Norwegian Cruise Line Launches New Brand Identity
For the first time in 10 years, NCL Corporation Ltd. Is unveiling a new, all-encompassing brand identity created expressly to capture and articulate the company’s unique Freestyle Cruising—an approach to cruising unlike any other offered in the industry.
Why now? “Because, we’re ready,” says Andy Stuart, NCL’s executive vice president of sales, marketing and passenger services, at a New York press conference. “By 2010, we will be the youngest and most innovative fleet in the industry.”
The new brand identity breaks the mold of traditional cruise industry marketing with its light-hearted, experiential tone. One way the brand is characterized is with a graphic treatment featuring a white fish swimming against the direction of a school of blue fish, depicting NCL’s innovative spirit in the cruise industry, as well as the type of guest that NCL is looking to attract, one who is a “non-conformist”. Another is the video clip showing hoards of cruise passengers marching to the tune of the ship’s rules—whether its off to dinner at a designated time, or dressing formally on formal nights, or even exercising at designated times. Then the clip reverts to what a cruise on an NCL ship is like—dining when one chooses and where one chooses at one of ten restaurants, dressing as one wishes, and even delaying one’s departure on disembarkation day. In other words the word “must” is deleted from NCL’s Freestyle Cruising.
NCL’s research shows that the types of people who are attracted to Freestyle Cruising see themselves as individualists in a world in which increasingly everyone else is doing what they are told and accepting what is offered. NCL guests want to enjoy their cruise on their terms without the structure and regimentation that is still the central feature of traditional cruises.
The marketing plan features national television, radio, print, newspaper, out-of-home and online advertising, along with a completely new website. NCl’s guests and travel agents will also see all new materials encompassing all cruise line correspondence, onboard and in-cabin elements and even port signage and terminal décor. The new brand identity debuts on October 2 in a variety of media and on the company’s website www.ncl.com.
“With NCL set to have by far the youngest fleet in the industry by 2010, with all of our new ships purpose-built for Freestyle Cruising and deployed in all major cruise destinations and our NCL America fleet now fully in place, the time is right to build large scale consumer awareness through a major brand identity initiative,” said Stuart,
Branding agency GSD&M of Austin, Texas, created the new brand identity and is handling the media planning and buying. “Our challenge was to bring to life the feeling of complete freedom a guest feels on an NCL cruise in every aspect of the brand experience. We created one unified look and feel that extends beyond advertising and surrounds consumers before, during and after their cruise,” said Roy Spence, president and founder of GSD&M.

Carnival Corporation & plc Reports Third Quarter Earnings
Carnival Corporation & plc reported this week net income of $1.23 billion, or $1.49 diluted EPS, on revenues of $3.91 billion for its third quarter ended August 31, 2006. Net income for the third quarter of 2005 was $1.18 billion, or $1.40 diluted EPS, on revenues of $3.61 billion. Net income for the nine months ended August 31, 2006 was $1.86 billion, or $2.25 diluted EPS, on revenues of $9.03 billion, compared to net income of $1.92 billion, or $2.29 diluted EPS, on revenues of $8.52 billion for the same period in 2005.
Third quarter 2006 revenues increased 8.3 percent, primarily driven by a 5.2 percent increase in capacity and an increase in revenue yields (revenue per available lower berth day). Net revenue yields in current dollars for the third quarter of 2006 increased 1.0 percent compared to the prior year.
Net cruise costs per available lower berth day ("ALBD") for the third quarter of 2006 increased 4.8 percent compared to the same period last year. On a constant dollar basis, net cruise costs per ALBD increased 3.8 percent from the same period last year. The increase in costs per ALBD was primarily due to a 29 percent increase in fuel prices. Excluding the increased fuel prices, the company's 2006 third quarter net cruise costs per ALBD were in line with last year on a constant dollar basis. Gross cruise costs per ALBD increased 5.4 percent. Carnival Corporation & plc Chairman and CEO Micky Arison said, "Despite rising fuel costs and softness in Caribbean business, we still managed to grow earnings by over six percent in a difficult environment. The successful introduction of three new ships along with strong European and Alaska cruise seasons helped us overcome $55 million in higher fuel costs and weakness in Caribbean demand," he explained. "Both our European and North American brands have enjoyed a very strong summer in Europe and the North American brands operating in Alaska also performed very well during the quarter."
For the fourth quarter, advance booking levels are slightly behind last year at this time on a capacity adjusted basis, with average pricing slightly above last year in current dollars. As a result, the company expects that net revenue yields for the fourth quarter of 2006 will increase slightly (flat to down slightly in constant dollars) compared to last year's fourth quarter.
Based on these estimates, the company expects diluted earnings per share for the fourth quarter of 2006 to be in the range of $0.46 to $0.48. This guidance is based on currency exchange rates of $1.27 to the euro and $1.87 to sterling.
Arison also noted that for the full year the company is currently on track to post earnings per share of $2.71 to $2.73. This is slightly higher than last year despite significant challenges in 2006, not the least of which was a $210 million or $0.25 per share increase in fuel costs.
Looking to early 2007, Arison said that overall booking levels on a capacity adjusted basis, for the first quarter of 2007 are modestly down compared to the same time last year. The sluggish demand for the Caribbean is continuing into the first quarter of 2007 causing North American booking levels to be behind last year, while business for the company's European brands for that period is running ahead of last year's pace.

Princess Introduces New Transportation Option to Brooklyn Cruise Terminal
Travelers from the Northeast sailing aboard Princess ships from the Brooklyn Cruise Terminal next summer will enjoy a convenient new transportation option to get to and from their ship as the company introduces a pre- and post-cruise motorcoach transfer service from a variety of Northeast locations. The new service begins in May 2007 for passengers sailing aboard Crown Princess' summer Caribbean cruises from Brooklyn, and continues through the ship's Canada/New England fall cruises. Four unique roundtrip routes serve all the major metropolitan areas in the Northeast, including the Baltimore/Washington, D.C. area; eastern Pennsylvania; Massachusetts; and the Connecticut/Providence, Rhode Island area. "A traveler's vacation can start that much sooner with this new service because passengers can relax on the way to their ship without worry about driving or parking at the cruise terminal," said Jan Swartz, Princess' senior vice president of customer service and sales. "The program offers competitive rates and a convenient schedule that will make cruising from Brooklyn even more attractive to local passengers."
Princess' Northeast Motorcoach program includes four routes. The first travels from Washington, D.C. to Baltimore; Wilmington, Delaware; Philadelphia and Burlington, New Jersey. Route two runs through Pennsylvania, departing from Harrisburg and traveling to Lancaster, Reading, Allentown and Easton. The third route begins in Boston, with subsequent stops in Worcester and Springfield, Massachusetts and Hartford, Connecticut. The fourth itinerary departs from Providence, RI and travels through Connecticut with stops in New London, New Haven and Bridgeport. All routes operate in reverse as well for the post-cruise return home.
Princess' Northeast Motorcoach Service will be available from May 12 to October 13, 2007. All routes feature comfortable, air-conditioned motorcoaches and can accommodate wheelchair passengers with prior notification. Roundtrip fares for the Northeast Motorcoach Program range between $100 and $155 per person, depending on pickup location. Additional information about the new motorcoach program is available by calling 1-800-PRINCESS.

Carnival Corporate Fleet Certified As Meeting ISO 14001 Environmental Standard
The operating companies of Carnival Corporation & plc have successfully completed implementation and certification of their respective environmental management systems to the ISO 14001 standard. Certifications have been issued to the company's operating units by four different internationally recognized maritime regulatory agencies in recognition of Carnival's commitment to systematic management of its processes, products and services to minimize environmental impact. The international certification agencies included RINA from Italy, Germanischer Lloyd from Germany, Lloyd's Register Quality Assurance from North America and the Maritime and Coastguard Agency in the UK.
The certificates attest that each operating unit's Environmental Management System (EMS) for Operation and Management of Cruise Ships meets the ISO 14001 standard established by the Geneva-based International Organization for Standardization, an internationally recognized standards organization that promotes the development and implementation of international standards, including those for environmental management issues. ISO 14001 presents a structured approach to establishing environmental objectives and targets and provides a framework for organizations to apply these tools to enhance their processes.
"Carnival Corporation & plc is committed to operating its vessels in the most environmentally friendly manner possible and to receive this ISO 14001 certification speaks volumes about our environmental preservation and protection efforts," said Micky Arison, Carnival Corporation & plc chairman and CEO. "Carnival Corporation & plc will continue to undertake wide-ranging environmental initiatives, including a significant investment in new technology, to reduce our environmental footprint and we are more committed than ever to our goal of becoming the industry leader in environmental excellence," he added.

Cruise Charter Firm Opens Call Center For Christian Travelers
 Premier Christian Cruises, a charter cruise outfit, has opened a travel office to cater specifically to the needs of Christian cruise travelers and other cruise-related companies and ministry efforts, the company said. "Most cruise companies use travel agencies to field incoming calls. When a potential customer calls, they aren't actually speaking to the cruise company," notes Jonathan Martin, PCC's vice president of operations. "That's where we differ from most travel agencies. Our travel office staff understands the Christian travel marketplace and the needs of the Christian consumer."
Martin credits the early sales success of the Music Boat 2007 cruise, which has sold 50% of its cabins in 11 days, to PCC's travel office representatives. He added that PCC has experienced "phenomenal growth" for the three full-ship charters that it currently offers: the Girls Get-A-Way cruise (Nov. 9 to 13), K-LOVE's Friends & Family Music cruise (Jan. 22 to 26) and The Music Boat (April 30 to May 4).
The travel office call center, which can be reached at (800) 889-5265, offers extended hours Mondays to Thursdays 7 a.m. to midnight, Fridays from 7 a.m. to 5 p.m. and Saturdays from 9 a.m. to 5 p.m.

