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Chinese Market: Growth Track 2018 - 2025

7/9/2017

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The Chinese cruise market is being served by 20 ships this year, sourcing locally and with a combined capacity of nearly 3 million passengers, including the new Majestic Princess and Norwegian Joy, entering service now, according to the 2017-2018 Cruise Industry News Annual Report.

The year-over-year 2017 capacity is up 33.8 percent from 2016.

Next year, the Majestic Princess will be sailing seasonally in China as will the MSC Splendida, both ships were previously announced to have year-round deployment in China. The total estimated 2018 capacity will be for 3.3 million passengers, up 11 percent from this year.

Other ships, from Carnival Cruise Line and AIDA Cruises, that were previously announced to be entering the market in this time period, have since been deployed elsewhere.

2019 will see a slight increase from the late-year introductions of the first of two Costa newbuilds and a second Norwegian ship for China. Capacity is projected to move up by 1.1 percent to 3.4 million passengers.

The first big bump up, based on announced deployment, happens in 2020 with full-year service of the first of two Costa ships that entered service in 2019, plus the introduction of a second new Costa ship, and the first of two newbuilds by Star Cruises. Capacity will be up 11.5 percent to more than 3.7 million passengers.
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With a second newbuild from Star in 2021 and two newbuilds from Carnival’s domestic brand slated to enter service in 2023 and 2024, capacity will reach 5.5 million by 2025.
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Ritz-Carlton to Start Luxury Cruise Brand

6/26/2017

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One of the biggest names in luxury travel is starting a cruise line. The Ritz-Carlton Hotel Company, which operates 94 luxury hotels, announced that is entering the cruise industry with a small ship operation catering to the luxury market.

The Ritz-Carlton Yacht Collection will launch in time for the 2019 cruise season with its first ship coming in with capacity for 298 passengers, and two additional ships expected in 2021 and 2022, respectively.

The brand is joining forces with maritime experts Douglas Prothero and Lars Clasen, former president of AIDA, in collaboration with funds managed by Oaktree Capital Management, L.P., The Ritz-Carlton will provide luxury hospitality service under a long-term operating agreement. 

“The Ritz-Carlton Yacht Collection will have a distinctive personality and the vessels are sure to be true stand outs in some of the most glamorous ports around the world,” said Herve Humler, President and Chief Operating Officer of The Ritz-Carlton Hotel Company, L.L.C. “This unique combination of yachting and cruising will usher in a new way of luxury travel for guests seeking to discover the world in a relaxed, casually elegant and comfortable atmosphere with the highest level of personalized service.”

"Itineraries are being developed with an intent to combine the lifestyle of The Ritz-Carlton’s luxury resorts and the casual freedom of a yachting vacation," the company said.

The small ships will measure 190 meters, accommodate up to 298 passengers, and feature 149 suites, each with its own private balcony, a statement said.

The yachts will also feature two 138 square-meter duplex penthouse suites, with "modern craftsmanship and interior finishes jointly designed by The Ritz-Carlton and leading cruise ship design firm, Tillberg Design of Sweden."

“The Ritz-Carlton is known for its legendary service and high standards,” said Douglas Prothero, Managing Director, The Ritz-Carlton Yacht Collection.

“We are delighted to collaborate with The Ritz-Carlton as our hospitality operator in offering the most exclusive yachting experience to be found at sea in a venture that will give new meaning to curated luxury travel,” continued Lars Clasen, Managing Director, The Ritz-Carlton Yacht Collection.

The Marriott-owned brand has been in the planning stages for some time, according to a source familiar with the matter. Now, Ritz is combining with another operation that was set up and looking for a branding partner. A shipbuilding contract is all but set with a shipyard new to the cruise industry.

According to the 2017-2018 Cruise Industry News Annual Report, the luxury market is composed of 40 ships in 2017, making up 500,880 cruise passengers annually.

Silversea is the biggest brand by capacity, while Viking Ocean Cruises will become the biggest operator by 2019. By 2027 the market is expected to grow to at least 55 ships and over 800,000 annual passengers based on known ship orders and deployment announcements.
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The Ritz brand could carry some 35,000 passengers on an annual basis by 2023.
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Seattle and NCLH Mark Re-Opening of Pier 66

6/5/2017

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The Port of Seattle and Norwegian Cruise Line Holdings marked the grand re-opening of the Bell Street Cruise Terminal at the port’s Pier 66 building in a ceremony on Tuesday morning.

