has two objectives. The first objective is with respect to an overcapacity in shipbuilding, with too many shipyards building low-tech ships no longer in demand. The government’s aim is to restructure ?????????? Fabrizio Ferri???????????????????? ?????????????????????????? ????????????Severtal????“?????? ???????????????”?????????? ???????????? Ferri??????????????????????? ?????????????????????????? ?????????????????????????? ?????????????????????????? ?????????????????????????? ??????1????????Ferri???“?????? ?????????????????????????” ??????????13????????????? ?“Made in China 2025” ????Ferri??“?????? ???????????????????2025???? ????????????????????????? ????” Ferri??????????????“???????? ????????????????????????? ????????????????????????? ?????????????????????????? ???????????40?????????????? ??????5?6?????????????????? ???” ??????? ????????????????????????? ????????????????????????? ??Ferri??“??????????????????? ?????????????????????????? ?????????????????????????? ?????????????????????????? ????????????????????” ????????????????????????? ??????????5?31????????????? ?????????????????????????? ?????????????????????????? ????????????? Ferri??“???????????????????? ????????????????????????? ????????????????????????? ???????????????????“?????? ?????????????????????????? ?????????????????????????? ?????????????????????????? ????????????????(Wärtsilä) ?, ???? ???????????” ????????? Ferri????????????? ???“?????????????????????? ????????????????????????? 2023????????????????”??????? ??????????“??????????????? ???????????” Ferri?????????????????????? ??????????“??????????????? ????????????????????” 52-54.indd 3 24.8.2017 8.10
54 Cruise Business Review 2/2017 its shipbuilding sector to focus on high-tech ships – for example, cruise ships and oil and gas vessels. The second objective is that the government sees the cruise industry as a segment of tourism and as a way of pushing internal consumption, which is low compared to that in other countries. The growth potential, however, is enormous because China boasts a middle class of some 100 million people. “They want to be able to operate ships one day and to send more and more Chinese on a cruise,” Ferri said. The project is part of the 13th five-year plan of the Chinese government, which ends in 2020. This plan ties in with “Made in China 2025,” which is a global vision to compete with other major trading nations, such as the U.S. and Germany. It is also one of the first government policies to plan for more than five years. “China doesn’t want to be the factory of the world anymore, building low-quality, low-tech products,” Ferri noted. “The 2025 plan is to build up industry with a focus on new technologies, health care, automatization, etc. High-tech shipbuilding is one of those.” Cruise Business asked Ferri about the current shipbuilding situation in the country. “The shipyards are very well equipped with state-of-the-art equipment, but they have no experience whatsoever in building a cruise ship and its interiors. At present, all of the outfitting industry is currently missing. All the shipyards today are dedicated to mass-market production – for example, container ships – so the strategy is completely different. They are used to building around 40 ships a year, which is very different from us. [We build] five to six ships [a year], which is a very different method of production and highly more complex.” As for the newbuildings, he said, “The Carnival platform will be customized for the Chinese market. The idea is to maintain the technical platform as it is and to tailor the interior design for the Chinese needs and desires.” European supply chain It is no secret that when Mitsubishi Heavy Industries in Japan began building cruise ships for the international market, it suffered from the lack of expertise of local suppliers when it came to the interiors. For building cruise ships in China, the approach will be very different. “We want to keep our supply chain intact, so we want to use as much as possible European suppliers for this project,” Ferri said. “In the long-term there will be development with internal Chinese suppliers, but everything will be discussed with our Chinese partners. We want to build state-of-the-art ships, and we will decide on the suppliers case by case,” he continued. “We will investigate the opportunities and see if the quality is in line with international standards and the standards of the industry. Fincantieri will lead the development of the supply chain in China in collaboration with our partners.” There is no doubt, however, that one of Fincantieri’s interests is in being part of the supply business, particularly as it has its own companies which, for example, manufacture cabins. This takes us to the most recent agreements between the two nations: On May 31, Fincantieri signed a Letter of Intent with CSSC and with Shanghai’s district of Baoshan aimed at creating a cruise ship industrial park, which will benefit from the preferential economic policies of the Shanghai Free Trade Zone and China Cruise Tourism Development Experimental Zone. Ferri explained: “Baoshan is part of Shanghai and is where the cruise terminal is located. The idea is to develop this area and bring suppliers in to develop this industry. Baoshan will produce financial policies to support the industry, for example financing, easy visas for foreign workers and land for free—in other words, policies to attract foreign investors and suppliers to the industry.” For Fincantieri’s part, he said, “The reason for signing Baoshan is to develop a hub. Our interest is to monitor this development and to be a catalyst for our supply chain in China.” He added, however, that “it will also be possible that there can be development of local Chinese suppliers, which could have joint ventures with international suppliers.” Ferri was also keen to point out that when talking about production in China, it is important to remember that “all the major corporations are already here, for example Wartsila, which has factories here.” The SWS shipyard is also in Shanghai. The newbuildings are a specific project that Fincantieri will be leading with CSSC. At this early stage of development, Ferri – due to confidentiality reasons – did not want to unveil too many details, only saying that “I can guarantee that this is one of the activities where we will support our partner. We are discussing both the ship specification and all the activities needed to be done on the shipyard. The first delivery is 2023, so we still have time to plan in an effective way the activities.” Fincantieri will be moving a core team of Italian experts to Shanghai. “Our partners will have their own personnel, but led by us,” Ferri further noted. He also mentioned that in China, big things take time and this certainly is a major initiative for all involved. However, there is no doubting the Italian commitment to this groundbreaking agreement. “It is a long project, and we are here to stay. We will be taking all the steps carefully.” n The signing of the constructing of cruise ships in China took place in the presence of Italian President Sergio Mattarella and Chinese President Xi Jinping 52-54.indd 4 24.8.2017 8.10
Cruise Business Review 2/2017 55 ? SHIP REVIEW n EUROPE MSC Meraviglia SHIP FOR ALL SEASONS The MSC Meraviglia is the first of 11 ships in MSC Cruises’ €9 billion investment plan to expand its fleet between 2017 and 2026, and the first of two prototypes to be delivered this year. By Susan Parker MSC Meraviglia features a two-deck-high interior promenade with the longest LED Sky Screen at sea Ph oto cre dit : M SC Cr uis es 55-61.indd 3 18.8.2017 8.50
56 Cruise Business Review 2/2017 Valmet is a global supplier of automation and SOx scrubber technologies for the marine industry. Our Valmet DNA automation system provides maximum performance for your control and monitoring needs. With our innovative hybrid scrubber system you can ensure cost-e? cient and ? exible compliance with increasingly stringent environmental regulation. More than 40 years of marine innovation has taught us how to help you in navigating your business forward. Read more at valmet.com/marine Make a leap forward with Valmet’s automation and scrubber technologies C hristened by Sophia Loren in Le Havre on June 3, the MSC Meraviglia is now sailing a 7-night Mediterranean itinerary out of Genoa featuring six embarkation ports: Genoa, Naples, Messina, Valletta, Barcelona and Marseille. At the naming ceremony, Pierfrancesco Vago , Executive Chairman of MSC Cruises, said: “The new ships that we are building – between 2017 and 2020 alone we will receive six new ships – are purpose-built, featuring innovation in both product and design, as well as the very latest cutting-edge marine and consumer-facing technology to create unforgettable holiday experiences at sea for guests of all ages. MSC Meraviglia is the first to make this vision come to life, as it sets a new standard for cruise ships as a destination in itself.” This ship for all seasons was 26 months in construction at STX France in St. Nazaire. Design work began in 2013, and the first steel was cut in April 2015 following contracts being signed in March 2014. At 171,598 gross tons, she is made up of only 50 blocks (due to the use of the largest gantry crane in Europe with a capacity of 1,400 tons), 35,000 tons of steel and 9,000 tons of electronics. At 315 meters long and 19 decks high, maximum passenger capacity is 5,714. Advanced connectivity Making its debut on the MSC Meraviglia is “MSC for Me” interactive technology. To create “MSC for Me,” the line worked with 11 leading companies in the communications field including Deloitte Digital, Hewlett-Packard Enterprise and Samsung to develop what it calls a “holistic digital cruise experience.” The aim is to continually evolve, employing the latest technologies as they come on stream such as entertainment robots, voice-activated digital concierge, hologram performances and smart cabins. Daniele Bonaiuto , Chief Technology Officer of MSC, explained: “MSC Meraviglia is equipped with next-generation connectivity providing guests with fast, reliable access thus further enhancing key aspects of the onboard. Working with Marlink, a pioneer of business critical communication solutions for customers operating in remote environments, MSC Cruises provides dynamic bandwidth. No matter the itinerary of the ships, which touch nearly 183 ports across five continents, guests will receive continuous high-bandwidth global access.” The scale of the installation is aptly demonstrated by the following numbers: 16,000 points of connectivity; 700 digital access points; 114 interactive