Celebrity gives birth to Azamara, a new "deluxe" cruise line

It's rare for an existing cruise line to split itself in two, but that's exactly what Celebrity Cruises has done with its introduction of "deluxe" cruise line Azamara Cruises. "Azamara" is word invented for the occasion, from Romance language roots blue ("aza"), and the sea ("mar").

The new upscale cruise line will sail with two of the extremely popular midsize 700-passenger R-Class ships originally built for now-defunct Renaissance Cruises. One of these vessels, Azamara Journey, had been sailing already as Celebrity Journey and launched the Azamara brand in a re-inaugural voyage May 5. The sister ship, Azamara Quest, comes online in October.

Celebrity has emphasized that the Azamara brand stakes out a new "deluxe" territory between "premium" and "luxury" cruising. However, we would argue that the very successful Oceania Cruises, which has sailed with R-Class vessels since its inception in 2002, had already carved out this same niche.

Azamara Cruises President Dan Hanrahan, who also is president of Celebrity, said "Azamara Cruises is expressly designed for travel enthusiasts who appreciate what a cruise vacation has to offer, but are looking for something a little different, and a little more special. And what's special about Azamara Cruises is its distinctive combination of impeccable service, exceptional cuisine and off-the-beaten-path destinations, with truly immersive excursions."

Journey and Quest offer butler service in every stateroom and suite, as well as concierge-style amenities, including fresh-cut flowers, fresh fruit, Elemis toiletries, complimentary use of Frette cotton robes, two complimentary pairs of slippers, plasma TVs and plush European bedding.

The premium cruise lines like Celebrity have struggled for years to convince guests to pay a premium price over their "non-premium" competitors, so from the perspective of Wall Street, an effort like this one to deliver clearly enhanced benefits with separate branding, and command a higher per-diem price, will be most welcome.

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New ship orders from Oceania, Silversea

Italian shipbuilder Fincantieri continues to score new ship orders. The latest are two 1,260-passenger vessels for near-luxury brand Oceania Cruises, and one 540-guest ship for ultra-luxury Silversea.

Oceania's announcement comes right on the heels of the cash infusion it received recently when it was purchased by Apollo Management. Its new $500 million, 65,000-ton ships will be delivered in 2010 and 2011, and the line has an option for a third ship in 2012.

Oceania has met tremendous success carving out a niche between premium and luxury cruise lines. From its founding four years ago, the line has sailed with 684-passenger vessels originally built for Renaissance Cruises, and has met with widespread acclaim for delivering on its promise of "near-luxury cruising at a premium price."

"We have elevated the onboard product in every area and as a result, guests will be able to dine in an unprecedented number of gourmet restaurants," explained Frank Del Rio, the firm's chairman and CEO. "The luxury of accommodations...will set a new standard in terms of size, spaciousness and comfort."

Silversea's Finacantieri order, meanwhile, is for a single 36,000-ton vessel for delivery in 2009 to complement its current four vessels, plus an option for a second new sister ship.

Amerigo Perasso, Silversea's president, said, "This newbuild order shows great confidence in the luxury segment's potential for greater demand."

The order is the first for Silversea since 1998 when contracts for Silver Shadow and Silver Whisper were signed, which entered service in 2000 and 2001. The newbuild will boost Silversea's overall fleet capacity 40%, from 1,356 berths to 1,896.

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Oceania Cruises purchased by Apollo Management

Wouldn't it be nice, when you go shopping, to come home with, say, a hotel chain, ski resort, and a satellite radio company? Now that's power-shopping. Apollo Management, with over $16 billion invested, has pockets plenty deep enough to have done all that--and it just added Oceania Cruises to the trophy case with an $850 million majority investment.

Oceania chairman and CEO Frank del Rio, who remains a stakeholder in the company, explained that the rock-solid financial footing gives the cruise line the capital resources to play with the big boys, such as being able to order capital-intensive new ships.

