Can Virgin Shake up the Cruise Industry?

Virgin Voyages is in the final stages of preparations for its maiden voyage in 2020. The new cruise line will set sail out of Miami and visit a range of Caribbean destinations including the Bahamas, the Dominican Republic and Puerto Rico. The PR campaign for this new entrant to the cruise industry is being led by Virgin founder Richard Branson, and so far has been going strong, given Branson’s unflappable enthusiasm for his business and the promise that Virgin will deliver something different for travellers. Nonetheless, while Virgin is sure to make a splash once it starts sailing, can the business really be much different from other cruise lines? And how does the addition of Virgin Voyages sit alongside Virgin’s wider operations?

Preparing the Ship

Announcing late 2014 that it would enter the cruise industry, Virgin’s first ship, Scarlet Lady, is set for its maiden voyage in April 2020. The cruise market is highly competitive, with many giants among it and the expertise of decades behind their offerings. As a newcomer, Virgin is keenly aware of this and is leaning heavily on customer frustration with existing providers and the expectation that they will opt for something fresh over the “same old, same old” next time they book a cruise.

Promising to “make waves” in the sector, Virgin declared, “The cruise industry has long been dominated by a few key players and Virgin identified it as an exciting market to disrupt and deliver strong investor returns,” and “After many years of business as usual, the Virgin brand aims to breathe some life into the sector and deliver an experience for people who want a new way to cruise, both for the new and experienced cruiser.” So how will it do it?

Diving Deep

Among the most notable differences is Virgin’s ambition to kill the buffet queue. In its place will be over 20 dining options, from casual eateries to haute cuisine. Of the venues revealed so far is the glamorous Wake which resembles a high-end hotel bar you’d find in a European capital on land; it will present a vivid contrast to onboard Razzle Dazzle, serving up vegetarian and vegan offerings alongside a juice bar. 

In typical Virgin tradition, the company will offer the opportunity to be a bit naughty, allowing you to add meat to any vegan dish or top up your veggie smoothie with a shot of liquor. Scarlet Lady is expected to have a tattoo parlour for anyone who wants a permanent reminder in ink of their time cruising. 

In an apparent nod to Virgin’s beginnings in music, there will also be a vinyl record store with listening stations, and rockstar-themed cabins, plus a running track and swimming pool for those who want to keep fit while living out some rock ‘n’ roll fantasies at sea.

Perhaps unsurprisingly, given the entertainment on offer, Scarlet Lady will leave port as an adults-only, kid-free cruise. 

As well as the emphasis on elegance and glamour, there is a savvy marketing strategy targeted at cost-conscious cruisers. On top of the all-inclusive structure that encompasses all meals on board, a number of amenities that often cost extra on a cruise, like gratuities, Wi-Fi and non-alcoholic beverages, are included in the price.

On a wider level, by virtue of the company’s airline operations, there’s an easy path ahead for Virgin to draw customers from all over the world. This was demonstrated with Branson’s recent visit to Australia and announcement of a partnership between Virgin Voyages and Virgin Australia to ferry cruise passengers from the Asian-Pacific nation to Miami before beginning their cruise.

New Team, Old Industry

Although there’s much promise from Virgin, there’s a balancing act here. Virgin has long positioned itself as a disruptor – years before the term disruptor become well-known. But the nature of the cruise industry and its abundance of red tape means there may be only so much Virgin can do to distinguish itself from others in branding and actual operations. Virgin has a clean slate here to run a scandal-free operation but just one slip-up could see it deemed ‘just like all the others’, given the numerous high profile issues experienced by other cruise lines over the years. 

Ultimately, it’s a substantial challenge for Virgin but the business has long shown deft skill in being ready to take on big challenges. Although not every venture has been a success, overall Virgin has capitalised on ‘selling different’. The favourable rating of its leader Richard Branson, with YouGov ranking him the 5th most popular business figure in the US, affirms this.

Land, Sea and Air

Virgin has marketed its cruises with the promise “No kids, no buffets and no limits”. For any traveller looking for a high-end experience, this will surely entice. Yet cruises appeal to many passengers because of the opportunity to take children on a family-friendly cruise, loosen the belt to pack on a few holiday kilos, and do so with the comfort of knowing the kids won’t ever be out of arm’s reach; and the overall security of a cruise ship means the dangers that can sometimes exist in foreign travel are neutralized. 

Virgin doesn’t need to become a major player in this industry to build its overall brand. Like its space voyages, the fact that Virgin ships are soon to be sailing the seas is a great exercise in PR. Nonetheless, it would be a mistake to overlook Virgin’s sizeable ambitions within the cruise industry.

Recent days have seen the announcement that Valiant Lady is expected to commence sailing in 2021 out of Barcelona, serving the Mediterranean region, with similar announcements expected to follow soon. Whether a believer or a sceptic of Virgin’s ability to shake up the cruise industry, this new entrant’s operations are a must-watch heading into 2020.