Arne Wilhelmsen's impact on the origins of Royal Caribbean

In:
14 Apr 2020
By: 
Matt Hochberg

Over the weekend, Arne Wilhelmsen passed away, a key founder of Royal Caribbean. His passing reminds us of his contributions to the cruise line that millions have enjoyed ever since.  

Arne grew up as the son of Anders Arnt Wilhelmsen, who was one of Norway's preeminent maritime leaders, and owner of Anders Wilhelmsen & Company.

Along with Arne's brother, Gjert, became a partner in his father's firm.  Arne was a graduate of Harvard Business School and had a solid grounding in New York shipping.

During Arne's tenure in the United States, he recognized new trends in American lifestyles, which became an important factor when his father was approached about a partnership to build two cruise vessels for the Caribbean.

Before a final decision could be made, Arne joined others in this proposed new partnership on a trip to Miami and met with retired Admiral and Miami port director Irwin Stephens.  The group discussed plans that would ultimately create the world's largest passenger port.

Fast-forward to April 1969, when the keel for Royal Caribbean's first ship, Song of Norway, was laid and eight months after that, the hull was launched. The launch marked an inexorable Miami countdown; delivery was less than a year away and the public had no idea that a new cruise line with a new kind of ship was coming.

The man to decide the marketing of Royal Caribbean fell to Arne Wilhelmsen.  He had many concerns, such as what customer groups should be targeted? What prices should be charged? How would travel agents best be enrolled? Which areas of the United States should be most assiduously cultivated?

Wilhelmsen urged an optimal price-payload balance even if ticket prices prevented the vessel from always sailing at full capacity. Pricing and product should match consistently, with only seasonal fluctuations taken into account.

Wilhelmsen, along with other executives, began their marketing campaign in person.  There were cocktail meetings, promotional film screenings, and persuasive sales talks.  Wilhelmsen also called on travel editors to help curate the Royal Caribbean message.

The launch of Song of Norway started off quite well. The first six cruises were kept purposefully below capacity to fine-tune hotel operations. But starting with the seventh, capacity shiploads were the norm. So insatiable was the demand that officers, compensated accordingly, often relinquished their cabins to passengers.

The fledgling cruise line enjoyed an incredible public response; positive word of mouth spread like wildfire. Advertising was unnecessary. Song of Norway's high degree of passenger satisfaction did the rest.

Over that first year, Song of Norway excelled, an incomparable debut. The company, its inspired first vessel and a cruising legend were off and running.

Royal Caribbean has come a long way since the debut of Song of Norway, and its success today can be traced back to the work of men like Wilhelmsen and the other families that worked to make a Caribbean cruise line into a reality.

Who owns Royal Caribbean?

In:
13 Apr 2020
By: 
Matt Hochberg

This blog is dedicated to Royal Caribbean International cruise line, but did you know that they are owned by another company and are among a few different cruise lines operated by an umbrella corporation?

Royal Caribbean International is owned by Royal Caribbean Group (formerly known as Royal Caribbean Cruises Ltd).

Royal Caribbean Group logo

It can be confusing to make the distinction between Royal Caribbean International (RCI) and Royal Caribbean Group (RCG) because the names are very similar, and decades ago, Royal Caribbean International used to be known as Royal Caribbean Cruise Line, which means the acronyms are even confusing at times.

Royal Caribbean Group is the full or partial owner of a few different cruise lines:

  • Royal Caribbean International
  • Celebrity Cruises
  • Silversea
  • TUI Cruises (50% stake)

There are many people that make up the executives in Royal Caribbean Cruises Ltd, but Richard Fain is the most visible member, acting as the Chairman and CEO of Royal Caribbean Group.

Michael Bayley is the President and CEO of Royal Caribbean International, and manages the cruise line operations.

The lines between the cruise line and the parent company can be confusing at times, as policies, news and announcements come from both companies.

A Brief History of Royal Caribbean

The full history of Royal Caribbean is too long to compile, but here is a breakdown of how Royal Caribbean Cruise Line went from a cruise line to a parent company.