 

MSC Cruises Names Sales Manager For Canada
MSC Cruises has announced the appointment of Jean Charles Cote as Sales Manager for Canada. For the last 14 years, Cote worked for Carlson Hotels in various sales management capacities (Director of Travel Supplier Relations/Director of Key Accounts, Canada/Director of Corporate Sales, Groups & Incentives). Prior to joining Carlson Hotels, he was employed by Air Canada as Regional Director of Sales as well as Manager of Wholesale and Group Markets.
In his role as MSC Cruises’ Sales Manager for Canada, Cote will be responsible for the further development of MSC Cruises’ sales in Canada. His role will be to work closely with travel agents in developing new business for MSC Cruises’ products in the Caribbean and Europe and providing all the necessary support to wholesale and tour operators partners across the country. He will be based in Montreal.
Cote notes that the “Canadian cruise market grew 12 percent last year. With fewer that 5 percent of Canadians having taken a cruise vacation in the past three years, growth in the Canadian cruise market is assured and MSC Cruises, with significant investment in its own growth, is in a good position. ”

Antarctic Dream Expeditions Joins Niche Cruise Marketing Alliance
The Niche Cruise Marketing Alliance (NCMA) has added another member cruise line to its ranks. Antarctic Dream Expeditions has joined the 13 other cruise lines which
are members of the alliance. The company ( www.antarctic.cl )  offers 11-day explorations of Antarctica and eight-day journeys through southern Patagonia on its 39-cabin expedition ship, the Antarctic Dream. The cruise line is an accredited member of the International Association of Antarctica Tour Operators.
Exploration represents a growing segment of cruise experiences in today's travel market. Antarctic Dream Expeditions joins a number of NCMA members in this exciting area and fits perfectly into our philosophy of educating travel agents on the huge earning opportunity that specialty cruises represents," said Larry Dessler, Executive Director of the Niche Cruise Marketing Alliance, "Antarctic Dream Expeditions will be participating with NCMA at an expanding number of trade events this fall."
The 14 lines in the NCMA alliance have banded together to educate travel agents on the value of concentrating on the sale of specialty cruise products. The alliance provides educational programs; seminar content and trade show exposure for its members and this industry segment. Other NCMA members include: American Cruise Lines, American West Steamboat Company, Cruise West, Discovery World Cruises, Fred.Olsen Cruise Lines, Galapagos Explorer II (Canodros), Imperial Majesty Cruises, Imperial River Cruises, Norwegian Coastal Voyage, Orion Expedition Cruises, Peter Deilmann Cruises, RiverBarge Excursion Lines and Star Clippers. The NCMA office is in Bellevue, Washington, a suburb of Seattle.

Princess Becomes First in Cruise Industry to Convert to All-Electronic Tickets
Starting this month Princess passengers will receive their travel documents sooner and more conveniently with the company's new eTickets program. The line will be the first in the industry to convert completely to electronic ticketing, and will also provide the earliest cruise documents available to passengers.  Princess eTickets will give passengers 24/7 access to print out their cruise details and boarding passes whenever they wish, and will deliver final booking and travel information through the company's online Cruise Personalizer.
With the new eTickets, not only will passengers receive their travel documentation much quicker than the current mailed ticket package, the new technology provides passengers with their Princess Air details as soon as 75 days in advance - earlier than any other cruise line.  By receiving this travel information sooner, passengers have a greater opportunity to finalize their vacation plans and make changes if needed.
Replacing the company's traditional paper documents, Princess eTickets will begin fleetwide for most sailings departing on and after November 17, 2006 (Golden Princess will begin with the December 16 sailing).  Passengers sailing on or after this date will be able to access their boarding passes and travel summaries starting this week.  The program currently applies only to bookings from North American passengers.
With Princess eTickets, travelers are provided with a comprehensive, personalized travel summary including cruise and flight information, itinerary, special request information, important notices, packages and transfers, shore excursion and spa pre-reservations, and a new boarding pass to be printed out and brought to the ship for check-in.  
Each passenger's travel summary will be available through the online Cruise Personalizer once the booking is confirmed.  Air travel arrangements made through the company's Princess Air program will be included in this summary as soon as 75 days in advance of travel, well ahead of the industry standard of 30-day notification. 
Suite passengers, as well as Platinum and Elite level members of Princess' Captain's Circle loyalty program, will receive a Preferred Boarding Pass to use at the Preferred Boarding check-in desk at the pier.
Passengers will continue to receive by mail Princess' popular package of pre-cruise documents including a welcome letter, Cruise Answer Book, Adventures Ashore excursion booklet, passage contract, Princess Travel Care details (if applicable) and luggage tags.   This packet will be mailed approximately 75 days prior to their sailing date - earlier than the current 60-day-prior mailings. Travelers without internet access can receive their travel summary and boarding pass from their travel agent, or Princess will send them a copy of the travel summary in the mail upon request.

Royal Caribbean International To Expand Operations Into Asia In 2007
Royal Caribbean International will return to Asia in December 2007, bringing the active cruising experience to the region.  The Vision-class ship, featuring the line’s signature rock-climbing wall and indoor glass walls providing exotic views of Asian landscapes, will offer a series of exciting cruises out of Singapore, Hong Kong and Shanghai, visiting exotic ports of call in Thailand, Vietnam, Malaysia, Korea, Japan, and Taiwan. “The introduction of Rhapsody of the Seas into Asia, together with our previously announced deployments of ships to South America and the Dominican Republic are all part of the company’s strategy of  international business development and expansion into emerging and high-growth markets,”  said Adam Goldstein, president of Royal Caribbean International.
Rhapsody of the Seas will debut December 10, 2007, in Singapore offering a series of sailings that will call on Malaysia and Thailand. The ship’s Asia tour continues on from Hong Kong, where she will arrive in time for the Chinese New Year holiday season, offering a series of itineraries calling at ports in Taiwan, Japan, and Sanya, Hainan Island. Then moving to Shanghai, China, Rhapsody will call on ports in Japan and Korea.
Additional details of Rhapsody’s itineraries will be available by mid-October 2006. “We are confident that the Asian market and the Pan Asia regions, in general, have tremendous growth potential, and view this as a first step in a long-term plan that will define cruising in the region. In addition, there has been an increased level of awareness and interest in travel to Asia from India, Australia, New Zealand and the Middle East which we predict will become strong secondary source markets,” said Goldstein. “I would like to extend my gratitude to the various governmental authorities, port authorities and tourism boards in Singapore, Hong Kong and Shanghai for their encouragement that helped us to make this exciting decision.”

Celebrity Cruises' Mercury To Sail From Vancouver In 2007
To offer guests more time in select ports of call and a better arrival time for viewing Alaska’s breathtaking, ice-blue Hubbard Glacier on Mercury’s seven-night Alaska sailings in 2007, Celebrity Cruises has changed the ship’s port of arrival and departure to Vancouver, B.C. Guests currently holding reservations with deposits made for Celebrity's Mercury cruises from Seattle between May 4, 2007, and September 14, 2007, will receive a $100 per stateroom onboard credit. Celebrity's Air/Sea department will make the necessary changes for any Air/Sea guests whose air travel is impacted by the shift to Vancouver. Cruise-only guests who incur a fee due to changing their air reservations will be reimbursed up to $100 per person, providing proof of the air change fee is provided.
Celebrity is proactively contacting all travel agents with clients holding reservations affected by this change; however, agents as well as guests with individual or group bookings are welcome to call Celebrity's re-accommodation desk, at 1-888-281-9343.

Cruise Tourism On The Upswing In Hawaii
The number of cruise ship passengers is up 50 percent and the tourism industry in general in Hawaii is on a steady course to have another record year. "We are very pleased with July's extraordinary performance from the domestic market," said Marsha Wienert, the state tourism liaison.
Hawaii has 33 cruise ships including three US flagged ships that are home ported here—the Pride of Aloha, the Pride of Hawaii and the Pride of America.
Domestic arrivals for land-based and cruise tourism in July reached more than 564,000 visitors for the fourth straight month of growth. US visitors today are the biggest market for Hawaii, representing more than 92 percent of total domestic arrivals. Their numbers were also up by 2.4 percent from the same period last year. Last year, a record 7.46 million visitors came to Hawaii, spending $11.5 billion. This year, more visitors and higher spending is expected. Kauai is getting the greatest gains in tourism with a 13.3 percent increase for July, the latest month for available figures

NCL Corp to Build Up to Three New PostPanamax Freestyle Cruising Ships
NCL Corporation Ltd. has entered into a contract with Aker Yards S.A. of France to build up to three new cruise ships, totaling 12,600 berths for delivery between 2009 and 2011. The contract price, comprising two firm ships and one option, is €2.17 billion, or approximately $2.8 billion at today’s exchange rate.
The ships will be built for the company’s Norwegian Cruise Line brand (NCL) and will each be approximately 150,000 Gross Tons and 4,200 passenger berths. The order is firm for two ships for delivery in the fourth quarter of 2009 and the second quarter of 2010, and there is an option for a third sister ship for delivery in the first quarter of 2011. The contract price for each of the first two ships is €735 million, and for the optional third ship is €700 million.
At today’s exchange rate, the contract price on the two firm ships translates to approximately $224,000 per passenger lower berth. The contracts are being placed in Euro, equivalent to €175,000 per lower berth. The option ship is priced at €166,667 per berth, or approximately $213,000 per berth at today’s exchange rate.
The new ships, with the project name “F3”, will incorporate a world of new features and will represent NCL’s third generation of Freestyle Cruising ships, a further evolution of NCL’s progressive dismantling of the structure, regimentation, and constraints of the traditional cruise experience. Details of the ship’s design will be released closer to delivery. The cabin mix will be the richest of any NCL ship to date, and will include the feature that 100% of outside staterooms will have private balconies. In total, the ship will have 1,415 balcony staterooms and suites. Commenting on the order, Tan Sri K T Lim, chairman of NCL and Star Cruises, said: “This order, placed in NCL’s 40th anniversary year, marks the culmination of our plans to transform this great company. By 2010 there will be almost nothing left of the NCL we bought in 2000 except the name and the people, and in place of the old, mixed fleet we inherited, there will be the youngest, most innovative and exciting fleet in the industry.”

NCL’s New Ship Order Brings Number of Post-Panamax Ships Planned To 20
With this month’s announcement, the number of Post-Panamax ships to be built total 20.
NCL Corp.’s three-ship plunge into the post-Panamax arena brings the order book for the industry’s largest vessels to 18 firmly contracted ships and two options. Other cruise lines building post-panamax vessels are Carnival (three with option for a fourth); Celebrity (three) Royal Caribbean (three); Costa (two); MSC Cruises (two); Princess Cruises (two) and P&O Cruises (one). Currently the largest of these ships on the drawing board is Royal Caribbean’s Project Genesis for a 220,000 gross ton vessel.

