C ru is e B u sin e ss .c o m M a g a zin e S p rin g 2 1 9 CruiseBusiness.com CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine Spring 2019 MEIN SCHIFF 2 Upgrading the class MEIN SCHIFF 2 Upgrading the class HONG KONG IN THE SPOTLIGHT Hong Kong is the second-largest cruise port in China in terms of throughput and the highest yielding with the most overseas cruisers, drawing upon a local source market that has now reached over 3% penetration. It is looking forward to increasing benefits in the years to come from new transportation infrastructure – high-speed rail, the HK-Zhuhai-Macao Bridge, and a one-stop-shop border crossing to Shenzhen opening later this year. COSTA VENEZIA Newbuild designed exclusively for China Page 37 COSTA VENEZIA Newbuild designed exclusively for China Page 37 HONG KONG New infrastructure improves Hong Kong’s cruise appeal Page 60 HONG KONG New infrastructure improves Hong Kong’s cruise appeal Page 60 425x297%20kansi .indd 1 25.3.2019 16.15
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Ph oto cre dit : Te ijo Ni em elä CruiseBusiness.com Magazine Spring 2019 7 CONTENTS – SPRING 2019 8 Editor’s Commentary 12 Upfront 20 ICS 2018 focuses on multiple aspects of growth 26 Operators raise stakes in UK 30 AIDAnova – no more smoke on the water 36 Designed for China, Costa Venezia enters service 44 Carnival Cruise Line’s design philosophy 49 Mein Schiff 2 improves the class 55 Roald Amundsen ready to challenge the cruise industry 58 Croatian shipbuilders face cruise challenges 60 New infrastructure adds to Hong Kong’s cruise appeal 63 Turku plans new ferry terminal and cruise expansion 66 CCNE offseason, international growth continues on track 74 Cruising on the edge of tomorrow 76 CMI Leisure Management looking for growth in expedition market 7 .indd 3 26.3.2019 8.55
Editor Teijo Niemelä Publisher Cruise Media LLC Copy Editor M.T. Schwartzman Sales and Production Christer Gorschelnik Sales – North America & Caribbean Scott Brown Art Director Julle Järvinen, Julle Oy COMPANY ADDRESS Cruise Media LLC 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 E-mail cruisemediallc[a]gmail.com SALES OFFICE FINLAND ChrisGo Consulting Pahtankatu 10 as 10 FIN-21200 Raisio, Finland Telephone +358-440-159 554 E-mail christer.gorschelnik[a]kolumbus.fi SALES OFFICE USA Scott Brown 10763 Traders Court Davidson, NC 28036 USA Telephone +1-843-340-5896 E-mail sbrown33[a]carolina.rr.com FEATURED CONTRIBUTOR Kalle Id is a freelance journalist, historian and photographer specializing in the maritime field. For the past decade, he has been reporting about the cruise and ferry industries for publications in English and in his native language Finnish. He has written two company histories as well as the definitive book on the history of shipbuilding in Finland. PRINTED IN FINLAND – PUNAMUSTA OY, HELSINKI www.cruisebusinessmagazine.com T hirteen years ago, Costa Crociere entered into a daring venture to develop a source market for the cruise industry in China. While the beginning of the exercise was modest and cautious with a year-round deployment of the 28,430 gross ton Costa Allegra – offering a passenger capacity of just 820 guests – the market developed quickly, attracting more tonnage from the sister company Princess Cruises as well as from major competitors such as Royal Caribbean Cruises Ltd. Later, both MSC Cruises and Norwegian Cruise Line Holdings Ltd. would jump on the China bandwagon. March 2019 marked a milestone for the Chinese cruise market. Norwegian Cruise Line was the last of big cruise brands to enter the market just two years ago with its latest and largest ship, the Norwegian Joy. But last year, the company announced it would transfer the 167,725 gross ton Joy to the Alaska market in a move to generate more revenue. The ship departed Asia in early March, heading for a refurbishment to introduce amenities similar to those found aboard its one-year-younger sister ship, the Norwegian Bliss (also deployed seasonally to Alaska). This proved to be an expensive exercise for Norwegian, as it tried to enter a new market as just a one-ship operation. While many cruise operators have cut their capacity in China, more tailor-made ships are in turn being introduced to the market. The China pioneer, Costa, took delivery of its first newbuild designed specifically for China, the Costa Venezia, at the end of