On The Deck: Kunal S. Kamlani
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The recent announcement that Regent Seven Seas Cruises would be building the ‘most expensive’ luxury cruise ship ever has clearly made some heads turn within the industry. The news, which actually broke around the same time Regent told the world it was refurbishing an existing ship, is certainly a statement of intent. With that level of investment on show, who knows what the repercussions could be by its competitors? The luxury cruise sector is one of the most vibrant areas of an industry which is constantly redefining what true luxury really is. Regent has said that the Explorer – due out in 2016 – will be the most luxurious ship ever to sail the ocean. We spoke to Kunal S. Kamlani, the line’s president & chief operating officer, to find out more.
The announcement earlier this week is great news for the luxury industry. Can you give us any more details?
The ship will be 369 suites which will range from 300 square feet to 1,500. We will have a number of super suites on the Explorer, it will have six open seating gourmet restaurants including a new Asian inspired dining venue, which we don’t have on Regent today. There will be a signature nine deck atrium, a two storey theatre, three different boutiques and a large Canyon Ranch spa club. The ship will be 54,000GT, 732 feet long and a beam of 102 feet and a draft of 23 feet. We’re building a ‘green’ ship with the latest technologies onboard. The Explorer will set the standard for what luxury is defined as going forward. It will be the most luxurious cruise ship ever to sail the ocean, there is no doubt in our minds.
So you’re setting the bar pretty high then?
We’re very excited about the fleet we have today. We believe we already set the standard in luxury. It’s the reason we’ve sailed full since we bought Regent back in 2008. We’ve managed to garner the highest yields in the industry. From a timing perspective it makes sense to bring a ship out in 2016 that continues to set the standard already set by Regent.
When you’re building a new ship do you take a look at the trends that are developing within the luxury sector?
The luxury of cruising is very different from the contemporary and premium side of the business. A luxury ship is a classic and the definition of a classic is that which stands the test of time. We don’t aspire put to ice rinks on our ships or the biggest rock climbing wall because those are not classics, those are fads which will go out of fashion very quickly. In the luxury space you’re talking very spacious accommodations, large balconies and having a set up within the ship which allows for a luxurious feeling throughout all aspects of the ship. For our demographic, they need to feel like they’re walking into their own second home. It’s luxury but they don’t have to be in a tuxedo to feel comfortable.
What differentiates you from the other luxury brands?
Regent has a couple of key differentiators. All luxury brands say they are all-inclusive but we are the only truly all-inclusive brand, and the market has figured that out. We include shore excursions, gratuities, top shelf spirits and premium wines all within the price. That is a very big differentiator. Our service is also very different from the competitive set. We are a family company and that runs down right from the top. Our retention rates are very high and they know people by their first name on a consistent basis.
What will the new ship do for Regent as a brand?
The new ship is going to add 40% to our capacity, which is quite a bit within the luxury space. On the one hand having a fourth ship will allow us to deliver on a greater array of itinerary choice for the past guests who have been asking for more diversity. There are also areas of the world which are absolutely booming in terms of wealth. We’re talking bits of Asia, Latin America and South America; we’re watching those regions in a careful way and monitoring how they view cruising and this fourth ship would allow us to capitalise on any forthcoming trend.
Where will you be deploying the ship when it’s launched?
It’s too early to talk officially about itineraries but typically in the summer our fleet is in Europe and we may have a ship in Alaska. So in the summer there will be additional deployment in one of those areas. However in the winter our ships are in the Caribbean, South America, Asia and the Pacific. Now those are four regions of the world and with three ships you can’t be in all of them! The west coast of Africa is another exciting area our guests have talked about. The additional ship will allow to really explore those regions during the winter and supplement demand in the summer.
You also announced a major refurbishment of the Voyager recently too…
Yes, we have invested well over a hundred million dollars refurbishing the fleet since we took over in 2008. That was to bring it up to where we thought a six star fleet should be. This is large scale refurbishment over and above the one hundred million dollars we’ve already spent.
Will the refurb bring Voyager up to scratch with the rest of the fleet, or put it ahead of its sister ships?
The Navigator was refurbished recently and the Mariner will be renovated at the end of the first quarter of 2014. All of the work will be multi-million dollar refurbishments. So the fleet is completely new. Our fleet is in great shape. In fact, if you were to walk onto one of our ships today you would look at me funny and ask why I was spending all of that money. But given the product we deliver it is extremely important for the ship to look like it’s been rebuilt each time you step onboard.
Often when lines announce a new ship, the economics are there for them to build multiple vessels. Will there be an Explorer II?
You will not see an announcement for the Explorer II in the near future. We have a slightly different philosophy to other cruise lines and that is a very disciplined approach to growing our business. There is no point in growing just to say you’re big. The key is to make sure we’re executing on our guest promise and filling them at the yields the Regent brand can command. We bought Regent in 2008, it’s now 2013 so roughly five years and the new ship doesn’t get here until 2016. Some people might say we’re slow, I would tell you we’re extremely guest focused and we never want to trade the guest experience to be able to pump our muscles and say how many ships we’ve got sailing round the ocean if they’re half full. It’s not what motivates us.
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