Dignitaries at European Maritime Day

Malta’s prime minister Joseph Muscat has given his support to the cruise industry at European Maritime Day, an event jointly hosted by CLIA Europe and Valetta Cruise Port.

Malta has seen around EUR372 million in direct expenditure from the cruise industry between 2006-2011.

Commenting on the current state of the Maltese cruise industry, Muscat said: “Malta invested heavily in the cruise industry, creating direct and indirect job opportunities for the island. Throughout recent years, Malta has experienced continuous growth in this sector and the investment is now bearing its fruit. The Maltese government is committed to continue investing in the industry in line with its policy for economic growth.”

The government is also in talks to build a terminal at Gozo, according to reports made by Malta Today and is on the verge of launching an international expression of interest to secure funds.

“We are certain that Gozo will provide not only an excellent business opportunity but also a vibrant new destination for the mainstream cruise liner industry,” Muscat told European Commissioner for Maritime Affairs Maria Damanki.

Robert Ashdown, secretary general of CLIA Europe, representing the European cruise industry said: “As the new secretary general of CLIA Europe I am committed to working with the Port of Valletta and the Prime Minister of Malta, Dr. Joseph Muscat, to finding ways to maximize the potential of Europe’s maritime heritage. We agreed to work together to facilitate the sustainable growth of the cruise industry in Europe, which will boost cruising in the Mediterranean and bring further benefits to Malta.”

The Serenissima

The 112-passenger MS Serenissima has been refloated off the coast of Oban Bay after running aground on Monday evening, the BBC has reported.

The vessel, which is currently being chartered by Noble Caledonia, has now been anchored in Oban Bay to allow divers the opportunity to conduct underwater surveys to assess damage.

A Stornoway Coastguard statement said that initial reports showed no injuries or damage to the vessel.

Initial attempts at refloating the vessel were unsuccessful after high winds hampered efforts. The ship was successfully refloated at 00:30 this morning.

An Oban RNLI spokesman said the Serenissima had run aground on the Corran Ledge.

“The initial attempt at refloating the ship used its own engine with the lifeboat providing assistance by pulling at the stern,” he said.

“Unfortunately this attempt was hampered by a strong wind blowing the ship towards the shore, and was unsuccessful.”

Carnival Spirit in Sydney

The biggest cruise company in the world, Carnival Corporation, has issued an updated lower earnings forecast for the second half of 2013 based on a poor first half of the year.

The firm, which put the figures down to “lower net revenue yield expectations” reported that current ticket pricing had driven higher booking volumes however because of the lower prices, net revenue was accordingly lower. This had resulted in the lower yield expectations.

Shares took a 379p hit, around 16%, sinking to 2013p.

The company now expects profits to be down 2-3% with the cancelled voyages also playing a role in the revised figures. The firm also recently announced a sale in which it was cutting the price by 40% for selected cruises with Carnival Cruise Lines.

The firm also revealed it is paying US$674 per metric ton in fuel.

London newspaper The Evening Standard quoted Shore Capital’s Martin Brown saying: “Elevated cancellations and greater levels of discounting appear to be the consequence of the PR disasters that have blighted Carnival this year.

“A period out of the front-page headlines and a demonstration of strengthening yields are clearly needed.”

It will be announcing its second quarter results in late June.

Giles Hawke will be leaving his post in November

Carnival UK has announced that its sales & customer services director Giles Hawke is to leave the company after 11 years.

He will leave the company in November.

In an announcement to trade partners, Carnival UK chief commercial officer, Gerard Tempest said: “We will be sorry to see Giles leave us, and wish him well for the future. Giles’ achievements within Carnival UK have been many, most notably the successful introduction of industry-leading changes to our trade partner relationships.”

Hawke himself released a statement confirming the following:

“The arrival of Gerard tempest and the new boost he has added to the business has been really exciting over the last five months and I know he will lead the commercial area of Carnival UKwell.

“My departure also gives others the chance to develop their careers further within the business.

“While sad to be leaving, I am hugely excited about the next chapter in my career, with new challenges and opportunities. Thanks to all those colleagues, agents and business partners who have supported me over the last ten years and I’m sure I can count on continued support in my new role in the future.

“I wish everyone at Carnival UK the best for continued future success. I cannot talk about where I am going at this stage but, suffice to say, it is a great opportunity which I will be looking forward to starting on towards the end of the year.”

Richard O'Hanlon

Carnival Corporation has hired Richard J. O’Hanlon as its vice president of nautical and safety operations for Carnival Cruise Lines.

A former rear admiral in the US Navy, O’Hanlon will be charged with overseeing all nautical and safety functions across Carnival’s 24 ship fleet. This will include nautical operations, lifesaving systems, firefighting and bridge procedures. All of the line’s captains will report directly to O’Hanlon while he will report to Martin Landtman, Carnival’s senior vice president of marine operations.

