State of the Industry Liveblog 2017

Hello and welcome to the 2017 liveblog from the State of the Industry panel from Seatrade Cruise Global.

The event is set to begin at 0930 eastern time.

 

Greg Dragonetti March 14, 20176:08am

CruiseInd finally made it to Ft Lauderdale. Make sure to check back later this morning for coverage from the panel.

Greg Dragonetti March 14, 20178:19am

And we’re inside! only about 15 more minutes

Greg Dragonetti March 14, 20178:29am

About to take the stage will be CEO’s from the top 4 lines

Arnold Donald (CCL)

Richard Fain (RCL)

Frank Del Rio (NCL)

Pierfrancesco Vago(MSC)

Greg Dragonetti March 14, 20178:32am

Event starting. A video from Honk Kong tourism board is playing

Greg Dragonetti March 14, 20178:36am

Event starting.

50 Billion dollars of cruise ships on the order book

Greg Dragonetti March 14, 20178:37am

Event will be a bit different this year. Each “titan of the industry” will each give their presentation THEN they will sit together

Greg Dragonetti March 14, 20178:37am

Greg Dragonetti March 14, 20178:40am

Now they’re thanking the sponsors and going over what the game plan will be for the show.

Greg Dragonetti March 14, 20178:40am

CLIA, FCCA and Hong Kong tourism board are the official sponsors.

Mercy Ships gets a special shout-out. (very nice!)

Greg Dragonetti March 14, 20178:41am

Cindy D’Aoust, CLIA CEO takes the stage

Greg Dragonetti March 14, 20178:42am

“It’s only been a year since I was recognized as CLIA’s CEO”

Greg Dragonetti March 14, 20178:43am

Cindy is discussing CLIA’s involvement in Mercy Ships.

Greg Dragonetti March 14, 20178:44am

Our mission is to represent one industry and one voice

Greg Dragonetti March 14, 20178:45am

Video playing going over what CLIA has been able to to to grow the industry

Greg Dragonetti March 14, 20178:45am

Greg Dragonetti March 14, 20178:47am

CLIA has been very active in conferences this year. They also released a report to travel agents to detail trends to assist them.

CLIA was also successful with lobbying against to tax increases in ports that would have affected cruise passengers.

Greg Dragonetti March 14, 20178:49am

In 10 years there’s been a 62% increase in demand for cruising.

No sings of this growth slowing down

Greg Dragonetti March 14, 20178:49am

$117 billion to local economies CLIA estimates

Greg Dragonetti March 14, 20178:50am

Special focus on the special attention that Asia is getting.

Greg Dragonetti March 14, 20178:51am

in 10 years Asia has the potential to surpass North America

Greg Dragonetti March 14, 20178:53am

Remember one thing: To be an advocate, to work for every business. To have you voice hear we must act as one!

Greg Dragonetti March 14, 20178:53am

Cindy leaves the stage and Andy from Seatrade back out.

Greg Dragonetti March 14, 20178:55am

Arnold Donald takes the stage to a roar of applause! He will be discussing Technology and innovation.

Greg Dragonetti March 14, 20178:55am

We’re all here this morning to celebrate the industry

Greg Dragonetti March 14, 20178:56am

The industry is all about innovation

Greg Dragonetti March 14, 20178:57am

At carnival woven into the fabric, is innovation. Donald is now playing the Ocean Medallion video.

Greg Dragonetti March 14, 20178:57am

Greg Dragonetti March 14, 20178:59am

And video is over. It’s the same one that’s on Youtube

Greg Dragonetti March 14, 20179:00am

There’s no question that this industry of build on dreams

Greg Dragonetti March 14, 20179:00am

No one has to take a cruise. It’s purely discretionary.

Greg Dragonetti March 14, 20179:01am

I want to tell you how I’m going to approach innovation at Carnival. At Carnival we want to create human connection. And we want to increase it and decrease it.

Greg Dragonetti March 14, 20179:02am

Innovation is without a guest knowing, they’re part of a community (on a ship) (excellent point)

Greg Dragonetti March 14, 20179:04am

Donald is now going over the different brands and the type of cruises that go onbard those brands

Greg Dragonetti March 14, 20179:04am

Donald himself had his family reunion cruise onbard a HAL ship

Greg Dragonetti March 14, 20179:05am

He and his wife also did an Antarctic cruise on Seabourn.

Greg Dragonetti March 14, 20179:07am

Now detailing Ocean platform featuring Ocean medallion.