February. The ship is sailing toward its base port of Shanghai, ironically at the same time as the Norwegian Joy is making its transpacific crossing toward the U.S. West Coast. EDITOR’S COMMENTARY The Costa Venezia has been designed and built on the same concept as was the Costa Allegra when it was originally introduced to the Chinese market in 2006. The ship is heavily themed around the “Best of Italy” in terms of decor and onboard experience. The ship pays tribute to Venice – one of the most sought-after tourist destinations (and perhaps most heavily-congested) in the world. From dining to shopping, Italy is a central point of the product – but there are Asian elements as well, such as restaurants with Asian cuisine and private karaoke rooms. W hile most of the players in China may have cut their capacity, they have at the same time invested heavily in the newest, state-of-the-art hardware. Princess Cruises has tailored its latest vessel, the Majestic Princess, to the Asian market, and Royal Caribbean International will introduce its next-in-line Spectrum of the Seas to the Asian market later this year. Genting Cruise Line, meanwhile, is building on its presence in China by expanding its newest brand, Dream Cruises. This adjustment of capacity has resulted in a rather dramatic effect. According to the China Cruise & Yacht Industry Association, 2018 was the first time in 13 years that both the number of cruise ship calls and the number of cruise passengers in China witnessed a decline. Teijo Niemelä MARCH 2019 HOW TO FOLLOW US Twitter.com/cruisebusiness facebook.com/CruiseBusinessUSA Instagram/niemelateijo CruiseBusiness.com Magazine 8 CRUISEBUSINESS.COM MAGAZINE SPRING 2019 COMING AND GOING Turning expertise and innovation into marine solutions Meet us at booth #1843 8-11 .indd 2 13.3.2019 8.04
Turning expertise and innovation into marine solutions Meet us at booth #1843
TAIWAN KOREA THE PHILIPPINES XIAMEN HONG KONG HAINAN C M Y CM MY CY CMY K Asia Cruise Cooperation, a committed and resourceful alliance of Hainan, Hong Kong, Korea, the Philippines, Taiwan and Xiamen, share the mission of promoting maximum growth in cruise tourism for partnering destinations and for Asia. Together, we provide a one-stop platform to support your development in Asia. We appreciate the importance of collaboration among ourselves as well as with our partners. The unwavering support of partnering destinations is our promise to you. Harness the opportunity and sail with us today. Being the only tropical island in China, Hainan has a first-class natural environment and features spring like climate, good air quality, sparkling sea water, beaches and tropical rainforests as well as the Li and Miao minority cultures. All these factors make this unique island into an ideal vacation paradise. Build a modern city on an ancient civilisation, put it at an intersection of cultures, and you get a place that is truly worth exploring. Dive into a festival, hike a mountain trail, catch a show, visit a temple, or explore a walled village. Hong Kong has something to offer every visitor. Fun awaits you in Korea, a peninsula surrounded by three different seas in Northeast Asia. Create special memories in a country where you can enjoy abundant tourism, delicious cuisine, and beautiful landscape with its 5,000-year-old history. What’s more, it is the epicenter of hallyu, Korean pop-culture, which has become popular globally. The Philippines is known for its 7,107 tropical islands with mega-diverse natural environment, rich cultural heritage, contemporary lifestyle and exceptionally warm people who will always make your stay more memorable and fun. Its top cruise destinations are Manila, Palawan and Boracay Island. Taiwan is a beautiful island blessed with an abundance of natural resources and cultural diversity. We’ve no doubt that our scenic beauty, street food and culinary scene, local folk traditions, and warm and welcoming people will make your stay in Taiwan a delight worth savouring. Xiamen, as the well-known seaside city, has great deal of seaside tourism resources, as known as the “Garden on the Sea”. At the same time, Xiamen is also one of the main China cruise homeport cities. KOREA HONG KONG HAINAN THE PHILIPPINES TAIWAN XIAMEN 8-11 .indd 4 13.3.2019 8.04
