Cruising in 2015

 At this time of year, it is customary to look ahead to the New Year. Therefore, I thought I would take a look ahead to see what may be in store for cruising in 2015. My conclusion is that 2015 promises to be an exciting time for several reasons.

First, 2015 will see an array of important new cruise ships go into service. Each of the top three cruise families will have at least one significant new ship.

In the Carnival family, P&O Cruises will receive its largest ship ever, the 140,000 gross ton Britannia. This ship will be a sister to Princess Cruises' innovative Royal Princess and Regal Princess. As such, Britannia will present British cruisers with dining and entertainment options never before offered on a P&O Cruises ship.

Britannia will be facing some tough competition as Royal Caribbean's new Anthem of the Seas will be based in Southampton for part of the year. This is the 167,000 gross ton sister ship to Quantum of the Seas. Anthem too will be offering Royal's new Dynamic Dining concept and will feature the advanced 270 entertainment center as well as an upmarket sophisticated interior like on Quantum. Oh yes, there will also be the bumper cars, the sky diving simulator, and the North Star observation capsule. However, do not let such items cause you to think that Anthem is not a serious ship.

Not to be left out, Norwegian Cruise Line will be bringing out Norwegian Escape later in the year. At 163,000 gross tons, Escape will be a bigger and improved version of Norwegian Breakaway and Norwegian Getaway. The Breakaway class embodies a new model of cruising where the passenger has multiple quality options with regard to both dining and entertainment. It will be interesting to see how Norwegian enhances this concept on the ships of the Breakaway-Plus class.

The German cruise market will be greeting AIDAprima. At 120,000 tons, she will be a quantum leap larger than previous AIDA ships. Meanwhile, rival TUI Cruises will be receiving the second ship to be built especially for TUI, the rather unimaginatively named Mein Schiff 4 (98,000 tons).

In the luxury segment of the industry, Viking Cruises will begin ocean cruising with the 48,000 ton Viking Star. The common wisdom in the industry has been that river cruising and ocean cruising are two different businesses and so none of the major ocean cruise lines has ventured into river cruising. Viking, the most successful of the river cruise lines, will test the common wisdom and demonstrate whether a river cruise line can break into the ocean cruise market.

The drop in the price of oil in the last part of 2014 bodes well for the cruise industry. Fuel is the chief cost of operation for the cruise lines. In addition, with consumers paying less at the pump and to heat their homes, they will have more money to spend on discretionary items like cruise vacations. The only cloud on the horizon would be a collapse of the economy of one of the oil exporting states, which could have an adverse impact on the world economy.

Another unexpected gift this fall was President Obama's overture on normalizing relations between the United States and Cuba. The cruise lines are always looking for new destinations for their expanding fleets and Cuba, 90 miles from Florida, is an ideal location. However, before the cruise ships can start calling there, the lines will have to explore such things as whether the port facilities are adequate to handle modern cruise ships, the ability of the Cuban infrastructure to handle shore excursions and whether it would be safe for passengers to go ashore in Cuba. It may take awhile to get all of the ducks in order and so even if the diplomatic questions are resolved quickly, it may be beyond 2015 before the cruise ships come to Cuba in large numbers.

But with all of this happening, it is an exciting time in the cruise world.

On Beyondships this week, we have a new profile of cruise destination Ocho Rios, Jamaica. http://www.beyondships3.com/ocho-rios-cruise-destination.html This includes a review/photo feature on Ocho Rio's top attraction - - Dunn's River Falls http://www.beyondships3.com/ocho-rios-attractions-dunns-river-falls.html and a review of Prospect Plantation.http://www.beyondships3.com/caribbean-great-houses-4.html We also have a new photo and video feature in which Caribbean Princess disappears and magically reappears. http://www.beyondships2.com/caribbean-princess-rain-sun-shadow.html

Economics and small ship cruising

Last month it was announced that Princess Cruises was selling Ocean Princess to Oceania Cruises. Ocean Princess is a small ship by today's standards, coming in at just over 32,000 gross tons.

