Cruise leaders avoid the inconvenience of the industry at the global rally – Skift



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To hear the leaders of the cruise industry, everything is excellent on the cruise. If only the rest of the world realized it.

On Tuesday at the annual Seatrade Cruise Global conference, CEOs of the world's largest cruise companies – Carnival Corp., Royal Caribbean Cruises, Norwegian Cruise Line Holdings and MSC Cruises – exposed what they saw as a misperception of industry.

"Ignorance is incredibly difficult to overcome and perceptions are very difficult to overcome," said Royal Caribbean Cruises General Manager Richard Fain.

To be clear, the cruise has grown robustly. The industry professional group, Cruise Lines International Association, announced Tuesday that 28.5 million people took a cruise last year, a higher than expected figure, which represents an increase of nearly 7% per compared to the previous year. This year, 30 million people should go on a cruise.

Listed cruise companies have always been profitable and continue to invest in new ships, infrastructure and new technologies, all topics discussed by the panel on Tuesday.

However, Carnival, the largest cruise company in the world, has reduced its forecast for the year of earnings release in December, due to the slowdown in fuel prices and exchange rates. The company also warned against the uncertainty badociated with Brexit and other political and economic concerns in Europe.

The cruise industry continued to be at the center of overtourism concerns, while destinations between Venice, Barcelona and Dubrovnik are overpopulated. Leaders point out that their pbadengers are only a small – but visible – part of these crowds over the course of a year.

"Obviously, it's very easy to point fingers and say," Look at the ship, it must be the problem, "said Vago," so we have to make a [better] work to ensure that people have the right appreciation for the incredible work that we do. "

Arnold Donald, CEO of Carnival Corp., said that cruise companies could play a role, for example by collaborating on ship planning in places such as Dubrovnik.

"We can also be part of the solution and we have done it together," he said.

And no one has ever mentioned the most publicized recent cruise event: 479 Viking Sky pbadengers were airlifted last month after an engine failure during a severe storm in Norway.

Moderator Lucy Hockings, a presenter at BBC World News, urged CEOs on factors that could hinder the growth of the sector, environmental concerns and ways in which cruise lines can avoid overwhelming destinations.

The leaders defended the impact of the industry on the environment by highlighting the technological advances that have allowed ships to save more fuel. Donald said his company has reduced fuel consumption by 33% since 2007.

"Do not forget that in our area – and we have to change the perception – no one wants to go to a polluted marine environment, no one wants to go to a place where he is unable to breathe," he said. declared.

After several rounds, the Norwegian CEO Frank Del Rio decided that he had enough.

"The dialogue you are following, you are trying to find negative aspects," he said. "Let's talk about the benefits of the cruise industry."

"It's my job," said Hockings.

"No, you are no longer in the media, we are not politicians, we are businessmen," Del Rio said. "Look at the positive aspects of the industry, the millions of jobs created around the world, the economic impact of the arrival of our ships in these islands or in a place like Venice … There are more people who want us to come to these ports than those who are not. do not want us to come.

Del Rio also changed the subject when the subject was turned to China, a market excited by the competitors of Carnival and Royal Caribbean. Norwegian recently redirected his China-based ship to North America, where it was found that business was stronger.

"I think we've said enough about China," he said. "Destinations come and go in terms of popularity for a variety of reasons. I am very happy to see the Eastern Mediterranean coming back … I am looking for Turkey. "

The panel represented most of the world's longest established ocean cruise lines. But some competitors, such as Virgin Voyages and Ritz-Carlton Yacht Collection, whose launch is imminent, were not on the scene. The leaders said they welcome more players to the world of cruises.

"To have a vibrant industry, you need new entrants," Del Rio said. "Keeps us on our guard. Competition is a wonderful thing for everyone, for us, for consumers. To a certain extent, the industry has become too concentrated. I welcome new competitors … they introduce new wrinkles into the product. We will see if they work. "

Photo Credit: Cruise officials speak during the debate on the state of the industry organized by Seatrade Cruise Global. From left to right: moderator Lucy Hockings, BBC World News presenter, MSC Cruises Executive President, Pierfrancesco Vago, Royal Caribbean Cruises CEO Richard Fain, CEO of Carnival Corp. Arnold Donald and Norwegian Cruise Line Holdings CEO Frank Del Rio. Seatrade Cruise Global

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