[LIVEBLOG] State of the Industry 2018

Hello and welcome to the 2018 liveblog from the State of the Industry panel from Seatrade Cruise Global.

The event is set to begin at 0930 eastern time.

Here’s some general info about it:

THE STATE OF THE GLOBAL CRUISE INDUSTRY KEYNOTE
Moderator:
Peter Greenberg (CBS News)
Part 1 Keynote Speakers:
Frank J. Del Rio (Norwegian Cruise Line Holdings Ltd.), Arnold W. Donald (Carnival Corporation & PLC. & CLIA Global Chair), Richard D. Fain (Royal Caribbean Cruises Ltd.), Pierfrancesco Vago (MSC Cruises)
Part 2 Keynote Speakers:
Tom McAlpin (Virgin Voyages), Douglas Prothero (The Ritz-Carlton Yacht Collection)

Archived Live Blog:

Greg Dragonetti

And that’s it from the keynote. I’ll be headed to the floor for a bit and then to the Crystal one in a bit.

Thank you for following.

Greg Dragonetti

Prothero “We can sell that cruise to the German market along and it would sell out.”

Greg Dragonetti

Prothero “We have designed our ships to fit through the St Lawrence seaway. That itinerary would start at the Ritz in Montreal and end at the Ritz in Chicago.”

Greg Dragonetti

Prothero “In most of out turnaround ports there will be a Marriott luxury brand.”

Greg Dragonetti

Prothero “A year in between builds but looking to reduce it. We don’t go on sale until May.”

Greg Dragonetti

McAlpin “We may arrive later and stay later in ports. Obviously we will be in the Caribbean. We will provide options.”

Greg Dragonetti

Prothero “We will put a lot of focus on the south east of Caribbean, not the major ports.”

Greg Dragonetti

McAlpin “First ship is out of Miami”

Prothero “We on a constantly sailing itinerary. We do have some larger port for turnaround but our focus is on niche locations.”

Greg Dragonetti

Prothero “No show lounge onboard. Bring in a local chef, or bring in local arts community onboard in a more closed in setting.”

Greg Dragonetti

McAlpin “We think about using technology for onboard entertainment in a not so creepy way.”

Greg Dragonetti

McAlpin “we thought about taking 2,700 guests to Necker Island every week but Richard didn’t like that Idea.”

Greg Dragonetti

McAlpin “Yes we will have a casino.”

Prothero “No casino, no submarine. We do have a big superyacht marina. Will look with partners in our ports to provide additional equipment.”

Greg Dragonetti

McAlpin “culture is really important. We believe in the Virgin culture.”

Discussing their new offices that they just moved to.

Greg Dragonetti

McAlpin “I’ve come to a conclusion that something happens when you put kids and water together. You don’t have a good time at a pool with kids and roving packs of teens.”

Greg Dragonetti

McAlpin “you’re not going to see broadway shows on our ships. It’s going to be different. It’ll be adult by design.”

Greg Dragonetti

McAlpin “You have alot of the yacht styles on there to make it feel special and sexy. So when you see that ship anywhere int he world you say “That’s a virgin ship” “

Greg Dragonetti

McAlpin “The original idea was to build 2, 4,500 pax ships. Our ship we think is the right size. “

Greg Dragonetti

McAlpin “We’ve dissected the entire customer experience and how do you create a different experience. Virgin Cruises is too easy so we chose Voyage.”

Greg Dragonetti

Prothero “All balcony ship. We created a duplex suite for the lower deck suites.”

Greg Dragonetti

McAlpin “8% of those who said they’d never go on a cruise would go on a Voyage based on the Virgin brand.”

Greg Dragonetti

McAlpin “Most of the 25 million cruises would go on a Virgin voyage based on branding and expectation alone. “

Greg Dragonetti

McAlpin “We are not trying to be a disrupter for the travel industry. We think of this as creating a new travel experience.”

Greg Dragonetti

McAlpin “We’re creating a culture in the company. An epic seachange for all”

Greg Dragonetti

McAlpin “It’s about listening to the guests. On The World it’s all Type A personalities.”

Greg Dragonetti

Prothero “You might see a jacket in the evening and not see flip flops or bikini’s in the dining room.”

Greg Dragonetti

Prothero “We know from our research guests will come from three sources, our current database, luxury cruisers and folks who have never taken a cruise.”

Greg Dragonetti

Prothero “It speaks to our audience. There are a lot of intimate spaces. There are 5 dining spaces. And only 4 spaces onboard for all guests at once.”

Greg Dragonetti

Prothero “What is it that the Ritz Carlton cruiser wants. We knew we were going to build a yacht. “

Greg Dragonetti

This will cover the new entrants to the Industry in Virgin Voyages and Ritz-Carlton.

Greg Dragonetti

Donald “what’s going to keep me up at night is the Porthole party.” (still waiting for my invite)

Greg Dragonetti

Del Rio “I’m fortunate I have 30,000 employees that take care of our guests. I’m very bullish on the long term.

What keep me up at night are the things I can’t control. So while we take short term bruises the future is bright.”

Greg Dragonetti

Vago “We are in the shipping business 365 days a year and 24/7.” (True shipping guy there!!)

Greg Dragonetti

Fain “Realizing how the world has changed. And how the pace of change has changed. What will people want in 10 years is difficult. We are spending billions in that. It’s what our guests want and what our crew wants.”

