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Royal Caribbean is buying majority stake in Silversea for $1bn


Keith1010
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Since my first post on this subject I had a nice warm bath.The perfect environment for a bit of cogitating.It is natural for us to think of our selves first but on reflection there are 2 other groups I hope don't lose out with this deal.

The first are the staff on SS in particular those that really make a cruise-dining room staff,butlers,room attendants and the workers you don't usually see that keep the ship afloat and powered.Over the years we have talked to a lot of them.Many came from other cruise lines and when asked all said they preferred Silverseas because they were treated better and the pay was higher.If they lose those benefits I doubt their morale would be high and surely customer satisfaction will dive.

 

 

The other group is the Manfredi family.Yes I know that financially this is probably a good deal for them.But how many families have been shattered by money.The number of well publicised fights over wills for example that you see.As they say never get between a relative and a bucket of cash.So I do hope that the Manfredi family doesn't fall victim to this problem.

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There is every chance that Staff morale will plummet, facing the reality of being just another number on the behemoth's employee list.

While SS has joined the race to the bottom over recent years , the staff have , from a customer perspective, probably been company's greatest asset.

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There is every chance that Staff morale will plummet, facing the reality of being just another number on the behemoth's employee list.

While SS has joined the race to the bottom over recent years , the staff have , from a customer perspective, probably been company's greatest asset.

 

 

 

Ditto from me.

 

The crew have been the spectacular shining stars in a vast sky of cruise lines.

Somehow I don't feel reassured by the message as articulated by Manfredi. Perhaps it's just the reality that a small company must now align themselves with a mass market company in order to stay afloat, pardon the pun.

But it's business. I get that.

I send every good wish to Manfredi that this will be a very good move.

More importantly,

I send all of my thanks to the crew who have made our sailings on Silversea so marvelous that we have wanted to return, again and again.

 

 

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We have sailed on Siversea three times and, although most of our sailings have been on Regent, we felt that Silversea had a very good product. We have also been through the purchase of Regent by Norwegian Cruise Line Holdings and expected the worst. Instead, Regent has had so much money infused into the cruise line that it is quite amazing.

 

The one thing that I wouldn't count on is Manfredi being around for more than a year or so. My thoughts are based on Crystal that had a management change when it was purchased and NCL having a management change very shortly after it was purchased.

This does not necessarily mean doom and gloom - just changes that will likely be rolled out slowly. In my opinion, Silversea is a good cruise line that could become great if there were just a few changes.

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There is every chance that Staff morale will plummet, facing the reality of being just another number on the behemoth's employee list.

While SS has joined the race to the bottom over recent years , the staff have , from a customer perspective, probably been company's greatest asset.

 

While there have been bumps in my Silversea road over the years, I see no evidence that it is racing to the bottom. On the contrary, I am grateful for the investments in the hard product and the continued excellence in the soft product.

 

Re. crew/staff: I really do not know how much (if any) mobility there is of staff among brands under a large umbrella. For example, might excellent crew enjoy promotions and move from, say, Holland America to Seabourn? If so, this move could be good for staff. I don't see how it can be bad. And, as my posts will attest, I really do care greatly about the welfare of crew -- esp. those (laundry, provisions, galley) who are largely invisible.

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I think it was smart for RCI to buy a top-notch luxury line to fill out their corporate roster, to cover all niche's...

Their competition already has done that, and it doesn't surprise me that they did this.

 

I certainly hope they offer some limited reciprocity with Silversea's loyalty program, like they do with their other brands. If so, it would give Silversea the edge, if all other things were equal, when I decide which polar expedition to purchase. If they award me an equivalent to my RCI 'Diamond' loyalty level.. That's the way to keep customer's loyal. The other major corporation's do not offer any reciprocity among their different lines...

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Time will tell but Azamara has a strong following as a premium line so would think (speculate) they would keep it separate.

 

 

Keith

 

I guess it will all shake out over time but a couple of aspects about Azamara and Silversea make me wonder about the longer term plans. One, Azamara only has three rehabbed ships with no announced replacements or new builds that I can find. Two, while limited with only three ships Azamara goes head to head with Silversea for some itineraries and sometimes at a higher price point for comparable cabin categories. I’m sure the RCCL “bean counters” analyzed this and there’s a strategy somewhere for the way ahead.

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Absolutely no reason for Silversea and Azamara to combine. They are totally separate and different products. Azamara is not luxury, and the cabins onboard the current Azamara ships will never be luxury. They are too small. Azamara is an ultra- premium product just like Oceania is ultra-premium and their sister brand Regent is luxury, both owned by NCL Holdings.

 

What you may see happen are the expedition ships currently operated by Celebrity folded into the Silversea brand, which is very big on expedition cruises. That is the overlap I see. We might even see the new CELEBRITY FLORA which is currently under construction, actually make its debut under the Silversea brand. I'm sure Royal is considering this as I type this.

