Speculation: Royal Caribbean may spin off a new cruise brand

[Jason]

Is Royal Caribbean mulling the launch of a new cruise brand? That's the word today from Wall Street analyst Robin Farley of UBS, who says the topic came up during a recent meeting with management.

In a note sent to the investment firm's clients, Farley says the parent company of Royal Caribbean and Celebrity Cruises is thinking about "possible uses for its older ships, which may include spinning them into (a) lower-priced brand to protect the pricing of existing brands that are at a premium to the smaller older ships."

Farley says the new brand likely would not be for the U.S. market but perhaps for Latin America or Asia.

Farley didn't say which ships in the Royal Caribbean and Celebrity Cruises fleet might be spun into a new brand, if any. The two lines have 21 and 11 ships, respectively. Royal Caribbean also owns upscale Azamara Club Cruises, which has two small ships, as well as four-ship Spanish line Pullmantur and one-ship French line CDF Croisieres de France.

The Royal Caribbean brand's oldest vessels are the 22-year-old Majesty of the Seas and the six Vision Class ships unveiled between 1995 and 1998. The Celebrity Cruises brand's oldest vessels are the 19-year-old Celebrity Century and the four Millennium Class ships unveiled between 2000 and 2002.

By Gene Sloan, USA Today

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[jacketwatch]

Seems like a good idea. If there is a market for this and there must be otherwise RCO would not be doing this I wonder if other cruise lines will jump in. CCL has so many lines but what about NCL? They are a stand alone line and are not bolstered by their cargo business line MSC. I do ownder how NCL as a stand alone stays in business sometimes.

[Swath]

Seems like a good idea. If there is a market for this and there must be otherwise RCO would not be doing this I wonder if other cruise lines will jump in. CCL has so many lines but what about NCL? They are a stand alone line and are not bolstered by their cargo business line MSC. I do ownder how NCL as a stand alone stays in business sometimes.

NCL is Owned by Genting Group 43.4% is a Malaysian Multinational having Gaming/Resorts Interests, Owner of Star Cruises in Asia as well as holdings in Power Gereration, And Apollo Global Management (AGM) Owns: Oceania Cruises (Oceania),Regent Seven Seas Cruises {Regent/RSSC}, Norwegian Cruise Line (NCL) 32.5%

AN Equity Firm Owns the Oth. 10.8% (NCL)

Edited February 16, 2014 by Swath

[DebbieandJerry]

I would LOVE this. I prefer the smaller ships and often wondered what would happen to them now that the mega-ship seems to be taking over the market.

Latin America would fit my bill, if the price was right. An Asian cruise would have to have incredible air opportunities.

[jacketwatch]

Same here. LA and Asia is on our wish list.

[WeCruiseToo]

I think a new line would be like their existing Spanish and French lines – not marketed in North America, food and entertainment geared to a local client base (Asia or Latin America), likely little or no English used on board. Someone from the US could go if they wanted to, but it would take a little effort.