Princess Makes Play for Asia Cruise Market

Carnival Corp. announced the latest move in its aggressive development of the fast-growth Asia market – the expansion by Princess Cruises into China.

Beginning in May 2014, Princess will homeport its 2,670-passenger Sapphire Princess in Shanghai for four months of the year. Princess said it expects to carry 70,000 passengers on three- to seven-day sailings.

The Sapphire Princess will operate four different itineraries. The seven-day sailing will visit the Korean capital of Seoul, as well as the beach resort of Busan and finishing at the island of Jeju.

Princess cited China’s “burgeoning economy and increasingly discerning travelers” in the decision to enter the Shanghai market.

“We think the time is right for a premium cruise experience that offers a new type of vacation experience for the Chinese consumer, sailing from China,” Alan Buckelew, Princess Cruises president and CEO, said.

Keen focus on Asia
The Princess deployments in China are the latest indicator of Carnival Corp.’s keen focus on the Asia market, particularly China.

The cruise giant has opened offices in Beijing, Tianjin, Shanghai, Guangzhou, and Chengdu. A regional office in Singapore is home to the Carnival Asia unit, which oversees the company’s Asia program.

Other Carnival Corp. forays into Asia include the deployment this year of two Costa ships in China – the Costa Atlantica and the Costa Victoria.

Japan is also part of the company’s growth plans. Princess Cruises already has a ship that sails out of Japan, and the line is redoing the Sun Princess for the Japan market, with plans to launch there in 2014.

‘Significant potential’
In its most recent annual report, Carnival Corp. made clear that it has high hopes for Asia. “We believe the growing prosperity and size of the Asian vacation market provides significant potential for future growth,” the report said.

The report noted that the mega-cruise company’s rate of growth was slowing in North America and Western Europe. “[W]e believe that we have significant opportunities to grow our presence in the emerging Asian cruise region and will continue to redeploy some of our existing ships to that region,” the report said.

Royal Caribbean
Carnival Corp. isn’t the only U.S. cruise line with its eye on Asia. Royal Caribbean currently has two ships serving the Chinese market – the Voyager of the Seas and the Legend of the Seas. Both ships sail out of Shanghai.

Like other cruise lines in the Asia market, Royal Caribbean has tailored its onboard products and services to meet the needs and expectations of locally-sourced passengers, including by serving authentic Chinese cuisine and providing what it calls “culturally appropriate” recreational activities.

Industry consultant Rod McLeod has predicted that within a few years U.S. cruise lines will build new ships specifically geared for an international market, particularly China.
 
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