Posted September 21st, 2017, 12:09 PM
There has been a good deal of discussion during the past week as to whether Crystal under Edie was wise to have branched out into areas other than ocean cruising, while allowing the core product to atrophy. My own perspective is that this was a mistake, though BWI Vince made a compelling case that it might have been a good (or at least defensible) strategy. (I would like Vince as my attorney when I am next indicted.)
Mark Conroy, MD for the Americas at Silversea, recently had an open forum on the Silversea CC forum. A poster named Stumblefoot suggested that Silversea should branch out into areas other than ocean cruising and allow people to enjoy the Silversea experience in other ways. Here is his response:
Thank you for your question. Silversea is a cruise company first and foremost and will continue to look for ways in which to provide the best cruising experience for our guests. There are exciting enhancements which will be announced soon, but our focus is and continues to be on our cruises.
Thanks -- that's the nicest thing someone has said about me in a while.
It's funny that it was Silversea, because they are kind of the model for part of that strategy that Crystal mapped out. Silversea expanded into adjacent markets (like expedition cruising) to a] bulk up and increase efficiency they couldn't easily get in their saturated legacy market, b] mitigate risk from being too exposed in one segment, and c] pull adjacent market customers into their brand by tapping a new segment.
Unlike Genting's need for a luxury brand for their existing portfolio of products to expand "up" to, I think Silversea would need to fund a mate with these services like Crystal did before they leave the sea.