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Should Azamara buy the Princess ships?

Royalty X

By Royalty X,
in Azamara

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norn iron

norn iron

Posted
Posted
I know the AZ loyalists will dismiss this Cruise Industry News article that appeared today, but I would keep an eye on RCL and its move into China.

The paragraph in bold is the most interesting.

 

 

Royal Caribbean and Ctrip Relationship Moving Forward

 

on 17 November 2014.

 

 

On the heels of a vessel sale to Ctrip earlier this year, Royal Caribbean Cruises continues to move toward an announcement with the Chinese travel company on a joint venture cruise line.

 

Cruise Industry News has learned that the Miami-based line continues to have meetings with Ctrip executives in Florida, as the two brands work toward a cruise operation involving both companies.

 

While the Celebrity Century is Ctrip-bound in April of 2015, rumors persist she will be joined in China by more vessels soon after.

Royal Caribbean and Ctrip signed an agreement during the vessel purchase to further explore possibilities.

 

In Tianjin at the China Cruise Shipping Expo last month, Royal Caribbean Cruises President and COO Adam Goldstein said there was room for an entry-level mass market style product in China. During his presentation, Goldstein said: “There is a role for many different offerings (in the market).”

 

Carnival Corporation has made it no secret they are trying to do the same thing by partnering with a domestic company to launch a Chinese cruise brand.

 

My immediate thought was of the older ships in the RCI fleet which are of comparable size to Celebrity Century. Azamara ships never crossed my mind

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Host Jazzbeau Great Review Rare

Host Jazzbeau

Posted
Posted
My immediate thought was of the older ships in the RCI fleet which are of comparable size to Celebrity Century. Azamara ships never crossed my mind

 

Probably because you paid attention to the statement that RCL wants to start an "entry-level mass market style product" in China. Even in China I doubt you can make money at entry-level prices on ships with less than 700 passengers.

 

It's more likely that RCL would transfer the last of the Sovereign Class ships (built 1992, 2,350 passengers) and/or the older the Vision Class ships (built 1995-1996, 1804 passengers). Since RCL has an active ship-building schedule, it's logical that they would be pruning their older smaller ships.

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marinaro44

marinaro44

Posted
Posted
Probably because you paid attention to the statement that RCL wants to start an "entry-level mass market style product" in China. Even in China I doubt you can make money at entry-level prices on ships with less than 700 passengers.

 

It's more likely that RCL would transfer the last of the Sovereign Class ships (built 1992, 2,350 passengers) and/or the older the Vision Class ships (built 1995-1996, 1804 passengers). Since RCL has an active ship-building schedule, it's logical that they would be pruning their older smaller ships.

All of this makes perfect sense to me.

 

As several of us have posted here, Azamara could not make a successful business model at the prices they were charging prior to the big November 2012 announcement that included significant price increases, because the ships have too low a passenger capacity to be profitable at that price level. So using 694-passenger ships for an "entry-level mass market style product" would be financial suicide, as anyone with even a basic knowledge of finance should know.

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uktog "Live from...." Rare

uktog

Posted
Posted (edited)

My experience, albeit limited but growing, of working in China and in Chinese markets, is that it would be the larger ships they would be attracted to. For one thing, the Azamara casino and shops are far too small for the kind of thing looked for by Chinese and the showlounge is not the type of entertainment venue they would value they will want theatre.

Young affluent Chinese like modern, designer, bling. Older look is not always even respected because it refers to austerity.

Edited by uktog
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travelberlin "Live from...." Rare

travelberlin

Posted
Posted
My experience, albeit limited but growing, of working in China and in Chinese markets, is that it would be the larger ships they would be attracted to. For one thing, the Azamara casino and shops are far too small for the kind of thing looked for by Chinese and the showlounge is not the type of entertainment venue they would value they will want theatre.

Young affluent Chinese like modern, designer, bling. Older look is not always even respected because it refers to austerity.

 

I agree with you. It is also not by chance that Quantum of the Seas is going to operate next year from Shanghai.

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Lottie A

Lottie A

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It is ludicrous to suggest that Azamara would send its ships to China, apart from some ports perhaps featuring on winter Asian itineraries. It's niche market is The Med and Europe in the summer and South America/Asia in the winter. As Captain Johannes this week and also Philip Herbert in September said to us that Azamara is now profitable and RCCI is investing in two more ships for them.

 

I would much rather believe the people who KNOW rather than the negative and misleading rubbish posted by some people. There was no mention of Azamara ships being transferred to China at all and why would there be? It is ridiculous to suggest it.

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gnld

gnld

Posted
Posted

Personally, I'd love Azamara to do a new build. But not as large as O's Marina - maybe something under 1000 pax, to help keep the "intimate" feeling. That being said, the cost of buying & remodeling one or both of the Princess R ships would be a lot less. But you're getting 16 year old ships. Bean counters and others at Azamara will have to sort it out - the "bottom line" does matter a lot. Maybe they'll find you have to go to something like 1250 pax (like O) on a new build to have the price point pencil out!

I do notice on Princess' website that both their R ships have deck 8 full of the mini suites, like O's R ships (and not just half, like Azamara). We prefer the mini suites for longer voyages.

We'll just have to wait and see. On our last voyage, Capt. Tysse said Azamara would be expanding the fleet. New build vs. acquisition TBD, but that there were some attractively-priced smaller ships on the market (obvious reference to Princess' R ships). Stay tuned!

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Xport

Xport

Posted
Posted (edited)
No mentioned this -- but Oceania could buy either of the Princess ships -- especially considering they have a new parent with plenty of $$$.

 

That NCL has contracted to purchase Ocean Princess to augment Oceania's R-Class fleet... Didn't go to the source cited in the related post but seemingly the transaction is more than mere speculation...