TAIWAN KOREA THE PHILIPPINES XIAMEN HONG KONG HAINAN C M Y CM MY CY CMY K Asia Cruise Cooperation, a committed and resourceful alliance of Hainan, Hong Kong, Korea, the Philippines, Taiwan and Xiamen, share the mission of promoting maximum growth in cruise tourism for partnering destinations and for Asia. Together, we provide a one-stop platform to support your development in Asia. We appreciate the importance of collaboration among ourselves as well as with our partners. The unwavering support of partnering destinations is our promise to you. Harness the opportunity and sail with us today. Being the only tropical island in China, Hainan has a first-class natural environment and features spring like climate, good air quality, sparkling sea water, beaches and tropical rainforests as well as the Li and Miao minority cultures. All these factors make this unique island into an ideal vacation paradise. Build a modern city on an ancient civilisation, put it at an intersection of cultures, and you get a place that is truly worth exploring. Dive into a festival, hike a mountain trail, catch a show, visit a temple, or explore a walled village. Hong Kong has something to offer every visitor. Fun awaits you in Korea, a peninsula surrounded by three different seas in Northeast Asia. Create special memories in a country where you can enjoy abundant tourism, delicious cuisine, and beautiful landscape with its 5,000-year-old history. What’s more, it is the epicenter of hallyu, Korean pop-culture, which has become popular globally. The Philippines is known for its 7,107 tropical islands with mega-diverse natural environment, rich cultural heritage, contemporary lifestyle and exceptionally warm people who will always make your stay more memorable and fun. Its top cruise destinations are Manila, Palawan and Boracay Island. Taiwan is a beautiful island blessed with an abundance of natural resources and cultural diversity. We’ve no doubt that our scenic beauty, street food and culinary scene, local folk traditions, and warm and welcoming people will make your stay in Taiwan a delight worth savouring. Xiamen, as the well-known seaside city, has great deal of seaside tourism resources, as known as the “Garden on the Sea”. At the same time, Xiamen is also one of the main China cruise homeport cities. KOREA HONG KONG HAINAN THE PHILIPPINES TAIWAN XIAMEN 8-11 .indd 5 13.3.2019 8.04
? UPFRONT Marine system expertise Integrated system solutions raise your efficiency, sustainability and profitability. Our expertise in dual fuel and gas supply systems, optimized propulsion, exhaust after-treatment, and battery hybrid solutions enables your visions to succeed. www.man-es.com Your visions succeed 1812_13435_MAN_ES_Anzeige_SC_FourStroke_Image_reSe_ENG_210x297mm_ISO_V2.indd 1 13.12.18 14:44 Costa Cruises celebrated the naming of the Costa Venezia in Trieste, Italy, on March 1. The Costa Venezia is the first Costa vessel specifically designed and built for the Chinese cruise market. Pictured here are godmother Gan Beiye with her family, Costa Group Asia President Mario Zanetti, Costa Group CEO Michael Thamm and the ship’s master. Meyer Turku floated out the Costa Smeralda on March 15. At over 180,000 gross tons, the newbuild will be the third-largest cruise ship ever built in Finland and the industry’s second LNG-powere d cruise vessel. The Costa Smeralda enters service in October 2019 and will be deployed year-round in Europe. Opening the valves from left are Costa Cruises President Neil Palomba and Meyer Turku CEO Jan Meyer. Holland America Line held a dedication ceremony for the Nieuw Statendam on February 2 at Port Everglades . Oprah Winfrey – philanthro pist; film star; TV icon; and founder and editorial director of O, The Oprah Magazine – officially named the vessel in a ceremony onboard in the ship’s World Stage. During the daytime celebration , Winfrey was joined by Orlando Ashford, President of Holland America Line; Stein Kruse, Holland America Group and Carnival UK CEO; and Arnold Donald, President and CEO of Carnival Corporatio n. 12 CRUISEBUSINESS.COM MAGAZINE SPRING 2019 12-17 .indd 2 25.3.2019 13.46
CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 15 Marine system expertise Integrated system solutions raise your efficiency, sustainability and profitability. Our expertise in dual fuel and gas supply systems, optimized propulsion, exhaust after-treatment, and battery hybrid solutions enables your visions to succeed. www.man-es.com Your visions succeed 1812_13435_MAN_ES_Anzeige_SC_FourStroke_Image_reSe_ENG_210x297mm_ISO_V2.indd 1 13.12.18 14:44 12-17 .indd 3 25.3.2019 13.46
