A&K aquire Crystal name and ships

[Silver Spectre]

 For a total of $128m, that’s the Symphony and Serenity. Good luck to you Manfredi.

Edited June 22, 2022 by Silver Spectre

[Stumblefoot]

1 hour ago, Silver Spectre said:

 For a total of $128m, that’s the Symphony and Serenity. Good luck to you Manfredi.

I wonder what the goodwill portion of that $128MM is?

[zqtchas]

50 minutes ago, Stumblefoot said:

I wonder what the goodwill portion of that $128MM is?

?

[Silver Spectre]

1 hour ago, Stumblefoot said:

I wonder what the goodwill portion of that $128MM is?

I would assume zero. I cannot believe there was any left.

[Randyk47]

1 hour ago, Stumblefoot said:

I wonder what the goodwill portion of that $128MM is?

I suppose if there was any “goodwill” gesture it would be to previous Crystal Cruise Line passengers who were left a bit high and dry by the bankruptcy.  It might be especially important if the “new” line resurrected the Crystal name.  Other than that there certainly isn’t a legal reason to extend that “olive branch”.  

[taxatty]

Here's an article on the acquisition:

https://thepointsguy.com/news/crystal-cruises-ships-bought-restart/

[cruiseej]

1 hour ago, Randyk47 said:

I suppose if there was any “goodwill” gesture it would be to previous Crystal Cruise Line passengers who were left a bit high and dry by the bankruptcy.

 

@Randyk47 "Goodwill" in accounting has nothing to do with a nice "gesture" towards someone; it's a way of putting a specific value on the name or brand or value of its customer base or quality of management. (Technically, it's the value of the business that exceeds its assets minus the liabilities.)

[Stumblefoot]

1 minute ago, cruiseej said:

 

@Randyk47 "Goodwill" in accounting has nothing to do with a nice "gesture" towards someone; it's a way of putting a specific value on the name or brand or value of its customer base or quality of management.

Exactly.

 

I bet the value will be set in the tens of millions of dollars for the purpose of a large future write off to avoid paying taxes somewhere.

[cruiseej]

It seems a little odd to re-launch the cruise line with only its two oldest ships. If Silversea does acquire the new expedition ship, as has been reported but not yet confirmed, it leaves the new Crystal starting out with a 28 year-old ship (Symphony) and a 20 year-old ship (Serenity). The competition — particularly Silversea, Seabourn and Regent — has many newer ships. And the river cruise ships — 4 out of 5 of which are less than 5  years old — seem like a valuable piece to one of the luxury cruise lines wanting to expand in that area. Aside from the metal, much of the Crystal staff has likely moved on with other cruise lines who have been struggling to staff up this year, so it's not as if the new Crystal will be able to magically pick up where the old company left off. It will be interesting to see how things develop.

[TLCOhio]

1 hour ago, cruiseej said:

It seems a little odd to re-launch the cruise line with only its two oldest ships. If Silversea does acquire the new expedition ship, as has been reported but not yet confirmed, it leaves the new Crystal starting out with a 28 year-old ship (Symphony) and a 20 year-old ship (Serenity). The competition — particularly Silversea, Seabourn and Regent — has many newer ships.

 

Great postings and updating.  Agree above as to the serious questions as to how exactly those two, older Crystal ships with many of the cabins being relatively small can compete and "make it" in today's changing world.  

 

What taxatty shared from The Points Guy story was very interesting.  Yes, the former Silversea founder/owner seems "all in" with this "new adventure".  How much is "ego" versus real Economics 101??   In this currently-challenged financial and consumer environment, it could be difficult to raise the tens of millions of dollars needed to restart/staff.  AND, how do you chart a course to regain consumer confidence that this effort will be "REAL" and successful?

 

Our second cruise was 2008 on the Crystal Symphony, going from Dover/UK to Russia and finishing in Stockholm.  Very good and exciting experience!!  But, for 2023 and 2024, I have certain questions and skepticism.  Am I being too negative and lacking trust?

