RCCL Moves Forward on Chinese Cruise Line

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The rush to get in on the ground floor of China’s cruise market continues, with Royal Caribbean Cruises Ltd. announcing plans to start a Chinese cruise line in a joint venture with Ctrip.com International Ltd., a leading Shanghai-based travel seller.

Royal Caribbean and Ctrip will each own 35 percent of the new company, called SkySea Cruises. The balance will be owned by SkySea management and a private equity fund. The transaction is expected to close by the end of November.

“We look forward to working with Ctrip, a Chinese travel leader, to build a national cruise line for China,” said RCCL Chairman and CEO Richard D. Fain. “SkySea Cruises represents an important strategic milestone in our expansion efforts in the Chinese market.”

A RCCL press release says the new cruise line could begin operations in 2015 and that sales and marketing activities have already started. More vessels could be added over time.

RCCL’s news came the same day that rival Carnival Corp. announced a memorandum of understanding with Italian shipbuilder Fincantieri that could lead to building cruise ships at China’s largest shipyard, China State Shipbuilding Corp. (CSSC). Carnival and CSSC last month signed a memorandum to explore a partnership with Fincantieri.

RCCL in September revealed plans to sell the Celebrity Century to Ctrip and hinted then that the relationship could be broadened. The ship will leave the Celebrity fleet in April.

RCCL clearly is committed to growing in China. Royal Caribbean International’s brand-new ship, the 4,180-passenger, 167,800-ton Quantum of the Seas, is moving to Shanghai in April.

For its part, Carnival Corp. plans to deploy one Princess and three Costa ships in Shanghai in 2015, increasing its capacity in China by 140 percent from 2013.

Ctrip sells accommodations, transportation tickets, packaged tours, and corporate travel management in China through mobile apps, websites and a centralized, toll-free, 24-hour customer service center.

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