1 00:00:00,000 --> 00:00:02,080 Welcome to Cruise News, your daily 2 00:00:02,080 --> 00:00:04,080 update on everything happening at 3 00:00:04,080 --> 00:00:06,700 sea. Visit CruiseNews .io to see 4 00:00:06,700 --> 00:00:08,339 today's stories and sign up for 5 00:00:08,339 --> 00:00:11,960 email alerts. Yeah, and there is 6 00:00:11,960 --> 00:00:13,080 definitely a lot happening today. 7 00:00:13,140 --> 00:00:15,000 There really is. Today we're looking 8 00:00:15,000 --> 00:00:16,879 at, well, a few structural forces 9 00:00:16,879 --> 00:00:18,480 that are honestly reshaping the 10 00:00:18,480 --> 00:00:20,920 entire industry right now. completely 11 00:00:20,920 --> 00:00:22,320 reshaping it. We're talking about 12 00:00:22,320 --> 00:00:24,359 the industry's agility when, you 13 00:00:24,359 --> 00:00:26,440 know, disruptions strike, plus the 14 00:00:26,440 --> 00:00:27,859 fundamental shift in how booking 15 00:00:27,859 --> 00:00:29,440 and pricing work. Which affects 16 00:00:29,440 --> 00:00:31,559 everyone. Exactly. And finally, 17 00:00:31,640 --> 00:00:33,659 that fierce battle among luxury 18 00:00:33,659 --> 00:00:36,100 hotel brands to sort of define the 19 00:00:36,100 --> 00:00:38,179 future of high -end cruising. Yeah, 20 00:00:38,179 --> 00:00:39,740 and it's important to realize these 21 00:00:39,740 --> 00:00:41,200 aren't just isolated news stories, 22 00:00:41,340 --> 00:00:43,100 right? Right. They're highly interconnected 23 00:00:43,100 --> 00:00:45,060 pieces. You're seeing an industry 24 00:00:45,060 --> 00:00:47,619 that is simultaneously trying to, 25 00:00:47,619 --> 00:00:49,420 you know, mitigate risk on the water. 26 00:00:49,579 --> 00:00:51,159 while locking in your money earlier 27 00:00:51,159 --> 00:00:53,840 and expanding its definition of 28 00:00:53,840 --> 00:00:55,460 luxury. I mean, it's a total evolution. 29 00:00:55,640 --> 00:00:56,859 So let's start with that agility 30 00:00:56,859 --> 00:00:58,600 because we just saw a huge real 31 00:00:58,600 --> 00:01:00,060 world test of this in the Mexican 32 00:01:00,060 --> 00:01:02,810 Riviera. We really did. Yeah. So 33 00:01:02,810 --> 00:01:04,849 on March 13th, the Norwegian Bliss 34 00:01:04,849 --> 00:01:06,310 pulled into Puerto Vallarta, and 35 00:01:06,310 --> 00:01:08,510 they had over 4 ,300 passengers 36 00:01:08,510 --> 00:01:10,250 on board. Which is a massive vessel. 37 00:01:10,409 --> 00:01:11,930 Huge. And it was a big deal. It 38 00:01:11,930 --> 00:01:13,810 signaled a restart of activity there. 39 00:01:14,170 --> 00:01:16,549 Because for weeks, Carnival, Holland 40 00:01:16,549 --> 00:01:19,390 America, Princess, NCL, they had 41 00:01:19,390 --> 00:01:21,329 all been doing these sudden reroutes. 42 00:01:21,329 --> 00:01:23,250 Right. Because of the cartel -related 43 00:01:23,250 --> 00:01:25,150 unrest down in Jalisco State. Right. 44 00:01:25,310 --> 00:01:27,810 Which was sparked by that February 45 00:01:27,810 --> 00:01:30,409 22nd Mexican military operation. 46 00:01:30,540 --> 00:01:32,780 where they killed the cartel leader, 47 00:01:33,319 --> 00:01:35,060 El Mencho. Exactly. The situation 48 00:01:35,060 --> 00:01:36,459 on the ground was really volatile. 