Conde Nast Traveler Awards - If You Didn't Believe They Were A Joke Before, You Will Now!

For years I have noted, complained and even ranted that the Conde Naste awards were worthless "awards" which were nothing more than the result of the explicit stuffing of the ballot boxes with the knowing consent of Conde Nast Traveler Magazine. This year it makes the elections in Iran and Afghanistan seem legitimate.

The results for the for Best Small Ship Cruise Line:

1. Sea Cloud 2. Yachts of Seabourn 3. Regent Seven Seas

I pause and ask, "How many of you have even heard of Sea Cloud?" and then I ask, "How many of you know that this very small line has two sailing ships and two river boats?" I am not saying Sea Cloud is not a good product, but if the votes are from those that have actually sailed on the line, one must wonder...seriously wonder. Each ship carries no more than 64 passengers.

So, I must ask, "Who voted and how many times?"

But then I got to wondering, "Where the heck is SeaDream Yacht Club?" "Where is Silversea?"

And then I pondered, "How does Regent Seven Seas qualify as a 'Small Ship Cruise Line'?"

I could go on...but why should the facts get in the way of a sham. What a shame. Heck, aren't the three best hotels in Hawaii all Four Seasons?????????????????

Which is the Best Luxury Cruise Line - Another View

I guess I asked for this.

I pointed a number of my readers to Ralph Grizzle's Avid Cruiser website as I posted his short video on Seabourn Odyssey's cuisine. So today I read Ralph's post about which is the best luxury cruise line. He mentions Seabourn, Silversea, Regent Seven Seas, Crystal and SeaDream Yacht Club. His choice: SeaDream, but not because of the totality of the product, but some very specific personal likes (sleeping under the stars, small demand at the marina, etc.)

This is where the difference between analysis, providing info and personal preferences can really create issues for those relying on what one writes or says. (I actually had one client contact Ralph about the marina on Odyssey and then seek advice from me...which is great by the way...as a result of his personal bias - said in a nice way.)

As most of you know, I believe SeaDream is a very good product...in fact, one of the best. However, you really have to want to be on SeaDream or you will be sorely disappointed. It has cabins; not suites and their are no balconies of any sort. It is a fairly casual affair. It is small, so if you do not like your shipmates you can be in for a long cruise. (But also is why the ships are great for large families and charters). They are not fun in even slightly rough seas and rainy days are not filled with activities and venues for private escapes. Also, itineraries need to be considered. These ships are, by nature, limited in ports and duration. However, the cuisine is very good and the service is strong.

But you need to ask yourself a single question before you get into your analysis: Do I need a suite? With so many luxury cruisers answering that questions in the affirmative it is no wonder that such a strong product has so many sailing with availability. That is not a criticism, but a reality check. Balinese beds and a marina are great, but defining the best luxury cruise line by them is - for a competent travel agent - a worry.

I have heard such divergent views on Regent Seven Seas (It was fantastic vs. It was terrible. The service was outstanding vs. The service was horrific., The food was marginal vs. The food is was great., etc. many times from the same cruise) that my approach has to be one of caution. Regent has taken the approach of keeping its prices higher, but adding what it has determined is value (ex. inclusive tours). If those tours are not attracting the true luxury guest, then it is a negative in two respects: Lack of justification for the higher prices (since the other luxury lines have slashed prices) and attraction of one-off non-luxury passengers who are attracted to the perceived added value. With excellent suites, newly renovated public areas and 700+ guests when sailing full, it is in a way the antithesis of SeaDream which has consistent raves from its small ship guests.

It has been mentioned that Silversea pours three different complimentary champagne while Regent pours none and Seabourn pours one. Seabourn continues to serve complimentary caviar. Would either cause me to declare Seabourn or Silversea the luxury champion? Me thinks not.

What I have heard from quite a number of guests returning from the Seabourn Odyssey is that she is the best of both worlds: highly personalized cruising with plenty of private space coupled with extraordinary service and cuisine. There have been grumblings of some minor misses on the triplets from a few people (but they were minor grumblings), but then I received an email from someone just back from the Seabourn Pride stating, "Trip was sooooooooooo over the top........I cannot begin to describe right now. We put the deposit down on a trip for next year." So the question becomes: Does size make a difference? Is the luxury experience on the Seabourn Odyssey better than the one on the Seabourn Pride? Are these two different luxury cruise lines or one luxury cruise line with different offerings?

