Regent Line Sold, Market Shake-Out?

[TLCOhio]

Some news items have been moving on the wires to indicate that Regent Seven Seas will have a new owner that is connected with those controlling Wynham Hotels, Oceania Cruises, part of NCL, etc. You can see some of the news highlights below. For the mega rich Carlson family and its huge hospitality empire, their Minneapolis newspaper gives some highlights below on an ugly mother-son family battle with alcohol tossed in the wild mix. It all sounds like a TV soap opera, super family feud!!!

 

What does this mean for cruise lines? As a non-insider, I read it to mean more "consolidation", deeper pocket competition to the Carnival empire, etc. It could make it more interest for higher-end lines such as Crystal, Seabourn, etc. in the competition and selling. Building quarter billion dollar boats takes deep pockets and financial depth that is hard to do if you are needing to play stock leverage games, from what I have read over time.

 

Any other reactions and insights?

 

Thanks! Terry in Ohio

 

 

FROM CRUISE CRITIC NEWSWIRE TODAY:

Has Regent Seven Seas Cruises Been Sold?

As the luxury cruise market becomes an increasingly attractive investment, rumors about which lines may be up for acquisition are becoming rampant in the cruise industry. The fact that Regent Seven Seas Cruises is ripe for just such an acquisition may be one of the worst-kept secrets. Now, the rumors seem closer to reality -- a report on cfo.com says that Apollo, a private equity firm based in Purchase, New York, won an auction to acquire Regent from Minneapolis-based Carlson Hospitality Worldwide, one of the travel industry's largest hospitality companies.

 

Apollo, which invests heavily in hotel organizations such as Wyndham International and Miraval (an upscale spa destination), made its first foray into the cruise arena when it acquired Oceania for $850 million in February of this year. Even more recently, it made a deal with Star Cruises to acquire half of NCL.

 

FROM NOV. 3, 2007 MINNEAPOLIS STAR TRIBUNE:

A lawsuit between Nelson and his mother and Carlson Companies contends that Nelson, 43, was wrongfully denied the job of CEO and a slice of the family's considerable fortune, which is held in trust. A countersuit by Marilyn Carlson Nelson and the company contends that Nelson was not capable of running the large, international business. Before he left the company, Nelson rose to president and chief operating officer. In 2006, a restructuring of the executive team by his mother left Nelson without a front-line job. He eventually left the company, and in May he sued. Meanwhile, Nelson has struggled with a previously acknowledged alcohol problem.

[Iamboatman]

I don't see it as a market shakeout whatsoever. I can't understand the conclusion at all. In fact, Regent has been on the block for sale by Carlson for quite a while.

 

Though discussed more thoroughly on the Regent board, the effort has been very obvious to me: The name change from Radisson was intended to upscale the line without really upscaling it. (There is no way to provide Regent Hotel quality on their ships.)

 

In fact, while it was marketing its new found luxury, it eliminated most of its European staff and installed much less expensive (and inexperienced and pretty much non-English speaking) Filipino staff) while increasing its cruise fares by 25% and more.

 

It then engaged in marketing that was - and remains - over the top, with very expensive mailers being sent out it seems 1 to 3 times a week (and then to both spouses!). Sort of: If you say enough times, people will start to believe it...and then it will be "true".

 

The only thing it did which was "luxury" was to include liquor in its pricing.

 

Personally, I have noticed a remarkable lowering of standards overall...but the marketing of significantly improved luxury; with some really buying into it. But there is not a very high passenger load on many sailings.

 

In other words, they marketed themselves well for sale and they got a very good price...especially considering each of their 3 ships (they charter one) needs some serious investment to correct hardware problems.

 

Personally, I think Apollo may well assist in improving the product by taking the huge amounts wasted on its troubling marketing and putting the money into providing a better cruise experience.

[Travelcat2]

Come on Boatman -- critizing Regent on a Seabourn thread?:( You just scolded (on the Regent board) the person who posted this thread on Seabourn and Oceania....

 

Not to be overly defensive, however, for Seabourn customers reading this thread, the majority of Regent customers are extremely satisfied. Regent, Seabourn and Silversea are highly rated luxury cruise lines. It is sad to see Regent unfairly and inaccurately judged -- especially by a TA.

[Keith1010]

Consolidation is a way of life for most companies. There are always pluses and minuses to this.

 

The plus side is the efficiency that is gained and hopefull passed onto the consumer. For example, consolidation brings lots of efficiencies to the table from the purchasing of food and beverage items to the number of people who work in the corporate offices.

 

The down side can be if the cruise line loses the culture and its identity that had made it special to other and if cutbacks are made in the level of service previously provided.

 

With the exception of Seabourn many of the luxury cruise lines are challenged when it comes to overall costs as small fleets are not very efficient.

 

Time will only tell whether or not this is a positive move for the consumer. The selling of the Regent (formally Radisson) has been discussed for many years so this is not a surprise.

 

I have learned that it is not a good thing to be critical of any cruise line. I have said this before something like 98% of the worldwide population has never cruised and will never go on a cruise. So, for them, even the one star cruise line would be something special. As is the case for all of the cruise lines, Regent has a very nice following of passengers who enjoy this cruise line. It is not for everyone but nor is Seabourn. And, don't misunderstand my comments. My wife and I think very highly of Seabourn but at the same time we are respectful for those who don't care for it and hope that they are respectful of our views as enjoying this cruise line.

 

Thank goodness for choices in the marketplace and thank goodness that many of us have the opportunity to cruise.