49 00:01:36,640 --> 00:01:38,459 It was. So during that disruption, 50 00:01:39,019 --> 00:01:40,480 these ships just completely swapped 51 00:01:40,480 --> 00:01:41,819 out Puerto Vallarta. They traded 52 00:01:41,819 --> 00:01:43,700 it for sea days or they went to 53 00:01:43,700 --> 00:01:46,659 alternative stops like Cabo San 54 00:01:46,659 --> 00:01:48,900 Lucas. Yeah, Cabo Mazatlan La Paz. 55 00:01:49,019 --> 00:01:50,400 Right. And I always think of this 56 00:01:50,400 --> 00:01:51,900 like a cruise ship is essentially 57 00:01:51,900 --> 00:01:53,680 a floating city with a joystick. 58 00:01:53,980 --> 00:01:55,219 That's a great way to put it. Like 59 00:01:55,219 --> 00:01:56,719 if a neighborhood gets dangerous 60 00:01:56,719 --> 00:01:58,459 for a land based resort, you're 61 00:01:58,459 --> 00:02:00,439 stuck. You just lose money. But 62 00:02:00,439 --> 00:02:02,079 with a ship, you just steer the 63 00:02:02,079 --> 00:02:03,780 hotel somewhere else. Exactly. You 64 00:02:03,780 --> 00:02:05,120 literally just sail away from the 65 00:02:05,120 --> 00:02:07,420 problem. But I have to ask, does 66 00:02:07,420 --> 00:02:10,259 this kind of rapid, highly publicized 67 00:02:10,259 --> 00:02:12,800 rerouting damage the appeal of the 68 00:02:12,800 --> 00:02:14,300 Mexican Riviera, or does it actually 69 00:02:14,300 --> 00:02:15,639 just prove that the safety model 70 00:02:15,639 --> 00:02:18,379 of cruising works? Honestly, it 71 00:02:18,379 --> 00:02:19,759 proves the model works. Yeah. I 72 00:02:19,759 --> 00:02:21,259 mean, it's the ultimate structural 73 00:02:21,259 --> 00:02:23,419 advantage of maritime risk management. 74 00:02:23,560 --> 00:02:24,919 Right. Because if you look at the 75 00:02:24,919 --> 00:02:27,379 broader context, there is a huge 76 00:02:27,379 --> 00:02:29,419 contrast between the traumatic headlines 77 00:02:29,419 --> 00:02:31,759 and the actual operational reality. 78 00:02:31,979 --> 00:02:33,659 What do you mean? Well, the FCCA, 79 00:02:33,780 --> 00:02:35,300 the Florida Caribbean Cruise Association, 80 00:02:35,840 --> 00:02:37,860 they reported that over 95 % of 81 00:02:37,860 --> 00:02:39,879 cruise tourism in Mexico continued 82 00:02:39,879 --> 00:02:41,500 totally normally during this period. 83 00:02:41,620 --> 00:02:44,620 It really? 95%. Yeah. Unaffected. 84 00:02:44,759 --> 00:02:46,180 Wow. It felt like the whole region 85 00:02:46,180 --> 00:02:48,180 was shutting down. Right. But Puerto 86 00:02:48,180 --> 00:02:49,580 Vallarta only accounts for about 87 00:02:49,580 --> 00:02:51,479 5 % of Mexican cruise stops. Oh. 88 00:02:51,680 --> 00:02:53,180 So yes, it impacted the West Coast 89 00:02:53,180 --> 00:02:55,120 itineraries heavily. But the major 90 00:02:55,120 --> 00:02:57,139 volume ports, places like Cozumel 91 00:02:57,139 --> 00:02:59,009 and Costa Maya, They were totally 92 00:02:59,009 --> 00:03:00,169 fine. Oh, right, because they're 93 00:03:00,169 --> 00:03:01,069 on the other side of the country. 94 00:03:01,490 --> 00:03:03,509 Exactly. Even Ensenada was unaffected. 