SeaDream vs. Seabourn Pride vs. Seabourn Odyssey vs. Regent Voyager = 100 vs. 208 vs. 450 vs. 700+ (I use the "+" because Regent actively markets itself for children and, as such, the capacity - at least in the summer and holidays - can well exceed the published lower berth capacities).

So what is the best luxury cruise line? Tell me what your desires are. Tell me what your likes and dislikes are? Let me know what makes you happy. Only after I have that information can I tell you what the best luxury cruise line is...for you.

Are you looking for my opinion for me personally? It depends. You say, "What?". Yes, it depends.

If traveling with only my wife I would choose Seabourn without hesitation. Seabourn has greatly improved and unique itineraries and consistently high service and cuisine. Don't get me wrong, I do love the Seabourn Odyssey, but I would not exclude the triplets as the ship itself is not as important to me (for they all have more than acceptable faciliites for me.)

If I am traveling with my wife and children (ages 10 and 13) I would have said Regent Seven Seas...right up until I cruised on the Celebrity Solstice. (I don't think Seabourn is great for MY kids...though others disagree.) In two weeks I am cruising on the brand new Celebrity Equinox for 13 nights in two Concierge Class cabins. I have five evenings reserved in the specialty restaurants to start with. At less than $165.00 a day, adding a few dollars for specialty dining and having to sign for drinks and water doesn't really degrade the possibility of a luxury experience (as I sign at land-based restaurants and private clubs all the time.) I mean, Regent is marketing value to support its higher prices, right? And higher prices do not mean higher quality to an educated consumer, right? So right now I would say, "I don't know, but there are some good options." In the meantime I would say Regent may be the best of the "marketed as luxury lines" if they get their capacity in line with their ability, but I would look very hard at Celebrity.

So which is the best luxury cruise line...for you?

Seabourn Wins Travel & Leisure Magazine's Top Small Cruise Line Award

You know I hate these "awards", but I feel compelled to provide the information because some people find them of great interest.

The Yachts of Seabourn has won the 2009 Travel & Leisure Magazine Award as the No. 1 Small Ship Cruise Line.

What is interesting is that the category was dominated by river cruises with Silversea being No. 3 and Regent not even in the category (and, I might add, properly not). Next cruise line was Windstar at No. 7 followed by SeaDream at No. 8.

I am not sure what Lindblad Expeditions has done to garner No. 5, but suffice it to say whatever the standard (other than multiple votes), Seabourn and Silversea would logically need to be measured by a different standard than Linblad...IMHO.

SeaDream Yacht Club - Special Ensemble Travel Sailing on January 17, 2010.

Goldring Travel, as a member of Ensemble Travel Group, is offering a special sailing on SeaDream Yacht Club:  The Jewels of the Caribbean a seven night yachting adventure. The cruise departs on January 17, 2010 from Charlotte, Amalie, St. Thomas to San Juan, Puerto Rico aboard SeaDream Yacht Club’s SeaDream II. 


During the voyage, guest expert Susan Jacques will share her in-depth knowledge of gemology with Jewels of the Caribbean guests through a series of onboard lectures and a complimentary Ensemble Inspired Journeys event ashore, featuring hands-on demonstrations of local artisans designing unique jewelry with native materials. Jacques received a fellowship from the Gemological Society of Great Britain, where she was awarded the Raynor Diploma prize as the outstanding student worldwide. In 1994, she was appointed president and CEO of Borsheims® Fine Jewelry & Gifts by Warren Buffett, chairman of the board of its parent company, Berkshire Hathaway. Jacques continues to nurture her keen interest in rare and unusual gemstones developed at GIA through product journeys around the world.

There will, of course, be a private beach barbeque and, if you like, personal turn-down service on one’s very own Balinese Dream Bed for guests wanting to sleep on deck under the stars.