According to the port, the newly renovated terminal features three times the square footage within the same walls of the prior facility, and is designed to handle the 4-000 passenger Norwegian Bliss, which arrives next summer.

An estimated $30 million dollars in improvements were made to the Bell Street Cruise Terminal as part of a joint agreement between Norwegian Cruise Line Holdings and the Port of Seattle. 

“We have a long history with Norwegian from when we first started in the Alaska cruise market over 15 years ago, and we are thrilled with their unprecedented investment today,” said Port of Seattle Commissioner Stephanie Bowman. “Opening Bell Street Cruise Terminal today is the celebration of a community partnership for success.”
The port and Norwegian signed a 15-year strategic agreement in 2015.

“We couldn’t be more pleased to have had the opportunity to work with our partners at the Port of Seattle to enhance the guest experience at the Bell Street Cruise Terminal,” said Howard Sherman, executive vice-president of Onboard Revenue and Destination Development for Norwegian Cruise Line Holdings Ltd. “Together, we have increased usage capacity by more than 300 percent, created a plush new lounge for suites guests, enlarged the space for all guests awaiting embarkation and much more, allowing for the vacation experience to begin as soon as our guests step foot inside the terminal by providing a seamless, comfortable and stylish ship-to-shore experience.”
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According to a statement, the new and expanded VIP lounge and passenger check-in area will have exterior views of the ship and Elliott Bay. Other terminal improvements include a modified elevated passenger boarding bridge and a new gangway that will arrive early next year. The brand new state-of-the-art 140-foot gangway will feature incredible floor-to-ceiling transparent walls, immediately connecting guests to views of Elliot Bay.
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Princess Boosts West Coast and Mexico Deployment for 2018-2019

5/26/2017

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Princess Cruises announced its 2018-2019 Americas cruise itineraries on Monday, covering sailings to the Caribbean, Panama Canal, Mexico, Hawaii, the California Coast, and Alaska.

Four of the 12 ships, the Royal Princess, Regal Princess, Caribbean Princess and Island Princess will be on the OCEAN Medallion system. 

But the big news is the debut of the Royal Princess on the West Coast as the cruise line’s largest ship ever to sail to Mexico, which is a major vote of confidence in the Mexican Riviera market, and comes on the heels of a similar move by sister company Holland America Line.

There are also two new seven-day Pacific Coast itineraries featuring seven-day round trip departures from Seattle along the California Coast and seven-day round trip cruise from San Francisco to British Columbia and the Pacific Northwest.

In addition, Princess said it was the largest offering of five-day Cabo San Lucas Getaways with nine, all including overnight stays.

The Caribbean program has meanwhile been expanded to include both Saturday and Sunday departures; also new are more Alaska sailings roundtrip from Los Angeles. 

“Our 2018-19 Americas season brings local cultures and iconic destinations to our guests with award-winning itinerary options from six homeports in the United States,” said Jan Swartz, Princess Cruises president. “And, once on board, they can relax and unwind and let our warm and welcoming crew ensure they have an incredible cruise vacation and ‘come back new.’”

There are five ships sailing four unique itineraries on over 35 departures to five destinations on five-, seven-, or 10-day voyages from Los Angeles and San Francisco, according to Princess.

The Royal Princess debuts sailing from Los Angeles as the largest Princess ship to sail to the Mexican Riviera on a series of seven-day Mexican Riviera cruises. The voyages are available as seven-day cruises from Los Angeles visiting the ports of Puerto Vallarta, Mazatlán and Cabo San Lucas, or as 10-day voyages from San Francisco with the added port of Manzanillo.

The 10-day Baja Peninsula & Sea of Cortez cruise returns on Star Princess, sailing from Los Angeles to the ports of La Paz, Loreto, Puerto Vallarta with an overnight stay in Cabo San Lucas. 

On the West Coast, the season offers eight ships, sailing 12 unique itineraries on over 25 departures to more than 10 destinations on voyages of one to 10 days from Seattle, Los Angeles, Vancouver, B.C. and San Francisco.
Also, the Royal Princess will sail for the first time along the California Coast from Los Angeles to Vancouver, B.C. on a seven-day Pacific California Coast visiting San Diego, Seattle and San Francisco. The ship will most likely be in Alaska for the 2019 summer season.
 