Has gigabytes behind the scenes powering the guest experiance

Greg Dragonetti March 14, 20179:08am

Carnival CEO in Antarctica rocking a Bow tie (Epic photo)

Greg Dragonetti March 14, 20179:10am

I’ve heard millennials say that Alaska is Colorado on steroids.

Greg Dragonetti March 14, 20179:12am

Donald off the stage and MSC Cruises Pierfrancesco Vago takes the stage

Greg Dragonetti March 14, 20179:13am

Vago will discuss the shipbuilding and design in the industry

Greg Dragonetti March 14, 20179:14am

About to show a slide but the wrong one is up. Whoops

Greg Dragonetti March 14, 20179:15am

Now showing a slide that displays the evolution of their fleet

Greg Dragonetti March 14, 20179:16am

Greg Dragonetti March 14, 20179:16am

Greg Dragonetti March 14, 20179:17am

Pointing out the sheer growth in the size of the ships, but how it’s slowed down the past few years, but the orders keep coming through

Greg Dragonetti March 14, 20179:18am

Next slide is the orderbook, including other brands. Of course MSC has the most ships on order 😉

Greg Dragonetti March 14, 20179:20am

Vago is discussing how you create a platform to build a ship

Greg Dragonetti March 14, 20179:21am

Going over MSC Seaside and how the engines are placed in the center of the ships.

Greg Dragonetti March 14, 20179:22am

The QE2 makes an appearance in his slides !!

Greg Dragonetti March 14, 20179:24am

Vago is discussing Archimedes’ principle, Solas’ safe return to port, and firezones.

You can tell he get’s into this kind of stuff. And it shows. That’s why he has the most cutting edge ships on order.

Greg Dragonetti March 14, 20179:26am

Talking about how he’s moving as many spaces and outdoor areas lower in the ship so he can go higher with accommodations.

Greg Dragonetti March 14, 20179:29am

Vago is wrapping up his presentation.

Greg Dragonetti March 14, 20179:30am

Vago off, and Frank Del Rio from NCL is on stage

Greg Dragonetti March 14, 20179:31am

Rio: I’m the self proclaimed itinerary planning guy at NCL

Greg Dragonetti March 14, 20179:31am

..and most importantly, they make alot of money

Greg Dragonetti March 14, 20179:32am

Where, is truly critical. Otherwise we’d all be offering cruises to nowhere

Greg Dragonetti March 14, 20179:33am

Greg Dragonetti March 14, 20179:34am

82% of a reason for choosing a cruise is Destination and itinerary

Greg Dragonetti March 14, 20179:35am

Comparing Baltic yields, where you can get $300 per day whereas Caribbean only get’s you $100

Greg Dragonetti March 14, 20179:36am

The third quarter is the highest yield you get. That’s because of Alaska and Europe.

Greg Dragonetti March 14, 20179:37am

Today should be a very good booking day for us (ref the show storm in the northeast)

Greg Dragonetti March 14, 20179:38am

They critically influence onboard revenue

Greg Dragonetti March 14, 20179:39am

Top 4 most important influences in port determination:

Travel agents

Port agents

Excursion Operators

Social Media

Greg Dragonetti March 14, 20179:41am

Fleet expansions is outpacing port infrastructure. As a result the ports become congested.

Greg Dragonetti March 14, 20179:42am

Cruise lines look to expand elsewhere, Cuba, or make their own ports, Harvest Cay

Greg Dragonetti March 14, 20179:43am

Today our biggest threat comes from geopolitical events. These events when they occur, they instantly affect itineraries and by an large, the bottom line

Greg Dragonetti March 14, 20179:43am

Can’t tell if this is a political statement

Greg Dragonetti March 14, 20179:44am

Libya, Egypt, Turkey, and Black Sea are all uncruiseable

Greg Dragonetti March 14, 20179:44am

Del Rio off and now Richard Fain of Royal Caribbean on.

Greg Dragonetti March 14, 20179:45am

Fain will talk about environmental

Greg Dragonetti March 14, 20179:45am

I get to talk about something I feel passionate about.

Greg Dragonetti March 14, 20179:46am

As a base to what the previous speakers talked about, I get to talk about the base of it all.

Greg Dragonetti March 14, 20179:47am

On environment we don’t compete.

Greg Dragonetti March 14, 20179:48am

The term Floating Cities fosters the community onboard. It’s not a marketing ploy

Greg Dragonetti March 14, 20179:48am

We are committed to creating ethical, sustainable environments onboard ships

Greg Dragonetti March 14, 20179:50am

We make our living from the ocean

Greg Dragonetti March 14, 20179:51am

To do things line minimizing out co2 footprint. to be more efficient, we save money, provide better for our customers, but we also protect the environment.