95 00:03:03,710 --> 00:03:04,969 The U .S. State Department's Level 96 00:03:04,969 --> 00:03:06,810 2 advisory didn't even change. So 97 00:03:06,810 --> 00:03:08,770 it was incredibly localized. Highly 98 00:03:08,770 --> 00:03:10,830 localized. And it just shows how 99 00:03:10,830 --> 00:03:13,090 isolated the impact really was and 100 00:03:13,090 --> 00:03:15,110 how fast operators can pivot. But 101 00:03:15,110 --> 00:03:17,129 that flexibility has to cost money. 102 00:03:17,189 --> 00:03:19,969 I mean... burning extra fuel, changing 103 00:03:19,969 --> 00:03:21,870 port fees at the last minute. It's 104 00:03:21,870 --> 00:03:23,289 expensive. Oh, definitely. Which 105 00:03:23,289 --> 00:03:25,349 perfectly bridges us to the second 106 00:03:25,349 --> 00:03:27,050 thing we're tracking today. Because 107 00:03:27,050 --> 00:03:28,509 while the cruise lines have this 108 00:03:28,509 --> 00:03:30,770 immense operational flexibility, 109 00:03:31,210 --> 00:03:33,490 they're increasingly asking you, 110 00:03:33,669 --> 00:03:35,629 the traveler, to trade away your 111 00:03:35,629 --> 00:03:37,110 flexibility. Right. They need to 112 00:03:37,110 --> 00:03:39,370 lock in that revenue. Exactly. So 113 00:03:39,370 --> 00:03:40,979 let's look at Scenic Group. Starting 114 00:03:40,979 --> 00:03:43,900 March 9th, 2026, they are totally 115 00:03:43,900 --> 00:03:45,819 ending their traditional U .S. two 116 00:03:45,819 --> 00:03:47,180 -for -one pricing model. Which has 117 00:03:47,180 --> 00:03:49,020 been a staple for them. Right. The 118 00:03:49,020 --> 00:03:51,039 old school cruise discount is gone. 119 00:03:51,319 --> 00:03:53,080 They're replacing it with four airline 120 00:03:53,080 --> 00:03:55,979 -style fare types. Yeah. Full, select, 121 00:03:56,379 --> 00:03:57,900 preferred, and preferred plus A. 122 00:03:58,039 --> 00:03:59,599 Now, the interesting thing here 123 00:03:59,599 --> 00:04:01,919 is the core onboard inclusions, 124 00:04:02,039 --> 00:04:04,120 the food, the drinks, the excursions, 125 00:04:04,280 --> 00:04:06,319 they remain exactly the same across 126 00:04:06,319 --> 00:04:07,919 all those tiers. Right. You're not 127 00:04:07,919 --> 00:04:09,120 buying a different physical product. 128 00:04:09,340 --> 00:04:10,639 Just buying different booking rules. 129 00:04:11,280 --> 00:04:13,500 And that 120 -day pre -departure 130 00:04:13,500 --> 00:04:15,539 window is the critical cutoff for 131 00:04:15,539 --> 00:04:17,139 the discounts. That's the magic 132 00:04:17,139 --> 00:04:19,259 number. Yeah. And if you go for 133 00:04:19,259 --> 00:04:21,370 the highest tier... Preferred plus 134 00:04:21,370 --> 00:04:23,610 CA, you get up to $500 in extra 135 00:04:23,610 --> 00:04:26,089 savings. So you have to pay in full 136 00:04:26,089 --> 00:04:28,029 upfront, and it is entirely non 137 00:04:28,029 --> 00:04:29,389 -refundable. You're taking on the 138 00:04:29,389 --> 00:04:31,329 risk. Right. It feels exactly like 139 00:04:31,329 --> 00:04:32,629 buying a plane ticket. You're choosing 140 00:04:32,629 --> 00:04:34,430 between basic economy and fully 141 00:04:34,430 --> 