 

THANKS!  Enjoy!  Terry in Ohio 

 

Norway Coast/Fjords/Arctic Circle cruise from Copenhagen, July 2010, to the top of Europe. Scenic visuals with key tips. Live/blog at 244,509 views.

www.boards.cruisecritic.com/showthread.php?t=1227923

[AtA]

44 minutes ago, TLCOhio said:

 

Great postings and updating.  Agree above as to the serious questions as to how exactly those two, older Crystal ships with many of the cabins being relatively small can compete and "make it" in today's changing world.  

 

What taxatty shared from The Points Guy story was very interesting.  Yes, the former Silversea founder/owner seems "all in" with this "new adventure".  How much is "ego" versus real Economics 101??   In this currently-challenged financial and consumer environment, it could be difficult to raise the tens of millions of dollars needed to restart/staff.  AND, how do you chart a course to regain consumer confidence that this effort will be "REAL" and successful?

 

Our second cruise was 2008 on the Crystal Symphony, going from Dover/UK to Russia and finishing in Stockholm.  Very good and exciting experience!!  But, for 2023 and 2024, I have certain questions and skepticism.  Am I being too negative and lacking trust?

 

THANKS!  Enjoy!  Terry in Ohio 

 

Norway Coast/Fjords/Arctic Circle cruise from Copenhagen, July 2010, to the top of Europe. Scenic visuals with key tips. Live/blog at 244,509 views.

www.boards.cruisecritic.com/showthread.php?t=1227923

No one was complaining about the cabins when the ships were running at capacity before covid. What they were talking about was the fabulous staff, the top notch food, the great lectures (3 a day on sea days), exceptional entertainment including from the show band, singers and dancers as well as the talent they brought on, the always can do attitude, excellent classes in everything from art, to computers, to knitting, to ballroom dancing, to golf lessons, and more. They were talking about the great specialty cruises such as big band, jazz cruises, golf cruises, food cruises, and broadway cruises. They were talking about the daily movies with popcorn in their own movie theater with comfortable seats. They were talking about all the wonderful spaces they could be in outside their cabins. They were out walking on the walking track on deck 7 or playing paddle ball. I could go on and on.

 

Frankly if they are able to bring back even half of what I mention, i think most of us previous Crystal cruisers will be very happy.

[frantic36]

1 hour ago, AtA said:

No one was complaining about the cabins when the ships were running at capacity before covid.

 

Not everyone agrees with this statement. I didn't enjoy my Crystal experience in 2012 but thought maybe it had improved but a friend sailed with them in 2019 and though they said food and service was good there was a lot they didn't enjoy including the small standard cabin size. They said they wouldn't go on Crystal Ocean again but they would go on Crystal River since they had enjoyed sailing with them.

[AtA]

11 minutes ago, frantic36 said:

 

Not everyone agrees with this statement. I didn't enjoy my Crystal experience in 2012 but thought maybe it had improved but a friend sailed with them in 2019 and though they said food and service was good there was a lot they didn't enjoy including the small standard cabin size. They said they wouldn't go on Crystal Ocean again but they would go on Crystal River since they had enjoyed sailing with them.

I mostly sailed in a PH which was the same pricing as a regular cabin on Regent and Seabourn. 

[frantic36]

1 minute ago, AtA said:

I mostly sailed in a PH which was the same pricing as a regular cabin on Regent and Seabourn. 

Not when I sailed with them and I don't think on my friend's either because the sail regularly on Seabourn and other luxury lines so they are price savvy.. 

 

I have always said the only way the cabins are comparable is if you sail Penthouse and above but the discussion is about the small standard cabins which most people would book.

[shrkdive1]

45 minutes ago, AtA said:

I mostly sailed in a PH which was the same pricing as a regular cabin on Regent and Seabourn. 