screens; 31 virtual screens in cabins; 81 video wall monitors; 2,244 cabins equipped with RFID/NFC access technology and iTVs; 3,050 Bluetooth beacons; and 1,200 onboard video cameras. Guests can still use a traditional cruise card to pay for services, but for example, facial-recognition technology detects passengers as they approach reception so the crew knows their needs, preferences, history with MSC and more in order to deliver more personalized assistance. Overall, the MSC Meraviglia provides passengers with more than 130 smart features to optimize their vacations. Just walking through the photo gallery, for example, enables a particular passenger’s photos and videos to be gathered. Passengers can try on clothes virtually, while crew members are equipped with personal tablets to help them anticipate passenger preferences. Groundbreaking entertainment When it comes to entertainment, MSC is breaking ground with an exclusive partnership with Cirque du Soleil. Eight original shows will be available on four Meraviglia-class ships. The 413-passenger Carousel Lounge was designed by the company together with architect Marco De Jorio of De Jorio International, which coordinated all the spaces, to cater to the unique needs of the entertainment. “Just the equipment for Cirque – just the technology and rigging for the show to take place – cost €15 million,” Vago told Cruise Business Review. Six different shows per cruise, with three showings each day, are staged in the 1,000-square-meter, 985-seat Broadway Theatre. Unique in the industry is the 80-meter LED sky above the indoor promenade, Galleria Meraviglia, which creates different atmospheres throughout the day within the social center of the ship. Meanwhile, the MSC Yacht Club ship-within-a-ship concept has been taken to new heights, featuring 95 suites, 24-hour butler service, an exclusive treatment room ? MSC Meraviglia is a regular caller in Valletta. It's also registered under the Maltese flag Pierfrancesco Vago 55-61.indd 4 18.8.2017 8.50
Valmet is a global supplier of automation and SOx scrubber technologies for the marine industry. Our Valmet DNA automation system provides maximum performance for your control and monitoring needs. With our innovative hybrid scrubber system you can ensure cost-e? cient and ? exible compliance with increasingly stringent environmental regulation. More than 40 years of marine innovation has taught us how to help you in navigating your business forward. Read more at valmet.com/marine Make a leap forward with Valmet’s automation and scrubber technologies 55-61.indd 5 18.8.2017 8.50
58 Cruise Business Review 2/2017 TH E B ES T GU AR AN T E E T H E MAR KET CA N O FF E R Quality & Service Guarantee DOBEL® Metalcolour Sverige AB Emaljervägen 7 SE-372 30 Ronneby Phone: +46 457 781 00 info@metalcolour.com Metalcolour A/S Agrovej 6 DK-4800 Nykøbing F. Phone: +45 5484 9070 info@metalcolour.com Metalcolour Asia Pte Ltd 17 Tuas Avenue 4 SG-639368 Singapore Phone: +65 9030 5157 info@metalcolur.com DOBEL® F 105 For Exclusive Interior Design Freedom in design. Imagine a product so strong that it can be bent, stretched, stressed and used for years without any loss of performance or looks. DOBEL® F 105 allows designers to be creative in form while retaining the functional properties. The combination of metal properties (strength and shapeability) together with design properties in foils gives a versatile material applicable to many areas of use. DOBEL® F 105 is Approved according to IMO. www.metalcolour.com K L A SI FI E D .s e M AY 2 01 7 pnr3004-annons_halvsida_Cruise Business Review_2juni_MC_infor.indd 1 2017-05-30 11:19 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 Asia in the 1,100-square-meter Balinese MSC Aurea Spa, a private pool and solarium on the top deck and a 130-seat private restaurant. Altogether, there are 12 dining venues including a modern American steakhouse concept in Butcher’s Cut, Kaito Teppanyaki, Ristorante Italiano and Eataly Food Market as well as the 3,550-square-meter Marketplace Buffet, which provides fresh and authentic food 20 hours a day. Chocoholics can head to Jean-Philippe Maury Chocolat & Café, which features an open-fronted chocolate atelier. Shopping onboard is offered in 700 square meters of retail space, which houses 10 boutiques and 180 brands. Onboard for the first time are Gucci jewelry, Calvin Klein clothing and Lancome makeup and skincare. There are two retail ambassadors and eight specialists to help passengers make retail choices. In the spa, MSC for the first time offers a thermal experience plus 30 different facials. Passengers of all ages can choose from four pools. For kids, there are three waterslides and seven children’s areas, including dedicated Chicco and Lego rooms. More than 80 shore excursions ashore are offered. Doing things ‘the MSC way’ When it comes to product delivery, whether front or back of house, Vago said he believes the secret to success lies in “controlling delivery from A to Z.” He explained that the company does not use third parties, but rather enters into partnerships to ensure that everything is done the MSC way. This is a company that is reluctant to give away too many details about its innovative technologies. However, some of those involved with the newbuilding shared some of the details with CBR. Sergio Castellano , Environmental Director of MSC, began by saying that black and grey waters are processed in an approved advanced wastewater treatment plant from Scanship, with more than two full days storage. “All the freshwater needed onboard is produced thanks to two evaporators [Wartsila Serck Como] and two reverse osmosis plants [Peter Toboada],” he explained. “In normal operating conditions, the ships will not require to take water from shore water stations. The highly-efficient evaporators are completely pollution-free. They use a system of free heat recovery as their power source.” For waste management, the ship is equipped with garbage incinerators, pulpers, grinders and compactors for garbage processing, also from Scanship. Hazardous garbage (noxious, toxic or flammable) is collected in suitable containers or, if bulky, stored in dedicated areas and gathered in homogeneous groups, away from non-compatible products. Other types of garbage are delivered to port facilities authorized for garbage reception. Disembarking of special, toxic or noxious garbage is done according to the law to authorized garbage handling companies. Commitment to recycling All garbage picked up is recorded in a garbage record book and its offloading is certified by a MARPOL delivery receipt. The environmental officer onboard makes sure that all staff has full training on how to proceed in the organization of garbage disposal, with particular reference to their own task. “Recycling and its consequent effect on environmental safety and responsibility are extremely important to MSC,” Castellano said. “On our ships, up to 95% of the waste produced is separated and available for recycling.” When it comes to ballast water, Castellano said that “MSC Meraviglia was built with foresight to be compliant with certain rules and regulations that we anticipated, but which were not at the time of building in place. We worked on our ships thinking of possible future regulations, which is why our ballast water management system installed on the ship complies with the last IMO guidelines aimed at minimizing avoiding the transfer of harmful aquatic organisms and pathogens to the water.” ? Butcher's Cut steakhouse Atrium Marketplace Buffet 55-61.indd 6 18.8.2017 8.50
TH E B ES T GU AR AN T E E T H E MAR KET CA N O FF E R Quality & Service Guarantee DOBEL® Metalcolour Sverige AB Emaljervägen 7 SE-372 30 Ronneby Phone: +46 457 781 00 info@metalcolour.com Metalcolour A/S Agrovej 6 DK-4800 Nykøbing F. Phone: +45 5484 9070 info@metalcolour.com Metalcolour Asia Pte Ltd 17 Tuas Avenue 4 SG-639368 Singapore Phone: +65 9030 5157 info@metalcolur.com DOBEL® F 105 For Exclusive Interior Design Freedom in design. Imagine a product so strong that it can be bent, stretched, stressed and used for years without any loss of performance or looks. DOBEL® F 105 allows designers to be creative in form while retaining the functional properties. The combination of metal properties (strength and shapeability) together with design properties in foils gives a versatile material applicable to many areas of use. DOBEL® F 105 is Approved according to IMO. www.metalcolour.com K L A SI FI E D .s e M AY 2 01 7 pnr3004-annons_halvsida_Cruise Business Review_2juni_MC_infor.indd 1 2017-05-30 11:19 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 Asia 55-61.indd 7 18.8.2017 8.50
60 Cruise Business Review 2/2017 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 Lighting has long been a topic of extra focus for the industry, and MSC is no exception. “Energy-saving innovative technology is available in the cabins, which is able to save energy and to reduce greenhouse gas production. It’s a very simple system that automatically switches everything off [such as the main light, bathroom light, socket-outlets and hair dryers] whenever the cabin is empty. Energy-saving technology is also installed in public areas with relevant and significant saving,” he said. LED light technology has replaced traditional incandescent lighting, with relevant low absorption and reduction of heat emission. Air-conditioning in all cabins is regulated by a cabin monitoring system, which allows passengers to set their own cabin temperature. “This system prevents centralized air-conditioning control, resulting in a dramatic reduction of energy waste,” Castellano noted. The chillers produce cold water for the nil-CFC air-conditioning plants. CFCs are ozone depletion substances. “During normal operation, one of these units will always be on standby, while dedicated software will distribute the load over the remaining four machines for use at optimum operating conditions.” Waste heat recovery is also deployed. Both high-temperature recovery loop and low-temperature recovery loop systems are able to convert the waste heat coming from the DD/ GG cooling water into energy for the production of potable water, to heat pool water and to produce hot water for various other uses. “Another system is the exhaust gas recovery boiler, which is able to convert the energy of the DD/GG exhaust gas in steam for various users,” Castellano concluded. Efficient hull design CBR’s further questions about the MSC Meraviglia’s design were answered by Guillaume Lagree , Naval Architect at STX France. In terms of her hull design, tank tests were performed in CEHIPAR in Madrid after CFD optimization of