MSC Cruises Plans To Triple Its UK Market Share In Three Years
Rapidly expanding MSC Cruises aims to treble its UK market share in three years. The ambitious plan was outlined by UK managing director Peter Pate with the release of the line's largest, 230-page brochure, running until winter 2007. The privately-owned Italian line plans to increase its fleet from eight to 12 ships by 2009 and is to run its first ex-UK cruises next summer.
MSC Rhapsody will be offering 11-night itineraries from Dover for the first time in summer 2007 with prices starting at £1,112 per person. Pate said: "Having an MSC Cruise ship sailing from the UK is a big bonus for our UK sales team. It will ensure we attract those British cruise enthusiasts who prefer not to fly to join their cruise. Already the support for these cruises from retailers has been most encouraging."
The line will have three ships offering Northern Europe itineraries next summer, including Rhapsody, in addition to five ships running seven and 11-night Mediterranean cruises including new-build MSC Orchestra which joins the fleet in May sailing from Venice.

Aegean Cruise Contenders Emerge
Former Greek cruise kingpin Andreas Potamianos and Elysian Cruises have emerged as partners of the Kollakis shipping group in a new cruise brand established to start Aegean cruising next year—Monarch Classical Cruises (MCC)—a name first floated a few weeks ago as a marketing and sales entity for European Classical Cruises, a new cruise line launched by the Kollakis group, which has previously run its cruise ship-chartering operations under Majestic International Cruises.
Monarch chairman Michael Lambros, a senior figure at Majestic, said yesterday that the group decided to go with Monarch as the line's public name due to the recent success of the 1957-built Ocean Monarch.
The 450-berth vessel has operated cruises out of Piraeus this season under charter for another company and was the first ship announced for the new line, to perform three- and four-day cruises of the Greek islands and Turkey starting in late March 2007.
It will be partnered by Blue Monarch, the new name for the former Royal Olympic Cruises (ROC) vessel World Renaissance, which has been refurbished this year as Grand Victoria by Elysian, the cruise operation started two years ago as an affiliate of Latin American tanker operator Ultrapetrol. The 1966-built Blue Monarch is to operate the company's seven-day itineraries of Greek islands and Turkey from next April.
It is understood the participation of Blue Monarch is not based on any charter but on a joint marketing agreement that leaves the Kollakis camp and Elysian each free to operate their own vessels at their own risk.
Lambros said that the group was 'very happy' to have Elysian as a partner, adding that there were prospects if the venture is successful 'to go for further units and go for further cooperation'.
The emergence of Monarch also marks a comeback for Potamianos, seen as the former strongman of both Epirotiki Cruise Lines and its successor, ROC, which collapsed in early 2004.           -- Informa Martime Trade and Transport

NBC’s “The Biggest Loser” October 4 Episode Filmed On Princess Ship
Healthy eating and exercise while on vacation challenge contestants on an upcoming episode of the hit NBC television show "The Biggest Loser," filmed aboard Princess' 2,670-passenger Sapphire Princess. In this unique episode from the show's third season, producers wanted to put contestants to the test with the ultimate in dining temptation, while showing it is possible to lose weight and make healthy lifestyle choices on a cruise.
Airing on NBC stations across the country on October 4 at 9-10 p.m. Eastern Time. (8 p.m. Central time), the Sapphire Princess episode of "The Biggest Loser" gives the show's participants the opportunity to travel away from their "ranch" home base and learn how to maintain their diets and exercise programs while faced with the temptations of a luxurious vacation setting.   The footage was filmed aboard Sapphire Princess during a spring Pacific coastal cruise.
During the episode, contestants make use of a variety of shipboard locations to further their weight loss goals.  They work out in the Lotus Spa gym, the ship's pools and running track, and dine at the vessel's various restaurants, choosing among a variety of healthful meal options.  In particular, coaches use Sapphire Princess' Horizon Court buffet to present a lesson in making healthy food choices and portion control.
In addition, contestants face the show's weekly challenge while onboard, earning a reward for the top finishing team.  This competition takes team members throughout the vessel, showcasing many ship locations, including the Princess Theater, Lotus Spa, Grand Plaza atrium and pool decks.
 "The Biggest Loser," which has attracted up to 16 million viewers weekly during its primetime slot, promotes weight loss through healthy eating and fitness.  The contestants compete in teams to ultimately determine the "biggest loser" with the greatest percentage of weight loss by following a strict exercise and diet program over the course of seven months.

 August 21, 2006                                                                      

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Royal Caribbean Cruises Ltd. Announces Purchase Of Pullmantur S.A.

In a move to further expand its European and Latin American operations, Royal Caribbean Cruises Ltd. today announced its agreement to purchase Pullmantur S.A., a Madrid-based cruise and tour operator.  Royal Caribbean expects the acquisition to be completed by the fourth quarter of 2006, subject to regulatory approvals.

Pullmantur, formed in 1971, is the largest cruise operator in Spain.  It has two primary business interests: cruises and tour operations.  Its cruise division consists of five ships operating in Europe and Latin America.  Its tour operations sells travel packages to Spanish guests – including hotel and flights – primarily to Caribbean resorts, and sells travel packages to Europe aimed at Latin American customers.  Pullmantur also has a small air business that operates three aircraft in support of its cruise and tour.  Pullmantur has offices in Spain and Portugal, with approximately 2,600 employees, and will be Royal Caribbean’s first wholly-owned European brand.

Royal Caribbean has signed an agreement with the shareholders of Pullmantur to buy all of the capital stock of the company for €430 million, plus Pullmantur’s net debt of approximately €270 million.  Royal Caribbean has obtained a committed bridge facility to support the purchase.  As part of the transaction, Pullmantur will be withdrawing from all Cuba-related activities prior to closing. “Pullmantur offers a terrific strategic opportunity for Royal Caribbean to further grow our presence in the European and Latin American markets in a major and tangible way,” said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd.  “We have made significant inroads into these regions through our Royal Caribbean International and Celebrity Cruises brands, and this combination will allow us to accelerate our growth in these markets.  Pullmantur will remain an independent brand under the Royal Caribbean umbrella, keeping its distinctive and successful customer experience.”

Royal Caribbean expects this acquisition to be neutral to marginally accretive to 2007.

Cruise Industry Contributed $32.4 Billion To US Economy In 2005

The North American cruise industry generated $32.4 billion into the U.S. economy in 2005, an increase of nearly 8 percent over 2004, contributing to the economy of every state in the nation. In an annual study commissioned by the International Council of Cruise Lines (ICCL), Business Research and Economic Advisors (BREA) found that the cruise industry supported more than 330,000 jobs nationwide and paid a total of $13.5 billion in wages and salaries to Americans in 2005.

Cruise lines, their passengers and crew were responsible for a total of $16.2 billion in direct spending on U.S. goods and services last year – $1.5 billion, or 10 percent, more than in 2004. The industry’s direct expenditures supported nearly 143,000 jobs and paid $5.2 billion in wages and salaries, an increase of 5.6 percent and 8.1 percent, respectively. BREA noted that while growth in embarkations was not as robust in 2005, global spending on a per passenger basis rose from $1,553 in 2004 to $1,667 in 2005, up 7.3 percent. “Last year was challenging due to weather disruptions and fewer new ships delivered,” said ICCL President Michael Crye. “Through those challenges, however, the cruise industry remained a robust economic resource in 2005, benefiting the U.S. economy with $32.4 billion – $4 billion more in goods, services and wages than it spent in 2004.”

Click ICCL for the full report or visit ICCL’s website www.iccl.org for the economic study.

A New ‘Crystal Symphony’ To Emerge Following Her Dry Dock This Fall

Ultra-luxury cruise specialist Crystal Cruises is spending $23 million to enhance the award-winning Crystal Symphony in what will be the cruise line's largest-ever dry dock.  In just two weeks, from October 31 through November 12, 2006, nearly 1,300 people will work around the clock on more than 150 separate projects to create what will essentially be a new ship, especially to those familiar with it.

Emerging with a decidedly sophisticated and contemporary style, Crystal Symphony's comprehensive undertaking will transform all staterooms, a continuation of the ship's last dry dock in 2004 when all penthouses were refurbished; much of Tiffany Deck, the ship's main entertainment area, including a completely reconstructed social lounge, new casino and new nightclub; complete redesign of all boutiques, shops and café; as well as dozens of behind the scenes improvements.

Underscoring the company's commitment to quality, this major construction project follows an earlier multi-million dollar renovation two years ago that debuted a brand-new Feng Shui-inspired spa, a new Vintage Room - today one of the ship's most popular features, an expanded Computer University@Sea, redesign of specialty restaurants, and complete refurbishment of all penthouse accommodations. "As a leader in luxury travel, Crystal has an obligation to provide our discerning clientele with an experience that continues to deliver upon their expectations and at the same time exceed our own exacting standards," says Thomas Mazloum, Crystal's senior vice president of hotel operations. "Within the last two to three years, we will have invested in excess of $35 million dollars in new construction projects that will ultimately transform the look of Crystal Symphony with incredibly sophisticated and modern architectural features and design elements."

Crystal Symphony's dry dock will be completed at the BAE Shipyard in Norfolk, Virginia.  On November 12, 2006, the luxury liner departs Miami on a 12-day Panama Canal cruise en route to Caldera, Costa Rica. An estimated 750 outside workers (the most ever employed by Crystal during a dry dock) will join forces with Crystal Symphony's existing crew of 545 to ensure a timely completion.

Cunard Line 2008 World Cruise Brochure Now Available

Continuing a grand Cunard tradition started nearly 85 years ago, the line will embark on two historic World Cruises in 2008: Sailing roundtrip from New York, Queen Victoria will embark on her inaugural world cruise, a 105-day Pathway to the Explorers voyage that is destined to spark worldwide celebration as nearly every port will be a maiden call, and Queen Elizabeth 2 will embark on her 26th world cruise, a 90-day South America, Pacific & Far East Odyssey.

Affording unparalleled opportunities to see the world from the deck of two of the world's most famous ocean liners, these dual journeys are richly detailed in Cunard's new 75-page 2008 World Cruise brochure. In addition to full World Cruises, the ships offer a wide range of Liner and Segment Voyages.  Now available for booking, these shorter voyages are ideal for travelers who wish to explore a specific part of the world or those whose busy schedules rule out an around-the-world journey.

Guests who book by January 31, 2007 can save up to 20 percent per person off brochure fares with Bonus Early Booking Savings and enjoy generous onboard credits, ranging from $250 to $3,600 per stateroom, on full World Cruise and Liner Voyages, based on the ship, voyage and stateroom category.

