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alerts. We are undertaking a fascinating deep
dive today into how the cruise industry is really
signaling its next big moves. We're looking at
ocean, river, all of it. Exactly. And we're seeing
these massive, very targeted investments. Right.
It's not just let's build more ships. We're analyzing
major plays in, you know, culinary innovation,
strategic market entry, and just sheer fleet
dominance. We'll be focusing on Princess Cruises,
Trafalgar, and Viking Cruises. And what's crucial
for you to understand is that these are not small
changes. I mean, these three stories represent
really high -stakes efforts to redefine their
product and capture very specific market segments.
So it's a move away from generalized cruising.
It's a move toward hyper -specialized experiences,
absolutely. Okay, let's unpack this, starting
with Ocean Cruising and Princess Cruises. Their
ship, the Sapphire Princess, just completed a
two -week dry dock in Portland, Oregon. And while
there were, you know, general refurbishments,
the real story, the strategic play seems to be
all about the food and beverage. It's a very
calculated culinary injection. Princess Cruises
is taking two of its most popular, highest -rated
dining experiences and installing them permanently.
It completely changes the ship's value proposition.
So first we have the Crown Grill Steakhouse.
That's a fan favorite, right? It's now in the
old Savoy dining room space on Deck 5. Premium
aged beef, seafood. People know what they're
getting. A known quantity. But the really interesting
development is what replaced the Internet Cafe
on Deck 7. That would be the debut of Makoto
Ocean. Yes. And this is a huge cultural and culinary
pivot for them. They're introducing adomi -style
sushi from the celebrated chef Makoto Okua. This
is not your grab -and -go sushi jar. Oh, adomi
-style. So when we talk about that kind of precision,
what are we actually looking at? What makes this
different? Well, the menu is all about detail.
You're seeing high -end items like truffle salmons,
no crab tamaki, toro tartare, and the beverage
program is just as specialized. Oh, interesting.
Yeah, think crab cocktails like the Genmai Negroni,
a Japanese twist on a classic, or the Kodai No
Hana, which blends yuzu with dobaroku sake. This
level of detail, it speaks to a true luxury experience.
Okay, so here's where the business strategy kicks
in. Both Makoto Ocean and the Crown Grill are
priced at $60 per person. But the pricing is
a major lever here, isn't it? It absolutely is.
This is a perfect example of modern yield management.
Sure, you can buy the meal a la carte, but they're
included for guests who buy the Princess Premier
package. And that starts November 16, 2025. Ah,
so it's not just about selling a $60 meal. Not
at all. It's about making this premium dining
experience an essential part of their top -tier,
all -inclusive package. It incentivizes you to
upgrade to Premier, which is a much higher -margin
product for them. Culinary luxury is the catalyst
for a global upsell. That makes perfect sense.
So the immediate product upgrade drives profitability.
But let's talk about the long game for the Sapphire
Princess. This is a big ship, over 115 ,000 gross
tons, and it's heading into a pretty ambitious
schedule. It's a true global asset. Right after
dry dock, it's deployed on these demanding routes,
Mexico, then South America, even Antarctica,
through late 2025 and early 2026. And after that?
It shifts dramatically. Mediterranean and northern
Europe for spring and summer 26. Then it repositions
to Canada and New England in the autumn. It's
relentless. And all of that globetrotting is
basically setting the stage for a really historic
moment in 2027. That's the strategic target,
Japan. In March 2027, Sapphire Princess will
reunite with its sister ship. Diamond Princess.
And it's significant that both ships were originally
built in Japan, right? It's very significant.
This dual deployment from Tokyo will be Princess
Cruise's most expansive Japan season ever. It's
running almost year round from March through
December 2027. I saw a quote from Sammy Cohen,
their VP of food and beverage. She was talking
about balancing innovation and heritage. It really
feels like they're using the ship's refurbishment
to anchor their penetration into a huge Asian
market. Precisely. They're leveraging the ship's
Japanese heritage, reinforcing that cultural
connection, while making sure the onboard product,
now featuring high -end edome sushi, is culturally
relevant enough to appeal to everyone, both North
American travelers and the local Asian market.
That transition from refining an asset to dominating
a market brings us perfectly to our next story.
This one is an investment not in ships, but in
pure talent. A very different kind of investment.
Right. We're shifting to river cruising, where
Trafalgar, a company known globally for guided
land vacations, is making a huge entry into the
river cruise industry. They have a new fleet
set for a 2028 debut. This is a textbook strategic
invasion. Trafalgar already has the brand. They
already have the expertise in crafting these
immersive, destination -focused trips. But river
cruising is a whole different ballgame operationally.
It is. And that's why they signaled how serious
they are by appointing an industry heavyweight,
Damien O 'Connor, as their new vice president
of river cruise. OK, so tell me about O 'Connor.