hull shape, stabilizer/bow thruster opening size and positions. “The design was achieved after the performance comparison of 170 hull shapes and 30 different bulbous bows,” he said. “At the end of the process, the hull efficiency is equivalent to Fantasia-class, but with a ship 20% bigger.” The configuration of the main engines was selected “in order to be able to operate the ship on three engines only [one in spare] at operational speed on a load of 85%,” he continued. There are two 16V46F and two 12V46F Wartsila main engines, with each cylinder producing about 1mW, and two Wartsila hybrid scrubbers with both openand closed-loop modes – one for each engine pair of 12V and 16V. The two Azipods of 20mW were supplied by ABB with a 5-blade fixed-pitch propeller of about six meters in diameter, which was specifically designed for the ship. In total, there are 7,250 LSAs (life-saving appliances) made up of two MES stations, four tender boats, 14 lifeboats and two combination life/rescue boats. Lifejackets are directly accessible in the muster stations, which are located in the ship’s interior public spaces. Passengers are counted with handheld devices. Bridge equipment including radar, ECDIS, weather routing and bridge wing control was supplied by SAM Electronics. Future deliveries Work is already underway on the second ship in the class, the MSC Bellissima, for delivery in 2020. In addition, there are two MSC Meraviglia-Plus ships on order for delivery in 2020 and 2022. These are estimated to register 177,100 gross tons and carry 6,297-passengers. With MSC’s long history of building in France and now also in Italy, CBR asked Vago about the differences. “France, in a way, has been easier, as we have created a relationship over 15 years. We have established an office working alongside the suppliers, the growth is together, and we have become one sole operating machine. Italy has been interesting, as it is a totally different approach. They have a wider mindset that allowed us to learn about each other very well and to design together the first prototype built by Fincantieri [MSC Seaside] for a long time.” He pointed out that the two companies had worked together before on dry dockings, so there was already an understanding. “The Italians have an incredible flair for design, with a long history of industrial shipping, which allowed us to catch up with and bond in a very short time.” n Polar Aquapark Sky Lounge 55-61.indd 8 18.8.2017 8.50
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 www.hobartglobalmarine.com Ensuring the enjoyment of your guests Strong brands. Trusted products. Quality that lasts. 55-61.indd 9 18.8.2017 8.50
64 Cruise Business Review 2/2017 Panels and furniture As Nurmela is the first to admit, Paattimaakarit’s aluminum-laminated panel walls are ideal for ship interiors. “It is a simple, basic product, but we have flexible, fast delivery for those A fter 30 years of making panels, wood products and furniture for ships and shore use, both indoor and more importantly for all outdoor conditions, Paattimaakarit knows something about its business. But now, it has developed a new proprietary technology for improving natural wood that is both green and effective. “Our main business sector is cruise ships, but this has also helped us ashore too. The processed wood business began mid-2016, and it has been well received by the market because we use wood not from the rain forFinnish wood process: Hard, green and sustainable this wood’s usage ending soon due to illegal logging and bans by the EU. “It will be impossible to procure one day, so problems are solved by replacing teak and other tropical hardwoods with processed wood and still have wooden decks that look the same. Some types work better than others, like oak, birch and ash. I can say nothing is used except the process and wood, unlike rival products.” Hardness is important for www.paattimaakarit.fi advertorial Deck floorings of Liberty of the Seas are able to withstand tough conditions Reference list of Paattimaakarit include the new Norwegian Joy of Norwegian Cruise Line who need them fast, and we have ironed out quality issues such as surface bubbling caused by moisture. We have met all order specifications, but maybe European users are unaware of our price-quality combination, which is known and used in Meyer Turku and Papenburg. So we are trying to break into Norway and other major passenger shipbuilding markets, as they do a lot of added-value projects. The larger the ship, the greater the volume of these thin, light panels that meet all regulations for turnkey subcontractors.” Paattimaakkarit has supplied its product range to many cruise companies including Royal Caribbean International, Norwegian Cruise Line, Crystal Cruises and Celebrity Cruises, with TUI Cruises being the latest. It has delivered to ferry operators as well. Outdoor sun decks are showrooms of its furniture. “Weatherproofing is of value outside, which our wood and products have. Handrails, terraces, decks and floorings are able to withstand conditions that our competitors cannot match, with a green factor they cannot state,” Nurmela sums up clearly. est, but from normal sustainable European forests. This process has succeeded with some varieties, greatly increasing hardness, strength and water resistance,” states Sami Nurmela, Paattimaakarit’s CEO. The company’s name is Finnish for “ship masters,” whose expertise now includes environmental awareness. The process uses no chemicals or toxins or other additives to achieve the final results, which can be tailored to the specific needs of the customers (who are mainly shipyard subcontractors), and it was born of the old saying “necessity is the mother of invention.” Although Paattimaakarit has delivered over 20,000 square meters of teak decks for use aboard cruise ships, Nurmela sees Wood surfaces bring an organic touch to the elevator lobbies of the Mein Schiff 6 flooring where people walk with shoes – Nurmela cites pointed high heels as being particularly bad – that can scuff the surface and leave permanent or lasting marks. “The hardness is vital, although durability and strength matter too. In the internationally accepted Brinell test, which tests surface hardness, our Waurum-brand processed ash wood increased the natural value by 25% or more than the natural timber’s value.” For more information, a graph can be seen on the company website. Another graph shows the extraordinarily low water-absorption rate of Waurum too. “If the wood is hard, there is less air inside and thus less able to absorb water,” Nurmela concludes. Ph ot o cr ed it: M ik e Lo ua gi e Ph ot o C re di t: K al le ID paattimaakarit.indd 1 20.7.2017 17:01:23 W hile the €25 million profit for 2016 is impressive compared to the difficulties faced when the Turku yard was owned by STX Europe, Jan Meyer takes a pragmatic view of the subject. “We can’t run the business unINTERVIEW n SHIPBUILDING JAN MEYER ON THE FUTURE OF MEYER TURKU CHINESE-BUILT CRUISE SHIPS ONE STEP CLOSER Meyer Turku's CEO Jan Meyer had plenty of reasons to be pleased at the delivery of the Mein Schiff 6: The yard had successfully completed another state-of-the-art ship, could boast of a thick orderbook extending far into the future and had just reported a 66% growth in profit for 2016 over 2015. KALLE ID spoke with Dr. Meyer about the future of the shipyard. less we are at least reasonably profitable. I think it’s an important thing that we changed when we came here. We put the whole business on an economically viable footing. There was a lot of talk in the past, [asking] if this is a healthy business? And yes, we can run it as a healthy business. That's what we are doing now, and we need to show it. It’s important for everybody involved – [particularly] the banks and our customers – that they can see that this is a business that actually works and is stable and carries us to the future,” he said. Historic orderbook Since the takeover by Meyer, the Turku yard has attained the longest orderbook in its history, stretching until 2024. While this has been achieved in part thanks to the continued steady growth of the cruise industry, Meyer pointed out that four factors have aided Meyer Turku in securing these contracts: Product quality, high level of technology, dependability of delivery times and good value for the money. These have been made possible by highly industrialized production processes relying heavily on pre-production. “The cabins, for example, come from a big assembly line as a totally industrial product,” Meyer said. “It would otherwise not be easy to manage up to 2,000 cabins – or really 2,000 small construction sites – onboard. To be able to execute the project on time and [with the required] quality, we need industrial production and industrial quality.” At the same time, the thick orderbook gives Meyer Turku the chance to invest in increasing capacity. “We found that we really need to rebuild this shipyard and replace a lot of the existing machinery. We have now an investment program that exceeds €100 million in Turku alone.” While the neglect of the previous owners is a challenge, Meyer said, “it’s also chance for us to rebuild [for] the future [and] create state-of-the-art production facilities here in Turku.” In addition to new machinery, the company also needs more workers from a variety of fields. Currently, Meyer Turku and its subcontractors employ some 7,000 workers, but this will increase to 20,000 in the next decade. With personnel, too, quality is the key. “It’s never easy, [but] for us the highest focus is to find the best people,” Meyer said. The increase in production capacity means that while Meyer Turku's orderbook extends until 2024, it can offer customers building slots before that date if needed. Expertise with LNG Although the orderbook currently consists entirely of cruise ships, the company is keen to stay in the ferry market. “Tallink’s Megastar was a very successful delivery for us,” Meyer noted. “It has very good fuel efficiency, and it’s one of the few LNG-powered ships out there. With LNG we have, at the moment, a technological edge. It was a very low vibration ship, very low noise, very high passenger comfort. These are plus points for us.” In the future, Meyer Turku’s experience with LNG fuel will not be limited to just ferries. “We will be building the first series of LNG-powered cruise ships [for Carnival Corporation & plc] as a collaboration between Papenburg and Turku,” Meyer explained. “We are also developing fuel-cell technology for use onboard.” Historically, research and development has been a key to the success of Finnish shipyards, and this will continue in the future. “We very clearly understand that to be competitive, we need to be able to offer something that others cannot offer. That has been always our forte. In the Finnish environment and the Finnish cost level, we simply can't be the cheapest. That's why we need to be the best and the most innovative. The long orderbook gives us a unique possibility building on this and developing new technologies for the long run.” With the heavy investment in the Turku yard, Meyer has at the moment no plans for growth by acquiring additional shipyards. “We want to concentrate on these three shipyards [Meyer Turku, Meyer Werft in Papenburg and Neptun Werft in Rostock]. I think we have a good basis to build our future there,” he concluded.n Ph oto cre dit : Jo hn Pa gn i Jan Meyer 64-65 .indd 2 18.8.2017 8.53