Holland America Line Explores Europe With Five Ships, 46 Itineraries in 2007

2007 will mark the longest European cruise season in recent history for Holland America Line with sailings over the course of nine months. A fleet of five ships will embark on one third more sailings next year with 46 different itineraries. Sailings to Europe begin March 12 and run through November 3, 2007 and range from 10- to 56-days. With 136 ports of call in Europe, including 13 new maiden ports -- guests may choose from a total of 82 cruise departure dates. "Our European cruises draw on more than 130 years of experience. From the Black Sea to the Baltic we offer the widest array of itineraries, departures and cruise lengths at the best value," stated Richard D. Meadows, CTC, senior vice president, marketing and sales." Our guests look forward to more time in port including late departures and overnights, fascinating excursions and the 'best overall cruise value' according to the World Ocean & Cruise Liner Society."

Guests can benefit from Holland America Line's Early Advantage pricing which represents 10- to 30-percent off current brochure fares on select sailings booked by September 30, 2006.

Windstar Cruises Announces Major Expansion in Degrees of Difference Initiative

Windstar Cruises and parent company Holland America Line have announced a multi-million dollar Degrees of Difference initiative to enhance the line’s three ship fleet of motor sailing yachts.  This builds on the company’s previous investment in the fleet.

Work will begin this fall on the msy Wind Surf during a five-week combined wet dock and dry dock in November and December 2006. The Wind Spirit will undergo renovations in spring 2007 and the Wind Star in fall 2007. “The Windstar ships are unique,” says Diane Moore, Windstar’s vice president of marketing and sales and we are investing heavily in both technical and aesthetic aspects of the ships to enhance their appeal in the marketplace.”

Msy Wind Surf

The new initiative will also focus on structural and mechanical operations, along with improvements to guest areas, such as new stateroom amenities and extensive bathroom renovations. Work on the Wind Surf will also include improvements to the WindSpa, the library, and the creation of two new suites.

A major reorganization to the Wind Surf’s main deck will create a gathering spot for guests called the Yacht Club.  Two brand new suites measuring 475 square feet each will be built on the Bridge deck; and all stateroom and suite bathrooms will be completely renovated.

The Bistro, Wind Surf’s alternative restaurant, will be renamed Degrees and feature a steak house menu created by Chef Joachim Splichal four nights a week and menus from Northern Italy, France and Indonesia other evenings. Other public area improvements include new furniture and awnings in the Veranda restaurant, Balinese sun beds added to Star deck, new audio/visual equipment to facilitate meetings on board and new televisions and free weights in the gym.  A refreshing mist spray will be added to the decks near both pools for cooling off on hot days. Plans are also underway to provide cell phone service on all ships by the end of 2007.

Structural work on the aft water sports platform will upgrade the functionality of the platform. Currently the ship offers complimentary snorkel gear, sail boats, water skiing, kayaks and wind surfing. Other major structural projects include work on steel repair, temperature control systems, galley equipment, rigging, water systems, and upgrades to crew accommodations.

To facilitate the Wind Surf’s renovations, Windstar has canceled the December 2 Caribbean cruise and the November 19 transatlantic sailing.  Booked guests have been notified and offered other cruise dates. The ship will begin its Caribbean season, sailing roundtrip from Bridgetown, Barbados, on December 16, 2006.

All three Windstar ships will also be re-flagged to The Netherlands in order to accommodate new European itineraries while complying with European Union maritime laws. 

Alaskans Vote ‘Yes” on Tax Package For Large Passenger Ships

Alaskans passed a package of taxes and environmental regulations for large passenger ships, striking a blow to cruise ship operators already struggling with record fuel prices.

In a state primary election ballot held August 15, Alaskans passed a citizen initiative that will assess a $50 tax on each cruise passenger and tax the cruise lines' corporate earnings and gambling revenues reaped when the ships are in Alaska waters.

The initiative also requires cruise ships to obtain waste water discharge permits while operating in Alaska and to pay increased fines for any waste water violations.

Companies offering Alaskan cruises, include Holland America, Royal Caribbean Cruises and Carnival. “We are disappointed that the Ballot Initiative 2 has passed as we believe this will inhibit the future growth and expansion of Alaska’s tourism business,” said Micky Arison, Carnival Corporation & plc chairman and CEO. “The estimates of the impact of these taxes are being made prior to our finalizing deployment, legal and other business decisions that will need to be considered as a result of this initiative,” he added.

The $50-a-head tax is expected to bring in about $50 million a year, not including other levies imposed under the initiative, said Mark Edwards, an official at the Alaska Department of Revenue.

Financial analysts said the impact of additional taxes would likely be minimal because Alaska cruises tend to be more expensive than those to the Caribbean. 

Tauck Enjoys Dramatic Growth With Trips To Exotic Destinations

From Egypt to Thailand, from India to Tanzania, and from Cambodia to the Galapagos Islands, Tauck World Discovery is bringing ever-increasing numbers of travelers to some of the world’s most intriguing and far-flung destinations. In the past two years alone, growth in Tauck’s “exotics” category has jumped an impressive 46 percent. “Our portfolio of trips to exotic destinations is one of the fast growing segments of our business,” said President/CEO Robin Tauck. “Along with ocean cruising, river cruising and our Bridges family trips, the exotics product category has really taken off.” Africa and Asia were two of the company’s fastest-growing destinations, added Tauck, noting that they had increased by 104 percent and 44 percent, respectively, in 2006 alone.

Tauck expanded its exotics offerings in 2006 with four new itineraries, the 11-day Tauck Bridges “Tanzania: A Grand Family Safari” program, the 18-day “A Portrait of India” journey, the 11-day “Egypt: Jewels Along The Nile” and the 12-day “Essence of Japan” trip. Each of the programs surpassed its projected sales, with the Japan itinerary achieving 210 percent of its goal and Egypt reaching 150 percent of its goal.

Tauck will begin promoting next year’s line-up of journeys to exotic destinations in the coming weeks with the mailing of its 2007 “Exotic Journeys” brochure to both agent and consumer audiences. The four-color, 60-page brochure has detailed information on a total of 20 Tauck tours, safaris and cruises in Asia, Africa, Latin America and the South Pacific. New products for the coming year include a 14-day itinerary in Egypt and Jordan, and a 15-day journey in Australia and Papua New Guinea. “Exotic trips are great because they help expose a new audience to the benefits of escorted travel,” said Tauck. “People who might feel comfortable traveling independently in North America or Europe will often choose a tour if they’re visiting a destination like China or Egypt. They’ll sign on to a Tauck tour for the convenience and reassurance, and the experience will open their eyes to all of the other benefits that escorted travel has to offer.”

MS  Europa' Introduces No-Smoking In Two Of Its Restaurants

As of this month, Hapag-Lloyd Cruises’ flagship, MS Europa, rated as the # 1 ship with 5-Stars-plus by the Berlitz Complete Guide to Cruising and Cruise Ships, has introduced a new No-Smoking Policy in its specialty restaurants. Both its Italian restaurant, Venezia, and its Asian cuisine restaurant, Oriental, are now smoke-free. Virtually all ships in the cruise industry currently offer non-smoking and smoking sections. Hapag-Lloyd Cruises is continuing its tradition of excellence in ensuring all its guests’ requirements are met and exceeded by accommodating both smokers' and non-smokers’ needs. Smoking areas in Europa’s main dining room and Lido-Café will remain available.

Louis PLC Acquires The ‘Orient Queen’

Louis plc has acquired the cruise ship Orient Queen from Orient Queen Shipping Inc. via a bareboat/hire purchase agreement. The acquisition is part of a Louis Group strategy to continuously upgrade and expand its fleet and services. The bareboat/hire period is five years long and with immediate effect. According to the agreement’s provisions, Louis has the right to purchase the vessel within the first six months for the amount of US$22 million out of which any installments already paid in line with the agreement will be deducted

Orient Queen is 15.781 tons, underwent a total refurbishment amounting to US$ 22 million in 2005 and is classed as a luxury cruise ship. She is 163.30 meters long and can accommodate 850 passengers in 370 spacious cabins with a series of extra amenities such as interactive plasma TVs. Orient Queen” features two swimming pools, Jacuzzis, an impressive casino a number of restaurants & lounges, a beauty salon, a health center, a heliport and others.

With the addition of “Orient Queen”, the Louis fleet amounts to 13 self-owned cruise liners, enhancing in this way the Louis position in the Mediterranean and enabling the company to further establish its presence in the European cruise market.

The Louis fleet comprises of 12 cruise ships, operating cruises from the ports of Piraeus, Genoa, Marseille, London and Limassol.  Louis Cruise Lines has departures from the ports of Genoa and Marseille to the West Mediterranean, North Africa as well as to the Eastern Mediterranean. From the port of Piraeus, Louis Hellenic Cruises sails to the Aegean islands and East Med. Three of the cruise ships of Louis Cruise Lines are under charters to Thomson Cruises of TUI AG and one to Transocean of Germany.

Marine Experts Split Over New Cruise Ship Stability Standards

Changed stability standards for new passenger ships could in some circumstances increase the risk of capsize, the British and German governments fear. But expert opinion seems genuinely divided on the technical issues, centered on probabilistic methods of determining stability.

Some naval architects argue that the UK concerns relate to “a narrow subset of the probabilistic damage stability spectrum”, and insist that the proposals actually increase safety. However, Britain maintains that draft regulations will diminish masters’ confidence in vessels remaining upright. Effectively, they would have no choice but to evacuate hundreds and perhaps thousands of passengers.

The shake-up was approved late last month by a working group of the International Maritime Organization’s sub-committee on stability and load lines and on fishing safety. The revised rules call for a stability standard of Si=1, broadly similar to Solas 90 requirements. Put in the simplest possible terms, this equation implies a probability of stability as 100%.

However, the UK believes the calculation depends on such assumptions as relatively calm seas, good weather and the ability of a ship to move under its own power.

Crucially, Si=1 would allow ships to sink below the “margin line”, an imaginary line around the side of a ship parallel to, and not less than three inches below, the bulkhead deck. Partial flooding of the bulkhead deck would also be permitted.

The crux of the British counter-argument is that the changes do not address the need for a damaged ship to navigate in a seaway. “Whether or not to abandon a ship is a momentous decision,” it states. “The master must have every faith in the ability of the ship to not capsize in a seaway. The United Kingdom believes that satisfaction of the stability criteria represented by Si=1 would not offer sufficient confidence to a ship’s master to have passengers and crew remain on board.”