Originally, this ship was the R4 of Renaissance Cruises. She was one of eight nearly identical ships. When Renaissance went out of business, the eight ships were scattered and ended up in the fleets of Azamara, Oceania, Princess and P&O Cruises. Interestingly, although the eight ships have different they are still nearly identical.

Azamara and Oceania sell cruises on their ships as luxury crusing. Princess and P&O Cruises characterize their ships as offering the same main stream cruise experience as the rest of the ships in their fleet.

The sale of Ocean Princess is not surprising. It is difficult for a main stream cruise line to offer a small ship experience. The cost per passenger of running a small ship is greater than the cost per passenger of running a large ship because of the economies of scale. It thus follows that if you are charging the same or similar fares as you do for a large ship, you are not going to make as much money. (Bear in mind that the cruise lines are businesses with fiduciary responsibilities to their investors).

A luxury cruise line is able to charge more per ticket. Thus, the additional cost of providing a small ship experience is not as significant an issue.

People often ask me why isn't anyone building small cruise ships anymore? In fact, there are small cruise ships being built. To illustrate, Regent Seven Seas has one on order now and Viking Cruises is building a series of ocean going small cruise ships. Seabourn and other luxury brands have also added new small ships to their fleets in recent years.

The question then becomes why aren't the major cruise lines building any small cruise ships? The answer lies in the same econimcs discussed above. Looked at on a per passenger basis, small ships cost more to build and more to operate because they lack economies of scale. Thus, if you can only charge the same price for a cruise on a small ship as you can for a cruise on a large ship, it does not make sense to invest in building a small ship.

This week on Beyondships, we return to Princess Cays, Princess Cruises' private resort in the Bahamas. Our section on Princess Cays has been re-done http://beyondships.com/Princess-PrincessCays.html and a new video of Princess Cays has been added. http://www.beyondships3.com/princess-cays-6.html

Observations on Norwegian Cruise Line

Continuing our look at the various cruise lines, this week I thought I would talk about Norwegian Cruise Line.

Not all that long ago, Norwegian was in a bad way. The top management had some clever ideas but somehow the line was unable to turn these concepts into reality. As a result, Norwegian developed a reputation for poor service. My observation at that time was that the line had some interesting ships but the people operating the ships were unhappy and so service and execution suffered.

Then Kevin Sheehan became CEO and everything started to turn around. Energetic and charismatic, Sheehan was able to revive employee morale and unleash the pent up talents of management and employees. Whereas no one seemed to care before, now everyone is enthusiastic.

Norwegian is at the forefront of the new model of cruising. Long known for its Freestyle diing concept, the new Norwegian ships - - Epic, Breakaway and Getaway - - not only give passengers good quality options with regard to dining but also with regard to entertainment. Thus, guests have a great amount of freedom to decide how they will spend their time onboard.

There is also a wide variety of accommodations on the Norwegian ships - - again, especially on the newer ships. Cabins range from budget-concious interior cabins to the luxury of the suites located in the exclusive Haven area. The newer ships also led the way in providing cabins for solo travelers at a reasonable rate.

Passengers on Norwegian tend to be middle class. Most are interested in relaxing in the sun, using the sports facilities and in the evening being entertained in the bars, casinos and other entertainment venues. Lectures and cultural activities are not a high priority.

Norwegian is a family-fiendly line with a strong youth program and a large amount of space dedicated to children. Of course, the number of children onboard decreases when school is open.

The line bases its ships on a long term basis in certain home ports. For example, Breakaway and Gem are based all year in New York while Norwegain Dawn spends each summer in Boston. As a result, the ships tend to develop a local following who return to their local ship again and again.

Most of the ships in the Norwegian fleet were built at the Meyer Werft shipyard in Germany. This shipayrd is known for its attention to detail and the high quality of the ships that it builds. The Norwegian ships are no exception.