Panels and furniture As Nurmela is the first to admit, Paattimaakarit’s aluminum-laminated panel walls are ideal for ship interiors. “It is a simple, basic product, but we have flexible, fast delivery for those A fter 30 years of making panels, wood products and furniture for ships and shore use, both indoor and more importantly for all outdoor conditions, Paattimaakarit knows something about its business. But now, it has developed a new proprietary technology for improving natural wood that is both green and effective. “Our main business sector is cruise ships, but this has also helped us ashore too. The processed wood business began mid-2016, and it has been well received by the market because we use wood not from the rain forFinnish wood process: Hard, green and sustainable this wood’s usage ending soon due to illegal logging and bans by the EU. “It will be impossible to procure one day, so problems are solved by replacing teak and other tropical hardwoods with processed wood and still have wooden decks that look the same. Some types work better than others, like oak, birch and ash. I can say nothing is used except the process and wood, unlike rival products.” Hardness is important for www.paattimaakarit.fi advertorial Deck floorings of Liberty of the Seas are able to withstand tough conditions Reference list of Paattimaakarit include the new Norwegian Joy of Norwegian Cruise Line who need them fast, and we have ironed out quality issues such as surface bubbling caused by moisture. We have met all order specifications, but maybe European users are unaware of our price-quality combination, which is known and used in Meyer Turku and Papenburg. So we are trying to break into Norway and other major passenger shipbuilding markets, as they do a lot of added-value projects. The larger the ship, the greater the volume of these thin, light panels that meet all regulations for turnkey subcontractors.” Paattimaakkarit has supplied its product range to many cruise companies including Royal Caribbean International, Norwegian Cruise Line, Crystal Cruises and Celebrity Cruises, with TUI Cruises being the latest. It has delivered to ferry operators as well. Outdoor sun decks are showrooms of its furniture. “Weatherproofing is of value outside, which our wood and products have. Handrails, terraces, decks and floorings are able to withstand conditions that our competitors cannot match, with a green factor they cannot state,” Nurmela sums up clearly. est, but from normal sustainable European forests. This process has succeeded with some varieties, greatly increasing hardness, strength and water resistance,” states Sami Nurmela, Paattimaakarit’s CEO. The company’s name is Finnish for “ship masters,” whose expertise now includes environmental awareness. The process uses no chemicals or toxins or other additives to achieve the final results, which can be tailored to the specific needs of the customers (who are mainly shipyard subcontractors), and it was born of the old saying “necessity is the mother of invention.” Although Paattimaakarit has delivered over 20,000 square meters of teak decks for use aboard cruise ships, Nurmela sees Wood surfaces bring an organic touch to the elevator lobbies of the Mein Schiff 6 flooring where people walk with shoes – Nurmela cites pointed high heels as being particularly bad – that can scuff the surface and leave permanent or lasting marks. “The hardness is vital, although durability and strength matter too. In the internationally accepted Brinell test, which tests surface hardness, our Waurum-brand processed ash wood increased the natural value by 25% or more than the natural timber’s value.” For more information, a graph can be seen on the company website. Another graph shows the extraordinarily low water-absorption rate of Waurum too. “If the wood is hard, there is less air inside and thus less able to absorb water,” Nurmela concludes. Ph ot o cr ed it: M ik e Lo ua gi e Ph ot o C re di t: K al le ID paattimaakarit.indd 1 20.7.2017 17:01:23 64-65 .indd 3 18.8.2017 8.53
66 Cruise Business Review 2/2017 S itting in the “cockpit” (as Captain Kjell Holm calls it) of the newly delivered ms Mein Schiff 6 is a majestic experience and gives the landlubber a sense of power that can only come from being at the controls of a modern, large cruise ship. “This cockpit was planned for our type of operation and working with two officers on the bridge,” Holm said, as he started his lesson on the use and layout of the main bridge control panel. The first noticeable difference between Holm’s bridge and those aboard other cruise ships is the boomerangshape with a bar from the middle that connects to a lectern behind, which INTERVIEW n MARINE OPERATIONS NEW BRIDGE DESIGN INCORPORATES HUMAN FACTOR TUI Cruises fleet and startup captain Kjell Holm, talked to JOHN PAGNI about the bridge he has created that takes into account human error, with the intention of minimizing a major cause of maritime accidents. overlooks the controls in front and has a clear view ahead. The vertical inside of the boomerang is covered in screens, while control joysticks, toggles and finger-control balls along with lights and other instrumentation are just in front on the horizontal level. “We work with two bridge officers, one on either side [of the T-bar]. The one on the left is actually navigating the ship [the Conning Officer], while on the right is the co-pilot [Co-Navigator]. The Conning Officer on the left thinks aloud by speaking out his observations and intentions, which is checked and repeated by the Co-Navigator and then acknowledged by the Conning Officer – a closedloop communication,” Holm explained. “This way, every alteration is verified by a two-person check.” Designed to reduce human error The reason for this setup is both simple and logical: To avoid human error, which is a common cause of accidents in transportation. “We must acknowledge that, and build up a way of operation to detect mistakes before they become accidents,” Holm stated. Many (but not all) cruise ships have two officers on the bridge, and most cargo vessels have only one officer on the watch. “With one officer on watch, a secondary check can’t be performed; therefore, this bridge is designed and operated by a minimum of two officers at all times,” Holm said. “Secondly, the officers sit at a low level as if they were at a work desk,” he continued, “which is an ergonomic way of Iveta Apkalna, the Godmother of Mein Schiff 6 and Captain Kjell Holm on the bridge on June 1, 2017 in Hamburg, Germany Ph oto cre dit : Fr an zis ka Kr ug /G ett y Im ag es for TU I Cr uis es 66-67 .indd 2 22.8.2017 7.54
Cruise Business Review 2/2017 67 sitting. They are at the same level, with the [T-bar] panel in the middle slightly lower; when bringing the hand to the side, the motion is also slightly downwards, making handling of controls natural. Both the Conning Officer and the Co-Navigator are able to reach the controls comfortably without leaving their seats. As the center console is relatively small for reachability reasons, all controls are not able to fit in, thus a roof console was installed for those controls that are needed in the cockpit but not often used in daily operation. As an example, the thrusters start and stop is placed in the roof console,” Holm noted. Seating according to duties The seats are specific to the officer’s duties. The Conning Officer is seated on the left side, having all the data he needs such as engine information, while the right side is for the Co-Navigator, who has access to all alarms via a multifunction screen. With this arrangement, both officers can remain at their positions and do not need to stand up for verifying alarms. “The officers should sit in their positions, as moving around makes them lose their focus. We don’t jump between the two front seats of the car while driving,” Holm reasoned. Not that the bridge rules are inflexible. “The two officers can change position as Conning Officer,” Holm continued. “Responsibility, however, always remains with the OOW [Officer Of the Watch]. We also define different levels of alert with a traffic-light sign. Green means a normal operation. Yellow means an elevated alert, for example during high traffic or in foggy conditions. Red means high alert, such as port entries and very narrow waters. For each condition, we have a specified elevated bridge manning. In both yellow and red conditions, we close the bridge to all personnel who are not involved in navigational duties. Additionally, we only accept emergency calls. The focus is given to safe navigation.” All functions have a redundancy. Steering is normally handled by an advanced automatic system, which by the press of a button can be transferred to manual steering or to the helmsman. Holm then pointed out the angles that assist vision. “The cockpit is also planned for an uninterrupted view of up to 210 degrees; all window frames fall into one line preventing dead angles.” Lastly, there is the lectern behind the two sitting navigators – or the “jump seat,” as Holm calls it – for elevated bridge manning at the end of the T-bar. “This is for the pilot and a senior officer, who can communicate together giving input to the cockpit navigators in front, where the execution of orders takes place,” Holm explained. During his interview with CBR, Holm clearly took pride in this new bridge arrangement. “It is my design, and the TUI Cruises-standard on all six newbuilds Mein Schiff 1 through 6,” Holm said. However, if there is a downside, it is that this new bridge design makes many training simulators out of date. This, of course, can be rectified and is not vital, as training on the new “Holm Bridge” is easy in practice. In addition to giving considerable thought to the bridge crew’s practical performance, Holm has taken into account the crew’s thought process as well. “We want to minimize human error, and onboard we work as a team – but nobody is perfect, we all make mistakes. That is why I seldom sit in the Conning Officer’s seat,” he half-joked. “Closest I get is in the Co-Navigator’s seat, but normally I am behind [in the jump seat]. There, I have an overview and give my input,” he said. “It is a much bigger step for a junior officer to challenge me than for me to challenge him or her, which is why I am not often in the Conning seat. It is the human factor, again,” Holm summed up. n Mein Schiff 6 was named in Hamburg on June 1, 2017 66-67 .indd 3 22.8.2017 7.54
