Norwegian Joy’s China exit a boon for Royal Caribbean, Dream Cruises

Royal Caribbean International and Dream Cruises are two cruise lines that stand to benefit from Norwegian Cruise Line (NCL)’s decision to pull out Norwegian Joy from March 2019 and return to China to operate seasonally from summer 2020.

One successful ship which accommodates more than 4,000 guests is out of the way as the two companies ramp up on China homeporting. Royal Caribbean will introduce its first Quantum Ultra class ship, Spectrum of the Seas, which has room for 5,622 guests, from June 2019. By then, the line will be fully deployed in China with Spectrum in Shanghai, Quantum of the Seas in Tianjin, and Voyage of the Seas in Shenzhen and Hong Kong.

Royal Caribbean International’s president China and North Asia, Zinan Liu, said Spectrum would reach “new milestones in the luxury cruise sector in China”.

Dream Cruises will continue to dual-homeport World Dream in Hong Kong and Guangzhou Nansha next year while waiting for a new Global Class ship, which will debut in 2020. Not only will the third ship be 25 per cent larger and double the capacity of her sister ships, it will be “a pace setter” with “focus on Asia, and more specifically China”, said Thatcher Brown, president Dream Cruises.

In the face of lower ticket prices as a result of explosive capacity increase during 2016-2017, both players have similar strategies: pump in more luxury, in the belief the Chinese consumer has evolved and will be swayed to cruise by more innovative products and destination experiences.

They also vow to continue training and educating smaller agents to sell cruises, so they can break through the predominantly wholesale charter distribution that is also partly responsible for China having few repeat guests compared to the US. Both acknowledge the need to create more enticing and longer itineraries.

Royal Caribbean, for instance, has planned “a more diversified” line-up of cruise itineraries sailing from China homeports. Among 117 open-to-sail sailings, guests can choose from 27 unique itineraries, featuring 23 destinations across four countries, Liu said.

Without revealing details, he said: “The exciting sailings include 17 well-selected long ones – six or more nights – taking guests to their favourite Asian destinations; eight warm-winter sailings bringing guests to sub-tropical and tropical destinations and providing an escape from the chilly winter weather; 12 weekend sailings, each of which lasts for three to four nights, tailor-made to meet millennials’ needs for a brief escape from the hustle and bustle of their urban life; and special holiday/festival sailings to discover new cultures and traditions.

“Instead of reducing the number of cruise ships or cutting down the sailing season, Royal Caribbean International has always sought a more sophisticated way to serve the Chinese customers, i.e. by offering new, groundbreaking and customised options such as top-choice staterooms, meals, entertainment, shops, and even destination tours,” Liu said.

Read more...