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Thank you for letting all of us know. Having sold two-thirds of his shares to such a gigantic corporation as Royal Caribbean, no wonder Manfredi is so bold in his new acquisitions.

 

After the deal is consummated, Manfredi will only be chairman in name only for Silversea (that is if he is invited to do so). The organization who owns two-thirds will have absolute say on the future.;)

.

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After the deal is consummated, Manfredi will only be chairman in name only for Silversea (that is if he is invited to do so). The organization who owns two-thirds will have absolute say on the future.

 

Don't worry too much and/or cry for Chairman Manfredi. He will not be going to the"Poor House". Per Bloomberg News yesterday: "Silversea Chairman Manfredi Lefebvre D’Ovidio will qualify for milestone stock awards of about 472,000 Royal Caribbean shares if the combined company reaches performance targets in 2019-2020."

 

At $113 per share current value of a RCL share, Chairman Manfredi will be able to afford a few nights dining out each week. Doing quick math, 472K times $113 equals $53 million plus. And taxes are low when you live in Monte Carlo. Plus, a good share of the one billion dollars being paid by RCL should come his way.

 

Here were more of this story background on RCL: "Royal Caribbean has enjoyed a strong second quarter so far, according to Fain. Strong close-in demand for core products and better-than-expected performance 'below the line,' including joint ventures, drove improved results. Onboard spending also continues to be strong, reflecting people’s desire to have experiences on their trip, Fain said. The results will 'completely offset' a strengthening dollar and higher fuel prices, which are expected to result in approximately a 25-cent per-share headwind in the second half of the year."

 

Good insights and background for the cruise business. Link for the full Bloomberg story at:

https://www.bloomberg.com/news/articles/2018-06-14/royal-caribbean-bets-on-luxury-with-2-billion-silversea-stake

 

THANKS! Enjoy! Terry in Ohio

 

From our Jan. 25-Feb. 20, 2015, Amazon River-Caribbean adventure that started in Barbados, here is the link for that live/blog. Many visuals from this amazing river and Caribbean Islands (Dutch ABC's, St. Barts, Dominica, Grenada, San Juan, etc.):

www.boards.cruisecritic.com/showthread.php?t=2157696

Now at 56,669 views for these postings.

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Terry, Oceania was our go-to cruise line before SS. I would definitely sail them again if the itinerary were right. We cruised with them exclusively on the R-class ships, before Marina and Riviera were even built. True, our experience is 10 years old but you will enjoy O, I think. The biggest difference will be having to sign for drinks.

 

Indeed, that does sound like a wonderful itinerary....and you will most definitely enjoy it! I hope you do a live report....your photos and commentary are always fantastic![/quote]

 

Appreciate this wonderful background and these follow-ups from two excellent travelers from New York State. Great insight, news!! YES, am planning on doing another live/blog. When you will be visiting such super photogenic sites, it helps to make the photographer look more skilled. Like to visit these types of great locations.

 

THANKS for the positive encouragement! Enjoy! Terry in Ohio

 

For details and visuals, etc., from our July 1-16, 2010, Norway Coast/Fjords/Arctic Circle cruise experience from Copenhagen on the Silver Cloud, check out this posting. This posting is now at 226,592 views.

www.boards.cruisecritic.com/showthread.php?t=1227923

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Almost reminds me of my one and only Carnival cruise 25 years ago. It was a 4-day cruise and I swear there were people who stayed up the whole cruise. It was a “try it you’ll like it” cruise to convince the ex cruising was a good vacation. Cruising stuck but wife didn’t. :o:)

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Almost reminds me of my one and only Carnival cruise 25 years ago. It was a 4-day cruise and I swear there were people who stayed up the whole cruise. It was a “try it you’ll like it” cruise to convince the ex cruising was a good vacation. Cruising stuck but wife didn’t.

 

Carnival is no better on a 14 day cruise, if not for different reasons. About 25% of the passengers got bored and restless once the exciting ports were behind us, and without constant entertainment. The pool/buffet area became a hangout for foul mouth arguments, pushing and shoving, and often times: intentionally spreading a cold and noro. That's besides all the maintenance issues and customer service nonsense with the cruise line itself.

 

But just think, all the party RCL cruisers get to earn their matching status on inexpensive holidays, just in time to try Silverseas at or above your current rewards tier level. ;p(y):beer-toast:

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But just think, all the party RCL cruisers get to earn their matching status on inexpensive holidays, just in time to try Silverseas at or above your current rewards tier level. ;p(y):beer-toast:

 

Does RCCL carry status over to their lines now? Carnival Corporation only treats you as a returning passenger based on having cruised on one of their lines but advanced status does not transfer. For example, if we took our 300+ days on Holland America and cruised with Seabourn we’d not get treated as 300+ day Seabourn passengers. If RCCL does the same kind of thing then a new Silversea cruiser coming from say Celebrity would be Venetian Society member but with no days. I see no mention of shared status on the Celebrity site where we are Captain’s Club members.