In 1968, Royal Caribbean International was founded, with Song of Norway launching as the industry's first ship built for warm-weather cruising.

In 1997, Royal Caribbean Cruise Line purchased Celebrity Cruises. The decision was made to keep the two cruise line brands separate following the merger; as a result Royal Caribbean Cruise Line was re-branded Royal Caribbean International and Royal Caribbean Cruises Ltd. was established as the new parent company of both Royal Caribbean International and Celebrity Cruises.

In November 2006, Royal Caribbean Cruises purchased Pullmantur Cruises based in Madrid, Spain.

Azamara Club Cruises was created in May 2007 as a subsidiary of Celebrity Cruises.

Royal Caribbean also has an interest in TUI Cruises, which began operations in 2009 aimed at a German-speaking market.

In July 2018, Royal Caribbean Cruises Ltd. completed the purchase of over 66.6% of shares of Silversea Cruises.

Royal Caribbean Cruises Chairman quotes Winston Churchill in latest update on state of cruising during coronavirus crisis

In:
13 Apr 2020
By: 
Matt Hochberg

Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain shared a new update on Monday, providing a look at the current state of cruising during the COVID-19 pandemic, as well as providing an outlook.

The new video was taken at his home (and filmed by his wife). Mr. Fain drew a parallel to World War 2 when British Prime Minister Winston Churchill seized an opportunity of a British victory on land to provide hope to his people. 

"This was the first ray of hope in a long time, and Winston Churchill said the following to the British people in a radio address. He said, 'Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.'"

"I think our situation today is similar. Think back a few weeks, and remember it's only been a few weeks, to when this all began. Who understood the true significance of what we were facing? Who realized that it would impact each of us so dramatically? Who fathomed the level of pain, and frustration it would cause."

"But today, we're past that first crazy scramble. Guests have returned home, crews are being cared for, the pause in sailings is underway, and the rush of cancellation has eased up, at least a little, aided with our Cruise with Confidence program."

Mr. Fain spoke to the frustrations and financial turmoil both Royal Caribbean and travel advisors are facing during this downturn.  

"Our economic picture is tough. No revenue is coming in, zero. And our expenses continue, and I know each of you, like us, are having to make decisions that bring tears to your eyes."

"Realistically, we in the travel and tourism business, will probably be at the tail end of the recovery."

In addition, Royal Caribbean is now focused on making very certain that when cruises do resume, they are ready not only to welcome guests back onboard, but to ensure they are healthy.

"Our people are using this time to adjust our protocols, to prepare for a public that's much more focus on health and safety than ever before. We're working with the CDC and others to make sure that we're taking advantage of all the new knowledge, the new technology, and the new procedures to ensure that our cleanliness and our health efforts are at the very highest level."

"We will take the steps that we need to take to allow you to sail confidently."

Like in his other videos, Mr. Fain was frank and direct with his view of how things are progressing, and where they will go.

"Now, we need to think about the future. Travel and tourism are, and will be, one of the most important areas globally. It's true not only in economic terms, but also for the benefit of society as a whole. The world needs to break down the barriers that isolate us; the world needs to understand each other; and people need to share experiences. This is what we all do, and we do it damn well."

In conclusion, Mr. Fain offered a positive outlook for all concerned about when cruising might resume.

"Just over a month ago, I said that this would be over sooner than we think. I didn't put a date on it, and I still can't, but I stand by my statement."

"The cruise industry has only been shut for about a month. It may seem like forever, but it really has been only a month. The slow return will also seem like forever, but it too is coming. And when it does, we need to be prepared for it.

Mr. Fain has been producing videos on a near-weekly basis, and you can check out each of his powerful and insightful takes on the situation:

Recipe: Kahlua Crème Brûlée from Royal Caribbean's main dining room

In:
13 Apr 2020
By: 
Matt Hochberg

If you are like me, being stuck at home means you might be eating a little bit more than usual (no judgement), so if you are going to indulge, why not go all out?

