Royal Caribbean facing growth “curtailment"

Royal Caribbean facing growth “curtailment"
By admin


Royal Caribbean’s growth plans could be derailed in Sydney in 2014/15, but new facilities at Brisbane could open the door for a Queensland-based vessel the following year, the cruise line has revealed.

Capacity constraints at Sydney will come home to roost the season after next, Australia managing director Gavin Smith said, with Carnival holding slots for an additional, unnamed vessel putting further pressure on space.

Smith said itineraries are currently being developed for 2014/15 with Port Botany a potential solution to the squeeze.

“There are periods in February 2015 when there is no berth space and that is the summer when our growth plans could face material curtailment,” Smith told Travel Today. “It gets very tight from December to February so you finish up with sub optimal itineraries of 16 or 17 nights because you can’t get back to Circular Quay. That is certainly a limitation to our plans. We are working through that at the moment to see how we can get around it.”

Similar issues originally confronted Royal Caribbean for 2013/14 when Carnival booked a berth for an unnamed ship. But it was subsequently withdrawn, freeing up space.

“There was a 17-night period where we would have had a 12-night and five night itinerary,” Smith said. “ When Carnival withdrew we re-merchandised cruises in January to have a nine-night and eight-night voyage which are better itineraries.”

While declaring it was “unhelpful” for a cruise line to book for a vessel which ultimately doesn’t materialise, Smith refused to condemn Carnival.

“We are all masters of the slow reveal,” he said. “I can understand what Carnival is doing but it’s certainly unhelpful if they don’t ultimately deliver the ship.”

Smith rejected Garden Island as a solution to the 2014/15 congestion, and flagged Port Botany as a possible answer.

“The potential at Port Botany is for us to say ‘we’ll commit to this ship if you commit to helping us work one of the container terminals’,” Smith said. “But for us to make that commitment we’ve got to be very clear on what our deployments need to be.”

The cruise line also revealed it was in “active discussions” over developments in Brisbane for 2015/16 that would allow the company to expand into Queensland. Although Royal Caribbean already calls at Brisbane, it does not have permission for a full turnaround.

“It’s a warm water port from where you can cruise successfully all year,” he said. “There is a better chance of seeing further expansion by us in that period, and Brisbane is an obvious target.”

With Sydney at bursting point, Brisbane represents a “very logical alternative to a company that wants to expand”, he added.

Smith said the firm’s growth in China would be a catalyst for more Australian tonnage. A second Voyager-class ship will operate in China next year with a third on the cards.

“Whenever the third ship goes into China, and it will most certainly go, Sydney or Australia will be the most obvious summer deployment so we will have a an opportunity to deploy another ship here if Sydney can cope, which at the moment is very doubtful.”

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Conferences
  • Travel Agents

Travellers Choice award winners 2024 announced

This year’s Travellers Choice award winners were announced at the gala dinner at Sydney Town Hall last night. The winners are: 2024 Leading Agency Award winner: Travel and Cruise Professionals (South Australia) The Travellers Choice Leading Agency Award distinguishes a member who has enjoyed outstanding success in their individual agency business, has contributed significantly to […]

  • Conferences
  • Travel Agents

Emotional Travellers Choice Conference that wasn’t hard to bear

If Day 1 of the 2024 Travellers Choice Conference in Sydney, the first in the Harbour City for 25 years, was filled with laughter and cocktails then Day 2 of “Travelution” was an emotional roller coaster. Travellers Choice MD and new ATIA chair Christian Hunter opened the three-day conference by announcing two new initiatives. In […]

  • Tourism

ATEC celebrates industry excellence with annual awards 

The Australian Tourism Export Council (ATEC) has announced the winners of its prestigious annual awards, recognising exceptional contributions from across our tourism export industry. These awards, announced during ATEC’s annual Meeting Place event last Wednesday, highlight individuals, businesses, and partnerships which have shown outstanding leadership, dedication, and innovation in promoting Australian tourism. Captain Trevor Haworth […]

  • Hotels
  • Luxury

Accor announces the signing of Sofitel Sapa Hotel and residences

Accor has announced the signing of Sofitel Sapa Hotel & Residences, a landmark luxury development set to bring Sofitel’s French elegance to the highlands of Northern Vietnam. The project is a combination of 176 rooms and 436 branded residences. It is expected to open its doors in 2030, making another milestone in the expansion of […]

  • Events

ICC Sydney celebrates 100 events in record-breaking year

International Convention Centre Sydney, managed by ASM Global, is set to break the record for number of live events in a single year with 100 shows. The James Blunt concert taking place on 23 November marks the venue’s 100th live entertainment event in a single year. To celebrate this historic achievement, ICC Sydney is giving […]

  • Travel Agents

Last chance to win Globus family of brands’ $1K a Day Giveaway

Agents are reminded they can still enter an unmissable giveaway by making a deposited booking with Globus, Cosmos and Avalon Waterways for departures in 2025. The trade incentive will remain open to agents until 30 November. To take advantage of the offer, agents simply need to make a deposited booking with either Avalon Waterways, Globus […]

  • Events

Intrepid Travel champions responsible business at UN Global Compact Sustainability Event

Intrepid Travel championed the agenda for responsible business at the United Nations Global Compact’s UNiting Business Live Australia conference this week. During her visit to Australia, UN Global Compact assistant secretary-general, Sanda Ojiambo, met with Intrepid CEO James Thornton, where they discussed the future of sustainable practices in the travel industry. Thornton and Ojiambo discussed […]

  • Hotels

Fusion launches GLOW Bangkok Riverside

Fusion Hotel Group has opened GLOW Bangkok Riverside, a new hotel overlooking the Thai capital’s Chaophraya River from the city’s Dusit district. The modern 5-storey property features 126 rooms and suites, ranging from the Superior Room at 19-22sqm to the 40sqm River Suite. All rooms have either king-sized or twin beds, and are tastefully decorated […]

  • Hotels

Nesuto Apartment Hotels launches summer secret offers

Nesuto Hotels and Apartments has launched its summer campaign with a 25 per cent off discount across its 13 neighbourhood properties across Australia and New Zealand. Nesuto’s “unveil summer’s best kept secrets” campaign offer is valid for bookings made from 1 November 2024 until 30 March 2025, for stays until 30 June 2025. In addition […]

  • Aviation
  • Travel Agents

ATAC’s signs exclusive deal with Helloworld’s Air Tickets for enhanced air consolidation services 

Australian Travel Agents Co-operative (ATAC) has appointed Helloworld Travel’s Air Tickets as its sole and exclusive air consolidator following comprehensive market assessment on best value for its members. ATAC chairman Jack Taylor said that the appointment, effective 1 January 2025, reflects the co-operative’s commitment to securing the best value for all members. “ATAC has ambitious […]