Carnival Corp going to China? Maybe!

[loubetti]

No, you will not see Vista or Breeze there, but all-new ships geared to the Asian market. Perhaps think of a casino deck on board! This would be a new brand for them.

 

http://www.cruiseindustrynews.com/cruise-news/11743-carnival-corp-looking-to-start-entry-level-chinese-cruise-line.html

[Surfwench]

Huge new emerging market. Smart to take advantage. You are right about the casino deck.... Asians LOVE gambling, (don't flame, my background is asian).

 

Don't be too certain the Vista or Breeeze won't go east.... Asians are very status conscious and the Fantasy class rust buckets, (I say that with a lot of affection), would not be well received.

Edited October 26, 2014 by Surfwench

[chengkp75]

Huge new emerging market. Smart to take advantage. You are right about the casino deck.... Asians LOVE gambling, (don't flame, my background is asian).

 

Don't be too certain the Vista or Breeeze won't go east.... Asians are very status conscious and the Fantasy class rust buckets, (I say that with a lot of affection), would not be well received.

 

I don't think you'll see either. What is happening, is that China is looking to support their cabotage fleet, and for cruises that only go to Chinese ports, there would have to be Chinese built, Chinese crewed, and Chinese flag ships. Sound like the PVSA, anyone?

[bury me at sea]

Some time maybe last spring did you post pics of cruise ships during storms? I remember one taken of the rear that I associate with your user name.

 

If wrong I apologize. If it was yours would you post it again?

[winddawn]

No, you will not see Vista or Breeze there, but all-new ships geared to the Asian market. Perhaps think of a casino deck on board! This would be a new brand for them.

 

http://www.cruiseindustrynews.com/cruise-news/11743-carnival-corp-looking-to-start-entry-level-chinese-cruise-line.html

Carnival Corporation has been putting out press releases about the Asian expansion for several months. With the middle class disappearing in the U.S., China's emerging middle class is where the money is. From a shareholder perspective, this is good news. From a North American cruiser's perspective, I don't see it as good news.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-newsUSCCL&nyo=0

 

Thanks for sharing, Lou.

[chengkp75]

Carnival Corporation has been putting out press releases about the Asian expansion for several months. With the middle class disappearing in the U.S., China's emerging middle class is where the money is. From a shareholder perspective, this is good news. From a North American cruiser's perspective, I don't see it as good news.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-newsUSCCL&nyo=0

 

Thanks for sharing, Lou.

 

It may or may not be a long term shareholder benefit, depending on the performance of Chinese flag cruise ships, and possible liability problems.

[EZ4]

Princess is already heavily invested in the Asian market, particularly in Japan.

 

http://www.princess.com/news/press_releases/2013/01/Japan-Cruise-Program-2014.html#.VE2BKfnF-2U

[andy.capitan]

Costa has several ships in the Asian market and may add more.

 

Any new joint venture will have the backing of the Chinese government and I think they might indemnify or at least reduce any liability on the part of Carnival. I also expect Carnival to provide considerable oversight of any new builds.

[chengkp75]

Costa has several ships in the Asian market and may add more.

 

Any new joint venture will have the backing of the Chinese government and I think they might indemnify or at least reduce any liability on the part of Carnival. I also expect Carnival to provide considerable oversight of any new builds.

 

Been through this with you before, and you have way too much faith in the Chinese government. You also have too much faith in "Carnival's oversight", but the major problem will be operational costs from poor quality equipment installed at newbuild, and the premature retirement of the ships due to poor quality steel and welds. That's provided that the Chinese class society actually inspects the ships after newbuild.

 

Both Costa and Princess are using foreign ships, and are cruising to foreign ports, not remaining entirely within Chinese ports. It wouldn't surprise me that the Chinese government has travel restrictions on their citizens and are doing this to allow vacations that don't leave areas of their control.

[andy.capitan]

Been through this with you before, and you have way too much faith in the Chinese government. You also have too much faith in "Carnival's oversight", but the major problem will be operational costs from poor quality equipment installed at newbuild, and the premature retirement of the ships due to poor quality steel and welds. That's provided that the Chinese class society actually inspects the ships after newbuild.