Cruise Business Review 2/2017 69 ? Innovation & Technology meyerwerft.com SHIP REVIEW n ASIA NORWEGIAN JOY ELEVATES BREAKAWAYPLUS PLATFORM NORWEGIAN JOY ELEVATES BREAKAWAYPLUS PLATFORM Norwegian Cruise Line is the latest major cruise company to enter the China cruise market. Unlike some competitors that have deployed older tonnage, Norwegian redesigned its latest newbuilding platform to better suit Asian passengers. The result provides exhilarating new activities, more family friendly accommodations and food and beverage options geared toward the Asian palate. Many of the new features and especially the new layout will be retained on the Norwegian Bliss, which will be introduced next spring in Alaska and afterwards in the Caribbean. By Teijo Niemelä 678 Atrium Ph oto cre dit , all ph oto s: No rw eg ian Cr uis e Li ne an d Te ijo Ni em elä 68-77 .indd 3 1.9.2017 7.17
70 Cruise Business Review 2/2017 N orwegian Cruise Line Holdings Ltd. has ordered four Breakaway-Plus newbuildings from Germany’s Meyer Werft. At approximately 167,725 gross tons each, their additional tonnage compared to the original Breakawayclass ships comes from the vessels’ greater width and extra decks. The first of the refined class, the 165,157 gross ton ms Norwegian Escape, was delivered in fall 2015. At the same time, a decision was made to reconsider the second ship in the Breakaway-Plus series. Instead of naming it the ms Norwegian Bliss, NCL initiated a redesign process and renamed the newbuild as the ms Norwegian Joy. It was a last-minute decision to carry out the rather massive redesign of the vessel, and also a bold move from Norwegian Cruise Line to dedicate its newest and largest vessel to the China market. Previously, Royal Caribbean International had introduced two new ships in the Chinese market, but the design changes had been more minimal. Bernard Meyer, Managing Partner of Meyer Werft, said the change in plans at such a late date was a challenge for everyone in the construction process. As seen in the end result, the Norwegian Joy does not just feature new colors, signing or restaurant concepts, but in some cases a complete reconfiguration. For example, the entire Lido Deck was “turned around” and the Lido Cafe located aft was moved forward replacing the spa, which in turn was moved aft, but in a much smaller version. This allowed the designers also to introduce the new Galaxy Room, with virtual-reality activities including bumper cars and real Williams Formula 1 car. Manhattan Restaurant 68-77 .indd 4 1.9.2017 7.17
www.antti-teollisuus. | tel. +358 2 774 4700 The guests and crew sleep exceptionally well behind our doors, which are the quietest on the market. They are also safe, stylish and of high quality. ANTTI doors guarantee that you wake up refreshed and ready for the new day on all the oceans of the world, from deluxe cruise ships to offshore applications. According to David Herrera , President of Norwegian Cruise Line Holdings China, “We wanted to have unique experiences on our ship. We use these to get people to get excited on our ship. Our tagline in China is ‘First Class At Sea.’ Norwegian Cruise Line started to work with the local travel agents and other stakeholders very early,” he added. It is really an on-going process to nurture the travel agent community in China, where cruise ship inventories are sold to travel agent groups, rather than directly to individual passengers. To better reach customers in the Chinese market, NCL in May partnered with the Chinese e-commerce conglomerate Alibaba Group. Year-round in China The Norwegian Joy is one of three brand-new ships to enter the China market this year. Delivered on April 27, the vessel sailed empty to China, where inaugural activities took place in Shanghai on June 27. Meanwhile, Princess Cruises took delivery of its 144,126 gross ton ms Majestic Princess in April – the first newbuild tailored to China by Carnival Corporation – but deployed ? Le Bistro 68-77 .indd 5 1.9.2017 7.17
72 Cruise Business Review 2/2017 No limits Cruise decks Our innovative mindset makes us freerunners in heart and soul; when appropriate or necessary, we push the envelope of our competencies. After all, what matters in the end is the result: the perfect deck that meets the highest standards in terms of functionality and durability. Bolidt decks are sound-insulating, wear-resistant, non-skid, lowmaintenance and colourful. Bolidt, no limits. www.bolidt.com/cruise-ships CruiseBusinessReview_Juli.indd 1 5-7-2017 10:44:06 the vessel first in European waters before repositioning it to China. Subsequently, Princess Cruises has scaled back future Majestic Princess seasons in China, deciding to move the ship to Australia for the southern hemisphere summer season in 2017-18, adding one long roundtrip voyage (two sailings) from China to Singapore, and announcing a season out of Keelung, Taiwan, in 2018. On the other hand, as of August 2017, Norwegian has committed to deploy the Norwegian Joy in China yearround. During the ship’s delivery, NCL President and CEO Andy Stuart mentioned that much shorter booking patterns in Asia have caused some nervousness, as committing the company’s newest and largest ship to a completely new market is a tremendous investment. Nevertheless, NCL has selected Shanghai-Baoshan as its primary base port for the Norwegian Joy, except for a short stint from August 22 to September 15, when the Norwegian Joy was scheduled to operate from Tianjin. Asia-focused design Despite the bold move to enter the Chinese market with brand-new tonnage, Norwegian Cruise Line used experienced design companies. Co-incidently, both SMC Design of UK and Tillberg Design of Sweden are no strangers in Asia. Both have been involved in Star Cruises first new builds to Asia, the ms SuperStar Leo and ms SuperStar Virgo. These ships were the first cruise ships designed around the ‘Freestyle Cruising’ concept which is now the hallmark of Norwegian Cruise Line (Star Cruises parent company is former major shareholder of Norwegian Cruise Line). Norwegian Joy offers up to 28 different dining choices. As many of the signature restaurants return to Joy they have been tweaked for an Asian taste. Complimentary dining rooms include the Manhattan Room aft of the Deck 7 providing large windows to the ship’s wake. Unlike on the previous near sister ships, the large dance floor has been eliminated and related with more seating capacity. The menu is both Chinese and Western. Meanwhile, the two other complimentary dining rooms – Savor and Taste on Deck 6 offers either creative Chinese or traditional Chinese menus. From the signature specialty restaurants, Norwegian Joy features Cagney’s Steakhouse, La Cucina Italian Restaurant and Le Bistro French Restaurant. Le Bistro was moved from Deck 6 to Deck 8, where the Whisky Bar is located on the ? American Diner Concierge Class cabin Joy Tea Room overllooking the reception area 68-77 .indd 6 1.9.2017 7.17
No limits Cruise decks Our innovative mindset makes us freerunners in heart and soul; when appropriate or necessary, we push the envelope of our competencies. After all, what matters in the end is the result: the perfect deck that meets the highest standards in terms of functionality and durability. Bolidt decks are sound-insulating, wear-resistant, non-skid, lowmaintenance and colourful. Bolidt, no limits. www.bolidt.com/cruise-ships CruiseBusinessReview_Juli.indd 1 5-7-2017 10:44:06 68-77 .indd 7 1.9.2017 7.17
Custom Lighting & Services kalmarlighting.com Custom Lighting & Services kalmarlighting.com Testas 02.indd 1 03/07/17 23:48 74 Cruise Business Review 2/2017 Norwegian Escape. Le Bistro offers now also the outdoor seating on The Waterfront. The Brazilian Churrascaria has been replaced with the new Neptune’s Seafood Restaurant serving both Asian and Western cuisine. There is also emphasis on high-end Asian dining options: new Sakura & Hibiscus on Deck 6 offers Korean Barbecue and Chinese Hot Pot and Teppanyaki serving Japanese cuisine returns as well. There are also Noodle Bar and American Diner on the Deck 17, where Video Arcade and Jimmy Buffet’s Margaritaville are located on the Norwegian Escape. Meanwhile, on the Norwegian Bliss, Le Bistro will move where the Noodle Bar is on the Joy. Food Republic serving Asian fusion cuisine and where orders are made from tablets, returned on Joy as well. As far as the bars are concerned, they are not a large revenue sources in Asian market. Norwegian Joy features two tea rooms: the larger, surrounding the atrium above the reception area houses now Joy Tea Room, whereas on the other Breakaway-class ships the area is a signature O’Sheehan’s. Second tea room, called The Grand Tea Room serves traditional English High Tea and is on the location of the District Brew House found on the Norwegian Escape. There are also a greater focus on retail with a devoted space of 900 square meters. The boutiques include brands, such as Cartier, Omega, Bvlgari, Ferragamo and Versace. On Deck 7 – on the location of former O’Sheehan’s and opposite of the Joy Tea Room there is an open Joy Market selling gourmet food, cigarettes, liquor and electronic gadgets. Retail area on the portside of Deck 8 has also replaced the wine bar on the 678 atrium, thus also eliminating the outdoor bar on The Waterfront – sadly, The Waterfront has became rather un-sed real estate on the Joy. Upper decks re-configured The largest re-configuration has taken place on upper decks, namely from 15 to 19. A welcome change is the re-location of the Garden Cafe – an expansive buffet restaurant – from aft to forward, thus offering highly-sought forward views for the passengers. A new feature below is the Concierge Lounge, which offers lounge and dining options for the guests of new cabin category. On the Bliss this room will be the new Observation ? Serenity Park Serenity Park VIP Casino 68-77 .indd 8 1.9.2017 7.17
