by Ana Figueroa
Last updated: 11:40 AM ET, Thu June 14, 2018
It's a match made in heaven, to be played out on the high seas. That's the gist of this morning's press conference call by executives from Royal Caribbean Cruises Ltd. (RCL) and Silversea.
The call added some color to this morning's announcement that RCL will purchase a 66.7% stake in privately-owned Silversea for about $1 billion.
RCL Chairman and CEO Richard Fain had a simple explanation for the move.
"Ultra-luxury and expedition are gaps in our portfolio today," he said. "Both are vacation products used by our higher-yielding guests. We're now able to offer a complete spectrum of vacation options."
He also had words of praise for Manfredi Lefebvre, Silversea's executive chairman. The two have known each other for years.
"Silversea is a private company, founded by his father. Manfredi has taken it to such a leadership position," Fain said. "His vision in the potential of luxury and expedition cruises has really defined that entire industry."
For his part, Lefebrvre said that it was a "very proud and happy day" for Silversea.
"It was no small decision," Lefebrve said. "To operate in the luxury space is to know how luxury is evolving. It's not about buying a new watch. It's about living the experience of a lifetime with your family."
He added, "I was not thinking about partnering with anybody. But I did realize that myself and Richard share a vision about the future of luxury. Only Royal shares our passion for innovation. I think the future of this partnership is very exciting."
Silversea brings to the table a very strong brand, an existing fleet of nine ships (with two on order) and a very experienced and successful marketing team, Fain noted.
But, the new deal brings opportunities for long-term capacity growth on a much larger scale than what Silversea envisioned on its own. It also brings synergies in areas ranging from marine operations to safety and security. The RCL global sales and marketing network will help Silversea expand its footprint.
Fain also stressed the importance of travel agents.
"One other synergy is with our travel agent partners," he said. "There's a dual benefit. We have a particularly strong relationship with our network of travel agent partners and work hard to earn their trust and support. We're certain they will now help raise awareness for Silversea. Our travel agents will now have an offering previously missing from our group."
As for overlap with RCL's other brands, he noted that Celebrity Edge offers a great experience for large groups and multi-generational families. And, Azamara has established itself with a strong destination focus.
"People understand the personality of different brands," Fain said. "Our objective is to be the best player in each market segment and that's working out very well for us. This adds the one segment that we hadn't been a material player in."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