Ports of call for the January 2010 departure include Charlotte Amalie, St. Thomas; Virgin Gorda, British Virgin Islands; Gustavia, St. Barthelemy; Charleston, Nevis; Little Bay, Montserrat; Marigot, St. Martin; Jost Van Dyke, British Virgin Islands; and San Juan, Puerto Rico. Many of the land activities are focused on water sports and the spectacular natural scenery including volcanic rock formations in Virgin Gorda and Little Bay and the rain forests in Charlestown.

Other inspired highlights include a $100 per stateroom credit in the SeaDream spa, specially planned farewell dinner, and watersports via the SeaDream Marina. Clients booking Jewels of the Caribbean will also enjoy the personal services of a seasoned cruise host from Ensemble Travel Group throughout the sailing experience.

Prices start at $3,299 per person, double occupancy. For more information about Jewels of the Caribbean and other exciting vacation options, call (877) 2GO-LUXURY or email me at eric@goldringtravel.com.

Superyachts and the Cruise Industry - American Superyacht Forum Day 1

I arrived in Seattle for the American Superyacht Forum (which is annually held in a "yachting" city or hopeful yachting city, such as Newport, Rhode Island,  San Diego, California, etc.)  Though I had been to the airport I had never actually visited Seattle, so I was looking at this trip not only from a yachtie standpoint, but from a cruise one as Seattle is a fairly regular embarkation port.

I am staying at the Marriott Waterfront which has a lovely bay view and typically comfortable, but not flashy, rooms.  My view is of a small yacht marina inside of the commercial pier.  The Bell Conference Center is pretty much 2 minutes away...and the cruise terminal is literally attached to it.  So,the first connection between the two industries I found on Monday is that yacht conference or cruise, stay at the Marriott Waterfront the night before.

The Keynote Speaker is the owner of the 152 foot (46 metre) sailing yacht S/Y Antara.  It was a joy to listen to an "old time" owner that still enjoys the "getting there" more than the "being there" (i.e. the journey is what he enjoys most as opposed to many new yacht owners that want to meet their superyacht once it has arrived in a port...usually by way of their private helicopter landing on the yacht's deck).  Just as that was enjoyable to hear, I was more than surprised to find out he lives literally in the town next to my office and he sails his smaller 44 foot sailboat in the Navesink River, which my office oversees.  (I had to fly to Seattle to meeting because...why?)

During his talk he discussed his experiences from his first sailboat to present.  Then he mentioned he just loves being at sea and spoke fondly of doing a crossing on the Queen Mary 2 just watching the water.  I asked him about his cruise, taken as a Grill Class guest, and he said he was very impressed with the service, but that was before he owned S/Y Antara, his first superyacht.  When I asked him about the difference in service quality he said from the moment he stepped on his superyacht he was "blown away" by the much higher level of service.  He has, for example, hosted former President George H.W. Bush for lunch and a sail on S/Y Antara.  Yes, there is a difference between cruise ship luxury and superyacht luxury.

But we talked a bit more after his talk and I asked him if he would like to sail in the Pacific Northwest, which is quite beautiful.  His answer was that it just wasn't practical to bring his yacht such a distance.  That lead me to ask if he would consider taking a cruise.  The response didn't really surprise me:  Concerns over the level of service, cuisine, etc.  I then asked him if he knew of Seabourn and he admitted a vague knowledge of a cruise line that had something like 90 passengers (SeaDream).  Obviously we spoke a bit about Seabourn and his interest grew and thoughts of spending time on the water visiting more exotic places became a viable option that he never had really considered.

The next conference panel was on State of the Industry - The USA in 2010 and Beyond.  Billy Smith III, the always energized vice president of Trinity Yachts spoke of how to attracted new people to the superyacht industry which, like most industries, finds itself suffering in this economy.  His comment, "The cruise industry introduces people to the ocean if not yachting" obviously jumped out at me.  It hit me that there are millions of potential yacht owners that don't live near the water and that they are part of the 85% of Americans and 95+% of Europeans and Asians that have never cruised.  (BTW, his son is working during his college summer by working for Holland America land tours in Alaska.)

So just on the first day of this conference from cruise terminal to levels of service to practicality of visiting exotic locales, to attracting clients...and even just enjoying the sea...has again tied together the superyacht and cruise industries.