Mobile Access VingCard Locks Elsafe Safes TrioVing Cylinders A trusted partner for the marine industry. Learn more today at assaabloyglobalsolutions.com/marine At ASSA ABLOY Global Solutions, innovation is nothing new. We have been leading the industry in security and access technology for over 40 years, since inventing the world’s first card lock. As part of the ASSA ABLOY family, Marine provide service and support worldwide from our dedicated offices in Norway, Spain, Singapore and the USA. We offer advanced security solutions and peace of mind for both hospitality providers and their guests and crew. Our advanced solutions include: VingCard electronic locks, mobile access, gangway control, Elsafe safes, printers and encoders, cylinders and keys and mechanical stainless steel locks. Visit us at Booth # 2101 14 CRUISEBUSINESS.COM MAGAZINE SPRING 2019 ? UPFRONT Viking Cruises welcomed the latest additions to its river fleet with the naming of seven new river ships during a celebration on the Rhine River in Basel, Switzerland, on March 19. Of the seven ships, six are Viking Longships – Viking Einar, Viking Sigrun, Viking Sigyn, Viking Tir, Viking Ullur and Viking Vali – which will be deployed on Viking’s most popular itineraries on the Rhine, Main and Danube rivers. The seventh new ship – Viking Helgrim – was inspired by the Longships design and built specifically for the Douro River, bringing the company’s total number of sister ships in Portugal to four. Pictured at the Foundation Beyeler are Viking Chairman Torstein Hagen (middle) and the ships’ seven godmothers. MSC Cruises’ newest flagship the MSC Bellissima was officially named on March 2 in Southampto n in a stunning ceremony with celebrity performers, hosts and (of course) the iconic Sophia Loren, christening her 14th MSC ship. The MSC Bellissima, second in the line’s Meraviglia class, will sail the Mediterrane an during its inaugural season before departing for the United Arab Emirates. 12-17 .indd 4 25.3.2019 13.46
Mobile Access VingCard Locks Elsafe Safes TrioVing Cylinders A trusted partner for the marine industry. Learn more today at assaabloyglobalsolutions.com/marine At ASSA ABLOY Global Solutions, innovation is nothing new. We have been leading the industry in security and access technology for over 40 years, since inventing the world’s first card lock. As part of the ASSA ABLOY family, Marine provide service and support worldwide from our dedicated offices in Norway, Spain, Singapore and the USA. We offer advanced security solutions and peace of mind for both hospitality providers and their guests and crew. Our advanced solutions include: VingCard electronic locks, mobile access, gangway control, Elsafe safes, printers and encoders, cylinders and keys and mechanical stainless steel locks. Visit us at Booth # 2101 12-17 .indd 5 25.3.2019 13.46
16 CRUISEBUSINESS.COM MAGAZINE SPRING 2019 UPFRONT SunStone Ships – the largest tonnage provider in the expedition market – and China Merchants Group launched the first nextgeneration Infinity-cla ss vessel on March 12. With a goal of marrying European design and quality with Chinese shipbuildin g efficiency, the INFINITY class delivers cutting-edg e design, innovations like X-bow technology and significant operating efficiencies. SunStone has ordered five vessels in the class – Greg Mortimer, Ocean Discoverer, Ocean Victory, Ocean Explorer and Ocean Odyssey – with two more contracts expected to be signed within the next two months plus three options expected to be exercised by the end of 2019. Vessel deliveries begin with the Greg Mortimer in August 2019 and will continue with the remaining nine vessels through August 2023. For the first time since its founding in 2001, SeaDream Yacht Club is expanding its fleet with the SeaDream Innovation – a revolutionary new yacht that will introduce the concept of “Global Yachting.” Commencing service in September 2021, the ultra-luxury yacht will sail to all seven continents in its first year, visiting over 200 ports in 49 countries. At 15,600 gross tons, the ship will feature 110 suites and be constructed by the Netherlands’ Damen Shipyards Group. Seabourn Cruise Line has announced the name of its first expedition vessel. The Seabourn Venture is