The Ruby Princess sails a brand new seven-day Northern California Coast voyage sailing roundtrip from Seattle with stops in Monterey, Astoria, and late evening stays in San Francisco and Victoria, B.C.

Also new for 2018 is a seven-day Pacific Northwest Coast cruise on Grand Princess sailing roundtrip from San Francisco visiting Astoria, Vancouver, B.C. , Victoria, B.C. and a  late evening stay in Seattle.

In the Caribbean for winter 2018-2019 will be five ships sailing 12 unique itineraries on over 120 departures to more than 35 destinations on voyages of seven to 20 days from Ft. Lauderdale and New York.
The Caribbean Princess sails 14-day Circle Caribbean voyages cruising roundtrip from Ft. Lauderdale, including visits to Martinique, Barbados, Trinidad, Aruba, Curacao, Antigua, St. Thomas, Amber Cove and St. Kitts. Guests can choose a special sailing spanning both Christmas and New Year’s Day.

Small ship Pacific Princess sails a holiday 14-day "Caribbean Connoisseur" voyage, visiting islands not typically included on other Caribbean itineraries, including St. Barthelemy, Iles Des Saintes (maiden call), Grenadines, Tobago, and Virgin Gorda.

The Crown Princess returns to 10-day alternating Eastern and Western service, which can be combined for a 20-day cruise.

Seven-day Eastern Caribbean voyages will be offered on Regal Princess, Royal Princess and Caribbean Princess with the choice of Saturday and Sunday departures.

The Royal Princess and Caribbean Princess will also offer a new seven-day Caribbean Explorer itinerary on select dates visiting San Juan, Amber Cove, Grand Turk and a stop at Princess Cays, according to a statement from Princess.

The Regal Princess, Royal Princess and Caribbean Princess will all offer seven-day Western Caribbean voyages departing on Saturday or Sunday. They will all be visiting Grand Cayman and Cozumel, with two itinerary options including Roatan and Belize City or Jamaica (Falmouth) and Princess Cays.

There are also longer sailings through the Panama Canal and from the West Coast to Hawaii. 

The Emerald Princess and Star Princess will sail on two 28-day departures to Hawaii, Tahiti & Samoa in fall and spring roundtrip from Los Angeles.
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Returning due to popular demand, according to Princess, the Ruby Princess and Star Princess will sail on 12-day Inside Passage Alaska sailings roundtrip from Los Angeles in April 2019. Port calls include Juneau, Skagway, Ketchikan, and Victoria, B.C. with scenic cruising of Glacier Bay National Park.
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Carnival Horizon On Target for 2018 Debut

5/20/2017

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The 133,500-ton Carnival Horizon is well on its way to a 2018 spring debut and is currently under construction at the Fincantieri shipyard in Marghera, Italy. 

​The Carnival Horizon is scheduled to make its maiden voyage April 2, 2018, with a 13-day Mediterranean cruise from Barcelona – the first of four round-trip departures from this port. Carnival Horizon will reposition to the U.S. with a 14-day trans-Atlantic crossing from Barcelona to New York May 9-23, 2018, according to a statement from Carnival. 

Following its summer schedule of four-day Bermuda and eight-day Caribbean departures from Manhattan, Carnival Horizon will shift to Miami and kick off a year-round schedule of six- and eight-day Caribbean cruises beginning Sept. 22, 2018. Carnival Horizon will also offer a special two-day cruise to Nassau from Miami Sept. 20-22, 2018.

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North American Cruise Capacity to Grow 41 Percent 2017 - 2027

4/19/2017

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North American cruise capacity is set to grow by an estimated 41 percent over the next 10 years, based on existing newbuild orders, known withdrawals and deployment plans, compared to the previous 10 years which saw a 25 percent increase in passenger capacity, according to the 2017-2018 Cruise Industry News Annual Report.

The fleet will grow from some 199 ships and a passenger capacity of 13.7 million in 2017 to 242 ships and a passenger capacity of 19.3 million in 2027.

Over the 10-year period, Carnival Corporation will boost its North American passenger capacity from 6.1 million to 7.7 million, for a 25 percent increase; Royal Caribbean will grow its brands from 4.1 million to 6.1 million, for a 50 percent increase; and Norwegian from 2.1 million to 3.0 million passengers for a 45 percent increase.
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Additional growth will come from Disney Cruise Line and start-up Virgin Voyages.  MSC Cruises is also dedicating ships to the North American market. 
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Majestic Princess to Australia Seasonally as China Capacity Cut

4/18/2017

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Princess Cruises has announced that the Majestic Princess, will be based in Sydney over the 2018-2019, and will not be year-round in China as previously announced.