“We are privileged to have such a highly experienced professional oversee this critically important role within our marine operations area,” said Landtman. “Rich’s outstanding level of expertise and diverse skill set will be a major asset to our nautical and safety operations.”

Before joining Carnival O’Hanlon as chief operating officer at air charter firm Talon Air.

The christening of Cryrano De Bergerac

French river operator CroisiEurope has launched its latest ship, the Cyrano De Bergerac, at a ceremony in Bordeaux over the weekend.

The company, which now has a fleet of thirty vessels, invited local dignitaries and international press along to the event as it looks to push the brand out into more English speaking markets.

Christened by its godmother (the wife of the mayor of Blaye) and godfather (local TV presenter Bernard Montiel), the ship was also unusually given honorary godparents.

Speaking to Cruise News at the event, Michel Grimm, international sales director for CroisiEurope said: “We have made our product more international over the last few years to prepare us for expanding beyond a French speaking audience. This took time but we’ve made changes to the food onboard and the language – both have helped to create a more international environment.”

The 180-passenger vessel stands within the three/four star product range – giving it a solid unique selling point amongst competitors striving for higher ground.

“We offer the best value product on the market today and I believe that will have a strong appeal for the UK passenger,” continued Grimm. “We offer a minimum of 10% commissions to agents and value the trade hugely. Right now over 95% of our business from the UK comes through travel agents, it’s just increasing the numbers that the 95% represents!”

To see our images of the event and the ship itself click here.

Viking Star

Viking Cruises has confirmed an order for two ocean ships due to be launched in 2015 and 2016. 

The two ships will hold 928 passengers each and mark the start of Viking’s entry into the ocean cruise market after significant expansion in the river sector.

Its first ship will be named Viking Star and is due to join the fleet in May 2015 offering cruises in Scandinavia, the Baltic and Mediterranean. Features will include the Explorers’ Lounge; multiple restaurants; two pools; the Wintergarden which will serve up Afternoon Teas and a theatre for live performances.

A second ship will be received in 2016, with the option for Viking to purchase four more and all will have a destination-focused itineraries.

Its ships will have five cabin categories and include excursions, WiFi and beer and wine with meals in its fares.

“It is our view that in the race to build bigger ships, many cruise lines have lost sight of the destinations to which they sail,” said Torstein Hagen, chairman of Viking Cruises. “With our new ocean cruises, we are applying the same principles behind our award-winning river cruises to our itinerary and ship design; privileged-access excursions; and onboard experiences to make destinations the true focus.”

Viking has added 16 ships to its river fleet in the last two years with another 12 on order.

Lisa Jacobs

It’s a cruel fact of the market but the bigger the cruise line the more it will hoard the attention of the travel press. Whether it’s Royal Caribbean revealing its latest mega-ship or Carnival opening offices in Singapore –market share dictates column inches. However, what about those clients who want the simpler, more traditional cruise experience? What about those who aren’t afraid of asking for a proudly British product? It’s those companies, which could easily be described as the unsung heroes of the British market, that are holding on to the traditional values of the British cruiser. One such company is Cruise & Maritime Voyages (CMV). The firm has a tight grip on its particular sector of the market and is a great example of a company fulfilling the requirements of its client. For CMV it’s knowing that profile that has led to its fleet expansions and increased regional departures. We met Lisa Jacobs the newly appointed Head of Retail Sales to find out more.

How have you found the new position?

It is very exciting and a great opportunity to be part of an expanding company. When I joined Cruise & Maritime Voyages (CMV) three years ago from Norwegian Cruise Line, we were getting ready to launch a second ship and now the fleet has expanded to three: Marco Polo, Discovery and, new to the fleet, the very stylish Astor. We have come a long way in a relatively short period of time and I am extremely proud to have been part of the journey thus far. Retail agents are key to CMV’s success and to have a dedicated role as head of retail sales affords me the time to focus on our retail partners and help grow our mutual business. Sales through retail agents are up 15% compared to last year.

How is your relationship with the UK trade?

Our dedicated business development managers and I enjoy meeting agents and discussing ideas on how to grow their cruise business. The recent PSA figures show that the ex-UK market is the growth area along with Norway as a destination, these are a major part of CMV’s business. Due to the fact we cruise from nine regional ports means we have attracted new agents from those areas. In Bristol, Hull, Edinburgh and Newcastle we have been well received and welcomed. We offer enhanced commission levels which is appreciated by our agent partners. I like to get out and about with the role and in the last 12 months I have travelled in excess of 28,000 miles meeting agents and working on promotions.

Why should a travel agent book with CMV?