Edited by Randyk47
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Does RCCL carry status over to their lines now? Carnival Corporation only treats you as a returning passenger based on having cruised on one of their lines but advanced status does not transfer. For example, if we took our 300+ days on Holland America and cruised with Seabourn we’d not get treated as 300+ day Seabourn passengers. If RCCL does the same kind of thing then a new Silversea cruiser coming from say Celebrity would be Venetian Society member but with no days. I see no mention of shared status on the Celebrity site where we are Captain’s Club members.

 

Once you reach Elite on Celebrity, or Diamond on RCCL, there is a status match. If I have 300 points with Celebrity, and sail for the first time with Royal Caribbean, I will be bumped up to Diamond with zero cruising days (point don't combine, just tier matching). The same is true from Azamara.

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Does RCCL carry status over to their lines now? Carnival Corporation only treats you as a returning passenger based on having cruised on one of their lines but advanced status does not transfer. For example, if we took our 300+ days on Holland America and cruised with Seabourn we’d not get treated as 300+ day Seabourn passengers. If RCCL does the same kind of thing then a new Silversea cruiser coming from say Celebrity would be Venetian Society member but with no days. I see no mention of shared status on the Celebrity site where we are Captain’s Club members.

 

Hi Randy, yes, Celebrity and Royal share...……..

 

As for Carnival, have a quick story...….my sis and bil were just away for almost 8 weeks...…...one of the legs of their cruise was on the newest Carnival ship (they have sailed everything from Seabourn to Royal to HAL to Regent to Celebrity)...…….etc...….anyway, (not that it matters to anyone) but my sister said the food on this cruise was outstanding. And they are "Foodies"

She did say they had some other issues but the food itself was surprisingly good. They also offered a "Chef's Table" and in all the years they have been cruising it was one of the best they had ever experienced. (they have been on cruises for nearly 30 years). Now, it was brand new ship and there were housekeeping issues (Multiple times)…….but the food was excellent.

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At $113 per share current value of a RCL share, Chairman Manfredi will be able to afford a few nights dining out each week. Doing quick math, 472K times $113 equals $53 million plus. And taxes are low when you live in Monte Carlo. Plus, a good share of the one billion dollars being paid by RCL should come his way.

.

Of course he will still be rich, but not quite the "potentate" he is used to be. That for a luxury cruise line chairman will still be viewed by many as a "let down", and not the "crowning glory" of a lifetime's success!;)

.

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Once you reach Elite on Celebrity, or Diamond on RCCL, there is a status match. If I have 300 points with Celebrity, and sail for the first time with Royal Caribbean, I will be bumped up to Diamond with zero cruising days (point don't combine, just tier matching). The same is true from Azamara.

Those affected the most and the biggest "losers" will be those who have accumulated hundreds of "days" on Silversea before. Now those elite Venetian members will have to face the "masses" who choose to try Silversea for a couple of times.

.

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Those affected the most and the biggest "losers" will be those who have accumulated hundreds of "days" on Silversea before. Now those elite Venetian members will have to face the "masses" who choose to try Silversea for a couple of times.

 

.

 

 

 

I don’t see why, if RCI cruisers can afford SS prices then they are welcome.

 

 

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Interesting perspective from some of the seasoned SS cruisers. Having cruised many years and many lines including RCL, Celebrity, and Azamara I am not sure I want to cruise with SS. Many of the responses seem to be very elitist. Too bad because if they do share loyalty status we would be at a very high level.

 

 

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All this talk about equal status is really a nothing burger. You will get free laundry and a discount on select trips, the ones that don't sell. I really do not believe they will give you a free cruise out of the gate. If a cocktail party for select people is important to you on an all inclusive ship then you will get that also. I would suggest any member of any RC cruise line club that wants to try SS pony up and make a reservation and not waite for matching status as you can wash your cloths for free in the laundry rooms on each deck, soap included.

 

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All this talk about equal status is really a nothing burger. You will get free laundry and a discount on select trips, the ones that don't sell. I really do not believe they will give you a free cruise out of the gate. If a cocktail party for select people is important to you on an all inclusive ship then you will get that also. I would suggest any member of any RC cruise line club that wants to try SS pony up and make a reservation and not waite for matching status as you can wash your cloths for free in the laundry rooms on each deck, soap included.

 

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I think the biggest detriment to booking a SS cruise is not the perks but the passengers!! And I don’t mean the new passengers.... Laundry is not a deal breaker but snobbish passengers certainly are. YMMV...

 

 

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