Edited by Xport
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bitob

bitob

Posted
Posted

Here is another article.

 

MIAMI – November 25, 2014 – Norwegian Cruise Line Holdings Ltd. (Nasdaq: NCLH) today announced a definitive agreement with Princess Cruises, Ltd. to purchase Ocean Princess for its newly acquired Oceania Cruises brand. The 684-passenger ship joins Oceania Cruises’ trio of award-winning sister ships Insignia, Regatta and Nautica. The new addition will be named Sirena.

 

Upon delivery in March 2016, Sirena will immediately undergo a 35-day, $40 million refurbishment in Marseille, France to elevate the ship to the Oceania Cruises’ standard of elegance. Drawing on the recent transformation of Insignia as inspiration, the ship will feature Oceania Cruises’ renowned specialty dining restaurants, Toscana and Polo Grill, along with more recent additions to the fleet such as Baristas and the cook-to-order grill at Terrace Café. The ship will welcome her first guests in late April 2016.

 

The addition of Sirena, along with the recently completed refurbishment of Insignia, Nautica and Regatta, demonstrates Oceania Cruises’ unwavering commitment to mid-size ships and destination orientated cruising. With Sirena, Oceania Cruises will expand the number and diversity of destination-rich itineraries offered, appealing to both seasoned world travelers and passionate cruisers.

 

“The acquisition of Sirena provides measured capacity growth based on the proven platform of Oceania Cruises’ highly regarded mid-size ships,” said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line Holdings Ltd, parent company of Oceania Cruises. “Our belief in the Oceania Cruises brand and our commitment to its growing base of loyal guests were the rationale behind our decision to bring Sirena into the fleet.”

 

“The addition of Sirena opens up an entire array of new itinerary options for Oceania Cruises as we think about our deployment strategy,” added Kunal S. Kamlani, president and chief operating officer of Oceania Cruises. “The award-winning guest experience delivered on our ships, coupled with a collection of innovative itineraries that cater to new markets, will combine for an alluring siren song for both our current and future guests.”

 

The inaugural season for Sirena will be released in late February 2015 with reservations opening on March 4, 2015. For more information on Oceania Cruises, visit http://www.OceaniaCruises.com <http://www.oceaniacruises.com> , call 855-OCEANIA or contact your travel professional.

 

About Oceania Cruises

Oceania Cruises offers unrivaled cuisine, elegant accommodations and exceptional personalized service, all for an extraordinary value. Known for its unique and destination-rich itineraries that appeal to the seasoned traveler, Oceania Cruises calls on more than 330 ports across Europe, Australia, New Zealand, South Pacific, Asia, Africa and the Americas aboard five award-winning mid-size ships: the 684-guest Regatta, Insignia and Nautica, and the 1,250-guest Marina and Riviera. Oceania Cruises recently announced the acquisition of a new ship, Sirena, which will join the fleet in March 2016.

 

Norwegian Cruise Line Holdings Ltd.

Norwegian Cruise Line Holdings Ltd. (Nasdaq: NCLH) is a diversified cruise operator of leading global cruise lines spanning market segments from contemporary to luxury under the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands.

 

These brands operate a combined 21 ships with approximately 40,000 lower berths visiting more than 430 destinations worldwide. The company’s brands will introduce six new ships through 2019.

 

Norwegian Cruise Line is the innovator in cruise travel with a history of breaking the boundaries of traditional cruising, most notably with the introduction of Freestyle Cruising, which revolutionized the industry by giving guests more freedom and flexibility on the most contemporary ships at sea. Oceania Cruises is the market leader in the upper-premium cruise segment featuring the finest cuisine at sea, gourmet culinary experiences, elegant accommodations, impeccable service and destination-driven itineraries. Regent Seven Seas Cruises is the market leader in the luxury cruise segment with all-suite accommodations, highly personalized service and the industry’s most inclusive luxury experience featuring round-trip air, fine wines and spirits and unlimited shore excursions among its numerous included amenities.

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Granny DI

Granny DI

Posted
Posted (edited)

I read several months ago that NCL wanted to increase their Haven Experience fleet-wide. Oceania was perfect for this goal. We'll probably stick with Oceania's larger ships and NCL's Breakaway class ships for the Haven experience which is amazing.

Edited by Granny DI
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Host Jazzbeau Great Review Rare

Host Jazzbeau

Posted
Posted
Well why doesn't Az get its act together and buy the remaining Princess R ship? Seems like Azamara is suffering from limited itineraries given that they charter one of their boats quite often-a third ship could really broaden their offerings.

 

Hopefully this will be a wake-up call to RCL to get their act in gear. Princess et al still have two other R-ships, which would bring Azamara up to par with Oceania on this class. But the ex-Princess ships will require massive upgrades, so maybe this will push RCL toward a new-build announcement. One way or the other -- fish or cut bait -- but do something!

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mare s.

mare s.

Posted
Posted

I agree that RCL and Azamara missed a nice opportunity. I also agree that they should do something to acquire or build another ship. I looked over the 2017 offerings and it's very much the same old same old (of course, we haven't seen the ports, but the general area is the same) I was really hoping for some Canada/New England/Eastern seaboard itineraries (and not just chartered ones) and the Amazon would have been tremendous. But Azamara can't really do this with just two ships. Too bad.

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SaintL

SaintL

Posted
Posted (edited)

I think Azamara should get a newbuild, to more mid ship size like 50000 tons, I think these R class ships are a bit overrated.

 

I also would question the probability of Azamara, at first these ships weeee going to be a small class of ships for celebrity then Azamara was formed.

Edited by SaintL
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