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

Five Essential Things To Know About Ocean Princess

 This week I am writing about Ocean Princess. I recently did a cruise on her around the British Isles that was just outstanding. Service, food, shore excursions - - all were handled very well. In addition, the staff was genuinely friendly and interested in making sure the guests enjoyed themselves.

Of the 18 ships now in the Princess Cruises fleet, Ocean Princess may be the least well known. So I was thinking are the five essential things to know about this ship?

1. Ocean Princess is one of two small ships in the Princess fleet - - 30,277 gross tons carrying about 670 passengers. Together with her near identical sister, Pacific Princess, they are the line's Explorer class.

2. Although she is much smaller than the rest of the Princess fleet, she offers a decidedly Princess Cruises experience. She has a Sabatini's, she has a steakhouse specialty restaurant, there is a captain's reception with a champagne waterfall - - in short all of the hallmarks of a Princess cruise.

3. Of course, due to her size, she does not have as many attractions and venues as the larger ships. As a result, she tends to attract more mature, experienced cruisers who are interested in the sophisticated and elegant environment that she offers.

4. Ocean Princess is one of eight ships originally built for Renaissance Cruises. When Renaissance went bankrupt the eight ships became dispersed over several cruise lines. None of these cruise lines has changed them very much. Although Princess does not do so, some of the lines market these ships as luxury cruise ships.

5. As implied in the name Explorer class, Ocean Princess goes all over the world, visiting small ports that are not on the itineraries of bigger ships as well as the more popular ports. Her cruises tend to be long, often several weeks. Indeed, the officers and crew kept referred to the 8 day cruise that I was on as a “short cruise.”

We have lots more about Ocean Princess in the Ocean Princess section of Beyondships. http://beyondships.com/Princess-OP-Profile.html This includes:

An updated photo tour of the ship. http://beyondships.com/Princess-OP-Tour-1.html

An interview with Captain Carlo Servillo and Hotel General Manager Arturo Calise http://www.beyondships2.com/ocean-princess-captain.html

An insider dining guide to Ocean Princess with comments from Executive Chef Guido Jendryztko and Maitre D'Hotel Lugi Pascale http://www.beyondships2.com/ocean-princess-dining-guide.html

A new menus page with menus from the main dining room and the ship's two specialty restaurants. http://www.beyondships2.com/ocean-princess-menus.html

A new daily programs page with copies of the Princess Patter and other informational leaflets distributed aboard. http://www.beyondships2.com/ocean-princess-daily-programs.html

A new photo essay showing exterior shots of Ocean Princess in various European ports. http://www.beyondships2.com/ocean-princess-photos.html

Photo Tour of Saga Pearl II and Photos of Saga Ruby

In order to survive in today’s cruise market, small ships have to specialize. Because of their size, they do not have all of the features and options available on the large ships and so they have to focus their efforts in order to attract customers. Some are ultra-luxury, some go to exotic locations that the big ships do not, while others offer longer voyages.

Saga Pearl II specializes in holidays (vacations) for the over 50 set. Not only is there a formal age requirement but the entire concept reflects thinking about what more mature travelers want and need when traveling. This extends from sending a chauffeured car to collect guests and their baggage and bring them to the ship if they live within a certain distance of the embarkation port to having a high percentage of single cabins for guests who may no longer have a partner. The small size of the ship also gives rise to a more intimate atmosphere which facilitates the guests getting to know one another.

Since the ship focuses on seniors, it does not need children’s facilities, rock climbing walls or giant water slides. Consequently, there is more space for facilities like an extensive library.

Saga Pearl II is the latest addition to the Saga Cruises’ fleet. Built in 1981, the ship was completely renovated following its acquisition by Saga. The result is fresh looking interior done in a contemporary understated style.

Beyondships’ profile of Saga Pearl II is at http://www.beyondships.com/Saga-SagaPearl-Profile.html and the multii-page photo tour begins at

In addition, the master of Saga Pearl II, Captain David Warden-Owen, talks about his ship at http://www.beyondships.com/Saga-SagaPearl-Captain.html I first met Captain Warden-Owen when he was Staff Captain on Cunard’s Queen Elizabeth 2. He went over to Saga after that line acquired the Sagafjord from Cunard, which Saga re-named the Saga Rose. Cunard was sorry to lose him as he was a very accomplished officer. His popularity and successful command of Saga Rose for some 12 years until the ship was retired last year underscore his ability.

While we are on the topic of Saga, I have put together a photo essay on Saga’s other ship, the Saga Ruby. Originally, the Vistafjord and later the Coronia for Cunard, this ship was the last classic ocean liner built in Britain. She has pleasing lines and is a pleasure to photograph. This essay shows her in New York and in Newport, Rhode Island last year. It can be found at http://www.beyondships.com/Saga-SagaRuby-Photos.html