New ship has been ordered for HAL

[Krazy Kruizers]

Carnival just announced the first new ship in five years for HAL
http://phx.corporate-ir.net/phoenix....623&highlight=

Part of the announcement follows:
MIAMI, Oct. 26, 2012 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced it has reached an agreement for the construction of two new cruise ships – a 99,000-ton ship for its Holland America Line brand and a 135,000-ton vessel for its Carnival Cruise Lines brand.

A memorandum of agreement has been signed with Italian shipbuilder Fincantieri for the construction of a 2,660-passenger ship for Holland America Line scheduled for delivery in fall 2015 and a 4,000-passenger ship for Carnival Cruise Lines scheduled for delivery in winter 2016. The total cost for the two vessels combined, which includes the U.S. dollar denominated contract price and all owner's costs, will be approximately $195,000 per lower berth. The memorandum of agreement is subject to customary closing conditions, including execution of shipbuilding contracts and financing.

The Holland America ship, which will be a new class of vessel for the line, will enter service five years after the last Holland America ship, the ms Nieuw Amsterdam, delivered in 2010. The Carnival Cruise Lines vessel, also a new class of ship, will be launched four years after the introduction of Carnival Breeze, which debuted in spring 2012. The timing of capacity additions for these brands is similar to the five year span between upcoming new ship introductions for both Princess Cruises and P&O Cruises (UK), as previously announced.

 

[Cruizer]

I don't think a 99K ton ship is a good fit for HAL. HAL is known for its smaller more traditional ships. Also, the space ratio will be the smallest in the fleet.

Carnival Corporation owns Carnival, Princess, HAL, Cunard, Seabourn, a few other cruise lines and probably a few Congressmen and Senators. At any rate, the idea is, someone starts out on Carnival, moves up to Princess, moves up to HAL, and if rich enough, continues moving up to Cunard and Seabourn. This new ship, at 99K tons and 2660 passengers would be right at home with a whale tail.

Fairly close in size is the Carnival Destiny at 101K tons and 2642 passengers. This gives a passenger space ratio of 38. This new ship is smaller (by 2K tons) and has 18 more lower berths, giving a passenger space ratio of 37.

HAL's current newest ship, the Eurodam, is 86.7K tons and 2104 lower berths, yielding a passenger space ratio of 41. According to the information provided, Carnival is paying $195K per lower berth (and I thought my bed was expensive). If Carnival were to put in "only" 1150 cabins (2300 lower berths) the passenger space ratio would be 43, putting it right between Westerndam (passenger space ratio of 42) and the Rotterdam (passenger space ratio of 44).

It would also save Carnival $70.2 million (2660 - 2300 = 360 berths saved x $195K per berth = $70.2 million). Just think how many more Congressmen and Senators $70.2 million would buy.

Meanwhile the Carnival ship has a passenger space ratio of 34, putting it in the same league as the Fantasy class ships, which currently have the smallest passenger space ratio of the Carnival ships (also 34). For comparison, the Conquest class is 38 and the Spirit class is 41.

 

[Krazy Kruizers]

Talking with a hotel director (now their name) one time, we were told that the small have been losing money -- espeically on longer cruises where the people tend to spend less money. The larger ships doing 7 day cruises are making money as people figure they are only on a cruise for 7 days and spend the money.

That is why I could never figure out why HAL has made their Caribbean season shorter and shorter each year and send ships to the MED and now are losing money over there because they can't fill the ships. One cruise this summer on the Nieuw Amsterdam had about 200 cabins empty. And many of the cruises had to drastically reduce prices.

 

[Krazy Kruizers]

I assume that you are aware that the Statendam and Veendam have been having many air conditioning and plumbing problems. Those ships were in good condition until HAL decided to add more cabins putting a strain on the AC and plumbing.

 

[Cruizer]

Problems like are not limited to HAL. Royal Caribbean stretched the Enchantment. However, not all the public places were enlarged. As a result, getting a seat for the production shows can be a bit difficult.