Greg Dragonetti

Donald “We have to create demand. We can just build it and it’ll fill up.”

Greg Dragonetti

Fain “we have resisted the urge to homogenized ourself. Each brand is very discrete. “

Greg Dragonetti

Vago “We will design the World class we will have to design somethign that will be around in 2030. We have to envisage what they want. And Richard keeps beating himself” (with Oasis class.) Fain “Hey I need competition” (huge round of applause )

Greg Dragonetti

Donald “Our philosophy is all about the guests. It’s about a personal experience. People what things customized to them.
That includes ship design. “Dodging questions as to how much bigger ships are going to get.

Greg Dragonetti

Del Rio “My 10 year old grand kids said they want a race track, so I went to Robin Lindsey our head of design, and we built a race track.”

Greg Dragonetti

Fain “When I started to get involved with ship design, I really had to fight tooth and nail for new concepts”

Greg Dragonetti

Fain ” (celebrity) Edge really shows the innovation that we can bring to the industry”

Greg Dragonetti

Vago “The idea of Seaside was that I designed it with the yard so that when all the ships are alongside in Miami people will go and say “what the hell is that?!” “

Greg Dragonetti

Fain “We have adjusted out designs so they meet what people want today. Our satisfaction rates is amongst the highest in the company history.”

Greg Dragonetti

Donald “if you look at statistics there were more terror attacks 10 years ago than today. As long as there isn’t a large part of the world that is taken out of capacity it shouldn’t be a problem.”

Greg Dragonetti

Donald “If you go over time, there’s always places that you shouldn’t travel to.”

Greg Dragonetti

Vago “They know that we cater to our passengers” saying people visit particular area through a cruise to places they wouldn’t feel comfortable going to in the first place.

Greg Dragonetti

Del Rio “our customers trust us. We aren’t going to take them to a place that’s not safe. We can move ships from one place to another. We can’t wait for the eastern med to come back”

Greg Dragonetti

Del Rio “It’s gotta be save for us to go in the navigational sense and the experiences. Shore excursions are a big money maker.” (Del Rio all about the finances 🙂 )

Greg Dragonetti

Del Rio “We’re good partners. There are more ports encouraging us to go there than don’t want us”

Greg Dragonetti

Greenberg “43 ports challenged from the hurricane season this year” (including two in my place of residence)

Greg Dragonetti

Fain “it’s an opportunity to work with the local community. We work with them and find solutions that are to both of our benefits”

Greg Dragonetti

Donald “UNESCO was considering delisting Dubrovnik so Donald and Vago met with the mayor and came up with a strategy”

Greg Dragonetti

Fain “We are less relaxed today that we were a year ago because we see the potential.”

Greg Dragonetti

Fain “Theres a misnomer of the word Over Tourism. What we’re really talking about is doing it better.”

Greg Dragonetti

Donald “we need to listen to ports and make sure they have the infrastructure. Our guests don’t want to go to places that are overcrowded”

Greg Dragonetti

Donald “I think the top line story, what we’ve been doing for years, is what we need to keep doing. The concept of over tourism.”

Greg Dragonetti

Del Rio “The baby boomers are still the vast source of demand, but 25% of pax are millennial. “

Greg Dragonetti

Del Rio “Business is really strong. Keep it going”

Greenberg “You know that quote is going to haunt you”

Greg Dragonetti

Donald “We think its great for normalizing relations. We were able to get a restriction changed.”

Greg Dragonetti

Switching over to Cuba.

Del Rio “We’re doubling Cuba capacity. The new Government restrictions had very little impact. “

Greg Dragonetti

Vago “I think China has a great potential. There are geopolitical issues around the world. If we can reduce the cabotage laws in China we can have a greater boom “

Greg Dragonetti

Vago “We have 11 ships on the order book. We are in the second phase of the company”

Greg Dragonetti

Fain “People say we move too much. Most industries aren’t able to move like that.”

Greg Dragonetti

Fain “We’re amazing good at creating something that wasn’t there before. China’s a good example.”

Greg Dragonetti

Del Rio “The guests like it and the ships are full. Now we need to work on the yield.”

Greg Dragonetti

Del Rio “China’s stable. It’s still a work in progress. We see it as a long term investment.”

Greg Dragonetti

Announcement that next year they will be relocating Seatrade to Miami!!! FINALLY. New dates are in April too!

Greg Dragonetti

Cindy’s now off, Peter Greenberg is about to take to the stage with the CEO’s

Greg Dragonetti

Cindy is talking about future initiatives to part with group to advance sustainability.

Greg Dragonetti

16 LNG fueled ships are on order. With testing of fuel cells currently onboard ships today.

Greg Dragonetti

They’re projecting 1.8 billion billion travels (incl all sectors). Up from 1.2 billion this year

Greg Dragonetti

Because we’re at sea, we must be more efficient effective and mindful (of the environment)

Greg Dragonetti

Cindy is comparing Cruising to Apple creating the computer. They both were ambitious and started around the same time…..not sure I agree.

Greg Dragonetti

Andrew with UBM now on stage. They’re the media production company responsible for throwing this event.

Greg Dragonetti

Video now playing showing executives talking about how they got into the industry

Greg Dragonetti

Made it inside the terminal. I think this is the Princess terminal in Port Everglades. Just waiting to be seated.