00:04:36,730 refundable. But I want to push back 142 00:04:36,730 --> 00:04:40,410 on this. Is this new structure actually 143 00:04:40,410 --> 00:04:42,250 offering more transparency for the 144 00:04:42,250 --> 00:04:45,129 guest? Or is it just a clever psychological 145 00:04:45,129 --> 00:04:47,029 tool to get people to lock in their 146 00:04:47,029 --> 00:04:49,250 money months earlier? Oh, it is 147 00:04:49,250 --> 00:04:52,490 absolutely a structural shift to 148 00:04:52,490 --> 00:04:55,009 secure base revenue earlier. I mean, 149 00:04:55,110 --> 00:04:57,050 they call these fair families. Fair 150 00:04:57,050 --> 00:04:58,790 families, right? And Scenic isn't 151 00:04:58,790 --> 00:05:00,779 the only one doing this. Virgin 152 00:05:00,779 --> 00:05:02,160 Voyage is doing something really 153 00:05:02,160 --> 00:05:03,500 similar right now with their Voyage 154 00:05:03,500 --> 00:05:05,720 fare choices. Right? I saw that. 155 00:05:05,920 --> 00:05:07,259 Because by securing that base fare 156 00:05:07,259 --> 00:05:09,839 so early, it frees the cruise line 157 00:05:09,839 --> 00:05:11,779 up to pivot their entire focus. 158 00:05:12,079 --> 00:05:14,199 To what? To the highly lucrative 159 00:05:14,199 --> 00:05:16,379 onboard spending market. Royal Caribbean 160 00:05:16,379 --> 00:05:18,160 CEO recently noted that they are 161 00:05:18,160 --> 00:05:20,000 seeing really strong close in demand. 162 00:05:20,389 --> 00:05:22,250 But the metric that really matters 163 00:05:22,250 --> 00:05:24,889 is onboard spend. Right. At Royal 164 00:05:24,889 --> 00:05:26,870 Caribbean, that jumped from $69 165 00:05:26,870 --> 00:05:31,149 .67 a day in 2019 to $92 .44 a day 166 00:05:31,149 --> 00:05:33,329 in the second quarter of 2024. Wow. 167 00:05:33,470 --> 00:05:35,930 Wait. Almost $23 more per day per 168 00:05:35,930 --> 00:05:38,449 person. Exactly. It's huge. That 169 00:05:38,449 --> 00:05:40,490 is massive when you scale it across 170 00:05:40,490 --> 00:05:42,370 thousands of passengers. Exactly. 171 00:05:42,449 --> 00:05:43,589 So if they can get you to pay for 172 00:05:43,589 --> 00:05:45,509 your cabin months in advance on 173 00:05:45,509 --> 00:05:47,350 a non -refundable tier, you sort 174 00:05:47,350 --> 00:05:49,009 of forget about that initial cost. 175 00:05:49,170 --> 00:05:50,310 Right. It feels like the vacation 176 00:05:50,310 --> 00:05:51,470 is already paid for by the time 177 00:05:51,470 --> 00:05:53,370 you board. Exactly. So you're much 178 00:05:53,370 --> 00:05:55,329 more willing to spend that $92 a 179 00:05:55,329 --> 00:05:58,089 day on specialty dining, the spa, 180 00:05:58,430 --> 00:05:59,769 Wi -Fi, all of that. So that makes 181 00:05:59,769 --> 00:06:01,470 total sense. It's brilliant, but 182 00:06:01,470 --> 00:06:03,189 you know. A little brutal if you 183 00:06:03,189 --> 00:06:04,550 like flexibility. Yeah, it's the 184 00:06:04,550 --> 00:06:06,009 airline model taking over the seas. 185 00:06:06,290 --> 00:06:08,250 Right. Now, if premium lines like 186 00:06:08,250 --> 00:06:09,769 Scenic are changing how you pay 187 00:06:09,769 --> 00:06:12,370 for a luxury yacht experience, Ritz 188 00:06:12,370 --> 00:06:14,149 -Carlton is showing us exactly where 189 00:06:14,149 --> 00:06:16,230 that high end yacht market is physically 190 00:06:16,230 --> 00:06:19,269 sailing next. Yes, this is fascinating. 