There are many dishes that have become Royal Caribbean main dining room classics, and that includes creme brulee.

The combination of a rich custard base topped with a texturally contrasting layer of hardened caramelized sugar is a big hit with many, and here is how you can make the same exact dessert at home!

Crème Brûlée Ingredients

Crème Brûlée

  • 2 cups heavy cream
  • 4 egg yolks
  • 1/2 cup sugar
  • 1 shot Kahlua

Garnish

  • Brown sugar
  • Fresh berries
  • Mint leaves

Suggested music while preparing Crème Brûlée

  • Matt and Kim - Get It

Crème Brûlée Instructions

Serves 6

  1. Preheat oven to 350°F.
  2. In a saucepan over medium heat, slowly bring cream to a boil.
  3. In a mixing bowl. combine egg yolks and sugar and beat until mixture is lemon colored. Place over simmering water and beat until mixture has doubled in volume, about 10 minutes.
  4. Remove from heat and keep whisking to cool it down.
  5. Slowly stir hot cream and Kahlua into egg mixture. Using a fine sieve, strain into a bowl set over ice to quickly chill the mixture.
  6.  Pour mixture into individual molds set in a shallow pan or baking dish. Pour water into the pan until it is halfway up the sides of the molds and bake for 40 minutes.
  7. Evenly sprinkle top with brown sugar and place under broiler or use a pastry blow torch to heat sugar until it turns brown and bubbles.
  8. Let set for a few minutes, then garnish with berries and mint.


Tips:

  • Set the creme brulee molds in a shallow pan or baking dish and place in the oven. Then pour warm water around the molds. This avoids spilling water on the floor or into the custard When placing the pan in the oven.
  • The water surrounds the molds and creates a thermal "jacket" around the custard as it bakes. As the water heats. it keeps the custard at an even temperature and helps the custard set evenly

Should you reschedule your Royal Caribbean cruise in 2020 or 2021?

In:
13 Apr 2020
By: 
Matt Hochberg

As you are likely aware, Royal Caribbean has shutdown all of its ships until at least mid-May due to the current health crisis.

In fact, all cruise lines have taken similar measures that aim to keep people safe, but the global voluntary suspension has disheartened plenty of vacations.

There are no cruises right now

For a month, Royal Caribbean has voluntarily shutdown its cruise ships around the world. 

Initially cruises were cancelled until mid-April, and then Royal Caribbean extended its suspension of cruises until May 12 (with Canada, New England and Alaska cruises cancelled through June 30, 2020.

On top of that, the Centers for Disease Control and Prevention extended its “No Sail Order” for all cruise ships by 100 days. As of the writing of this blog post post, it is not crystal clear what impact that will have, but clearly there are no cruises to be offered in the short term.

How long could the shutdown last?

The short answer is, no one knows.

The new No Sail Order by the CDC sets a possible timeline for how long cruise ships could be out of service. Of course, that order only applies to US sailings and it is possible cruises could resume in other parts of the world sooner.

Royal Caribbean has not made any changes yet as a result of the no-sail order, simply stating they are aware of the order, "and are studying how best to respond to its provisions."

If the Health and Human Services Secretary  declares that there is no longer a public health emergency, then the order could get lifted immediately. Alternatively, the director of the CDC could decide to rescind or modify the order in response to new data on public health or other factors. If neither of those things happens, then the order would expire of its own accord 100 days after it's officially published in the Federal Register. 

 If all of this sounds vague, that is because it is and there is not any definite time when ships will certainly sail again.

 If July comes around and we are still in the midst of these issues, it is possible the CDC could extend the no-sail order once again.  However, if things improve quicker than that, the order can be lifted immediately. 

When should I reschedule my cruise?

The general consensus seems to be the later you schedule your cruise, the better your chances that your cruise will not be impacted by another round of cancellations.