Ships should be regarded as their “own best lifeboat”, it goes on. “If we provide a stability standard that gives the master insufficient confidence in his ship to resist capsize, he will order that the ship be abandoned.”

Given the normally anodyne formulations that typify IMO documents, such wording can be considered tough. The proposals now go to the next meeting of IMO’s Maritime Safety Committee in November.

One British source suggested that countries with cruise ship yards were the chief supporters of the change. “Britain has no cruise ship building industry,” he added. “But it does have a large number of cruise passengers.”

Senior national secretary of the UK’s National Union of Marine, Aviation and Shipping Transport Officers (NUMAST)* Allan Graveson argues that it is wrong to extrapolate existing standards and apply them to ever-larger vessel sizes. However, supporters of the move include Ted Thompson, vice president of the International Council of Cruise Lines in Washington. Doctor Thompson, who was present at the subcommittee meeting, said that the changes had been developed by top experts over 13 years. Because they specify that a ship should be able to return to port under its own power with one engine room flooded, they would actually improve safety.                 –Lloyd’s List  8/21/06

*NUMAST is a trade body, representing shipmasters, officers, cadets and other staff serving in the UK and international fleets and ashore in maritime related industries.

Disney Cruise Line Now Offers H2O Plus Spa Products in All Staterooms

Disney Cruise Line guests soon will be able to absorb the enriching benefits of the ocean while sailing on the high seas. Beginning in October, the cruise line is introducing H2O Plus Spa bath and shower products to all 877 guest accommodations on the Disney Magic and Disney Wonder. These high-end products, derived from marine botanicals, bring a piece of the ocean into every stateroom. The high-quality, water-based H2O Plus products being stocked on the Disney Cruise Line ships include Sea Marine Revitalizing Shampoo, Marine Collagen Conditioner and Hydrating Body Butter from the H2O Plus premium Spa line -- all in uniquely designed, co-branded bottles. Guests staying in concierge-level suites will find additional H20 Plus offerings such as Sea Salt Body Wash and Solar Relief Gel.

The upgrade of every family-friendly stateroom onboard both the Disney Magic and Disney Wonder also features new Sealy Posturepedic Premium Plush Euro-top mattresses, new pillows and Frette 300 thread-count, 100 percent Egyptian cotton linens. In addition, larger, more luxurious bath towels and bath sheets have been added to all stateroom bathrooms. In all concierge-level suites, there are comfortable duvets and a new "Pillow Talk" program which allows concierge guests to choose from a selection of hypo-allergenic, feather and therapeutic memory foam pillow options.

RCCL Begins Search Begins For Godmother To ‘Liberty Of The Seas’

Royal Caribbean is searching for an extraordinary travel agent to serve as godmother to its newest ship Liberty of the Seas.  The company officially opened the polls August 21 and invited consumers and agents to visit the website www.cruisingpower.com/libertygodmother   through December 9 to nominate an agent who has done excelled in her community. The winner will be chosen by a panel of judges and ten travel partners. In addition” to being the inspiration for the crew on the newest ship” in the Royal Caribbean family, the godmother will receive free cruises each year for life. All submissions must be received by 5:00 PM Eastern Time on December 9, 2006.

CLIA Launches Website Agency Locator For World's Largest Cruise Night Events

The Cruise Lines International Association (CLIA) website— www.cruising.org —now features a search tool consumers can use to locate North American travel agencies hosting events to celebrate the World's Largest Cruise Night (WLCN), scheduled for October 19. The new WLCN Event Locator, located at the bottom of CLIA’s homepage,  allows users to quickly locate CLIA-member agencies registered to host local and regional WLCN events by entering their state's two-letter abbreviation.

WLCN is the centerpiece of National Cruise Vacation Month, the October event that each year focuses consumer attention on the pleasures of seagoing vacations. "Agents who promptly plan and register their WLCN events will gain a competitive edge," said Terry L. Dale, president and CEO of CLIA, the marketing association for 19 premier cruise lines and nearly 17,000 North American travel agencies. "CLIA's WLCN Event Locator is a key communications tool that alerts consumers in your area to your agency's WLCN cruise event on October 19. Together with your own marketing efforts, CLIA's Event Locator can ignite guest turnout at your event and generate increased cruise sales."

At each WLCN event, consumers can learn about the passenger-pleasing facilities, amenities and services available aboard the more than 150 ships of CLIA's member cruise lines. Several cruise lines will also assist individual agencies by providing company representatives to attend events and provide consumer briefings. In some cases, the lines will also extend special offers and value-added incentives to consumers.

CLIA-member travel agencies can register their WLCN events at the Travel Agent Center at www.cruising.org. The site also features a WLCN Resource Center offering event tips, shell press releases and publicity tools to attract local press coverage, plus links to CLIA-member cruise lines and marketing resources. The Resource Center is regularly updated with alerts on WLCN news and developments.

Carnival Cruise Lines To Deploy Second Ship To New Orleans In August 2007

Carnival Cruise Lines will deploy a second year ound ship in New Orleans next August 2007. The Carnival Triumph will begin year-round seven-day Caribbean cruises from the Port of New Orleans September 2, 2007, becoming the largest cruise ship based at that port. The second ship deployment reaffirms Carnival’s ties with the Port of New Orleans that dates back to 1994 when Carnival became the first major cruise line to realize the port's vast potential as a year-round cruise homeport. Since that time, New Orleans has become one of Carnival's fastest growing departure points, experiencing a ten-fold increase in passenger counts in just over a decade. "The Port of New Orleans has been a valued business partner for Carnival for more than a decade and we're extremely pleased to deploy the Carnival Triumph and Fantasy to that port. Not only does basing these ships in New Orleans offer consumers two exciting 'Fun Ship' vacation choices, it is also indicative of the continued economic recovery of this vitally important cruising region," said Bob Dickinson, Carnival president and CEO.

Former ‘SS France’ To Be Scrapped

The Norway, formerly the SS France, was beached this month at the Alang, India ship-breaking yard. The ship had been idling off the coast since early May when Indian authorities forbid entry due to environmental concerns. India’s Supreme Court cleared the breaking to proceed after the state of Gujarat’s Pollution Control Board submitted a report that the contained a lower level of asbestos than claimed by environmentalists. The clearance came with the condition that the dangerous waste would be disposed of safely.

However, the Indian Supreme Court said last week that it must review a report on the ship’s contents before the ship can be scrapped.

The former ocean liner France was one of the most famous passenger vessels of all time. It was commissioned in 1956 for the French Line and began sailing between LeHavre and New York in 1962. High oil prices forced the France into retirement in 1974. Five years later, Norwegian shipping magnate Knut Kloster stunned the world by buying the mothballed ship and spending a reported $80 million to convert the vessel warm water cruising. She was renamed the Norway and began cruises for NCL in 1980. Service ended in May 2003 after a boiler explosion killed eight crewmen at the Port of Miami. The Norway was towed to Bremerhaven where it languished before being moved to Port Klang, Malaysia to await her fate.

‘Carnival Celebration’ Damaged In Waters In The Bahamas

The Carnival Celebration was damaged this month when one of her engine propellers struck the sea floor while docking in the Bahamas, spilling oil and damaging the vessel, Carnival Cruise Lines reported. The incident forced the ship to abandon a planned stop in Nassau and return to her homeport in Jacksonville, Florida.

Reportedly, the ship spilled an estimated 53 gallons of lubricating oil into the water. Passengers received a $50 per person shipboard credit for the missed call at Nassau as well as a 25 percent discount off a future cruises.

Celebrity Cruises Cancels One Alaska Sailing to Replace Propulsion Pod

Celebrity Cruises is canceling the September 13 sailing on Infinity to replace one of the ship's two propulsion pods. Guests booked on the cruise will receive a full refund and a certificate good toward a future cruise. Travel agents will receive full commissions for the cancelled sailing and a $50 rebooking bonus per stateroom when their clients reschedule their cruise.

The affected pod's electrical system is failing to provide the ship's maximum cruising speed, essentially reducing it from 22 to 19 knots, making it difficult to maintain the ship's future itineraries as scheduled. The repairs will be made at drydock facilities in Victoria, British Columbia. Meanwhile, Infinity continues to sail safely and has received clearance from all appropriate authorities.

Following drydock, Infinity will return to service on September 24 to sail its scheduled trans-Canal cruise from San Francisco to Fort Lauderdale. Normally a 15-day transit, this cruise now will be a 14-day trip. The ship will depart San Francisco one day later than scheduled, and will miss Cabo San Lucas, Mexico. Guests booked on this cruise will receive a $500-per-stateroom onboard credit and a $200 future cruise certificate. They also will receive overnight accommodations in San Francisco on September 23.

Celebrity has established a special help desk to assist guests and travel agents with bookings on the affected sailings. That toll-free number is 1-800-852-8175.

Carnival Cruise Lines’ Rolls Out New Holiday Marketing Tool For Travel Agents

In an innovative spin to its highly successful holiday marketing campaign launched last year, Carnival Cruise Lines has created a high impact direct mail package that can be sent by travel agents to their clients encouraging them to purchase “Fun Ship” cruises as holiday gifts. The promotional piece, which can be ordered by travel agents via Carnival’s travel agent Web site, www.bookccl.com beginning August 15, 2006, is designed to resemble an elegantly wrapped holiday gift.

The package includes a “musical greeting card” that plays Carnival’s signature song “Beyond the Sea,” along with the new “Fun Ship” DVD highlighting the many facets to the Carnival vacation experience, and a personalized note from the travel agency touting the many benefits of purchasing “Fun Ship” cruises as gifts.

The new campaign is designed in a “turnkey” style– after they receive the packages, travel agents simply readdress the gift boxes and mail them to their client list. The holiday gift-giving concept will also be incorporated into a variety of collateral materials, including posters, post cards, and ad slicks which will be available in early fall.

Note: Travel agents must request the new holiday promotional packages by September 15, 2006, to provide adequate time to mail to their clients prior to the start of the holiday season.  Quantities are limited.

easyCruise Enters Franchise Agreement With Louis PLC

easyCruise has entered into a second franchise agreement, with Cyprus-based cruise operator Louis plc, in a deal that could boost the easyCruise brand to eight vessels by 2011. The two companies are planning, to increase the number of newbuilds in the letter of intent already announced by easyCruise from two firm and two optional to three firm and three optional vessels. The new agreement is expected to allow easyCruise to grow more rapidly and cover more geographical areas faster. Louis owns 12 ships and 27 hotels.

