Costa Concordia Port fees – who Carnival to A question of – a defining pays who? invest in new brand loyalty moment? cruise ports THE GLOBAL CRUISE MARKET MAGAZINE Spring 2012 Formerly Dream World Cruise Destinations Regulators set to end cruising’s golden age? Lingard flags up concerns as industry faces what could be its biggest challenge yet VENICE, A DATE FOR YOUR DIARY A PROBLEM FREE HOMEPORT... With its high quality and multi purpose facilities, the Venice Cruise Terminals are impressively outstanding, like the beauty of the Lagoon City Serenissima, which is only five minutes away, walking distance. And why not mention its strategic position? 10 minutes from the airport, railway station and motorways. That means only a few seconds from a breathtaking view of the most romantic getaway in the world. The best destination for satisfaction. Marittima_fabbricato 248_30135 Venice_Italy Ph. +39 041 240 3000 Fax +39 041 2403091 www.vtp.it 190x268DreamWorldCruiseDest.indd 1 27/02/12 09.44 Ashcroft & Associates Ltd. would like to express their sincere thanks and gratitude to the many organisations that have helped in the production of this magazine by contributing to articles and reports, or supplying facts and figures, information and pictures, or provided THE GLOBAL CRUISE MARKET MAGAZINE help in other ways. We have made every effort to ensure the alling ticket revenues and the rising costs of operating cruise ships in accuracy of the information but changes Europe – due in part to regulatory issues – exploded into the open as occur incessantly. Readers are advised a very real issue at last year’s European Cruise Council conference. For to check that any material facts are still many of those attending this was a significant reality check. current with the responsible authorities. FBut the Costa Concordia tragedy is in another league. It has shocked the industry to its core, just as it shocked the world. In fact it was the most For information about future issues of severe reality check I can recall. Although several weeks have now passed Cruise Insight please email: [email protected] since that fateful evening, a sense of numbness remains as the scale of the or tel:+44 20 8994 4123 loss of life sinks in. Much has already been written about this incident, and it is certain to Cruise Insight is available annually for continue to attract global media attention for many months to come. This is £35 (inc. postage). The contents of this not, though, the time to join the ranks of those commenting on issues about publication are protected by copyright. which the full facts are as yet unknown. All rights reserved. ISSN 1351-640X. But there is one very important fact that is known: all but 32 of the 4,200- plus passengers and crew were rescued – a considerable achievement under Publisher and Editor the circumstances. So there will be positives as well as negatives to be drawn Chris Ashcroft from what happened – just how many of each will depend on what the official inquiry reveals. Associate Editors Tony Peisley Unsurprisingly Siim Kallas, Vice President of the European Commission and Maria Harding Commissioner for Transport, is unwilling to rush into new measures on safety as he is an advocate of waiting for the outcome of the investigation. Contributors IMO Secretary-General Koji Sekimizu has stated that IMO is the right VENICE, A DATE FOR YOUR DIARY Susan Parker international body to deal with safety of passenger ships, and with the A PROBLEM FREE HOMEPORT... inevitable safety review which must follow this accident. Design & Production But what of the impact of the tragedy on cruise sales? For Costa Cruises the marcusmacaulay.co.uk position is extreme. Pier Luigi Foschi, Chairman and Chief Executive Officer, With its high quality and multi purpose facilities, has stated that bookings are down by 35%. Foschi also says that the Costa Administration and Finance the Venice Cruise Terminals are impressively outstanding, brand is being “massacred” by the international media and may not survive – Gilly Ashcroft like the beauty of the Lagoon City Serenissima, which is only five minutes away, even if the company does. There is though a steely determination within the walking distance. Circulation company to rebuild confidence in the brand – difficult though that will be And why not mention its strategic position? Kerstin Jones “given the starting point.” Elsewhere initial indicators seem to suggest that consumer confidence will 10 minutes from the airport, railway station and motorways. Printed by have no impact on booking patterns in the long term. It is in the short term That means only a few seconds from a breathtaking view Warners Midlands where it has been reported that bookings are down in all major markets – of the