191 00:06:19,509 --> 00:06:21,829 It is because luxury land brands 192 00:06:21,829 --> 00:06:23,769 are aggressively attempting to conquer 193 00:06:23,769 --> 00:06:26,350 the oceans. Ritz -Carlton just detailed 194 00:06:26,350 --> 00:06:28,610 the summer 2027 deployment for its 195 00:06:28,610 --> 00:06:30,709 newest yacht, the Luminara. Which 196 00:06:30,709 --> 00:06:33,089 is a beautiful ship. It's a 794 197 00:06:33,089 --> 00:06:36,829 foot yacht, just 226 suites. And 198 00:06:36,829 --> 00:06:38,269 their 21 voyage season includes 199 00:06:38,269 --> 00:06:40,470 15 sailings in Alaska and four in 200 00:06:40,470 --> 00:06:42,009 Asia. Really interesting choices 201 00:06:42,009 --> 00:06:43,910 there. Yeah. In Alaska, they're 202 00:06:43,910 --> 00:06:45,509 navigating the inside passage, doing 203 00:06:45,509 --> 00:06:47,670 Tracy Armfjord. But Hugh is the 204 00:06:47,670 --> 00:06:49,790 kicker. They're using that small 205 00:06:49,790 --> 00:06:52,230 ship size to visit places like Wrangel 206 00:06:52,230 --> 00:06:53,910 and Cloud Walk. Right, places the 207 00:06:53,910 --> 00:06:55,370 big ships can't touch. Exactly. 208 00:06:55,660 --> 00:06:57,420 And they specifically timed the 209 00:06:57,420 --> 00:06:58,920 Clowok visits for the salmon run 210 00:06:58,920 --> 00:07:01,100 and bear season. Plus, they're putting 211 00:07:01,100 --> 00:07:02,959 naturalists and historians on board. 212 00:07:03,040 --> 00:07:05,079 It's highly curated. Totally. And 213 00:07:05,079 --> 00:07:06,939 the Asia highlights are just as 214 00:07:06,939 --> 00:07:09,019 wild. They're using Seoul as a new 215 00:07:09,019 --> 00:07:10,819 turnaround port, stopping in Tianjin, 216 00:07:10,879 --> 00:07:12,319 which is the gateway to Beijing, 217 00:07:12,480 --> 00:07:14,339 and offering overnight stays in 218 00:07:14,339 --> 00:07:16,339 smaller Japanese ports like Otaru. 219 00:07:16,459 --> 00:07:18,180 And Akita. Right. Right. It feels 220 00:07:18,180 --> 00:07:19,819 like taking a five -star exclusive 221 00:07:19,819 --> 00:07:21,620 land resort and just strapping an 222 00:07:21,620 --> 00:07:23,220 outboard motor to it to go chase 223 00:07:23,220 --> 00:07:24,939 the best scenery on earth. That's 224 00:07:24,939 --> 00:07:25,699 exactly right. Exactly what it is. 225 00:07:26,160 --> 00:07:28,879 But can a land -based hotel brand 226 00:07:28,879 --> 00:07:32,160 really beat traditional cruise lines 227 00:07:32,160 --> 00:07:35,100 at their own game just by, you know, 228 00:07:35,220 --> 00:07:36,920 building a smaller ship and slapping 229 00:07:36,920 --> 00:07:38,420 a famous logo on it? Well, they're 230 00:07:38,420 --> 00:07:39,819 not really playing the same game. 231 00:07:40,019 --> 00:07:41,339 They're leveraging a structural 232 00:07:41,339 --> 00:07:43,399 force called marquee port access. 