Norwegian is the thrid largest cruise company. Recently, Norwegian purchased Regent Seven Seas Cruises and Oceania Cruises. This move makes a lot of business sense as it will allow Norwegain to become a multi-diemnsional cruise conglomerate like its competitors Carnival Corporation and Royal Caribbean Cruises Ltd. My only concern, however, is whether the new lines will distract Mr. Sheehan from continuing the great work he has done in turning Norwegian around.

This week Beyondships has new photo and video features of Norwegian Gem http://www.beyondships2.com/norwegian-gem-coming-and-going.html and Norwegain Dawn. http://www.beyondships2.com/norwegian-dawn-photo-feature.html

Observations on Princess Cruises

Because I cruise so often, people often ask me which is the best cruise line. I always answer that it depends upon your lifestyle and tastes. Each of the major cruise lines sets out to present a different cruise experience. At the extremes, some seek to present a lively party atmosphere while others seek to present a refined cultural experience. If you want a party experience, you are not going to be happy on a culturally-orientated ship no matter how well the cruise line presents its concerts and lectures.

With that caveat, I thought I would do a series of postings offering some general observations about the various cruise lines. Hopefully, this will give you some indication of whether a particular cruise line is for you.

Recently, I have been cruising on a number of the Princess Cruises ships. Therefore, I thought I would start this series with Princess Cruises.

In the U.K. a few years ago, Princess ran an advertising campaign that characterized the line as “American luxury.” I think that was a good description. To me, the Princess cruise experience is one of relaxed sophistication. It is upmarket but not stuffy.

Based on my observations rather than on any scientific study, people who travel on Princess tend to be educated and what used to be called upper middle class. Their tastes are correspondingly sophisiticated but they also like to relax in the sun by the pools or in the adults-only Sanctuary area. Hairy legs competitions and throw the cruise director in the pool are not for this crowd.

While Americans and Canadians dominate, there is usually a good mix of nationalities with the U.K. well-represented.

The passengers range in age from young families to retired people. Of course, the mix of ages depends upon the time of year (less children when school is in session) and the itinerary (some routes attract a more mature crowd). As is true throughout the industry, the average age goes up along with the length of the voyage.

I often meet experienced cruisers on Princess ships. The line has a very strong loyalty program and a devoted following. But, I find that experienced cruisers who travel on Princess also seem to like Celebrity Cruises.

Inside, the public spaces of the Princess ships are eye-catching but at the same time they avoid being glitzy or garish. The interiors of the two latest Princess ships, Royal Princess and Regal Princess, are spectacular. Over several ships, Princess' interior designer Teresa Anderson developed an elegant signature style for Princess. Beacuse the line's new ships are so much bigger than the other ships in the Princess fleet, the designers were able to combine space with the traditional Princess style making for a grand result.

I have always found the food on the Princess ships to be to my taste. This is particularly true of the line's Italian offerings. Early on, Princess merged with the Italian cruise line Sitmar and that Italian heritage is still reflected in the culinary operations on the Princess ships. The Alfredo's Pizzerias serve the best gourmet pizza at sea - - and it is complimentary.

An important part of Beyondships is our interviews with the people who operate the various cruise ships. I have been impressed with the captains, hotel managers, maitre d's and cruise directors who I have interviewed at Princess. The people that I have met have been intelligent and able to see the big picture. I believe that this benefits the passengers through increased innovation and efficiency.

They also seem able to motivate the crews to provide good service. Princess calls itself the consumate host and my experience has been that the crew understand that they should act like the passengers are guests, not just customers. Of course, in any business you have some people who just don't get it but overall the morale and therefore the service level is quite high on Princess.

Overall, Princess is a very strong cruise line.

This week on Beyondships, we have an update on Royal Princess. We have a new photo http://www.beyondships2.com/royal-princess-photo-feature.html and video feature showing the ship in various ports. http://www.beyondships2.com/royal-princess-video.html There is an interview with Hotel General Manager Martin Bristow. http://www.beyondships2.com/royal-princess-hotel-manager-ii.html We also review the Crab Shack dining event http://www.beyondships2.com/royal-princess-crab-shack.html and the Gelatto ice cream parlor. http://www.beyondships2.com/royal-princess-gelato.html