SeaDream Yacht Club - Is a Nightmare Looming? UPDATED

It has been reported in the Norwegian media that CG Holdings, owner of SeaDream Yacht Club, may be filing for bankruptcy imminently. What this means for SeaDream really is not known; especially as their are conflicting reports.

According to reports, the Chief Financial Officer of CG Holdings says all of CG Holdings assets are up for sale, but SeaDream Yacht Club Chief Executive Officer Atle Brynestad insists it is not...and asserts that SeaDream has already reached 80% of its revenue goals for 2009 (though I am not sure how that was calculated) and that its ships are sailing essentially full (though I do not know how many of those cabins are highly discounted or on travel agent rates).

If you recall, Larry Pimental left SeaDream in January 2009 (Pimental Departs SeaDream Yacht Club after it was claimed that Mr. Brynestad wanted to deplete SeaDream's coffers to support his other businesses, which have, apparently, been suffering.

So what does this all mean? To me it signals that SeaDream may be a viable company, but it has been substantially weakened by the troubles of its parent company and Mr. Brynestad's interests (if they are different) and that the reported differences in approach are a "red flag" for when there is conflict rather than coordination everything suffers. On the other hand, possibly SeaDream will be bought out by Byrnestad - though I am not sure how understanding the above financial turmoil.

In the meantime, as I mentioned months ago, SeaDream's change to seeking cash early on and allowing cruises to be deferred for extended periods with no penalty was a clear sign of rough seas. My biggest concern is that with legal maneuvering being what it is, the ships may be seized at some point as control is wrestled in bankruptcy proceedings or shareholder fighting.

Would I cancel my SeaDream cruise? No, but I would be prepared for turmoil and the possibility (if even remote...I just don't know) that your port of disembarkation may be earlier or at another location. Also, if you have put off your cruise under the 48 Hour Cancellation Program and are holding a credit toward a future cruise, you may want to take that cruise sooner than later. (I would be concerned as to whether your credit card coverage applies to that program and if there is insurance for same.)

As I learn more, and can confirm facts versus rumor, I will let you know. I caution everyone not to act on rumor or media reports, but to simply be prepared and keep your eyes and ears open.

UPDATE: Carolyn Spencer Brown, Editor in Chief of CruiseCritic, posted that the bankruptcy of SeaDream appeared to be "fiction". I think that is a great disservice, though well intended. As I reported earlier this morning, SeaDream may not be in financial difficulty by itself, but it's parent company is. Even the reports cited by CruiseCritic confirm that Mr. Byrnestad's efforts are apparently to liquidate all he can to address the many unpaid creditors of CG Holdings.

Now, this is where it can get ugly. According to Cruise Business Review, Byrnestad's plan is to keep three good companies (SeaDream and glass and porcelain companies) and fold them into a new holding company. That may sound great, but it is not very easy to suck out the viable assets so that the creditors go unpaid in whole or in part. The creditors just might have something to say about that...and if it is found that that the profitable companies were not handled appropriately something similar to a receiver can be appointed. (How do I know this? I was involved in a litigation against a Norwegian shipyard that had financial difficulties.)

Now, to me, saying that SeaDream is not in trouble is, well, "fiction". I wish SeaDream well and I oh so want it to survive and thrive, but I have to call it as it is; not as I or Mr. Brynestad wants it to be. So be optimistic, but realistic.

What Are the Objective Standards Used to Award a Five Star Rating?

Some people are of the opinion that challenging Regent Seven Seas Cruises "Six Star Luxury" claim is, well,biased toward Seabourn or some other line. They even feel that such a challenge is an unfair or cruel attack on them, personally, or their happiness. To the contrary, the star rating system was originally established an an "objective" standard which has been exploited by many entities over the years.

Regent cheerleaders, "Hold on to your hats. This is going to be a bumpy ride!" When you are finished reading this purely and independently objective piece you are going to resent all that "Six Star Luxury" marketing hype that has been placed...with a very big smile...before you.