 

Keith

[cruiseyguy]

I'd say 99.9 % of the world has never cruised. Even within my circle of seemingly well-traveled friends, not a single one has taken a cruise nor expressed any interest in one.

[Iamboatman]

Those on the Regent board know that I have cruised Regent 5 times and regular sing its praises when appropriate and criticize it when it is appropriate as well. Regent has had some ongoing problems and has a number of people criticizing it for not being what it markets itself to be. If you look at the Regent board you will see 3 recent threads discussing it.

 

Check this thread out from another TA - who was criticized for providing her "during the cruise" comparisons to Silversea..and noting her disappointment in certain areas...while having a nice cruise: http://boards.cruisecritic.com/showthread.php?p=12269183#post12269183.

 

As I posted in that thread, "It seems a very common perception of service being "reactive" rather than "proactive", especially for those that have cruised with Silversea and/or Seabourn. It does make a difference.

 

Similarly, its seems quite common that the dining room service is perceived as lacking polish and with too frequent errors and omissions.

 

Inconsistency with stewardesses also seems common.

 

In the 2008 Berlitz ratings the same sort of comments were made. Regent staff was "good to very good", but did not rise to the level one would expect when marketing luxury.

 

I know there are many that are extremely satisfied with Regent and I wish to do nothing to denigrate their feelings, but to many others there is a difference...maybe not enough to ruin a cruise, but enough to cause frustration."

 

Also, as I noted on the Regent board and this board, my August cruise was on the Regent Paul Gauguin and was one of my best overall cruises ever. However, the service, food, quality of shipboard life, etc. could not hold a candle to my cruise on the Seabourn Legend only 3 weeks later.

 

This is, as they say, Cruise Critic. As they also say, "Don't shoot the messenger."

[Martita B.]

Mother and I were on the 'lit Raddison Diamond twice and loved it~~I'll never forget the fun we had at "Don Vito's" I ran into several former Seabourn staff fellows~~one a bartender in the Club and he was so kind as to never charge me for my drinks!:p

Another voyage, a few of we Seabournites were aboard the Mariner

and again we had a delightful time! We even had a Christmas party ~~The Captain, Cruise Director, Ex. Chef and 12 guests came and we

throughly enjoyed the cruise. Miss Mary B. played the piano and we all sang Christmas carols! A fine time~~~

I'm sorry to hear the Regent line will sell or has sold.

There IS a cruise line for everyone!

Martita

[cotto22]

If, in fact, there has been a deterioration in the quality of Regent/Radisson (since I have only sailed with them twice, I can't be a real judge), I would predict that Apollo would be able to infuse the capital necessary to improve whatever inadequacies exist. It would, however, depend upon what vision of the cruise line Apollo has.

[Travelcat2]

The company purchasing Regent (Apollo) also purchased Oceania this year (and I believe a major share of NCL). So far, things have remainded pretty much the same for Oceania and I'm hoping it will be the same for Regent. They just completed refurbishing their ships - looking really good!Rumor has it that a new Regent ship will be built -- hope so!

 

I hear such great things about the Diamond -- too bad I did not have a chance to see her (I've heard that she is now a restaurant in Hong Kong).

 

It is good to read about Seabourn's new ships -- we definitely plan on trying one or both of them in a couple of years.

[Martita B.]

The 'lit Diamond "cat" was a gorgeous ship and is now a gambling casino/ship outside Hong Kong ~~one of the Seabourn captains told me he saw it and it was all neoned up ~~ said it looked like Las Vegas~~:confused:

As to our new "big Sister's" they too will be beautiful ~~very sleek and white! I will sail on the Odyssey, but will probably come runnin' home to the Yachts, my first love!

I feel Seabourn (Carnival/Micky) will keep the three Yachts for another 4 or 5 years ~~~I sure hope so, anyway.

Happy Sailing:p

Martita

[buzzland]

let's hope, for all her fiercely loyal sailors, that the triplets stay with us for more, more years. According to Norm's poll, most of us want that.

[Martita B.]

I have good friends that sail on Regent frequently ~~also friends that prefer Oceania (two are aboard the Regatta TA as we "speak")

There are Sailor's in West Texas that drive to Galveston and board Carnival ships ~~which they love~~in fact I was one, in their festive merrymaking party last Sept (we had a ball):p Friends that only sail Silverseas ~~~~JB aboard the Prinsendam now!

Thank goodness there are cruise ships and cruise itineraries for all of us! 'Praise the Lord we'll ALL cruisin' ~~~~as Mother use to remind me, "Miss Martha, renew your Passport.....don't stay home!":D

Happy Thanksgiving!

Martita B.

[seapenarth]

Mother and I were on the 'lit Raddison Diamond twice and loved it~~I'll never forget the fun we had at "Don Vito's" I ran into several former Seabourn staff fellows~~one a bartender in the Club and he was so kind as to never charge me for my drinks!:p

Another voyage, a few of we Seabournites were aboard the Mariner

and again we had a delightful time! We even had a Christmas party ~~The Captain, Cruise Director, Ex. Chef and 12 guests came and we

throughly enjoyed the cruise. Miss Mary B. played the piano and we all sang Christmas carols! A fine time~~~

I'm sorry to hear the Regent line will sell or has sold.

There IS a cruise line for everyone!

Martita (quote)

Your last sentence is so right. There different prices, different qualities, different sizes, appeals to different age groups. There is something for everyone out there and it will always be that way. Companies of course need the right marketing for each group and ensure their promises are fulfill