I am confident you won't be able to sail in a PH for the same price as a regular cabin on Regent and Seabourn on the future the new Crystal.

1. The new owner overpaid for the ships as compared to the appraisals

2. The old ships will require more maintenence as they age plus are going in to dry dock for a costly refurbishment

3. The new owner is going to have to make a profit unlike the old Crystal that was not profitable and ultimately could not pay their fuel bills.

[RachelG]

But the real and most important question for me is who will acquire Endeavor and maybe the River boats.  I have no interest at all in the traditional ships.  I will stick with Regent for that type of cruise.  But Endeavor would be a great acquisition for Silversea and would definitely be a ship I would sail on.

[Observer]

11 minutes ago, RachelG said:

  But Endeavor would be a great acquisition for Silversea and would definitely be a ship I would sail on.

 

I am 99% certain that Silversea has already purchased Endeavor.

[turtlemichael]

Clearly Manfredi has an excellent business and cruising brain. The fact that I can't see how this can be a profitable venture, at the same position in the market that Crystal previously held, probably means I don't have that brain!  However, I don't think the owners of Silversea, Seabourn and Regent, will be having too many sleepless nights just yet. Whatever happens it will be interesting to watch.

[Stumblefoot]

3 hours ago, Observer said:

I am 99% certain that Silversea has already purchased Endeavor.

Maybe so, but the sale has yet to be officially announced and confirmed.

[TLCOhio]

On 6/22/2022 at 4:15 PM, AtA said:

No one was complaining about the cabins when the ships were running at capacity before covid. What they were talking about was the fabulous staff, the top notch food, the great lectures (3 a day on sea days), exceptional entertainment including from the show band, singers and dancers as well as the talent they brought on, the always can do attitude, excellent classes in everything from art, to computers, to knitting, to ballroom dancing, to golf lessons, and more. They were talking about the great specialty cruises such as big band, jazz cruises, golf cruises, food cruises, and broadway cruises. They were talking about the daily movies with popcorn in their own movie theater with comfortable seats. They were talking about all the wonderful spaces they could be in outside their cabins. They were out walking on the walking track on deck 7 or playing paddle ball. I could go on and on.  Frankly if they are able to bring back even half of what I mention, i think most of us previous Crystal cruisers will be very happy.

 

YES!!  Appreciate many of these excellent positives cited above from when we did our 11-day 2008 sailing on Crystal's Symphony.  

 

But, that was then and we are now looking at this line's re-booting in 2023. Maybe?  As I recall in recent years as ownership and management shifted from the original, proven Japan ownership/connection/deep pockets, Crystal's operations and quality had slid in certain areas downhill based on feedback I received from of their recent travelers.  AND, the company was losing lots of money in recent years, right? 

 

How does the "new" Crystal get the needed cash, top crew members, big enough customer numbers, etc., back.  And make previous and new travelers happy and trusting?  And, be profitable with a real, viable business plan?  As an example, these two older ships are not that large, nor that small.  How will they go to smaller, more unique ports that we love with Silversea and still make the overall financial numbers work??  

 

What will be the target market and "unique selling proposition" that sets Crystal off from other competitors such as Regent, Silversea, Seabourn, etc.?  AND, do it all in a cruising environment that is still challenged by higher fuel costs, staffing challenges, rising food costs, soaring interest rates, inflation, etc.?

 

From the business publication Forbes two days ago, they had this headline: “A&K Purchase Of Crystal Cruises Receives Applause From Travel Industry” with these highlights: “The third time was the charm. After at least two previous attempts to buy Crystal Cruises, Manfredi Lefebvre d'Ovidio (Forbes Billionaires, #1,929, $1.3b) has bought the bankrupt line's brand and two ocean vessels, Crystal Serenity and Crystal Symphony. It marks his third venture on the high seas.  This time, Lefebvre will be able to combine ocean-going luxury with Abercrombie & Kent, the white-shoe travel company he bought in 2019 and is best known for its silver spoon safaris and private jet tours led by its James Bond-like founder Geoffrey Kent.  Mary Jean Tully, a top seller of luxury cruises, says, 'Manfredi is smart…I am sure he will hire the Crystal’s (onboard) crew back. That is what made the company so successful all these years.'  She notes the deal does not cover Crystal's debts, including as much as $100 million in deposits for future cruises that were canceled when the line shuttered. 'Many clients were burned by the demise of Crystal,' Tully adds.”