As well, in 2018, Princess will move the Sapphire Princess out of the Chinese market and re-deploy the ship to Europe. 

The Majestic Princess will be the largest Princess ship ever to sail in Australian waters, with her deployment confirming the cruise line’s popularity amongst Australian and New Zealand cruisers, said Princess, in a statement. 

She will offer cruises in Europe and China before heading south to Sydney where she will be homeported from September 2018 through to March 2019, when she will return to China.

During her inaugural Australian season, Majestic Princess will sail on 16 cruises to destinations including Fiji, New Zealand and Tasmania as well as two Asia voyages between Shanghai and Sydney, and Sydney and Hong Kong. Unveiling the program, Princess Cruises Vice President Australia & New Zealand Stuart Allison said the deployment of Majestic Princess was testament to Australians’ love of cruising and the popularity of Princess Cruises in the region.
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“From her gourmet restaurants to her stunning onboard features, Majestic Princess is nothing short of magnificent. We’re thrilled to be welcoming our newest, most stylish and most luxurious flagship to our shores – having just experienced her preview voyage I know Australian cruisers will love all that she has to offer,” Allison said.
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Majestic Princess Delivered

4/5/2017

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Princess Cruises today took delivery of the first purpose-built ship for the Chinese cruise market, the Majestic Princess. Fincantieri delivered the vessel at the Monfalcone shipyard in the presence of the Italian Prime Minister Paolo Gentiloni.

The ceremony was attended by the President of the Region of Friuli Venezia Giulia, Debora Serracchiani, for the ship owner by Micky Arison, Chairman of Carnival Corporation, Arnold Donald, CEO of Carnival Corporation, Stein Kruse, CEO of Holland America Group, and Jan Swartz, Group President of Princess Cruises and Carnival Australia. Fincantieri was represented by Giampiero Massolo, Chairman and Giuseppe Bono, CEO. 
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Fincantieri has built 77 cruise ships since 1990.
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MSC: Mainstream in North American Market

3/30/2017

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MSC Cruises is committed to becoming mainstream in the North American market, according to Pierfrancesco Vago, executive chairman. He said that the brand will introduce a third ship for the market, the Meraviglia, in the Caribbean in 2019.


The Meraviglia will be deployed in North America year-round in addition to the Seaside, which enters year-round service here in December (2017), and the Divina which will continue to sail seasonally in the Caribbean and the Mediterranean.


MSC executives would not reveal any further itinerary plans, although they hinted that Alaska and East Coast (New York) deployment were being considered.


To further support the expanding North American operation, Gianni Onorato, president, said that a number of additional employees were being hired and that some departments were being moved to their Ft. Lauderdale offices.
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Furthermore, he said that North American sourcing was not only for Caribbean cruises, but also for other regions, including South America and Dubai.
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Royal Caribbean and Port Everglades Ink MOU

3/21/2017

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Broward County's Port Everglades has negotiated a Memorandum of Understanding (MOU) that provides the framework for a new long-term business agreement with Royal Caribbean Cruises that will include complete, customized renovations of the Port's Cruise Terminal 25 targeted for completion by October 31, 2018, according to a statement.
"Our cruise line customers are becoming more sophisticated in the way they think about the guest experience, as we saw when Royal Caribbean partnered in the construction of Cruise Terminal 18 for their Oasis class of ships," said Port Everglades Chief Executive Steven Cernak. "We value the company's partnership and confidence to bring the newest ships from Royal Caribbean and Celebrity Cruises to Port Everglades."
On Monday, Royal Caribbean announced that its newest Celebrity Cruises ship Celebrity Edge will homeport in Port Everglades beginning in the fall of 2018. Royal Caribbean's Harmony of the Seas, the newest Oasis class ship, began sailing from Port Everglades in November 2016.
The MOU will allow negotiations to move forward toward a final agreement that must be approved by the Broward County Board of County Commissioners. RCL's current agreement expires on December 31, 2017. The new agreement will be effective on January 1, 2018, and expire on Sept. 30, 2026 with options to extend the agreement for four years, followed by another five years. 
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