The new agreement follows an earlier franchise deal with the with the Dutch Boonstra River Line, that led to the launch of easyCruiseTwo in the Netherlands this month.

Oceania Cruises Reports Record Booking Day

Oceania Cruises announced that August 15, 2006 set a new record for the number of new reservations and associated revenue for any single day in the company’s history. On August 15th, the company took 856 new reservations which account for approximately $10.9 million in new revenue.

Oceania Cruises opened its new Australia and New Zealand itineraries for sale on August 15 and the booking levels have far exceeded management’s expectations. To date, approximately 30 percent of the inventory has already been sold with two voyages more than 50 percent sold. The company also noted that it is experiencing unprecedented demand for the 2007 with close to 50 percent of the entire season’s inventory already booked. European season and that occupancy and yield performance for season are exceptional. “The extraordinary demand for the Oceania Cruises experience speaks volumes to our superior product delivery, exceptional value proposition and the overall level of confidence in overseas travel,” stated Frank Del Rio, President and CEO of Oceania Cruises.

Carnival Cruise Lines Announces New Executive Appointments

Carnival Cruise Lines announced a reorganization of its operations departments this month and the promotion of Roberto Martinoli to the newly created position of executive vice president of operations. Martinoli will oversee all aspects of the cruise line’s operations, including marine and hotel functions, as well as newbuilding activities.  Martinoli, who joined Carnival in 2000, was previously senior vice president of technical operations.  Prior to that, he was employed at Costa Cruises as senior vice president of technical operations and also owned and operated Martinoli S.A.M., a company involved in ship management.  Martinoli holds a master’s degree in naval architecture and marine engineering from the University of Genoa.

The newly created marine operations function will be led by Brendan Corrigan, senior vice president of marine operations, who will report to Martinoli.  Corrigan was previously senior vice president of cruise operations. Corrigan joined Carnival in 1978, working aboard several ships as a sanitation officer until 1982, when he became shoreside ship supervisor for the now-retired Carnival ship the Festivale.  He then served as operations manager and director, and was promoted to vice president in 1992, and promoted again in 2000 to senior vice president.

Hotel operations will continue to be led by Natko Nincevic, senior vice president of hotel operations, who will also report to Martinoli.  Nincevic’s expanded areas of responsibility will include shipboard food and beverage, hotel services, entertainment, the “Camp Carnival” children’s program, shore excursions, shipboard photography and video, as well as shipboard concessionaires, such as the spas, gift shops and art auctions, among others.  Nincevic will also oversee shoreside administration departments including crew personnel, hotel purchasing, hotel logistics and warehousing. “This new structure will serve to better coordinate Carnival’s operations functions which are so critical to the ongoing success of our company as we continue to expand,” said Bob Dickinson, Carnival Cruise Lines president and CEO. “These three gentlemen, who represent more than 80 years of maritime management experience and have made immeasurable contributions to our organization, are all eminently qualified to lead their respective areas as we move toward the future,” he added.

Cunard’s Commodore Ronald Warwick Receives Honored For 36 Years of  Service

A traditional bagpipe procession signaled a jubilant send-off for Cunard Line's Commodore Ronald W. Warwick on Sunday, July 30 following the conclusion of his farewell transatlantic crossing in Southampton, UK.  Cunard Line President Carol Marlow escorted the Commodore after distinguished guests and crew gathered aboard Queen Mary 2 to celebrate in his honor. Warwick and his wife Kim were piped off the Queen Mary 2 and escorted to a waiting helicopter that would fly them to their retirement home in nearby Somerset. The revered seaman and Cunard icon has sailed into virtually every port in the world, navigating the QM2 and Queen Elizabeth 2, the most famous ocean liners in the world.

Aker Yards ASA Reports High Earnings For Second Quarter 2006

Aker Yards had revenues of NOK 6 144 million in the second quarter of 2006, an increase of 52 percent compared with NOK 4 053 million in the corresponding period of 2005. High activity in all three business areas and the acquisition of two yards in France contributed to the positive development.

The order reserve increased by NOK 12 739 million from the previous quarter, of which order intake in the second quarter was NOK 4 669 million. The acquisition in France contributed with NOK 14 billion to the order book. Offshore & Specialized Vessels contributed the major part of the order intake, with orders for 15 new vessels. The order backlog at the close of the second quarter was NOK 60 607 million, compared with NOK 36 305 million at the end of the second quarter 2005.

The shipbuilder’s acquisition of Alstom Marine’s two shipyards in France during that quarter helped its order intake increase 52 percent, to a backlog of 126 vessels. The acquisition of the yards in St. Nazaire and Lorient, France, contributed $2.29 billion to its order book, with the Offshore & Specialized Vessels division accounting for 15 new vessels, the major part of the order. The St. Nazaire yard also has four MSC Cruises ships on order through 2009.

Additional acquisitions by Aker in Norway and the Ukraine, also in the second quarter, has placed the company in a unique position in key segments for highly specialized vessels. With its combined operations in Scandinavia and elsewhere in Europe, Aker has 27 cruise ships on the order books through 2010 in addition to the six vessels that have already debuted this year— Noordam, Freedom of the Seas, Crown Princess, Pride of Hawaii, MSC Musica and Costa Concordia.

Aker Yards now comprises 17 shipyards in seven countries with approximately 20.000 employees. Aker Yards, Florø will be a part of the business area Merchant Vessels.

Royal Mail Postboxes On Cunard Ships Symbolize Its Maritime History

The traditional Royal Mail postboxes aboard Queen Elizabeth 2 and RMS Queen Mary 2 are more than a convenient place for the ships' guest to post their letters. They are a significant reminder of Cunard's unique place in history as the first provider of transatlantic mail service between England and America. The postboxes recall Samuel Cunard's successful bid on the rights to the first transatlantic mail shipping contract. Winning the bid entitled his company, the British and North American Royal Mail Steam Packet Company (later known as Cunard Line) to use RMS, or Royal Mail Ship, as a prefix to the ships' names and garnered the Line an early and decidedly competitive advantage.

On Queen Mary 2, the newly installed postbox is conveniently located outside the Golden Lion Pub, one of the ship's most popular dining venues, serving what some guests describe as the best fish-and-chips at sea along with other pub favorites.  Stamps, including an exclusive QM2 stamp available only onboard, can be purchased at the Pursers Desk.  Stamp collectors, in particular, will appreciate the ship's unique cancellation mark which appears on every piece of mail dropped into the Royal Mail postbox. "Cunard guests tend to be passionate historians and many feel a personal connection to the line's history.  The presence of these authentic Royal Mail postboxes is just another example of how Cunard seamlessly integrates the company's rich history amid 21st century appointments and facilities," said Carol Marlow, president and managing director of Cunard Line.

Aboard Queen Elizabeth 2, the Royal Mail postbox is located just outside the library on Quarter Deck.  When Queen Victoria debuts in late 2007, she will continue Cunard's legendary British heritage with a Royal Mail postbox onboard.

2006 BAFTA/LA Cunard Britannia Awards To Eastwood, Poitier, Minghella, Weisz

The British Academy of Film and Television Arts/Los Angeles (BAFTA/LA) will mark its 2006 BAFTA/LA Cunard Britannia Awards on Thursday, November 2, 2006 at The Hyatt Regency Century Plaza Hotel when it honors Academy Award-winning actor and filmmaker Sir Sidney Poitier with the Cunard Britannia Award for Lifetime Contributions to International Film; Academy Award-winning filmmaker Anthony Minghella (The English Patient) with the John Schlesinger Britannia Award for Artistic Excellence in Directing; and Academy Award-winning actress Rachel Weisz (The Constant Gardener) with the Britannia Award for Artist of the Year.

As previously announced, Clint Eastwood will receive BAFTA/LA's annual 2006 Stanley Kubrick Britannia Award for Excellence in Film. "We are thrilled to enter into our second year of partnership with BAFTA/LA and look forward to honoring this year's illustrious Cunard Britannia Award recipients," says Cunard Line President Carol Marlow.  "Their elegant style, overall graciousness and transcendent appeal truly embody the spirit of both BAFTA/LA and Cunard Line."

Founded in 1987, the British Academy of Film and Television Arts/Los Angeles (BAFTA/LA) is an independent, non-profit organization composed of 1,200 members in the Los Angeles-based film and television industries, representing the largest professional association outside of the U.K.  BAFTA/LA operates as an affiliate of BAFTA, headquartered in London, with all members granted full voting rights in the annual Orange British Academy Film Awards (popularly known as the BAFTAs).

Cunard, has an illustrious history to the present day of hosting famed entertainers, royalty, and society luminaries aboard its fleet of liners. 

Carnival Updates Offerings For Corporate Meetings And Incentive Market

Corporate meetings and incentive travel are one of the fastest growing segments of the travel industry. To keep pace with the increasing demands of this market, Carnival Cruise Lines has dramatically expanded its popular “Preferred Awards” program, which enables businesses to purchase the line’s all-inclusive cruise certificates to reward top employees and encourage customer sales. The company has also created a stand-alone Web site exclusively for meeting planners, www.carnivalmeetings.com.

The new carnivalmeetings.com Web site includes comprehensive information tailored exclusively for corporate meeting planners, with updated content and a host of enhanced photos and graphics. In addition to an overview of the newly expanded “Preferred Awards” program, there’s a “Learn the Ropes” section that enables meeting planners to easily translate their shoreside events to a shipboard environment. “Learn the Ropes” also offers meeting planners the opportunity to tour or sail on a Carnival ship to get a first-hand look at how shipboard meetings, conferences and other events are hosted on board.

The site also includes details on the line’s new Carnival Corporate University, a series of shipboard fun, interactive professional enrichment seminars that focus on team-building, leadership, diversity and various other business-related topics. “The meeting and incentive market is a vital part of Carnival’s marketing mix and one of the fastest growing segments of our business.  These new and expanded programs provide business leaders with a convenient means to learn about the many benefits of shipboard meetings and reward top employees and clients with our memorable and relaxing cruises,” said Richard Weinstein, Carnival’s vice president of corporate and incentive sales.

The all-inclusive “Preferred Awards” certificates differ from other travel award programs in that the majority of the costs are included in the initial cruise fare; recipients are only responsible for incidental expenses such as drinks, spa treatments and shore excursions. 

Additionally, the certificates have very few blackout dates and are valid for 18 months from the time of purchase. Certificates can be used in applications such as sales incentives, customer rebates on purchase of high-ticket items, traffic builders for in-store, point-of-purchase sales and promotions, and employee motivation.

