2020 will be another year of smooth sailing for the cruise industry as an estimated 32 million passengers take to the seas. As the sector soars, leading players are making their mark with innovative environmental practices, robust competition from new markets and bigger and better ships.
Going greener
Long labelled as the polluters of the seas, 2020 is the year cruise ships try to clean up their image. The industry is spending US$ 22bn to develop new energy-efficient technologies, according to the Cruise Lines International Association (CLIA), and is moving aggressively to hit its goal of a 40 per cent reduction in carbon emissions by 2030, compared to those recorded in 2008.
There are 25 new ships entering service this year, according to the 2020 Cruise Industry News Annual Report, and the largest of these is the Carnival Mardi Gras which is remarkable not just for its size but also its environmental features. The Mardi Gras, which can hold 5,200 passengers and will sail a Caribbean itinerary, will run on Liquefied Natural Gas (LNG) known as the world’s cleanest fossil fuel as it produces virtually zero sulphur and particulate emissions. When it debuts in November, the Mardi Gras will become the first North American cruise ship powered by LNG and Carnival expects to roll out a second in 2022.
Other green innovations going mainstream among cruisers this year include more sophisticated exhaust gas cleaning systems and wastewater treatment as well as increased recycling, more efficient lighting and more use of solar energy.
Refurbs and refits
While huge vessels will be meandering the oceans this year, many others are heading into dry-dock – itself a US$ 3bn a year business, according to Cruise Industry News. Cruise vessels generally have a 30-year lifespan and, over the course of those three decades, need continual maintenance, repair and refits. Many companies also attempt to breathe new life into old ships with a complete transformation.
Big projects on the agenda for 2020 include the overhaul of the Carnival Victory into the 3,873-passenger Carnival Radiance. This US$ 200mn facelift will feature new dining options, more sporting activities, 115 new guest suites and staterooms and a Caribbean itinerary beginning April 2020. Rival Royal Caribbean is also putting a favourite ship under the knife in spring with a US$ 165mn refurb of the Allure of the Seas. Following a 58-day dry-dock, the ship is expected to debut in May.
Rounding out the top three biggest refurbs of the year, according to Cruise Industry News, is the US$ 100mn redesign of the Norwegian Spirit which will be updated to feature 14 new venues, added staterooms and a bigger spa facility.
New markets and new brands
The Caribbean is expected to continue dominating the market this year with CLIA predicting it will take a 32 per cent share of the worldwide business. New markets are coming onstream, however, as competition heats up around the world.
New entrants China and India will continue to gain a small but significant foothold in the industry, each taking a 5 per cent share in 2020. At the end of 2019 the China Ocean Shipping Company partnered with China Travel Services Group to launch Astro Ocean – the first luxury Chinese cruise brand. Astro Ocean is also currently constructing the first Chinese-built cruise ship in Shanghai.
India’s newest and biggest cruise firm, Jalesh Cruises, is also optimistic about the growing demand and is set to introduce its second ship in October, following the successful launch of its first offering, the Karnika, in April 2019.
In the established markets, new brands are coming onto the scene. Attempting to capture some of the high-value, luxury niche, the Ritz-Carlton Yacht Collection is now taking bookings for its 2020 and 2021 seasons aboard its fleet of super-yachts, capable of hosting just under 300 passengers in a range of suites with custom interiors. The first vessel, the Evrima, will offer sailings to Caribbean ports including Saint Lucia.
Virgin Voyages is also eyeing the luxury niche as the travel giant makes its first foray into cruising with the launch of Scarlet Lady. Set to sail in spring 2020, the ship’s inaugural itinerary will be in the Caribbean and, clearly confident of success, Virgin has another four ships on order. STAR Businessweek previously wrote (November 30, 2019) on Virgin’s entrance to the market in ‘Can Virgin Shake Up The Cruise Industry?’
Onshore investments
The cruise industry isn’t just investing in ships, it’s also been turning its attention to port infrastructure in recent years, and 2020 will be no exception.
In October Saint Lucia’s government signed a memorandum with Royal Caribbean and Carnival to manage the current cruise facilities in Castries and design, construct and manage a new port in Vieux Fort. The joint venture is just one of many such agreements around the region as cruise companies look to improve infrastructure, gain greater control over their hubs and purchase land for their own private islands.
Although progress was halted somewhat by Hurricane Dorian, Carnival remains committed to developing a new port in Grand Bahama in 2020 while Royal Caribbean begins construction of its new two-storey terminal in Galveston in April.
Private island destinations continue to be a moneymaker for cruise companies. Royal Caribbean’s CocoCay, which opened in the Bahamas in 2019, expects to welcome 2 million guests in 2020 – double its 2019 arrivals. Newcomer Virgin Voyages has already lined up a private destination for its first ship, Scarlet Lady, which will dock at the Beach Club at Bimini, a seven-mile island in the Bahamian archipelago.
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