You said he's a veteran, but what in his 20 -year
background makes Trafalgar bet on him to lead
this whole thing from scratch? It's the sheer
range of his experience. It's so diversified.
He's had these huge corporate roles at Carnival
Corporation, Disney Cruise Line, and Royal Caribbean.
He was actually key in launching massive, complex
ships like Royal Caribbean's Quantum Class. So
he knows how to build the biggest, most advanced
ships in the world. Right. But... And this is
crucial. He then moved into the ultra luxury
small ship segment. He delivered silver seas
bespoke vessels like the Silver Origin and Silver
Moon. So he can do massive technical operations
and boutique. Luxury design. Exactly. And to
top it off, he's now consulting on these super
exclusive luxury yacht projects for Mon Hotels
and Four Seasons. Wow. That blend of experience
makes him uniquely qualified. But let me challenge
this for a second. The European river cruise
market is incredibly crowded. How does Strafalgar,
a land -based brand, plan to differentiate itself
in 2028? That is the essential question. Their
strategy really leverages their existing strength.
creating authentic connections. They're focusing
on innovative vessel designs, contemporary luxury,
and this is the most important park -curated,
deeply immersive shore excursions. And O 'Connor's
job is to make sure the boats actually run smoothly?
Seamlessly. They believe they can transform the
river ship from just a floating hotel into a
mobile extension of the guided destination experience
itself. So they're not selling a ship vacation.
They're selling a specialized high -touch journey
that just happens to float. You've got it. It
raises an important point about positioning.
When you hire the guy who has built both the
largest cruise ships and the most intimate luxury
yachts, you are aiming to set a new standard,
not just play catch -up. From culinary strategy
and talent, we now move to sheer scale and specialization
with Viking Cruises. They just hit a pretty remarkable
fleet milestone. A truly phenomenal marker of
growth. After a huge christening ceremony in
Basel, Viking Cruises now has a total fleet of
103 vessels. Rival, Ocean, and Expedition. 103.
And Viking Onir was officially named the 100th
ship. To get over 100 vessels in just 28 years
is incredible. Especially compared to lines that
were founded decades earlier. It's staggering.
And the nine new river ships they just christened,
they cover a massive global footprint. They do.
You see the expansion of their standardized base
with four new longships, Viking Honor, Viking
Dagger, Viking Elder, and Viking On Air. They'll
go right onto the core European routes. Rhine,
Maine, Danube. That standardization is so key
to their efficiency. It is, but then you see
the specialization, which is becoming more and
more important for them. Right. The added ships
for the Seine, the Douro, and even the Mekong.
But I think the most fascinating specialization
is the addition of two purpose -built Nile ships.
The Viking Thoth and Viking Amun. What makes
these so special? They're designed specifically
for the pharaohs and pyramids itinerary. They're
very intimate, high -luxury ships built for just
82 guests. 82. Wow. That small scale allows for
greater access and a much more focused cultural
immersion in Egypt. It caters directly to the
luxury traveler who demands exclusivity. And
it's that consistency of the Viking design, the
Scandinavian look, the square bow, the aquavit
terrace, that lets them scale this luxury product
so reliably. And that consistency is directly
reflected in their stunning financial efficiency.
Viking now operates more total ships than industry
giants like Carnival Corporation, which has 94.
And Royal Caribbean Group with 68. Exactly. Now,
yes, Viking's vessels are smaller, but their
focus on high -yield segments delivers spectacular
returns. They report a return on invested capital
ROIC of approximately 40%. 40 % ROIC is just
a phenomenal figure. That has to position them
as one of the most profitable cruise operators
out there. How do they do that? It comes down
to asset standardization and high occupancy.
Their river -long ships are essentially modular.
They design them efficiently, they build them
quickly, and because they're all the same, operating
costs are streamlined. Training is consistent.
Parts are interchangeable. That efficiency, combined
with a premium product, creates that incredible
profitability. It does. And it justifies their
aggressive future roadmap. And that roadmap is
extensive. They're targeting 23 more river ships
by 2028 and another 10 ocean and expedition ships
by 2031. They want a total fleet of 135 vessels.
Absolutely. They're aiming for 112 river ships
alone by 2028. This is market dominance through
standardization and specialization. So if we
pull back and look at these three stories, Princess
Cruises investing in culinary assets, Trafalgar
acquiring top talent for market entry, and Vikings'
relentless profitable scale, the clear theme
is highly targeted, aggressive investment. And
what stands out is that the money is flowing
toward experiences that are more intimate, more
specialized, and more authentic. We've moved
beyond generalized luxury. We now have purpose
-built. Nile ships, bespoke river fleets, which
raises an important question for you, the traveler.
Considering this influx of deeply specialized
vessels designed for specific destinations, how
will this rising standard for immersive, region
-specific travel continue to redefine your expectations
for both ocean and river cruisers over the next
few years? Something to ponder as you plan your
next voyage. Thanks for listening to Cruise News.
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