I will be certain to share any news of cruises resuming on RoyalCaribbeanBlog. Conditions seem to be changing on a daily basis, and I believe it is important to consider things could improve drastically just as much as they could deteriorate.

The good news is there is little risk in booking another cruise in the sense Royal Caribbean provides the Cruise with Confidence program to allow you to cancel up to 48 hours before your cruise. This program is currently valid on sailings through September 1, but I imagine it would be extended out if necessary.

The later you book your cruise, the less likely daily life will still be impacted by the current crisis in the same way it is today. I would recommend putting a refundable deposit down to cover your bases, and if nothing else, give yourself something to do during this social standstill: you can start planning a cruise and provide a goal to look forward to at the end of all of this.  

If you do put a deposit down, be sure to book with a travel agent, as the travel agent community is truly struggling right now and could greatly benefit from your business.

When are you planning to go on a Royal Caribbean cruise again? Share your plans in the comments!

All the things I'm missing the most while not on a Royal Caribbean cruise

In:
12 Apr 2020
By: 
Matt Hochberg

It is hard to believe, but it has been over a year since the last Royal Caribbean ship departed for a cruise, and like so many others, I am missing the experience of being onboard.  

With this "extended dry dock" that we are all stuck in, here are 11 things I miss when I am not on a Royal Caribbean cruise.

Embarkation day lunch

In my mind, the cruise truly begins when we get onboard the first day and head up to the Windjammer for our first meal onboard.

There is something about being in the Windjammer, seeing the smiling faces of the staff welcoming us (and of course washing our hands), that makes it feel like we are "home".

Perhaps it has to do with the fact the morning of the cruise is filled with anticipation, energy and excitement, so sitting down in the Windjammer is the first opportunity to soak it all in.

The excellent housekeeping service

Every time I go on a cruise, I think I found the best stateroom attendant ever, and then I meet my new attendant who does such a great job too.

The housekeeping staff works incredibly hard to not only keep your room and hallways clean, but they have a smile and love to chat with us.

Some staff make it a personal mission to create a rapport with my two daughters, who are usually shy around people they do not know.  I enjoy seeing if each morning our stateroom attendant can crack a smile from them.  

Of course, the towel animals they leave on select nights in our room are always a hit with the kids.

Not having to think about making meals

My wife's favorite part of the cruise is not having to plan meals for the week, do food shopping, or preparing anything in terms of what we are going to eat.

Going on a cruise is an escape from many things, including some responsibilities and not having to cook, clean or prep is such a relief for parents.

My family really enjoys being able to get food from a variety of places, and I welcome the toughest decision being which restaurant to eat dinner at on any given evening.

Waking up and immediately going to the pool

To me, nothing says "vacation" like waking up and immediately getting ready to spend the day by the pool.

Sea days are a quintessential cruise experience, and I especially relish the second day of the cruise when it is a sea day, and we head to the pool to spend a few hours (or more) while onboard.

Rather than getting the kids ready for school, or thinking about what errands and work needs to be done, the only concern is who needs to apply sunscreen.

Getting dressed up each evening

Call me old fashioned, but I really enjoy getting dressed up each evening.

There is something about the pomp and circumstance of dressing to impress, and taking photos around the ship, that I really enjoy about being on a cruise.

Just like eating in the Windjammer on embarkation day, I think getting dressed up every evening is something that screams to me, "cruise mode" and is a good reminder I am somewhere very fun.

Plus, the photos we get from on a cruise are what adorns most of the walls of our home.

The amazing Adventure Ocean staff

As a parent, there is no sweeter sound than when Adventure Ocean opens its door to my children.

I love my kids, but the opportunity to drop my kids off at an incredibly well-run and supervised area is such a treat for both parents and kids.

My kids love it, because it is a few hours to play, make new friends, and see which counselors are their favorites.

As a parent, I relish the time alone with my wife to enjoy dinner and a show with just the two of us. 

In these days of shelter in place, I have found a brand new appreciation for the talent and patience the Adventure Ocean staff fosters.