The Mobile Travel Guide (MTG) site states exactly the concern that I have stated: "For travelers who use the Internet to plan trips, hotel ratings have become seriously suspect. All major travel Web sites offer ratings that appear to help consumers find hotels that meets their requirements. In reality these ratings are intended to help sell hotel rooms, not to provide a consumer unbiased, information that they can trust. Comparisons of Web sites' ratings reveal wild fluctuations that can only be described as confusing (at best) or misleading (at worst). For online travelers, be careful which ratings you trust!"

MTG goes on to quote an independent source as stating, "Travel websites are rife with complaints from travelers who feel they are misled about the quality of a hotel. Frequently ratings conflict to the point of being nonsense ... Mobil Travel Guide is the gold standard in the United States." ... The Wall Street Journal, January 2004 56% of all leisure travelers agree that "hotel guide ratings such as those provided by Mobil Travel Guide and AAA are important when selecting hotel accommodations." - YPB&R/Yankelovich Partners, 2004 National Leisure Travel Monitor

MTG uses unannounced in person visits to the various hotels and uses an objective checklist from which its ultimate rating arises. There is an inspection of the physical plant (for cleanliness, physical condition and location). Service is measured in a second incognito visit by 500 different measures over a period of days "interacting with staff, having a drink at the bar, ordering room service, visiting the spa and taking advantage of other services that a standard guest would encounter.­ "

Measured items include such things a such as graciousness, efficiency and luxury, staff appearance, behavior and skill level as well as food quality, housekeeping and concierge services, etc. Most of the standards are absolute,such as luggage being delivered within 10 minutes (yes/no). Inspectors also detail their thoughts as part of the inspection.

So what are the some of the expectations of a Mobile Five Star rating (quoting directly from MTG, bolded by me for emphasis):

"Exceptionally distinctive luxury environment offering consistently superlative, personalized service and the ultimate in amenities, make these hotels and inns the best in the U.S. and Canada. Attention to detail and the anticipation of every need are evident throughout this exclusive group of hotels. These hotels are remarkable in every aspect from the plush and elegant guest room design to the unforgettable culinary experiences."

- Staff is extremely well spoken, polite and clear, avoids slang and phrase-fragments.
- Staff is extremely well informed about requirements within their department.
- Overall service is flawless from initial reservation call to departure service.
- Guests are offered an escort to their rooms unless they specifically decline.
- If pool service is available, guests are proactively greeted and escorted to their chairs, and set-up assistance is provided or offered.
- If pool service is available, during a 90 minute period and in warm conditions, some sort of complimentary refreshment is offered (for example, mineral water, fresh fruit, water spritz).

In the Restaurant, specifically:

- Service is warm, gracious and anticipatory and committed to providing the guest with a fantastic dining experience
- Pace of meal is never noticed by guest; there are no awkward delays or rushed events
- Food presentations are perfectly executed with evident care given to each individual item on each plate
- Food is flawless, a delightful and interesting experience

(If you want more detail, you can review quite a bit of the MTG standards online.)

Now, is Seabourn "Five Star"? Yes. Is it "perfect"? No. There will always be a slip-up or miss, but Seabourn consistently hits the Five Star criteria. Could it be considered Four Star + because the triplets do not have true balconies? Actually I don't think so, because it is but one criteria and a suite with a full marble bath weights much heavier. (As, the new Seabourn Odyssey is almost all balcony, so that will soon become less of an issue for those that actually want a balcony.)

Is Silversea "Five Star"? Is SeaDream? If they are not Five Star (and they may well be), they are most certainly 4 Star+ (using the same criteria). Why? Am I biased toward Seabourn? No. SeaDream has cabins; not suites (forget about balconies) and other limitations in its physical plant, while its service and cuisine is excellent. Silversea has the physical plant, but it has had some acknowledged slippage in service and cuisine and now charges for more of its specialty restaurants. Fair comment?

Regent, however, simply cannot compare to these lines. You are not greeted with Molton Brown, Bulgari, Hermes, etc. amenities. The staff is not flawless and, as some have recently observed, are overtly disgruntled. Extended waits in the dining room and less than inspired cuisine is commonplace. These are facts, not opinion. And the standards are what they are: Objective.