NORWEGIAN JOY MAIN PARTICULARS Built Meyer Werft GmbH, Papenburg, Germany Owner Breakaway Four, Ltd. (NCLH) Operator Norwegian Cruise Line Base port Shanghai and Tianjin, China Maiden voyage June 2017 Country of registry Bahamas Classification society DNV GL Length, o.a. 335.46 m Breadth 41.4 m Draught 8.7 m Gross tonnage 167,725 gross tons Diesel engines 3 x MAN Diesel 12V48/60B/CR 2 x 14V48/60B/CR Propulsion pods 2 x Azipod Propulsion power 41,000 kW Maneuvering thrusters 3 x Brunvoll FU115 Speed, max 23.4 knots Passengers, double occupancy 3,883 Crew approx. 1,821 BRUNVOLL AS 6422 MOLDE TUNNEL THRUSTERS AZIMUTH THRUSTERS LOWNOISE THRUSTERS BRUCON THRUSTER CONTROL SYSTEMS TRUSTED WORLD WIDE PROPULSION MANOEUVRING & POSITIONING Brunvoll has extended its product portfolio and offers complete systems for BRUNVOLL VOLDA AS 6100 Volda BRUNVOLL MAR-EL AS 3880 Dalen www.brunvoll.no BruCon Control, Alarm & Monitoring Systems BRUNVOLL Retractable Azimuth Thrusters BRUNVOLL Tunnel Thrusters BRUNVOLL VOLDA Reduction Gears & CP / FP Propellers BRUNVOLL Azimuth Thrusters BRUNVOLL Rim-Driven Thrusters BRUNVOLL VOLDA Thorque Reduction Gears & CP / FP Propellers Direct Electric Drive Propellers with Rudders Tunnel Thrusters Azimuth Propulsion Units Retractable Azimuth Thrusters Retractable Combi Azimuth Thrusters Control, Alarm and Monitoring Systems BRUNVOLL MAR-EL Remote Control System Phone: +358 20 741 7255 E-mail: engineering@watman.fi www.watmanengineering.fi WatMan designs, manufactures and installs desalination RO systems with best fresh water quality and highest energy efficiency in the market for new building and retrofit projects. watman.indd 1 19.7.2017 09:30:33 Lounge, which lacks from other Breakaway ships. The Haven, which is Norwegian’s ‘ship in a ship’ concept has also gained its private two-deck Haven Observation Lounge, which also overlooks the Garden Cafe a deck below. As Asians are no sun worshippers, Norwegian went on extra length to create new, unordinary outdoor areas. Serenity Park replaces the traditional sun deck/pool area, although it still offers pool and jacuzzis and dedicated children’s pool area. Traditional outdoor flooring has been replaced with artificial lawn and trees, and an end result is really good. However, if the ship would move to the Western market, this area would require changes. A true novelty on a cruise ship is the 240-meter long, two-deck race track located aft of the ship and replacing the ropes course found on the previous vessels. There are ten electric-powered race cars, which reach a top speed of 30 kilometers on hour. It was a feat to install the track, as it required 180 tons of steel and aluminum support. The track was manufactured using Bolideck Racetrack, a synthetic material that is based on established road surfacing technology. The breakthrough delivery has been possible due to the product’s high flexibility and hardwearing qualities, which will allow karts onboard to race around on its slip-resistant surface at any one time and on any weather conditions. German karting technology specialist RiMO Supply designed the track to NCL specifications. The ‘floating’ racetrack will do its debut in the U.S. market onboard the Norwegian Bliss. n Galaxy Room with bumber cars Race track 68-77 .indd 10 1.9.2017 7.17
Cruise Business Review 2/2017 77 NORWEGIAN JOY MAIN PARTICULARS Built Meyer Werft GmbH, Papenburg, Germany Owner Breakaway Four, Ltd. (NCLH) Operator Norwegian Cruise Line Base port Shanghai and Tianjin, China Maiden voyage June 2017 Country of registry Bahamas Classification society DNV GL Length, o.a. 335.46 m Breadth 41.4 m Draught 8.7 m Gross tonnage 167,725 gross tons Diesel engines 3 x MAN Diesel 12V48/60B/CR 2 x 14V48/60B/CR Propulsion pods 2 x Azipod Propulsion power 41,000 kW Maneuvering thrusters 3 x Brunvoll FU115 Speed, max 23.4 knots Passengers, double occupancy 3,883 Crew approx. 1,821 BRUNVOLL AS 6422 MOLDE TUNNEL THRUSTERS AZIMUTH THRUSTERS LOWNOISE THRUSTERS BRUCON THRUSTER CONTROL SYSTEMS TRUSTED WORLD WIDE PROPULSION MANOEUVRING & POSITIONING Brunvoll has extended its product portfolio and offers complete systems for BRUNVOLL VOLDA AS 6100 Volda BRUNVOLL MAR-EL AS 3880 Dalen www.brunvoll.no BruCon Control, Alarm & Monitoring Systems BRUNVOLL Retractable Azimuth Thrusters BRUNVOLL Tunnel Thrusters BRUNVOLL VOLDA Reduction Gears & CP / FP Propellers BRUNVOLL Azimuth Thrusters BRUNVOLL Rim-Driven Thrusters BRUNVOLL VOLDA Thorque Reduction Gears & CP / FP Propellers Direct Electric Drive Propellers with Rudders Tunnel Thrusters Azimuth Propulsion Units Retractable Azimuth Thrusters Retractable Combi Azimuth Thrusters Control, Alarm and Monitoring Systems BRUNVOLL MAR-EL Remote Control System 68-77 .indd 11 1.9.2017 7.17
78 Cruise Business Review 2/2017 P rior to the ms Norwegian Sky’s May 2 inaugural overnight call in Cuba’s capital city, Frank Del Rio , President and CEO of parent company Norwegian Cruise Line Holdings Ltd. – and Cuban born himself – commented on the significance of the occasion: “Norwegian is 50 years old this year, and it’s about a little over 50 years that … a ship from America had sailed to Cuba, so it’s only fitting that Norwegian Sky [is] going back to Cuba this year on our 50th anniversary. Our two other brands have also gone to Havana recently. Oceania Cruises’ Marina went for the first time on March 11th, and we were onboard for that. And that was a very emotional day for me,” he said. “It was the first time I sailed into Havana Harbor,” he continued. “I had been to Cuba twice before after a 55year absence. I left Cuba right before my 7th birthday, and then 55 years later, I popped in to say ‘hello’ and then got the opportunity to cruise onboard on CRUISE REPORT n CUBA NORWEGIAN INAUGURATES CUBA SAILINGS Norwegian Cruise Line is now officially sailing to Cuba for the first time ever, carrying guests roundtrip from Miami aboard the Norwegian Sky. The 77,104 gross ton and 2,004passenger Sky is the largest cruise ship ever to take U.S. citizens to the port of Havana. In 2017 alone, the line has 30 departures scheduled to the Caribbean island nation, with another 33 slated for 2018. Near sister Norwegian Sun will also offer Cuba cruises in the future. By Jason Leppert Marina on March 11. And then on April 18th – April 11, it ended April 18th – we went back on the Regent [Seven Seas] Mariner, and so now this is our third ship and our third brand, our biggest brand and our most important brand. And so I’m honored that you’re all here to share this occasion with us.” Visa requirements Come the actual morning of arriving in Havana, the Norwegian Sky tied up at Terminal Sierra Maestra across from Plaza de San Francisco without a hitch, but it took quite a lot of pre-planning for things to go so smoothly. Mark Kansley , Senior Vice President, Hotel Operations, for Norwegian Cruise Line Holdings Ltd., shed light on the many onboard and shore-side logistical details involved: “We had the advantage of two other ships in our sister brands already having [gone] to Cuba, so we had the benefit of their experience,” he noted. “I think their calls were very, very successful. I wasn't on [them], but I had team members that were. And their calls were very, very successful, and we used their model for our ship. Of course, we extrapolated out for the size of the vessel.” The most important detail was communicating to guests ahead of time to purchase a visa and sign an affidavit. As requirements vary by nationality, four cabins of Cuban nationals were unfortunately denied boarding in Miami for not having the right documentation, and another two passengers were not allowed to disembark once in Cuba because they were found to have a temperature of over 37.5 degrees Celsius, the result of having a cold. However, after four hours Frank Del Rio Ph oto cre dit : Ja so n Le pp ert 78-79.indd 2 23.8.2017 11.02
Cruise Business Review 2/2017 79 had passed and their fever had subsided, they were allowed to go ashore. Altogether, every guest onboard got off in Havana at one time or another. “We were very surprised by the flow. Guests kept getting off,” Kansley observed. “Normally in a port, when you spend two days in a port, after lunch on the second day very few people get off. We were sailing at five, and we had guests that came back, they had a bite to eat and they went out again at three o’clock to do last-minute shopping, last-minute sightseeing and came back shortly before we sailed.” Shore excursions Another pre-cruise consideration was shore excursions. With a PortMiami departure on Monday and Havana arrival on Tuesday, efforts were made to promote the pre-purchase of tours, since it was necessary to provide booking information to operators almost at the time of sailing. With nearly 2,000 guests onboard, the ship had 2,000 excursions successfully pre-booked. Norwegian knew there were limitations to tour capacities, particularly with other cruise ships scheduled to be in port, but there was still a small amount of tour space remaining the night before. “The tours are popular,” Kansley said. “The infrastructure’s dilapidated at best, so we had thought [there would be] maybe a 10% dissatisfaction rate with the shore excursions – voicing concerns or some irritation with some component of [the] tours – but we ran into about 3%, which is very good, which is really better than what it would normally be.” Of course, getting everyone off such a large ship could have been an issue – especially since smaller ships have apparently hit snags in Havana – but thankfully, it was not. The line had expected only eight to 12 immigration officers being on hand to process guests. However, Norwegian pushed for 18 and got them. Going forward, the line expects 12 or more consistently, so disembarkations should proceed fairly quickly. The entire process was handled efficiently, thanks in part to disembarkation ticketing. As Kansley explained, “That was [done] in anticipation of the immigration, of the backlog and trying to control the flow there. We thought we’d rather keep the guests comfortable onboard the ship in air-conditioning, [rather] than have them wait in long lines at the terminal.” Most tours operated as planned, but there were some problems beyond the cruise line’s control – such as when a cigar factory or rum distillery that was to be visited was closed and an alternative had to be substituted. In this regard, there is a learning curve for lines visiting Havana. For instance, as one can imagine, classic-car excursions are very popular. However, driving around for a couple of hours in a convertible can get very hot, so Norwegian is looking to work with vendors to add beverage stops and develop more shaded routes. Also, as certain tours proved more successful than others, it will try to secure higher capacity allocations to accommodate more guests on these. Cuban menu onboard As for the Cuban product onboard the Norwegian Sky, Kansley said he thinks that the featured Cuban menu served in the main dining room is good but could be improved, and he admitted that the line had already begun tweaking it on day two. He also said he wants more Cuban entertainment onboard and better guest education about money exchange and locations. Ideally, he would prefer a Cuban bank on the ship that can handle such transactions prior to passengers going ashore. “It’s the same when we go to any new itinerary. We set up a program for the first call, and then we adjust as we learn a little bit more about the itinerary, about the guest needs and wants, and this is going to be exactly the same,” Kansley concluded. n Old Havana is a UNESCO World Heritage Site Norwegian Sky docked at Sierra Maestra terminal 78-79.indd 3 23.8.2017 11.02