 

Clearly Manfredi is not legally stuck with those past debt obligations, but there are many customers who will not quickly forgive and/or forget getting burned big-time in that manner. How will such confidence be restored? Many past Crystal lovers will book regardless, but what about others?  Financial "math" is real and not easily ignored by emotional memories.  Right or wrong?

 

Full story at:

https://www.forbes.com/sites/douggollan/2022/06/22/ak-purchase-of-crystal-cruises-receives-applause-from-travel-industry/?sh=3fac00584c98

 

THANKS!  Enjoy!  Terry in Ohio   

 

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www.boards.cruisecritic.com/showthread.php?t=1974139

[Randyk47]

I don’t think Manfredi will have any issues getting suppliers to sign up with the “new” Crystal.   He is well known and I assume he is well trusted from his previous cruise business.  It might come up in negotiations but I doubt it will anything but an aside.   It’s all about business and if they want to work with a trusted person and company they will.   

[rkacruiser]

6 hours ago, TLCOhio said:

 Mary Jean Tully, a top seller of luxury cruises, says, 'Manfredi is smart…I am sure he will hire the Crystal’s (onboard) crew back. That is what made the company so successful all these years.'

 

However, reports are starting to appear that Regent is having difficulty in providing the same level of passenger service at times due to a shortage of personnel.  One couple, booked on a Regent cruise whose accommodation's amenities includes the service of a Butler were informed that a Butler could not be provided.  They were offered a $1000 OBC instead.  

[Randyk47]

3 hours ago, rkacruiser said:

 

However, reports are starting to appear that Regent is having difficulty in providing the same level of passenger service at times due to a shortage of personnel.  One couple, booked on a Regent cruise whose accommodation's amenities includes the service of a Butler were informed that a Butler could not be provided.  They were offered a $1000 OBC instead.  

And Cunard has cancelled booked reservations for some passengers for near future cruises because of lack of staff.    As I recall they said they were having trouble recruiting and also trouble arranging flights for hired staff to catch up with their ships.  
 

[TLCOhio]

12 hours ago, Randyk47 said:

And Cunard has cancelled booked reservations for some passengers for near future cruises because of lack of staff.    As I recall they said they were having trouble recruiting and also trouble arranging flights for hired staff to catch up with their ships.  

 

Agree with Randy and our SW Ohio neighbor that staffing challenges are real.  This includes for the cruise industry as cited and detailed above.  

 

As we see here in Central Ohio and experienced in early May during our week with the grandchildren and family at Disney World-Universal Studios, doing full staffing is very, very difficult.  

 

As a personnel expert explain to me this past week, the demographic size of the current 20-40 age generation is smaller than previous groups.  Those younger generations are also more "picky" as to what type of work they want to do.  Or, not!!  Employers are still facing serious challenges attracting, motivating and keeping quality, hard-working people.  

 

Cruise lines face these same difficulties.  For Manfredi, even with ALL of his money, contacts and reputation, cannot get around this looming "reality" facing the employment world.  The two-year-plus Covid shut-down has changed many aspects of our society and how folks want to work.  Or, not!!

 

THANKS!  Enjoy!  Terry in Ohio   

 

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[rkacruiser]

7 hours ago, TLCOhio said:

The two-year-plus Covid shut-down has changed many aspects of our society and how folks want to work.

 

When I look at my own societal experiences since March, 2020, it's a bit shocking as to the changes that have taken place.  And, these changes are not positive.