China CruiseEvery day it seems that there is an article about another cruise line expanding into China.

The Wall Street Journal just reported that cruise lines are posting some of the strongest earnings in history with profits this year for Carnival more than quadrupling. Earnings at Norwegian grew 26% and Royal Caribbean earnings rose 20%. Much of these profits are coming from China. The cruise lines are all charging premium fares for the China market.

The cruises lines are all mercenaries, selling their cabins to the highest bidder. Why sail from New York or Miami if the Chinese will pay 50% more for the Quantum? These flags of convenience have no loyalty to the U.S.

MSC announced that the Lirica will home port in Shanghai from May 2016. Princess is already over there, of course. Royal Caribbean seems to be taking the lead in China. Next year the Ovation of the Seas will be joining the Quantum of the Seas in China. together with the Mariner of the Seas, Voyager of the Seas and Legend of the Seas.   

Carnival CEO Arnold Donald, whose cruise line is also making a play for China, and Adam Goldstein, COO at Royal Caribbean, are headlining the 10th China Cruise Shipping show in two weeks. 

All the cruise executives want to talk about is China.

China, China, China.

The China frenzy reminds me, in a way, of the Donald Trumph campaign.  He can’t say a sentence without mentioning China. 

And yes, the Chinese are pretty weird passengers, as you can read here and here.  

 

5 Responses to China, China, China.

How are companies trying to make a profit from a new and growing market ‘mercenaries’? A new area with an increasing amount of people with disposable income would seem like a good location to place some of your business.

Apple, Boeing, Ford, and numerous other USA based companies are making billions of $$ in China/Asia. Are they too wrong in their ‘loyalty’? If that is your logic, then all the ships sailing out of European ports are also being disloyal.

I was under the impression that the NA market (which is by far the largest cruise market in the world) was saturated, and with all the new builds coming online recently and in the future, diversification in other areas of the world is a necessity.

Why should a company like RCCL have loyalty to US? I assume you know that RCCL is founded by Norwegians? So, if any loyalty it should be to Norway……

But, also if they where a “US company”, do you think that an icon like GM feels loyalty to Detroit ? Or, is the loyalty to the share holders?

I think it’s funny that you consistently chastize the cruise industry for it’s lack of concern for US passengers and then complain when they move ships to Asia. Make up my mind, will you. Should they be loyal to the US or are they killing US passengers for money?

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