80 Cruise Business Review 2/2017 REFURBISHMENTS T homson Cruises’ ms TUI Discovery 2 is the latest addition to the company’s fleet, having been transformed during a dry dock at the Navantia shipyard in Cadiz. The ship started life as Royal Caribbean International’s 1995-built ms Legend of the Seas and joined the Thomson fleet this summer, a year after the former 1996-built ms Splendour of the Seas was introduced to the UK market as the ms TUI Discovery. “The biggest challenge is, how do you transform a Royal Caribbean experience to a Thomson experience?” said Kevin Paintin , Director at the London-based design firm 20.20. In shore-based work, it is often viable to carry out structural changes to the building, but at sea this is not the case, as piping, ducts, cabling and more would also have to be moved. This would incur an unacceptable cost. “The budget, regarding both time and money, is not the same as in the case of a newbuiding,” Paintin pointed out. Paintin and his team were involved with the transformation of the Splendour of the Seas into the TUI Discovery in 2016 and finished their work earlier this year on the second ship of the class. To overcome the challenges, a pragmatic approach had to be taken: The designers looked at what parts of the existing interior could be retained and which could not. Then they added features and details, changed color schemes and so on in order to inject a new identity onto the existing ship. In the case of the two vessels that Thomson received from Royal Caribbean, which had been part of what was known as the Vision class, the most striking feature of the existing interiors was the large double-deck-high windows on both sides of the principal deck of public rooms. This formed a basis that was retained. In the two-deck-high dining room near the stern of the vessel, the upper and lower levels received different colors. The lower level, now called 47 (referring to the latitude of St. Nazaire in France where the ship was built), is the ship's waiter-service main dining room with open seating, so that passengers can choose their table and dining time. The upper level, Gallery 47, has been transformed into an Italian restaurant where the menu changes daily. On Deck 9, aft of the Solarium, The Glass House serves a tapas-style menu during the day and steaks on hot slabs of rock in the evening. Out on the pool deck, the same feeling of space and light is repeated in the Islands buffet restaurant forward and the glass-enclosed Solarium aft of the open pool area. Signature venues introduced The main lobby and atrium were retained as a center of social life aboard the TUI Discovery 2, but the former photo shop one deck up gave way to Coffee Port, a THOMSON INTRODUCES ITS SECOND VISION-CLASS SHIP THOMSON INTRODUCES ITS SECOND VISION-CLASS SHIP The former two-deck high main dining room offers now two different restaurant concepts Live Casino 80-81 .indd 2 25.8.2017 7.09
? Cruise Business Review 2/2017 81 new café that is a signature item on Thomson ships. The area has a lounge-like feel as it features groups of different kinds of furniture. A hallmark of the atrium are its curved shapes, a legacy to Njal Eide and his team that worked on the ship when it was first built, and who was said not to be able to draw lines as he never used them in his designs. Coffee bars and cafes have become very popular in the UK in the past decade or so, and chains such as Caffe Nero and Costa Coffee have become commonplace on British high streets. “The Coffee Port attracts a mix of all kinds of people,” Paintin said. “There is seating to allow people to sit down and read books, sip their coffee and to enjoy the view from the window.” Thomson has been receptive to new ideas, and for example, a casual eatery called Snack Shack was fitted by the pool amidships on both the TUI Discovery and TUI Discovery 2. Inspired by casual outlets located in British seaside towns, it features festival-style food stalls that serve salads and sandwiches for lunch and bacon butties for breakfast. Also introduced were Thomson’s own signature dining venues, such as the Pan-Asian fusion restaurant Kora-La, located in what used to be the Viking Crown Lounge – now called Bar Elev, as it is on Deck 11. Sharing this space is the Surf & Turf restaurant, another Thomson trademark venue. On the outside, a remarkable change took place in the appearance of both ships: In line with a trend of many contemporar y-market vessels, both Thomson newcomers received striking artwork on the exterior of their hulls. A wave-like, blue-and-white color scheme – representing the TUI Wave that is a corporate branding feature – now dominates the outward appearance of both ships, which in their previous lives as Royal Caribbean vessels had plain white hulls. Trimline carried out transformation Trimline, the UK-based ship refurbishment specialist, carPACIFIC EXPLORER ASSUMES AUSTRALIAN IDENTITY ried out the transformation of the interior, as it had done last year with the first ship of the class. Logistics are a major challenge in a large-scale refurbishment project, and the company paid a great deal of attention to making sure the project would run smoothly and on time. “As with most projects, the majority of the materials were delivered to Trimline UK stores to ensure QA process. The wet units and deck-head system came from Finland and went direct to site to avoid additional costs,” said Beverley Edwards , Marketing & Communications Manager at Trimline in Southampton. While all shipyards have quayside storage facilities, they operate within their own working hours and not to refit hours. “To obtain full control of our materials, we rented a huge storage unit on the quayside,” she added. “For client delivery, we give an early delivery date which is ahead of schedule, giving us the opportunity to attend site to ensure QA process. Once materials are on site and in our storage facility, they are within our time control. The brains behind this process is very detailed block planning, detailing what is to be fitted/ removed by person and by time frame/day. From this, a logistical lifting plan can be obtained. The block plan is then validated at the end of every day, with the logistical lifting plan adjusted accordingly to ensure timely delivery of materials on ship,” Edwards continued. “During previous refits of The World and TUI Discovery at this port, we learned how restrictive the logistics and storage were, so by having our own storage unit we were in control of the materials at all times. We also hired our own forklift truck to give us full independence during the refit, enabling us to move materials during the night so tradespeople could commence first thing in the morning. Having this level of independence is vital and means the difference between finishing on time or finishing early,” she concluded. n The Bonded Store Bar is one of the new lounges onboard 80-81 .indd 3 25.8.2017 7.09
82 Cruise Business Review 2/2017 T he refurbishment of P&O Cruises Australia’s ms Pacific Explorer also included a transformation of the ship’s identity from one brand to another – in this case to P&O Cruises Australia from Pr incess Cr uises, both parts of the Carnival Corporation & plc. Over the past few years, the Sydneybased company has developed its own identity with signature features, particularly since the recent introduction of the ms Pacific Eden and ms Pacific Aria, both formerly Statendam-class units of Holland America Line. Among the features these two vessels introduced were the Dragon Lady Pan-Asian restaurant, with matching dark colors, and Angelo’s, an Italian restaurant. These venues have been fitted aboard the Pacific Explorer as well, and each now takes up half of what used to be the main dining room on Deck 6. The restaurant below is called the Waterfront, in order to remain consistent with P&O Cruises Australia’s naming tradition. Dividing the restaurant on Deck 6 into two separate venues was one of the few structural changes that were made REFURBISHMENTS during a 12-day refit that took place in Singapore from June 10 onwards, but the vessel nevertheless assumed a very different identity compared to its previous incarnation as the 1997-built ms Dawn Princess. The ships of Princess Cruises tend to feature a Mediter ranean-inf luenced, pastel-shaded color scheme with quite a bit of gold added to the palette. P&O Cruises Australia, meanwhile, has introduced a stronger range of colors aboard its ships, including black, red, blue, green, yellow and white. This is one of the most visible aspects of the ship’s transformation. Starting from Deck 15, the work included the addition of two 80-meter-plus waterslides and a waterpark for young passengers. (P&O Cruises Australia is a contemporary market brand, and families with children are part of its target audience.) Forward on Deck 14, the former Lido Buffet emerged as The Pantry, which has nine different outlets that serve food, each focusing on cuisine from a certain part of the world. Aft on Deck 13, Turtle Cove and Shark Shack also cater to youngsters, while a lawnbowling green overlooking the stern on Deck 12 accommodates a slightly more mature audience. In the atrium on Deck 8, a new Italian-style pizzeria called 400 Gradi (associated with Melbourne-based chef Johnny Di Francesco ) was created, while the former Wheelhouse Bar – a Princess Cruises’ signature venue featuring nautical themes with dark woods and bronze fittings – has given way to Explorer Hotel, a pub in lighter and more tropical colors and styling. The Blue Room, a dark bar with cozy ambiance, is another new feature. The former secondary lounge at the stern on Deck 7 has been transformed into the Black Circus, a supper club with live entertainment – a new feature on the company’s ships. P&O Cruises Australia teamed up with Luke Magnan (the Australian celebrity chef) a long time ago, and his fine-dining venues are a signature feature aboard the company’s vessels. The Pacific Explorer, however, has departed from this branding, and instead a new casual, outdoor feature called The Taste of Salt was introduced on the pool deck. Trimline from the UK carried out a significant part of the refit, and its on-site team overcame many technical challenges to create the new Blue Room – one of the ship’s main focal points. Other areas that Trimline transformed included The Bonded Store with its secret entrance, Shark Shack, Turtle Cove, Future Sales, Photo Gallery, HQ, HQ+, Black Circus, The Lawn Bowls, Elemis at Sea and the ship’s elevator lobbies and stairwells, the company said in a statement. n Blue Room The Homeware Store 80-81 .indd 4 25.8.2017 7.09