scheduled to launch in June 2021, with a second yet-to-be-nam ed sister slated to launch in May 2022. Both ships will be designed and built by Italy’s T. Mariotti to PC6 Polar Class standards for cruising in diverse environment s, and will include modern hardware and technology to extend their global deployment and capabilities. THE STRENGTH AND STABILITY TO SUPPORT YOUR CRUISE BUSINESS Ranked one of the top cruise ports in the world, Port Everglades offers the reliability, service and efficiency to help your business run smoother — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. • 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 available. port.everglades | @porteverglades | PortEvergladesFL | port-everglades PEG888_Cruise Business Review FP Anchor_mech.indd 1 5/2/18 9:03 AM 12-17 .indd 6 25.3.2019 13.46
THE STRENGTH AND STABILITY TO SUPPORT YOUR CRUISE BUSINESS Ranked one of the top cruise ports in the world, Port Everglades offers the reliability, service and efficiency to help your business run smoother — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. • 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 available. port.everglades | @porteverglades | PortEvergladesFL | port-everglades PEG888_Cruise Business Review FP Anchor_mech.indd 1 5/2/18 9:03 AM 12-17 .indd 7 25.3.2019 13.46
18 CRUISEBUSINESS.COM MAGAZINE SPRING 2019 D uring the two-day summit, held in Madrid in late November, key industry executives and observers shared experiences and ideas on how to manage the seemingly unbridled expansion of the cruise industry, which is expected to continue for the foreseeable future despite all the vagaries in the wider world. Convoluted issues such as congestion, sustainability, capacity management, brand differentiation and product development were among the subjects that came under scrutiny. In the light of the recent highly publicized over-tourism and destination congestion issues around the world, the cruise indusThe interminable expansion of the cruise industry brings with it an increasing number of issues that demand concerted effort to address. Many discussions at the 8th edition of the International Cruise Summit (ICS 2018) were focused on aspects of growth and how to manage them. By Alan Lam try – which represents only a small but growing percentage of the travel and hospitality business – is now evolving towards developing a more proportional growth strategy, from moderating the size of ships to harmonizing berth allocation policies and a more measured approach to itinerary planning. All of these are factors that may contribute to or reduce congestion depending on how they are managed. Apart from bigger ships bringing in larger numbers of visitors, the industry’s contribution to port and destination congestion is mainly caused by what David Dingle, Chairman of CLIA Europe and Carnival UK, called the “infatuation with weekend departures.” He was critical of this practice and has on various previous occasions expressed in no uncertain terms his opposition to this stubbornness. “We must take a different approach,” he said. “Do you really need to depart on Saturdays and Sundays? Are you really so inadequate that you are unable to fill your ships departing any other day of the week?” Although there are cruise lines, such as TUI Cruises and Saga Cruises, which depart on weekdays, it is an undeniable fact that weekend departures generally command better yields. So for the present, this habit will probably not change. Steven Young, Vice President Port & Shore Operations of Carnival UK, recognized this fact. “So our biggest challenge is how the infrastructure copes,” he David Dingle 18-23 .indd 2 12.3.2019 15.10
? CRUISEBUSINESS.COM MAGAZINE SPRING 2019 19 ICS 2018 FOCUSES ON MULTIPLE ASPECTS OF GROWTH said. At the same time, he called for a more diluted approach by urging his industry colleagues to widen their targets. “There are 700 cruise ports around the world; only a couple of dozens of them have this congestion problem. We need also to persuade people to visit other destinations.” Smaller, independent cruise lines are already frontrunners in this respect. Many of them actively avoid congested ports in order to offer their guests more exclusive experiences. But they face quite a different set of challenges. “We are constrained by the size of our operation,” said Chris Theophilides, CEO of Celestyal