Travel agents who specialize in luxury cruises say the Silversea-Royal Caribbean deal could be beneficial for the industry and for retailers.
Royal Caribbean Cruises Ltd. (RCCL) is acquiring a 66.7 percent stake in Silversea Cruises for $1 billion, it was announced on June 14. The deal is expected to close later this year.
Ruth Turpin, owner of Cruises Etc., in Fort Worth, Texas, said the news first struck her as "shocking," but that she has faith in Mark Conroy, managing director-the Americas for Silversea Cruises.
"It was rather shocking but, with the understanding the sales team led by the great Mark Conroy will stay in place, this will be a good move for Silversea," she said. "They will have the combined buying power that RCCL has now and it should make Silversea a stronger cruise line with more financial stability behind it to grow and improve. On the RCCL side, it will give them a true luxury product as part of their combined companies. I see it much like the NCL, Oceania, Regent organization."
Steven E. Shulem, owner of Strictly Vacations in Santa Barbara, Calif., said he is "super excited" about the deal, and especially what it brings to Silversea. "Those ships are sorely in need of a refurb," he said. "If this is what it takes to get them up to a five-star level, then I am happy!"
In fact, the Silversea fleet is already engaged in a refurbishment program, CEO Roberto Martinoli told TravelPulse in a one-on-one phone interview. The Silver Spirit was recently stretched and refurbished, while the Silver Whisper, Wind and Shadow are scheduled for work later this year. Some work has already been completed on the Whisper and Wind.
"We already did quite a bit in operation on both ships' public spaces," he said. "You can really tell the difference. Passenger reaction is going up consistently, and you can read that in passenger comment cards. We are looking forward to continue the refurbishment program and completing it soon."
However, he acknowledged that more resources will be made available by the Royal Caribbean investment, both on the traditional luxury ship and the luxury expedition fleet.
"Certainly, we're going to be partnering with an entity that will give us much easier and cheaper access to financing," Martinoli said, while noting that Silversea has a "pretty aggressive expansion plan already in place."
The Silver Cloud was converted into an expedition vessel and is "very successful," Martinoli said. It is likely sister ship Silver Wind will undergo a similar conversion for polar cruising. "In the long term, we are seriously looking into expedition newbuilds of different sizes," he said. "There's more to come on that."
On the traditional luxury side, Silversea has two Silver Muse sister ships on order for delivery in 2020 and 2021 as well as an option for a third for completion in 2023.
Martinoli emphasized that Silversea will remain "an independent entity." Executive Chairman Manfredi Lefebvre will continue in that role long-term. "I will remain CEO, and the management team is confirmed," Martinoli said. "We'll continue business as usual with no change in the way we do business, although we will profit off synergies and ideas that can only improve our guests' experiences."
Martinoli said Silversea's field sales team will most likely remain in place. "I don't see any change at all," he said. "I'm very happy what we're doing with the people we have. We can be more efficient and tap into new opportunities, but I wouldn't expect our field sales force would change at all."
He did say, however, that Silversea would likely tap into RCL sales resources in parts of the world it has no representation.
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