Carnival Center For The Performing Arts To Provide World-Class Performances Miami’s new Carnival Center for the Performing Arts, opening October 2006, will serve as a major addition to South Florida’s visitor attractions through an exceptionally diverse roster of performances and events. Miami’s much-anticipated performing arts complex was recently renamed following global cruise operator Carnival Corporation & plc’s second multimillion-dollar philanthropic gift to the Center. A varied series of performances, ranging from classical ballet, opera and symphony, to comedians, renowned vocal artists, musical groups, contemporary dance and dramatic stage productions are scheduled for Carnival Center’s opening season. The broad array of presentations is expected to appeal to both South Florida residents and the millions of tourists, including several million cruise passengers, who visit South Florida annually.

"So many people love to take in a show or musical performance while on vacation, which is often when they have the greatest amount of time to truly relax and enjoy a community’s cultural offerings," said Howard Frank, vice chairman and COO of Carnival Corporation & plc. "A huge number of cruise passengers sailing from both Miami and Ft. Lauderdale add on hotel stays either before or after their cruise to enjoy everything South Florida has to offer. Carnival Center’s incredible performance line-up creates a great opportunity to include a show when making vacation plans for a visit to South Florida," he added. Among the many highlights scheduled during the Center’s inaugural season are appearances by comedians Lily Tomlin, Paula Poundstone and Mitch Fatel; musical performances by the Wayne Shorter Quartet, Woody Allen, Bobby McFerrin & Voicestra, Burt Bacharach and The Cleveland Orchestra; a Broadway musical series that includes Tony Award winners The Light in the Piazza and Wicked; dramatic theater performances including The Caine Mutiny Court-Martial, the family-friendly Mad Science, and the Classical Theatre of Harlem’s production of King Lear.

Additionally, Carnival Center’s resident companies – the Miami City Ballet, the New World Symphony, Florida Grand Opera, and Concert Association of Florida, all of which receive ongoing philanthropic support from Carnival – are scheduled to offer a remarkable and exciting array of classical and contemporary works, young artists, and international stars.

Carnival Center’s downtown Miami location is convenient to many of the major hotel areas, including Miami Beach, Coconut Grove, Coral Gables and downtown.

For additional information on Carnival Center for the Performing Arts opening season schedule, visit www.carnivalcenter.org or call 305-949-6722.

Carnival Introduces New Series Of In-Stateroom Videos Guests sailing aboard Carnival Cruise Lines often wonder where the idea came from for such rooms as the Amber Palace show lounge aboard the Carnival Glory (it was inspired by Russia’s famous Amber Room), or the Starry Night Jazz Club on the Carnival Pride (the design pays homage to the renowned Vincent Van Gogh painting of the same name).

Soon, guests aboard the "Fun Ships" can learn the story and backgrounds of these and dozens of other dramatic public rooms on each vessel through a series of new in-stateroom videos narrated by Carnival’s renowned interior architect Joe Farcus.

Already shown on the in-stateroom televisions of the line’s eight Spirit- and Conquest-class ships, the videos will eventually be featured on all 21 ships in the Carnival fleet. Throughout the videos, Farcus offers guests compelling insight into what inspired his dramatic and sometimes whimsical creations, as well as interesting and humorous anecdotes behind each of his one-of-a-kind designs that have become a hallmark of the Carnival fleet. Beginning with the "central idea" for each ship’s interior, Farcus provides a personalized tour of many of the vessels’ public lounges, bars, restaurants, and other areas. "I design each ship to tell a story, and it gives me great joy to be able to share these stories with guests. These videos help bring these rooms to life, making for an even more memorable cruise for Carnival guests," Farcus said.

MSC Cruises Website Redesigned To Reflect The ‘ Italian’ Experience

MSC Cruises has re-launched its consumer website, www.msccruises.com with a fresh new design reflecting the line’s signature—“Beautiful. Passionate. Italian.”—with a combination of graphic elegance and beauty and intuitive ease of access to an extensive library of useful information. The new design premiered this month—http://www.msccruisesusa.com/home.asp  

The site’s home page features a constantly changing series of images representing the MSC Cruises experience and invites vacationers to learn more and even plan a cruise. This page also showcases the latest news about MSC Cruises, cruise specials and cruise destinations available from the line. Travel agents also will find a special portal to their exclusive TruePartnerships website.

A menu of information categories in the left column of the page links to additional details about MSC Cruises. Consumers can access information about the onboard hospitality, ambiance, amenities and activities that define each MSC Cruises vacation; the line’s outstanding fleet of modern ships and the variety of destinations they visit; a calendar of cruise departures and itineraries; information about upcoming theme cruises; useful information to help passengers prepare for their cruises; special offers; press releases and news about the company, its ships and itineraries and people; and the MSC Cruises partnership with Team Alinghi in the America’s Cup yacht races. In the future, site visitors will also find virtual brochures, ship tours and additional shore excursion information. features, including virtual brochures for today’s Web-savvy travelers.”

For more information about MSC Cruises, visit www.msccruises.com .

Carnival’s Fun Ship ‘Fascination’ To Undergo Significant Upgrades 

A 35-day drydock for Carnival Cruise Lines’ 2,052-passenger Fascination, scheduled to begin in September 2006, will include significant renovations to a broad range of shipboard areas.  “The Fascination continues to be one of the most popular cruise choices from Miami, offering terrific, and value-packed three and four-day getaways to the Bahamas,” said Bob Dickinson Carnival president and CEO. “This expansive refurbishment will serve to make a fantastic ship even better,” he added.

Following its multi-million-dollar renovations, the Fascination will feature a new nine-hole miniature golf course on Sun Deck as well as the new Café on the Way, a patisserie serving specialty coffees and sweets, located along the ship’s Promenade Deck. Other new features will include a teen club, part of the line’s ongoing expansion of its popular “Club 02” teen program.  Additionally, a new 1,600-square-foot Children’s World play area, located on Verandah Deck, will enhance the line’s top-rated fleetwide Camp Carnival children’s program, which hosts some 525,000 kids annually.

The Fascination’s luxurious Spa Carnival will also be renovated and include new private treatment rooms, updated exercise equipment, and a host of cosmetic enhancements to the 12,000-square-foot facility. Staterooms and suites on the Fascination will be refurbished, as well, to include flat screen TVs, an entirely new décor and completely remodeled bathrooms. A number of crew areas will also be renovated.

Other enhancements will include a new photo gallery on Promenade Deck providing guests with an easy and convenient means for viewing and selecting photos taken by the ship’s photographers during the cruise, as well as upgraded audio/visual equipment within the bandstand awning area, located on Lido Deck.

The 70,000-ton Fascination sails year-round from Miami on three- and four-day cruises.  On this route, three-day cruises depart Fridays and overnight in Nassau while four-day voyages depart Mondays and stop at Key West and Cozumel.

Newfoundland & Labrador's first Exploration Cruise Forum October 25-27

Cruise Newfoundland and Labrador will be hosting their first Exploration Cruise Forum in St. John's. This form is targeted at small adventure / expedition style cruise companies that call on multiple ports in the province. Round-table discussions will be scheduled with small cruise ship operators/planners who currently cruise or plan to add this destination to their itineraries. Other participants will include representatives from Canada Border Services Agency, Department of Tourism (marketing, product development and ecological reserves), Parks Canada, port officials, ships' agents, and tour operators. The forum is being designed to not only inform the cruise operators of what Newfoundland and Labrador has to offer but to discuss with the operators the potential of the industry in the province and future steps that NL should take to succeed in that sector. Each cruise operator who attends the forum will be given the opportunity to go on a FAM tour of the province. More information at www.cruisenewfoundlandandlabrador.com.

Self-Guided iPod Art Tours Debuted on ms Westerdam Debuts

Fine art goes high tech on the high seas when Holland America Line debuted self-guided art tours using handheld iPod devices on ms Westerdam on its July 30, 2006 sailing. The introduction of the tour on the Westerdam marks the first time a cruise line has offered museum-quality self-guided tours to its guests. "These self-guided tours are just the latest addition to our constantly expanding on-board enrichment programs," said Richard D. Meadows, CTC, senior vice president of sales and marketing. "The tours highlight the most interesting, historical and accessible pieces of art and antiques to provide greater depth and context, and give our guests a truly rewarding experience."

Guests desiring to take a tour simply sign out an iPod free of charge and take the tour at their leisure, returning the device when they finish. In addition, the tours will be available for download to a home computer or handheld device from the Holland America Web site at www.hollandamerica.com.

The sheer scope of the shipboard art and antiques distinguishes these tours from most landside museum visits. On Westerdam alone, the pieces range from a huge Indian silver-overlaid wood palace doorway at the entrance to the dining room that measures 92 inches by 69 inches to a 5-inch-long bone tobacco pipe carved in the shape of a woman's head. The most valuable piece is a painting of the Port of Rotterdam, and the oldest is a collection of 5,000-year-old pre-Columbian carved limestone figures from Ecuador.

Although the tours only cover an estimated 20 percent of the art and antiques on each ship, at the end of each tour the narrators encourage guests to participate in a kind of scavenger hunt by suggesting they seek out a list of pieces not included on the tour. On the Westerdam tour those include tea caddies made into boxes, carved Meerchaum pipes and a cardboard chair by artist Frank Gehry.

Tours of the unique art and antique collections on each of the line's five-star ships—together valued at tens of millions of dollars—are to be available fleetwide by the end of 2006.

NCL Corp. Announces Second Quarter 2006 Earnings Results

NCL Corporation Ltd. announced on August 15 second quarter 2006 results, including a 9.2% increase in Net Yields; a reduction in controllable Net Cruise Costs per Capacity Day; significantly increased profitability at the operating income level; but steeply increased fuel and interest costs and foreign exchange translation losses, resulting in a net loss of $35.1 million.

Revenues for the second quarter of 2006 increased 33.5% to $499.1 million from $373.8 million in the second quarter of 2005. The increase in revenues was primarily attributable to a 19.5% increase in capacity and a 9.2% increase in Net Yields. The improvement in Net Yields in the second quarter of 2006 from the same quarter in 2005 was primarily a result of higher passenger ticket prices, which is partially due to the effect of increased capacity in our premium Hawaii business, and an increase in onboard spending. Gross Yields increased 11.8% from the second quarter of 2005.