233 00:07:43,779 --> 00:07:46,379 Marquee port access. Yeah. The true 234 00:07:46,379 --> 00:07:48,279 luxury here isn't just the private 235 00:07:48,279 --> 00:07:50,540 terraces or the onboard spa. I mean, 236 00:07:50,540 --> 00:07:52,439 those are great. But the real luxury 237 00:07:52,439 --> 00:07:54,420 is the physical capability of that. 238 00:07:54,220 --> 00:07:56,240 vessel. Being able to actually dock 239 00:07:56,240 --> 00:07:58,459 in claw walk. Exactly or staying 240 00:07:58,459 --> 00:08:00,420 overnight in Makeda. Yeah. Massive 241 00:08:00,420 --> 00:08:02,399 mega ships simply cannot do that. 242 00:08:02,699 --> 00:08:04,399 They don't fit and their schedules 243 00:08:04,399 --> 00:08:05,579 don't allow it. Right they have 244 00:08:05,579 --> 00:08:07,199 to turn over passengers too fast. 245 00:08:07,360 --> 00:08:09,660 Exactly. So this is a deliberate 246 00:08:09,660 --> 00:08:11,959 land grab or sea grab I guess by 247 00:08:11,959 --> 00:08:13,720 hospitality brands. Yeah. They are 248 00:08:13,720 --> 00:08:15,540 targeting ultra wealthy travelers 249 00:08:15,540 --> 00:08:17,899 who might honestly never book a 250 00:08:17,899 --> 00:08:19,199 traditional cruise. Right they hate 251 00:08:19,199 --> 00:08:21,730 the word cruise. They do. But they 252 00:08:21,730 --> 00:08:23,569 will absolutely book a floating 253 00:08:23,569 --> 00:08:25,449 Ritz -Carlton. And Ritz isn't alone. 254 00:08:25,569 --> 00:08:27,029 You've got Four Seasons and Orient 255 00:08:27,029 --> 00:08:28,689 Express launching their own high 256 00:08:28,689 --> 00:08:29,949 -end ships later this year, too. 257 00:08:30,050 --> 00:08:31,310 It's like a whole new category of 258 00:08:31,310 --> 00:08:33,269 travel. It is. It's the new luxury 259 00:08:33,269 --> 00:08:35,049 frontier. Which really leaves us 260 00:08:35,049 --> 00:08:36,830 with a huge question to ponder today. 261 00:08:37,360 --> 00:08:39,899 If mainstream cruise lines are adopting 262 00:08:39,899 --> 00:08:42,600 these strict airline -style pricing 263 00:08:42,600 --> 00:08:45,200 structures, and luxury land -based 264 00:08:45,200 --> 00:08:46,879 hotels are the ones building the 265 00:08:46,879 --> 00:08:49,600 newest high -end ships, will the 266 00:08:49,600 --> 00:08:51,279 traditional identity of a cruise 267 00:08:51,279 --> 00:08:53,519 eventually just disappear? It's 268 00:08:53,519 --> 00:08:55,059 a valid question. Like, are we watching 269 00:08:55,059 --> 00:08:57,679 the cruise industry simply dissolve 270 00:08:57,679 --> 00:09:00,620 into this broader, unified, global 271 00:09:00,620 --> 00:09:02,759 aviation and hospitality machine? 272 00:09:02,840 --> 00:09:04,220 It really looks like it. The boundaries 273 00:09:04,220 --> 00:09:05,899 are totally blurring. They really 274 00:09:05,899 --> 00:09:07,759 are. Definitely something to think 275 00:09:07,759 --> 00:09:09,000 about next time you go to book a 276 00:09:09,000 --> 00:09:10,740 trip. Thanks for listening to Cruise 277 00:09:10,740 --> 00:09:12,980 News. Visit CruiseNews .io to catch 278 00:09:12,980 --> 00:09:14,480 up on the latest updates and sign 279 00:09:14,480 --> 00:09:15,860 up for free email alerts.