Having now read the foregoing, and my immediately prior posts about Regent, is there any "objective" standard by which one can claim I am biased? All I have done, and will always do for my clients, is call it as I see it...and this is not even close to being open for legitimate argument.

Now, does anyone really believe Regent Seven Seas Cruises is "Six Star Luxury"...or even "Five Star"?

The Yacht Report's 100th Edition: Iamboatman's Thoughts About the Future of Superyachts Are Published

Yesterday I received an email from a truly innovated, environmentally responsible, yacht designer in France congratulating me on my new article in The Yacht Report's 100th edition.

I was, to be honest, caught off guard as I did not recall writing a new article and, as it is a United Kingdom publication, its U.S. distribution is generally about 2 weeks later than Europe's.

Today I went on line to one of my favorite websites, The Yacht Report's http://www.synfo.com/ and downloaded the lastest edition. And there it was: A full page of my thoughts on the future of superyachts...something I had written in response to an email request some months ago, put into a very nice article.

I consider it quite an honor for what I believe to be the most relevant, highest quality, yachting publication to so prominently include me in its 100th edition. So Martin, Tork and all the rest of the TYR group I want to say, "Thank You."

If you are interested in reading my thoughts...and you wouldn't be reading this far if you weren't, would you?...here you go:

Mark Conroy Speaks About Regent Seven Seas Cruise's Highest Prices in the Industry

Sometimes it is just better to say nothing.  It is a hard lesson to learn.  Before writing this post I thought about not saying anything.  But then I thought, "I am not going to say anything I haven't said before.   All I am doing is confirming its accuracy by an irrefutable source."

As you know I have long complained that Regent Seven Seas Cruises charges the highest prices in the industry and does not provide the true luxury experience that justifies them.  I also looked cautiously at the new "inclusive tour" policy, noting that having 4 buses of passengers going to what used to be visited by 1 or 2 buses, changes the tour experience from a luxury one to a mass-market one...assuming the passengers aren't put off by paying for group tours when they prefer the luxury of private tours and the tours are not otherwise compromised in quality.

Mark Conroy, President of Regent Seven Seas Cruises just gave an interview to Travel Weekly which was posted today on the internet.  In it he states that Frank Del Rio, head of Prestige Cruise Holdings stated, quoting Mr. Conroy, "Our prices look higher than everybody else's because everything is included.  If it is not explained, people will get sticker shock."

Let's review:  Regent provides nothing more than Silversea, SeaDream or Seabourn (other than the tours) and it has 700+ people versus one fifth or one half the number of people.  It has admitted and is now working on its service and cuisine issues which are not at the levels they should be.

So, I ask the question:  If Regent's prices "look higher than everybody else's" and it is not providing anything of significant value more, what is the motivation for me - as a responsible travel agent trying to assure my clients that they will, in fact, be provided with the highest quality cruise experience their dollars will allow - to sell Regent over Seabourn?  Could it be anything other than a selfish motive of earning a higher commissions?  I am befuddled!

But, alas, there is more that Mr. Conroy had to say.  He claims that discounting "does not go well with the luxury product."  Until the past few months I would have strongly supported that comment if the word used was "Sale".  In fact, I do believe that when the economy rebounds the luxury market will be the first to reduce the use of the word, "Sale".  BUT (don't I always have one?!) I must ask you, "Have you have ever paid Brochure Rate for a cruise?"  Let me answer:  NEVER.  The reason:  No one does...ever.  Why?  Because everyone...even luxury market clients...likes a discount.

Mr. Conroy goes further, stating:  "Discounting is basically a marketing plan that went wrong."  Huh???? The last time I looked every single Regent cruise shows a discount.  Every one!

So, rather than turn Regent Seven Seas into a premium line that prices itself as a very expensive "package", I would suggest maybe, just maybe, you start asking the questions:  How much extra would you pay per day for drinks and gratuities?  A suite vs. a cabin?  A few tours? 

This is where I have learned it is better to say nothing.  You already know the answer!

Lepisto Named President of SeaDream Yacht Club

Consistent with prior announcements (Oh, how I love that word, "consistent"), it was announced today that Bob Lepisto is the new president of SeaDream Yacht Club.  Mr. Lepisto has been with SeaDream from its 2001 outset.