Greg Dragonetti March 14, 20179:51am

This focus on the environment forces us to run a tighter ship

Greg Dragonetti March 14, 20179:52am

All Royal Caribbean ships have an environmental officer. (to be fair, other lines have that)

Greg Dragonetti March 14, 20179:53am

Its better to achieve zero than ambiguous terms.

Greg Dragonetti March 14, 20179:54am

An example is the wine bottles onboard a ship. They want to crush them and recycle them. Bottles of wine when crushed fosters bacteria.

Greg Dragonetti March 14, 20179:54am

ISM states that they have to get rid of it at the next port even if it winds up just in a landfill.

Greg Dragonetti March 14, 20179:55am

A simple solution is to keep them at cold temperatures then keep them onboard until they can get to a recycling center.

I like to state, we have the coolest garbage in the world

Greg Dragonetti March 14, 20179:56am

Now talking about putting scrubbers on ships. All ships have these now as a way to cope with the new emission regulations in the US.

Greg Dragonetti March 14, 20179:57am

Now talking about waste water purification standard. Our engineers like to show off by drinking the water.

Greg Dragonetti March 14, 20179:59am

Royal Caribbean recently announced a large partnership with the World Wildlife Fund

Greg Dragonetti March 14, 201710:02am

Now discussion the perfect dedication to safety.

Greg Dragonetti March 14, 201710:02am

Thousands of guests and crew relay on us for their safety.

Greg Dragonetti March 14, 201710:03am

We shouldn’t be so naive to think that It couldn’t happen here. We have to stop thinking people won’t stop acting like a human onboard

Greg Dragonetti March 14, 201710:04am

We equip our safety officers with body cams (smart idea)

Greg Dragonetti March 14, 201710:04am

Our objective isn’t to prove we were right, its’ to avoid in the first place. It provided a calming impact to the dialogue going on.

Greg Dragonetti March 14, 201710:07am

Fain now off, and the 4 CEO panel begins with Susan Li from CNBC

Greg Dragonetti March 14, 201710:09am

What’s driving the business?

Donald: People love cruising. People cant stop talking about it. And we now do a reasonable job promoting it

Rio: Customers are happy, we’ve had the ‘Trump’ effect.Economy is good.

Greg Dragonetti March 14, 201710:14am

Future Policies enacted in the government:

Donald: Too early to tell. We pay taxes everywhere in the world. We have to wait and see.

Vago: I don’t think the problem is in Washington. From the regulatory size, it’s not Washington.

Fain: Governments are unpredictable today. People are seeing the eco benefit that we’re contributing to society

Greg Dragonetti March 14, 201710:15am

Rio: The Trump administration is good for businesses (not sure everyone else on stage shares his view).

Greg Dragonetti March 14, 201710:17am

Rio: All of us has gone to Cuba. It can be a major force in the cruise business. I hope the administration sees this. They are pro business.

Donald: Its in the best interest to bring people together. Who knows what the administration will bring us. Like Frank, I want the embargo lifted.

Greg Dragonetti March 14, 201710:21am

Vago: We follow the trends. Whether it’s China or Cuba.

Greg Dragonetti March 14, 201710:22am

Final question: What’s keeping you up at night.

Fain: Not too much. Maybe it’s excitement. Ind has found a
groove. We’ve done a good job communication what cruising’s about.

Greg Dragonetti March 14, 201710:24am

Vago: Shipping is a 24×7 business. (so true. I know from experiance)

Vago: We are looking at the brighter side. You must have the humility and ability to look at the other side of things.

Greg Dragonetti March 14, 201710:24am

Del Rio: I have the youngest fleet, so it’s geopolitical events. I wake up and hope there’s no headline news.

Greg Dragonetti March 14, 201710:25am

Donald: We have things going so good, I hope these guys don;t mess it up. (huge laughs and applause)

And geopolitical tensions. Really the only things that prevents is when people are prevented from traveling.

Greg Dragonetti March 14, 201710:25am

Donald: We have things going so good, I hope these guys don;t mess it up. (huge laughs and applause)

And geopolitical tensions. Really the only things that prevents is when people are prevented from traveling.

Greg Dragonetti March 14, 201710:26am

Fain: historically it’s the bad things that keeps us up at night. The pace of change is extraordinary.

Greg Dragonetti March 14, 201710:27am

That does it for this live blog. Make sure to keep checking
our twitter twitter.com/cruiseind for updates from the show floor.

Thanks!