Cruises. “We have to grow in the manner that fits the destinations. We manage the destinations we go to and carry out dialogues. As a company, we’ve made a conscious decision to visit less-known destinations [in order] to differentiate ourselves. That means there is challenge for us to operate in less developed destinations. We are careful not to grow beyond [what] the destinations can manage.” Sustainable growth The cruise industry’s future course will depend very much on sustainability, not only in terms of increasing its consumer appeal but by protecting the environment in which it operates. Reducing plastic waste has been a global environmental headline in recent months. The cruise industry has been quick to respond with significant gestures such as banning singleuse plastic products. “We are already doing a lot on this,” said Kevin Bubolz, Managing Director Europe of Norwegian Cruise Line. “One of them is waste reduction. We have eliminated 55 million plastic straws. We’ve joined the Trash Free Seas Alliance to show that we are committed. Not just a publicity stunt, we are serious about this and we will take this further.” Still, the industry needs to go beyond such gestures, however meaningful. “For us, sustainability is more than banning plastic straws,” said Richard Vogel, President & CEO of Pullmantur Cruises. “We do make a big marketing issue about that. Sustainability also means education. First of all, keep your ships clean; be a good example to the guests. Integrate your customers into the discussion on what we can do to help protect the environment. Understand why it is important to keep the environment clean.” It is difficult to overstate the importance of technology in sustainability – from liquefied natural gas (LNG) to exhaust-gas cleansing – especially in light of advancing regulations concerning marine GHG and sulphur emissions. “We are very much focused on the environment, making sure our technologies will help protect it,” said Achille Staiano, Vice President Global Sales of MSC Cruises. “We need to make people understand what we are doing. When Kevin Bubolz Steven Young 18-23 .indd 3 12.3.2019 15.10
? CANARY ISLANDS MADEIRA ISLANDS SPAIN AFRICA FRANCE UNITED KINGDOM PORTUGAL 20ªW 40ªN 30ªN 20ªN T R O P I C O F C A N C E R CABO VERDE you see white clouds above the ship, that is not smoke; it is steam. By the end of this year all single-use plastic will be eliminated from our ships. We just need to find solutions for a few other things. Today there is no regulation that says we should have wastewater treatment in place, but we have also focused on purifying waters onboard.” This is a matter not just for the cruise lines, however; other stakeholders have an even bigger role to play. “There is absolutely no doubt that we are far ahead of the curve in the area of sustainability,” said Captain Michael McCarthy, President of Cruise Europe. “Sustainability for the cruise lines, as far as I understand, stops at the gangway; then we [ports and destinations] take over.” Diversifying growth Never before has the world seen so many products offered by so many cruise lines. As the industry continues to diversify and differentiate, how can this be managed in the absence of a well-defined roadmap? “We see the interest in this industry growing,” said Vogel. “We have to convince more people to experience new things. We have to democratize and popularize the cruise industry.” To this end, Pullmantur has formed a partnership with Spain’s Bankinter. Together they have introduced a Pullmantur credit card, which – apart from performing all the necessary functions – will help customers to pay for their cruises by installments. This can be seen as another aspect of diversification. The cruise industry has matured to such an extent that it is organically diversifying, with its brand products differentiating rapidly. This is especially the case in the upscale segment. “There is more and more demand on the market,” said Alfredo Spadon, Managing Director Europe and Asia of Silversea Cruises. “Silversea ordered several ships and is increasing capacities on existing ones. There is an absolute interest in this segment of the market. More people want different experiences [from the ones offered by the contemporary market segment].” Therefore, smaller ships and lesser-known ports will see the biggest proportion of growth in the coming