83 Cruise Business Review 2/2017 DESTINATION REPORT n ASIA Kyushu and Japanese archipelago Creating new destinations in Japan When it comes to the number of ports-of-call, Japan is one of the richest cruise destinations in the world. Beyond marquee ports such as Fukuoka-Hakata, Nagasaki, Kagoshima and Naha (Okinawa), Japan is trying to diversify its offerings. Cruise Business Review recently visited multiple destinations in Western Kyushu and the Ryukui Islands, which are suitable especially for smalland medium-size cruise ships. Some non-Japanese operators have already added these new destinations to their future itineraries. By Teijo Niemelä Nagasaki can accommodate largest megaships currently operating in Asia. A new docking facility is under the planning stage, which can host ships without height restrictions Ph oto cre dit , all ph oto s: Te ijo Ni em elä Continued on page 86 83-86 .indd 2 31.8.2017 7.16
Cruise Business Review 2/2017 84 Kyushu and Japanese archipelago NEW DESTINATIONS IN KYUSHU & RYUKUI ISLANDS The Goto Islands received a boost for attracting foreign visitors when film director Martin Scorsese released his movie Silence. It tells about the destiny of 17th-century Catholic Christians in Japan, who faced persecution. Many of the Catholics moved south of Kyushu to the remote islands of Goto, which include five main islands: Fukue, Hisaka, Naru, Wakamatsu and Naradori. Even after the suppression of Japanese Catholics ended, Christians have continued to live on the islands, where Catholicism is widely practiced. Many old churches can be visited around the islands, while expedition-type excursions can be arranged for exploring the caves where Christians hid. The Tainoura port can accommodate smalland medium-size cruise ships. GOTO ISLANDS YAKUSHIMA Yakushima, approximately 73 nautical miles south of Kagoshima, in 1993 became the first location in Japan to be designated a UNESCO World Heritage Site. The island is especially rich in flora and fauna. Yakushima’s mountains peak at almost 2,000 meters high, and there are several summits over 1,000 meters. The mountainous territory is covered in Japanese cedar trees, which can live to more than 1,000 years of age, and a visit to the Yakusugi Nature Museum is a must. The best shore excursions on the island are tours to view the numerous bird species and monkeys or to go for a hike in the mountains. Ph oto cre dit : Ja ni No us iai ne n 83-86 .indd 3 31.8.2017 7.16
85 Cruise Business Review 2/2017 Okinawa is offering a new port-of-call that is being developed in the northern part of the island, thus offering new shore excursion options. While most cruise ships still go to Naha in the southern part for a more urban experience and to see the carefully restored and rebuilt Shuri Castle, the central and northern parts of the island provide more nature and beach tour options. Motobu is a convenient gateway for Ocean Expo Park and its Okinawa Churaumi Aquarium, home to almost 300 species of fish. The Yanbaru area, a candidate for UNESCO World Heritage Site status, is also located a convenient distance from the port. It includes Cape Hedo, the northernmost point on Okinawa with great natural beauty. Amami-Oshima is another group of islands with a diversified nature. There is a protected marine park in the south that offers diving, snorkeling and boat trips. Other active excursions are available at Amami Mangrove Park, which offers interesting kayaking adventures under the mangrove trees. For shoppers, artisans produce a delicate handwoven silk fabric used to make kimonos. The island is also home to brown-sugar shochu, and a visit to the Amami Kokuto Shochu Brewery can be included in the tour program. Amami City has docking facilities able to accommodate smalland medium-size cruise ships in the town center. MOTOBU-OKINAWA AMAMIOSHIMA 83-86 .indd 4 31.8.2017 7.16
Cruise Business Review 2/2017 86 D uring the last few years, Japanese ports have experienced a tremendous growth rate in terms of cruise ship calls and cruise passenger arrivals. Most of this growth has been from the rapid expansion of cruises from Chinese ports such as Shanghai, Tianjin and Qingdao. As the Chinese market still favors shorter cruises of up to 4 nights, the increase in calls has been mostly concentrated in Western Kyushu and Okinawa, while growth in Eastern Japan has been much more modest. The increase in cruise arrivals has escalated since March of this year, when Chinese tourist groups essentially stopped calling in South Korean ports-of-call such as Busan and Jeju. Hardest hit was Jeju, which has lost its leadership position as a number one port-of-call in Asia. Its numbers have plummeted from 460 calls last year to a fraction of that this year. The beneficiaries have been ports-of-call in Kyushu, such as Fukuoka-Hakata, Nagasaki, Kagoshima and newcomer Sasebo. CBR has visited in Fukuoka, Nagasaki and Kagoshima, finding that all of them provide modern facilities in order to accommodate the largest megaships in the region, such as Dream Cruises’ ms Genting Dream, Royal Caribbean International’s Quantum-class vessels, Norwegian Cruise Line’s ms Norwegian Joy and Princess Cruises’ ms Majestic Princess. On Okinawa, the city of Naha enjoys a leadership position, as it is the closest port-of-call in Japan able to accommodate megaships sailing on short itineraries from Hong Kong or Taiwan’s Keelung. Naha features a 340-meter pier with a 10-meter depth and boasts a new modern terminal with immigration facilities. To diversify its offerings and to offer more docking capacity, Okinawa is also developing the port at Motobu in the central part of the island. Currently, it can only receive ships up to 240 meters, but the plan is to expand the facility to receive vessels of up to 160,000 gross tons. Goal of five million passengers Japan has set an ambitious goal to increase the number of cruise passengers that visit the country to five million by 2020. While the number was very modest at 174,000 in 2013, the figure increased to 1.99 million in 2016. At the same time, the number of port calls has jumped from 1,001 in 2013 to 2,017 last year, according to Captain Saburo Tanaka from the Japan Cruise Research Institute. Earlier in the decade, the lion’s share of Japan’s cruise calls were conducted by domestic cruise ships the ms Asuka II, ms Nippon Maru and ms Pacific Venus, carrying predominantly Japanese passengers. By 2016, they totaled just a quarter of the calls. Since 2013, foreign cruise lines have begun to base ships in Japanese ports, catering to both the local source market as well as an international clientele. The largest lines have been Princess Cruises, Costa Cruises and, more recently, Star Cruises. However, Star was the first foreign line to test the Japanese market, first in 1997 and a second time 2000. Captain Tanaka also outlined that the number of ports receiving cruise ships in Japan has increased from 104 in 2015 to 123 in 2016. Calls are concentrated in Okinawa and Western Kyushu, constituting about two thirds of all calls to Japan. The top ports in the entire nation in 2016 were Fukuoka-Hakata, Nagasaki, Naha and Yokohama. Diversifying the source market While its growth has mainly coincided with the rapid expansion of the Chinese source market, Japan wants to diversify its cruise business. The major ports-of-call mentioned above have mainly accommodated large megaships on short cruise itineraries, whose passengers are looking more for shopping experiences ashore rather than cultural or natural experiences. Therefore, JTB Kyushu Corporation has approached international upscale and expedition cruise lines to offer more diversified destinations and shore excursion options. JTB has been working with niche and luxury cruise lines from both Europe and North America, including Noble Caledonia and Ponant Cruises. For example, Noble Caledonia’s 118-passenger ms Island Sky will sail from Keelung, Taiwan, to Kobe, Japan, in March 2018, offering calls in Okinawa and lesser-known AmamiOshima and Yakushima – an island that in 1993 became the first Japanese location to receive a UNESCO World Heritage Site designation. Meanwhile, Ponant’s 264-passenger ms L’Austral will offer four different itineraries featuring mainly Japanese destinations next spring, between April and June. The highlight of these itineraries, especially the 8-night “Best of Japan” cruise, is that they offer up to nine ports (including embarkation and disembarkation ports) of which just one is a Korean port (including a non-Japanese port is mandatory on itineraries operated by foreign-flagged cruise ships). Another small-ship operator focusing on Japan is Windstar Cruises, whose 212-passenger ms Star Legend offers several cruises with opportunities to visit Ishigaki Island, Naha and various ports in Kyushu. Seabourn Cruise Line features Japanese ports-of-call on the 458-passenger ms Seabourn Sojourn’s 21night “Asian Seas Exploration” cruise, stopping in Miyakojima and Naha. German Hapag-Lloyd Cruises’ 155-passenger ms Bremen will sail through the Japanese archipelago in October 2018, making inaugural calls in new ports as well. These include the Goto Islands, known for their history of Christianity, and the Zamami Islands. n AMAMIOSHIMA Fukuoka-Hakata Kagoshima Naha 83-86 .indd 5 31.8.2017 7.16
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2/2017 www.cruisebusiness.com C R U IS E B U SIN ES S R EV IE W 2/ 20 17 S H IP S IN T H IS IS S U E M EIN SC H IFF 6 n M SC M ER A V IG LIA n N O RW EG IA N JO Y CRUISE BUSINESS REVIEW ?????? ? ? ? ? ? ? Viking Cruises From upstart to leader in 20 years archipelago Creating new cruise destinations Kyushu and the Japanese yards One step closer? MSC Meraviglia A ship for all seasons Cruise ships from Chinese w 424x297_CBR 217 kansi.indd 1 25.8.2017 12.23