“I was part of the original team that put the whole program together and built the product alongside Atle, Larry and other team members,” Lepisto told Travel Pulse. “We have a strong team here in Miami and in Oslo, which will remain intact. Business will move on and remains very good. We completed 2008 with record-breaking numbers. Not surprisingly, 2009 is down a little, but still looks to be a very good year for us.”


No major changes are planned, he said. “We will retain the focus on the yachts we have and continue our extraordinary service and a focus on our very important past guests” . “We will continue the ‘it’s yachting, not cruising’ focus, because that constantly has to be reinforced so people can tell the difference. There are not a lot of major changes other than this announcement. I've hired most of the people here who have been part of the team since the start.”

While Larry Pimental stated his departure was caused by “fundamental disagreements with the principals of the organization”, Mr. Lepisto would not comment further noting that both Pimental and Atle Brynestad are friends of his.

Update on SeaDream Yacht Club - Smooth Seas and Stability Promised

According to industry publications, such as Seatrade, Atle Brynestad, CEO...again...has stated that SeaDream's bookings are strong and that while he expects some changes in titles and duties since Larry Pimental's departure, there will be no corporate shake up and that he considers SeaDream to be a "family".

Mr. Brynestad, former CEO of Seabourn, former chairman of Cunard and former board member of Carnival Corp., has stated that operations will stay in Miami, but that he will work primarily from Oslo, Norway (his home).  Personally, I am all in favor of the internet, telecommuting, emails and the like, but concepts like  "hands on", "putting face to it", "having your ear to the ground (water)", etc. are very important concepts in business.  We shall see how this plays out.

He also claims that SeaDream's 2009 bookings are slightly behind 2008's bookings (claimed to be a record year), but are still considered "normal".  He asserts this is, in large part, due to loyal past passengers rebooking.  Considering SeaDream's fine reputation, I have every reason to believe this to be true.

That said, I have no knowledge of SeaDream's measure of "bookings", but bookings based on passenger counts is far different from dollar volume or net revenues; especially in this time of significant discounts and cancel for any reason offers.  (As an example, while I was out in Lake Tahoe, claims of lift ticket sales being down "only" 10% was clearly an optimistic view, as I know the price per ticket was also down from $83 to $50 if you took one of the multi-day deals...a 40% discount.  So with actual tickets down 10%, but ticket revenues down 20-40%, the real picture is far more bleak.)  Personally, I think the departure of LP has to be related to such issues in some fashion, but I really don't know.

One thing that remains a mystery is why Larry Pimental left, if he still is an investor and where he goes from here.  Apparently both people are being very tight-lipped.  This suggests to me (putting my lawyer hat on) that they are negotiating something at the moment and have been instructed to say nothing.  A wise move.  I am sure it will all come out shortly.

Troubled Waters on the Luxury Cruise Front...And A Safe Harbor: Seabourn

Over the past days I have seen a number of troubling things happening in the luxury cruise market.  I preface my comments below by stating just because it is "troubling" it doesn't mean it is a disaster.  So please take a breath and then read on....

One of my Seabourn client's wrote two weeks ago, "These markets are taking their toll though. people are scared on the ship and the talk at dinner is often about the "market." Thought we could get away." 

But just yesterday, upon her return, the email was remarkably different:

"We are back from another perfect Seabourn experience. The weather was magnificent, food seemed more delicious than ever and we had a great time. It is the ideal vacation for us. So ideal that I'm sure you know by now, along with [our friends], we have already signed up for the next trip."

With the concept of "Is taking...or even thinking of taking...a luxury cruise at a time like this?" at the fore of most people's minds, the cruise lines are feeling the pinch.  The question becomes, from the guest's perspective, how much trouble are the cruise lines?  That is not, in most cases, an easy question to answer.

Case in point:  Royal Caribbean/Celebrity/Azamara, etc. (albeit not luxury lines).  This week it announced record 3rd quarter earnings, but great concern for the future.  This raised concerns over cash flow. Fortunately, it assured the markets by announcing it has $1.4 Billion dollars in cash and no need for new financing.