Fuel prices continued to rise during the quarter, resulting in a year-over-year increase in fuel costs of 55.5%. Average fuel prices for the second quarter of 2006 increased approximately 33% to $365 per metric ton from $275 per metric ton in the second quarter of 2005. Despite this increase and the continued increase in payroll and start-up costs from the expansion of the Company’s inter-island cruises in Hawaii, second quarter 2006 operating income increased to $19.6 million from $0.9 million for the same period in 2005. On a per Capacity Day basis, operating income increased to $9.89 from $0.53.

Net Cruise Costs per Capacity Day for the second quarter of 2006 increased 1.7% compared to the second quarter of 2005. Excluding fuel cost, Net Cruise Costs per Capacity Day decreased 1.8% primarily due to a 16.1% decrease in marketing, selling and administrative expenses per Capacity Day as well as various operating efficiencies. Gross Cruise Costs per Capacity Day increased 6.6% from the second quarter of 2005.

The Company also continued to feel the effect of rising interest rates and the weakening of the US Dollar versus the Euro. As a result of higher interest rates and an increase in average outstanding borrowings, interest expense increased approximately 100% to $33.9 million in the second quarter of 2006 from $17.0 million in the second quarter of 2005. With the Dollar/Euro exchange rate weakening to 1.2790 as of June 30, 2006, the Company reported a non-cash foreign exchange translation loss of $22.3 million for the second quarter. This non-cash foreign exchange translation loss compares to a non-cash foreign exchange translation gain of $15.3 million for the same period of 2005, or an adverse year-over-year swing of over $37 million. As a result, the Company reported a net loss of $35.1 million for its second quarter ended June 30, 2006, compared to net income of $0.6 million for the second quarter ended June 30, 2005. The Company’s Net Loss Excluding Non-Cash Foreign Exchange Translation was $12.8 million in the second quarter of 2006 compared to $14.7 million in the second quarter of 2005. “Though it is never pleasing to report a net loss, nevertheless we are pleased with our revenue performance and our cost control efforts,” said Colin Veitch, president and chief executive officer of NCL Corporation Ltd. “We are clearly operating in a very challenging environment and despite the effects of softer pricing, significantly higher fuel costs and substantial start-up costs associated with our NCL America operations, we continue to show improvement in Operating Income per Capacity Day, particularly so in the non-US side of our operations that represents the great majority of our business. Unfortunately, we continue to see softer pricing in the Caribbean, which is now extending into the upcoming winter season. This softening, coupled with higher fuel prices, increased interest costs, and continued higher operating costs in our Hawaii operations, will continue to put pressure on our results in the back half of 2006.”

The Company continues to experience a very competitive pricing environment, especially in the Caribbean. Bookings are closer to sailing date than at the same time last year. As a result of this challenging environment, the Company now expects Net Yields for the full year of 2006 to increase approximately 3% versus the Company’s previous guidance of an increase of approximately 5%.

During the second quarter of 2006, the Company elected to change its method of accounting for dry-docking costs from the deferral method, under which costs associated with dry-docking a ship are deferred and charged to expense over the period to a ship’s next scheduled dry-docking, to the direct expense method, under which we will expense all dry-docking costs as incurred. As a result of this change, dry-docking costs have been reflected retrospectively as a component of other operating expenses, consistent with our method of expensing repairs and maintenance costs. These costs were previously recorded as a component of depreciation and amortization expense. This change in the method in accounting for dry-docking costs had the effect of increasing the Company’s net loss for the second quarter of 2006 by $7.4 million. For the second quarter of 2005, this change decreased the Company’s net income by $4.8 million.

Pier Foschi To Serve Another Year As Chairman of European Cruise Council

Pier Foschi has served two years as Chairman of the ECC. But he will continue in that post for another year. Bill Gibbons, Marketing Director of the ECC, stated "We are delighted that Pier Luigi Foschi will serve for another year. As the head of the largest

European cruise brand (Costa) he has made a unique contribution to establishing the ECC and raising the profile of the cruise sector amongst the European institutions. There are many issues currently on the agenda and Foschi's continuing leadership will be of huge value. We are pleased that Patrick Ryan of Island Cruise will continue to serve as Vice Chairman"

Passenger Shipping Agency Revamps Its Cruise Information Website

The UK’s Passenger Shipping Association has revamped its cruise information website, www.discover-cruises.co.uk , with downloadable fact sheets and a search facility.

The site now features interactive graphics and brighter, bolder colors designed to attract a younger audience and first-time cruisers, and it includes sections entitled ‘Cruises For You,’ ‘Cruise Style’ and ‘Life Onboard.’ In a new ‘Cruise Club’ section, visitors can sign up to receive news and offers from any of the individual member lines.

Andy Harmer, director of business development for the Passenger Shipping Association Retail Agent Scheme, said the site will complement the learning resources available to travel agents.

‘Carnival Freedom’ To Launch Seven-Day Cruises From Miami In November 2007

Carnival Cruise Lines has announced that the 110,000-ton Carnival Freedom will operate year-round seven-day Caribbean cruises  from the Port of Miami beginning in November 2007, becoming the newest Fun Ship to operate from that port.

Currently under construction at the Fincantieri shipyard in Maghera, Italy, the 2,974-passenger SuperLiner will launch alternating weeklong eastern and western Caribbean cruises from the Port of Miami beginning November 17, 2007.  Prior to the start-up of this program, Carnival Freedom will operate a special one-time four-day cruise from Miami to Key West and Cozumel November 12-16, 2007.

Carnival Freedom will replace Carnival Triumph which will be deployed from Miami to New Orleans to begin year-round seven-day Caribbean departures beginning in September 2007. Including Carnival Freedom and the line’s four other Miami-based ships, Carnival will have 12,810 total lower berths at that port – the most of any of its 18 North American departure points.

Prior to the start-up of its new Miami-based cruises, Carnival Freedom will debut with an inaugural summer schedule of Mediterranean/Greek Isles voyages March 14 – October 16, 2007, followed by a 14-day transatlantic crossing from Civitavecchia (Rome), Italy to Miami Oct. 28 – Nov. 11, 2007. 

Holland America To Conduct Air Emission Reducing Seawater Scrubber Study

To determine the feasibility of new technology designed to dramatically reduce air emissions on seagoing vessels, Holland America Line plans on conducting a seawater scrubber feasibility project aboard one of its cruise ships thanks to the assistance of a $300,000 EPA/West Coast Collaborative grant and $100,000 contribution from Puget Sound Clean Air Agency. The total cost of the installation is more than $1.2 million.

This innovative project is intended to demonstrate how advanced seawater scrubbing reduces air emissions on large oceangoing vessels. The results will determine whether this technology could be rolled out to new oceangoing vessels, as well as retrofitting existing vessels. “Holland America Line has always had a vigorous environmental program and we believe in being proactive on environmental issues,” said Stein Kruse, president and chief executive officer.  “A scrubber has never previously been installed on a vessel engine of this size.  We are extremely proud to be in the forefront of this technology and feel it is important to collaborate with key partners to find practical solutions.”

The seawater scrubber feasibility project is a collaborative effort. Partners in the project include Puget Sound Clean Air Agency, Environment Canada, Port of Seattle, Port of Vancouver and Caterpillar. Caterpillar will support the project with comprehensive research about the impact of scrubber technology on engine performance, reliability and service life.

The current plan is to install the scrubber on the ms Zaandam in Spring, 2007. Following installation, the effectiveness of the scrubber will be analyzed and a final report submitted by June 2008. Holland America Line will be working closely with Puget Sound Clean Air Agency, who will be responsible for providing EPA funding and matching funds as a sub-recipient of the EPA grant award, as well as providing reports to the EPA and funding partners.

This technology is expected to partially reduce nitrogen oxides (NOx), almost entirely eliminate sulfur dioxide (SOx) and significantly reduce particulate matter (PM).  Heavy fuel oil is pretreated to reduce the NOx and PM formed during combustion. The engine emission enters the scrubber and the reaction between the SOx in the emission and the calcium carbonate (CaCO3) in seawater reduces the SOx in the smoke to almost zero. 

For more information on Holland America Line Environmental Programs visit http://www.hollandamerica.com/about/environmental.do. For more information on Puget Sound Clean Air Agency, Environmental Protection Agency (EPA) and West Coast Collaborative visit http://www.pscleanair.org, http://www.epa.gov  and http://www.westcoastdiesel.org/. 

Holland America Line Announces Shore Power On Two Seattle-based Cruise

Vista-class cruise ships ms Westerdam and ms Oosterdam have been retrofitted to use shore power at the Port of Seattle to reduce both fuel consumption and emissions. The first Oosterdam “plug-in” date was July 29, followed by the Westerdam on July 30. The Holland America Line ships will buy and use electricity ("shore power") provided by Seattle City Light, instead of diesel fuel, for power while docked in Seattle. “We are pleased to introduce shore power in Holland America Line’s hometown of Seattle,” said Stein Kruse, president and chief executive officer. “The success of this project was made possible by working in collaboration with the Port of Seattle, Puget Sound Clean Air Agency, Seattle City Light, Cochran Electric and other engineering consultants.”

The total cost to retrofit is nearly $1 million per ship.  In addition, approximately $1.5 million has been spent dockside to establish hook-ups and install a transformer.  Other than a $25,000 grant from the Environmental Protection Agency and the Puget Sound Clean Air Agency, Holland America Line has assumed all of these costs.   

After docking under their own power, the Oosterdam and Westerdam are hooked up to shore power within 20-30 minutes. Power generation is transferred back to the ship shortly before departure. The Port estimates a ship will use about the same amount of electricity per call as the Columbia Tower uses each weekday. The approximate cost for shore power each time a ship plugs in is $5,000.

Seattle City Light will pay up to $10,000 annually to purchase greenhouse gas offsets resulting from the use of shore power as part of the City’s program to reduce greenhouse gas emissions. This is based on a variable quota of kilowatts used while ship(s) are plugged in.  “For the second year in a row, Seattle City Light has reached its goal of net-zero greenhouse-gas emissions,” said Jorge Carrasco, Seattle City Light superintendent.  “Holland America Line has shown environmental stewardship by converting to shore power and preserving the special qualities of the Puget Sound basin that draw so many visitors here annually.  City Light applauds Holland America Line’s leadership to use clean, hydro-generated electricity when its ships are in port.  Cooperation from industry goes a long way on helping City Light reach its greenhouse gas neutrality goal.”

The ms Noordam will also be retrofitted to use shore power for its 2007 sailings from the Port of Seattle. The Oosterdam sails Saturdays and the Westerdam sails Sundays through the 2006.

 

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