years. This will put a different complexion on how to manage expansion. “One in four ships built in the next five years will be luxury [vessels],” said Juan Rodero, CEO of Star Class. “We as an industry have to think about how to sell this product. Large ports have done a fantastic job in the last ten years. With all these smaller ships being built, I see big opportunities for smaller ports.” So far, the upscale segment has been mainly in the hands of smaller players, but as it expands, this will change. In recent months, Royal Caribbean Cruises Ltd. (RCCL) has acquired Silversea Cruises, while Viking Cruises is planning a whole fleet of expedition vessels. Developments such as these could lead to further consolidation, as independent operators find it hard to compete. “We already have 85% of the industry in five hands,” said Manfredi Lefebvre d’Ovidio, Executive Chairman of Silversea. “There will be less room for smaller and medium-size companies. It is difficult to remain independent in the longer term.” In the contemporary market segment, things are also changing. “We can see in all the markets there is so much potential to grow,” said NCL’s Bubolz. “There is so low a penetration rate at the moment. We will be growing alongside the colleagues of the industry. We have decided to build a class of 2,000to 4,000-passenger ships, not just the 5,000plus-passenger units. We want to fill the middle segment. This way we can go to more ports and destinations, and it will give us flexibility.” Perspective on growth Despite more than two decades of growth, the cruise industry still represents only a tiny percentage of the entire travel and hospitality sector. “It is easy for this industry to feel from the inside like it is growing quickly,” said Douglas Prothero, CEO of The Ritz-Carlton Yacht Collection. “We are still a very small industry. We still struggle to win market shares in the wider world. Our challenge is receiving tonnage quickly enough. If we don’t find a way to build more capacity quicker by 2030, we will start to lose market shares in the travel sector.” Therein lies a stark warning from one of the industry’s most experienced veterans. Side by side with building new ships, the need to understand the market and follow prevailing trends is also called for. “We need to think outside of the box,” said Carmen Morosan, Global Shore Excursions Manager of Intercruises Shoreside & Port Services. “There is a wealth of interesting things to do. Only a small percentage is exploited. Today’s travelers have all been to popular places. Chances are that they want something different. They are sitting quietly and waiting for us to offer them something new. We also need to make it personal, make it special and make it memorable.” “There is a striking parallel in the hospitality industry,” said Yiannis Vontas, Senior Partner Executive Vice President Development & Marketing of Variety Cruises. “On land, there is a similar growth in boutique hotels. People want privacy. They want smaller groups. They want to be spoiled. They want slow cruises, a more immersive experience. They want to take their time, wherever they are. They want to enjoy the sea, not just to see it. They are not into big ports.” Vontas pointed out that more than 70% of small-ship guests have already been on contemporary ocean and river cruises. It is therefore a natural progression for them to move into a small-ship experience. Challenges of growth No cruise conference would be complete without at least highlighting key challenges of the industry, and ICS 2018 was no exception. Apart from obvious issues shared by all stakeholders – such as environmental protection, image problems and low market penetration – there are specific challenges faced by individual operators that require careful and almost customized consideration. For major players, the lack of shipyard slots and berth congestion may be their chief concerns, while for smaller companies, their problems are more varied. “The number one challenge is funding,” said Vontas. “It is not easy for a small company to fund its investment. The second challenge is to attract qualified professionals, as we cannot afford their salaries. Thirdly, we have only small and limited marketing budgets. 20 CRUISEBUSINESS.COM MAGAZINE SPRING 2019 Mario Ferreira Manfredi Lefebvre d’Ovidio Douglas Prothero 18-23 .indd 4 12.3.2019 15.10