Oceania's current three midsize, 684-passenger ships are simply super, successfully delivering on the company's premise of a near-luxury experience at premium pricing, sailing around the world to Europe, China and the Far East, Australia, New Zealand, South America, Central America and the Caribbean.

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Jacques Pepin to be featured on Oceania cruise

Master French chef and PBS cooking show host, Jacques Pepin will be featured on Oceania Cruises' Regatta on a special voyage from Barcelona to Athens, sailing April 17, 2007. The voyage will feature cooking demonstrations, question and answer sessions, and epicurean excursions as well as specially-designed Pepin signature menus. Pepin will be joined onboard by pastry chef Jean-Claude Szurdak.

Pepin, a French immigrant, has been cooking since age 12. In addition to his PBS show, Jacques Pepin: Fast Food My Way, he is best known for his collaborations with Julia Child and as the author of 18 food and wine books.

Oceania Cruises' 264-passenger flagship, Regatta, will call at ports in Spain, Italy, and Greece on its 10-day journey. The cruise line is currently offering free airfare from many North American cities for this sailing. Cruise fares start at $2299 per person. Contact us to book!

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Star Princess fire update

Initial speculation on the cause of the March 23 fire oboard Star Princess centered around a cigarette discarded onto a balcony. Princess has confirmed half of that theory, announcing that the fire indeed started on a passenger balcony. But a "definitive cause" awaits further investigation.

The consensus in the cruise industry has been surprise that a major fire could ignite on the outside of a ship, and spread there. Our observation is that it stands to reason that saltwater-resistant marine paint, of which most ships have many coats, could burn. Princess announced that going forward it will maintain a 24-hour fire watch of balconies, among other procedural changes meant to minimize risks, but did not forbid smoking on balconies.

In the wake of this fire, Oceania Cruises tightened their already-strict onboard smoking policies, not only forbidding smoking in staterooms and on balconies, but also promising that under "zero tolerance" passengers who flout the rule will be put ashore at the next port.

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Cruise passenger traffic up 4.5 percent in North America

The number of passengers boarding cruises on seventeen major cruise lines, making at least one stop in North America, was 4.5% higher in the third quarter of 2005 than in 2004, according to the U.S. Maritime Administration.

Why? The cruise industry continues to flourish amid continued new shipbuilds, innovation in the onboard product, diversity of itineraries, and renewed interest in far-from-home travel among Americans.

The big winners included Norwegian Cruise Line, adding 49 departures dominated by its innovative us-flagged Hawaii cruise ships Pride of America and Pride of Aloha, and Princess Cruises with 22 additional sailings.

The data includes Carnival, Celebrity, Costa, Crystal, Cunard, Disney, Holland America, MSC Italian Cruises, Norwegian, Oceania, Princess, Radisson, Royal Caribbean, SeaDream, Silversea, Seabourn, and Windstar.

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Carnival joins the battle of the bedding

Have you noticed the ongoing battle among hotels over who offers the most luxurious sleep experience? You've got catchy names like Sheraton's Sweet Sleeper bed, the Westin Heavenly Bed, Embassy Suites' Suite Dreams bed...you get the idea. Now the cruise lines have come onboard this trend, and we're all for it.

Carnival today announced a fleet-wide upgrade to be complete by year end, with the not-so-catchy but descriptive name "Carnival Comfort Bed Sleep System." The European-made beds offer eight-inch spring mattresses with hypoallergenic duvet. Sheets, pillow cases and duvet covers, says Carnival, are made of an "ultra-fine, ring-spun, satin-striped cotton blend." We personally believe cotton should never be blended with anything in a high-quality linen, but then again we're linen snobs. New pillows are said to give the feeling of down while remaining non-allergenic. Suite passengers score a pillow menu adding options for fluffy goose down, or firm latex.

Previous cruise line entrants to the battle of the bedding include Oceania Cruises, which since their inception has touted their Tranquility Bedding featuring 350-thread-count cotton linens and goose-down pillows. And Holland America's recent Signature of Excellent upgrades included self-described "premium plush Euro-top mattresses and highest-quality cotton bed linens."

Sweet dreams!

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