But on the luxury front the story, at least for some, MAY be a bit different:

First, Regent pushed off its heavily touted new ship, then it announced the ending of its relationship with the Paul Gauguin and now rumors abound that its $40 million dollar refurbishment of two of its three ships will be cut back (though this has not been confirmed.) and its third ship, Navigator, will be waiting about 2 more years for any upgrades...if at all. While all this may well be prudent business (a good thing), it is evidence that reliance on the perception of their being a high profit/cash flow "gravy train" in luxury cruising may have been a bit too much. 

Then , Crystal announced a very generous reworking of its booking policies so that you cancel within 45 days of departure without incurring penalty.  To me this signaled a concern for getting people to book cruises they were "just not sure about"  and to get them onboard the ships...to, in part, generate onboard revenue.  There is a great truth that once someone books a cruise they become emotionally invested and, therefore, are less likely to cancel it even if times get rough.  It  did not concern me much since it does not seek to keep your cash if you cancel.

Then Silversea came out with drastically discounted cruises...and a 25% travel agent commission on close in sailings.  (I did not previously mention the amount, but it quickly was spread publicly over the internet, so what the heck.)  This is a clear cry for cash.  To me, and honestly to most of my clients I have spoken to about it, it is a Red Flag that Silversea may be in serious trouble.  A cruise line cannot sell a $10,000 cruise at a 40-50% discount (OK, it is really at a 35% discount, since a 10% Early Booking Savings already applied) and then discount it another 25% for the travel agent's (frankly, perverse) commission.  The result, at least for me, has been interesting:  Not a single booking.  Rather, the questions are uniformly, "I am uncomfortable booking with Silversea.  Will my deposit and final payment be protected?  Do I need added insurance...and from whom?  Will my cruise actually take place?" 

Now SeaDream has announced a "Cancel Anytime Within 48 Hours of Departure and Get a 100% Credit" toward a future cruise within 18 months thereafter.  This is, again, very scary...and SeaDream is quite a fine product.  SeaDream had always prided itself on its charter schedule being its base.  But charters are drying up as corporations are not making the same profits and perceptions of such expenditures are presently more negative then positive.  Being a unique product it is not the easiest cruise experience to get people to consider and, honestly, not many travel agents even think about SeaDream as an option.  With its new program, a more aggressive play on the new Crystal approach, SeaDream will keep your cash so that it operates today with a (hopefully) positive cash flow and worry about what cruise you take later.  Clearly this short-term strategy is worrisome.

Seabourn has, at least for now, taken a different approach.  Ala Tiffany's and Louis Vuitton, it is taking the approach of Stability.  It has not changed its deposit policy.  It has not changed its cancellation policy.  It has not offered travel agents any increased (or absurd) commissions.  Has Seabourn reduced some amenities?  Yes, such as the less-and-less popular once a cruise complimentary tours. Seabourn has done, possibly with a bit more aggressiveness, what it has always done when there is a slower selling sailing:  It has offered a better deal...but never "giving away the store".  For example, its $1,000 off on any 2009 Med Sailing is a way to lower its prices for some and to, possibly, attract new business.  (Truth be told, that promotion has caused me more headaches than happiness because the vast majority of my clients already had a better deal since they were on 14 day or longer cruises or on Club Signature Value sailing offering 50% off.) 

Will Seabourn be making better or different deals?  My guess is: Yes, but with a caveat.  When you are not taking drastic actions (because you do not need to:  Stability), you can tailor your promotions to the then existing market (subject to forecasting sailing performance).  So will there be some offers for complimentary upgrades?  Sure.  Will there be added values?  I am confident there will be.  But will it give you a sense of desperation?  I am confident it will not.

Seabourn is mostly concerned with the long term...because it has no short term need for cash.  Yes, it wants full ships and, after being spoiled with, consistently selling out cruises, the concept of empty suites is a bit hard to come to grips with...but a few empty suites does not create a disaster.  Plain and simple:  Seabourn is focused on keeping "luxury" luxury.

When I think of Seabourn I keep thinking of the old commercial, "We Make Money the Old Fashion Way.  We Earn It!" 

How does it make you feel?