 

Both Costa and Princess are using foreign ships, and are cruising to foreign ports, not remaining entirely within Chinese ports. It wouldn't surprise me that the Chinese government has travel restrictions on their citizens and are doing this to allow vacations that don't leave areas of their control.

 

I know China has put Boeing (777) and other corporations through the wringer if they wanted to sell product in China. It often isn't an option to not let them participate.

 

If Carnival can't handle the oversight, perhaps they will bring in a contractor. :rolleyes:

[chengkp75]

I know China has put Boeing (777) and other corporations through the wringer if they wanted to sell product in China. It often isn't an option to not let them participate.

 

If Carnival can't handle the oversight, perhaps they will bring in a contractor. :rolleyes:

 

It's not really a case of who is doing the oversight. If the class society says the construction meets their rules, then that's how it will be built. Anything extra that the shipowner wants would be a "change order" and extra cost and time. Particularly until the ship is delivered to the owner, the shipyard owns it, and deals directly with the class society.

[loubetti]

Huge new emerging market. Smart to take advantage. You are right about the casino deck.... Asians LOVE gambling, (don't flame, my background is asian).

 

Don't be too certain the Vista or Breeeze won't go east.... Asians are very status conscious and the Fantasy class rust buckets, (I say that with a lot of affection), would not be well received.

 

 

Thank you for mostly agreeing with me, but I expect that these will be new Chinese built ships at a lower cost. It's going to be (if it happens) a new name brand with new ships. China is the future, might as well go for it. They'll have them built in China.

[loubetti]

Carnival Corporation has been putting out press releases about the Asian expansion for several months. With the middle class disappearing in the U.S., China's emerging middle class is where the money is. From a shareholder perspective, this is good news. From a North American cruiser's perspective, I don't see it as good news.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-newsUSCCL&nyo=0

 

Thanks for sharing, Lou.

 

I just find the news and share it, but thanks. :)

 

Otherwise I don't really think it is bad news from a North American cruiser's perspective either, as it appears that these will be new ships, built in China, and under a different name brand. It appears that they may not send current ships over there. If they do it right, they will do it right from the start.

 

For now, don't anyone hold their breath! Wait and see.

[BruceMuzz]

The one bright spot - so far - in Chinese cruising has been Star Cruises. This is a Malaysian company owned by ethnic Chinese Malaysians.

Almost all of their clientele is Chinese.

All their food, entertainment, and other activities are Chinese-focused.

 

They have been able to develop incredible conections with the Chinese, Taiwanese, and Japanese Governments. They have also been able to resolve all cabotage and other local challenges throughout Asia; Viet Nam, Cambodia, Singapore, Indonesia, Malaysia, Hong Kong, Burma.

 

Their ships rely heavily on Chinese gambling.

Carnival has been trying for years to form partnerships with Star Cruises.

Eventually they will manage to do it.

Chinese citizens no longer have any problems getting passports to leave China, and they are no longer required to leave huge cash deposits to depart China.

With the exception of North America, Chinese citizens have little problem getting visas to visit other countries in Asia and Europe.

 

A typical Star Cruise ship casino (alone) earns more money in one week than a western cruise ship earns (in all departments) in 3 months.

 

Cruise lines ALWAYS follow the money. You can bet that Carnival and the other big companies are very anxious to move to China.

[MrBanana1240]

I was just in China in July. I totally support a new cruise brand. Very excited for future news!!!!

[Gailerina]

hmmmmmm they should have fun dealing with the Chinese government. Was working on a project for a class this semester and was researching China and yeah...good luck Carnival.

[andy.capitan]

It's not really a case of who is doing the oversight. If the class society says the construction meets their rules, then that's how it will be built. Anything extra that the shipowner wants would be a "change order" and extra cost and time. Particularly until the ship is delivered to the owner, the shipyard owns it, and deals directly with the class society.

 

If it happens, worst case is it will be ships built by Chinese for Chinese.

 

A huge problem with companies, especially American, is to nail the requirements to start. Failure to do so, or changing your mind later, should result in a change order and cost adjustment. The rest of the world understands that. The customer is not always right.