Apart from having an excellent product with high customer satisfaction levels, we offer strong commission terms of 10% rising to 12.5% once £5,000 has been achieved. Additional earning opportunities exist based on good volume. Our ships are much smaller and more intimate than some other cruise lines therefore agents are encouraged to book their customers earlier and get the cabin they want. We understand that early bookings are important to agents in order to budget their business and therefore we regularly launch exciting campaigns to help drive the sales in early. In our ‘Buy One Get One Half Price’ campaign last summer, which was supported by the trade, we took just under 30% of our overall sales in two months! We offer an extensive programme of ship visits around the country where we welcome agents on board for lunch, overnight –when we can, and of course to cruise with us at a good daily rate. In addition, we have a dedicated sales team to assist our retail partners with promotions and training etc.

Who is the typical CMV passenger?

They are around 65 years of age. Younger in the summer and on our shorter cruises. A large percentage travel within 1.5 hours of the port to. We have very few children because Marco Polo is an adult only ship. Discovery and Astor welcome accompanied children but have no dedicated facilities. We have many first timer cruisers, which is good, and in the last year we have had many people who have previously cruised on more expensive products but enjoyed our varied programme and exciting itineraries.

How was your January been in terms of sales?

January was slightly down year-on-year but we are 80% sold for 2013 so we cannot complain. We took more bookings than ever before last year for this year. Relying on late sales is not smart so increasing the lead time before departure is better for us. Building up expectations for bumper sales in January caught many people out.

What challenges are you currently facing?

With the cruise market flat lining in 2012 coupled with increased capacity, competition remains intense leading to a lot of last minute distress stock. It is a crazy situation to have those lines with four and five star products being sold at a fraction of their value. Fortunately for CMV it is only on a small number of occasions that we have to follow this pattern to clear a few remaining unsold cabins.

Can you tell me what 2013 holds?

I believe that by taking initiatives such as our current ‘Buy one get one half price’ offer on our winter/spring programme, we will see a continued rise in earlier bookings. We are hoping that by promoting the value of our cruises through social media and other promotional avenues we get bookings on value not price alone. A wide range of exciting destinations, from nine regional ports, entertainment, guest speakers and a good variety of shore excursions will continue to be a key reason to book with us. It is unlikely in the current financial climate that the overall cruise market will grow by very much. However our expectations are that ex-UK will remain strong and so will the shorter cruise durations. CMV is ideally placed to meet such challenges.

P&O's next ship which will be launched in 2015

Carnival subsidiary P&O Cruises has officially laid the keel of its as yet unnamed next ship, which is due to be launched in 2015.

The ceremony took place at Fincantieri’s Monfalcone shipyard near Trieste in Italy and marked a construction milestone of what will be the largest vessel to service the UK market.

In a speech Carnival UK CEO David Dingle said: “Each of our new ships has been exclusively designed for the British market. We have ensured that each anticipates the subtly changing trends in what British passengers expect from their cruise holiday – and is equipped to meet those expectations for many years to come. Our success in adapting to the market’s changing needs is why our ships continue to fill and why the whole cruise sector ultimately continues to buck any downward trend. We cannot wait to see this ship finished and underway.”

The keel is made up of six pre-made sections and weighs around 408 tons. They are fitted together using 214 tons of pipes, cables and insulations. Overall 74 pieces will be used across the entire ship.

Fincantieri Shipyard director Carlo De Marco said: “We are proud to be on the world stage together with P&O Cruises in this endeavour which will undoubtedly be a marvellous opportunity not only for Monfalcone shipyard but for Fincantieri as a whole. Indeed, this is another occasion to further strengthen our relationship with this well-established ship owner. It will be an honour and a pleasure, to celebrate in 2015 the delivery of this ship and together the tenth anniversary of the collaboration between P&O Cruises and Fincantieri, started in 2005 with Arcadia.”

The keel laying was formally announced by P&O managing director announcing the words: “Diamo il via alla posa del primo blocco della più grande nave, la migliore, mai costruita per il mercato Britannico!” [Please lay the keel of the biggest and best ship ever built for the British market!]

Karl Pojer

TUI AG has appointed Karl Pojer as chief executive of its cruise line, Hapag-Lloyd Kreuzfahrten. 

Pojer will be responsible for business development, operations, marketing, sales and distribution, product management tourism and corporate communications. The line’s current managing director, Dr. Wolfgang Flagel, will stay in charge of finance, human resources and IT.

Pojer has been at TUI since 1996, starting as managing director of Robinson Club and moving to head the company’s hotel and resorts division.

“Karl Pojer is one of the most experienced operations experts in our industry. He will continue with the reorientation that has already started at Hapag-Lloyd Kreuzfahrten,“ said TUI chief executive Friedrich Joussen. The TUI AG Executive Board thanks Pojer for his many years of successful work at TUI Hotels & Resorts.

“I am pleased that after decades of working in the business and holiday hotel industry on land I can now apply my experience at sea. Hapag-Lloyd Kreuzfahrten is a strong brand full of tradition that we want to further develop in a careful way but in keeping with the times,“ said Pojer.