most romantic getaway in the world. though it appears that a particularly strong booking period preceding the Published by accident has cushioned some brands from what might otherwise have been The best destination for satisfaction. even tougher trading conditions. Whatever the reality for individual brands, the resilience of the industry is now being tested in ways never before envisaged. But it has repeatedly proved Marittima_fabbricato 248_30135 that it has the intellectual and technical resources to pass such tests. Venice_Italy Ph. +39 041 240 3000 Fax +39 041 2403091 Ashcroft & Associates Ltd www.vtp.it PO Box 57940, London W4 5RD, United Kingdom Cruise Insight Spring 2012 Chris Ashcroft Publisher and Editor 3 190x268DreamWorldCruiseDest.indd 1 27/02/12 09.44 Sebastian Ahrens Roger Allard Mick Arison Rafael Aznar Alan Buckelew Richard Bastow Michael Bayley Gerry Cahill Joachim Coens Mark Conroy David Dingle Christine Duffy Comment, opinion and quotes inside this issue Frank del Rio Simon Douwes Nathan Dundas Wenche Fraser Ellacott Richard Fain Nygård Eeg Pier Luigi Foschi Andrew Gardner Nathalie Gaudet Roberto Giorgi Giora Israel Siim Kallas Lisa Kaufman Arthur Kordt Martin Lachance Gary LaGrange Bo Larsen Lynn Ledwidge Cruise Insight Spring 2012 4 Manfredi Nitsa Lewis Nigel Lingard Edwina Carol Marlow Tim Marking Lefebvre Lonsdale Betty MacMillan Barbara Lise Nadeau Bob Nelson Priscilla Nemey Muckermann Steve Odell Otmar E. Oduber Kate O'Hara Giani Onorato Michele Paige Neil Palomba Dominic Paul Amy Powers Tony Peisley Virginia Quintaitos Rama Francis Riley Jo Rzymowska Graham Sadler Alfredo Serrano Rebbapragada Robin Shaw Kevin Sheehan Christina Siaw Ricky Skerritt Jens Skrede Tom Spina Tor Stangeland John Tercek Pier Francesco Jacques van Vago Staden Cruise Insight Spring 2012 THE GLOBAL CRUISE MARKET MAGAZINE Pedro 5 Zaragoza To register go to: www.ashcroftandassociates.com Venice, Thursday 26 April 2012 09.00-16:30 COLD IRONING TECHNICAL CONFERENCE Chairman: Bert Swets, Disney Cruise Line The European Cruise Council is gathering experts from a variety of fields to present port representatives with the detailed knowledge they need to take informed decisions on whether to install shoreside power. The main issues are: • Harmonising voltages and frequencies • How do local authorities fit in? • What is The European Commission’s current stance? • Energy companies need to provide certainty – in terms of liability as well. • What common standard are ICE and Programme: Background and drivers behind shore- IEEE trying to achieve? side power; Is shore-side power the right environmental solution for ports?; Technical requirements (case study); • Cruise ships now have a common Differences between cruise and ferry ships -onboard and standards – what are they? onshore; Utilities, equipment, construction; The view from • What is the cost of installation and the European Commission and European Parliament; Safety operation? Issues; Cost to port and ship owner: Equipment (supplier), operation and maintenance; Energy supply – capacity, cost • Will the regulator subsidise energy (including taxation); Seasonality; Berth availability/allocation. supplies? Speakers: Pierro Susino, Princess Cruises; Robert Ashdown, ECC; Michael Watts, Cochran Marine and Luciano Corbetta, Cavotec will be joined by representatives of: ECC member lines ; European Commission DG Move, DG Energy; European Parliament; Equipment suppliers; Energy companies and Ports to provide case studies and current thinking and developments. *Programme and speakers subject to change. BOOK EARLY Only 200 delegate Event programme: 25 June – Ports Forum 2.30pm-5.30pm places available to 25 June – Reception 7pm-8pm 25 June – Conference speakers and delegates non-ECC members. dinner 8pm-10.30pm 26 June – Conference programme 9am-5pm Conrad Hotel Brussels 25 June 2012 26 June 2012 2nd Ports 6th Annual Forum Conference ECC Ports sub-committee members and representatives from other ECC member lines descend on Brussels to meet the port community during a period when the economic reality cruise lines face is underpinned by these factors: Fact 1 – Increased Ports Costs Fact 2 – Increased Fuel Costs Chairman Vice-Chairman Michael Bayley, Manfredi Lefebvre, Pierfrancesco Royal Caribbean Fact 3 – Reduced Ticket Prices Silversea Cruises Vago, MSC Cruises Cruises Ltd. The action already taken by cruise lines will be presented - supported by statistics - at the Ports Forum. It is expected that the details to emerge from the presentation will lead to a wide ranging debate on the role and relationship ports have with the cruise lines – who see this as a critical moment during a period of economic uncertainty. Two panels, one objective David Dingle, Michael Thamm, Andy Stuart,