Disconnecting from the world news

Even though I always buy an internet package onboard, I really like not being as connected with the daily news from at home.

When you are at home, the 24/7 news cycle is part of your day.  I try to balance the need to be informed with my own desire to not let it make me crazy, but on a cruise ship, I feel I really get to escape the daily grind of who said what, what might happen, and more.

In light of the current situation, an escape from the latest breaking news (that supersedes the breaking news from an hour ago) sounds like a dream to me.

Meeting new people

The fun people on a cruise is part of what makes cruising so fun, and I really enjoy being at a bar, pool or excursion and making a new acquaintance and sharing a laugh.

Everyone on a cruise is metaphorically "in the same boat," and we are all meeting a bunch of strangers that are sharing the same vacation. I think this notion fosters a sense of comradery among cruisers, and it usually leads to more open conversations at a bar or restaurant.

While I do not actively walk around saying hello to people like I am running for public office, I do enjoy the occasional chat in an elevator, or off-hand remark somewhere onboard.

Perfect Day at CocoCay

I have plenty of favorite ports of call, but the big changes Royal Caribbean made to its private island in the Bahamas has cemented Perfect Day at CocoCay as something I really miss more than ever right now.

Royal Caribbean sought out to create paradise and a private island destination second-to-none, and they succeeded with flying colors.

Whether I am in Oasis Lagoon, going down a water slide with my kids in Thrill Waterpark, or exploring Coco Beach Club with my wife, I miss any and all of what CocoCay offers and it is somewhere I would not mind going back over and over again to enjoy.

The shows

Royal Caribbean is known as one of the best cruise lines for entertainment. Production shows, comedians, live music and more are just part of the repertoire that Royal Caribbean puts out on its ships.

I miss being able to see a full-length Broadway show, catch the pub singer or laugh at the adult comedy show.  I miss being at the pool and hearing a steel drum band play classic reggae tunes, or spot the stowaway piano player in an elevator.  I even miss going to the club experience and remembering that I am not in my 20's anymore and questioning why the music has to be so darn loud.

The Wash Your Hands song

I guess being stuck at home this long has truly effected me, because I actually miss the "Wash Your Hands" song that is played continuously on embarkation day in your stateroom.

I also miss the clever Windjammer greeters who have created their own renditions of reminding guests to wash their hands sung to famous songs.

What do you miss the most?

While you are sitting at home and reading this post, what places, experiences or things to do onboard do you miss the most? Share what you are yearning for the most in our comments!

Royal Caribbean founder Arne Wilhelmsen passes away at 90

In:
12 Apr 2020
By: 
Matt Hochberg

Royal Caribbean announced one of the men responsible for the founding of the cruiose line died on Saturday, April 11, 2020, in Palma, Spain. He was 90 years old.

Arne Wilhelmsen, with sons Preben and Alex as Song of Norway pull away from Oslo

Wilhelmsen worked closely with Royal Caribbean's first CEO, Edwin Stephan, to help bring Royal Caribbean into the cruise industry and establish itself as a major player.

Born on June 15, 1929, in Oslo, Norway, Wilhelmsen earned his MBA at Harvard Business School and worked as a chartering assistant for Norway’s EB Lund & Co. and later as a shipbroker in New York. After joining the family business in 1954, he became its president in 1961.   The scion of a leading Norwegian shipping concern – Anders Wilhelmsen & Co AS – he spent most of his life in the family business, including an early stint as a deckhand.

1970: Harry Irgens Larsen, Mortis Skaugen, Gjert Wilhelmsen, Brynjulf Skaugen, Sigurd Skaugen, Arne Wilhelmsen

Wilhelmsen saw the potential for cruising to become the fastest growing segment in a growing vacation industry. 

Wilhelmsen's primary contribution was building new ships uniquely designed for cruising in warm weather. He saw potential in offering cruises from Miami, instead of New York, where Royal Caribbean could offer a completely different kind of vacation for its guests.

Arne Wilhelmsen, Miami's Port Director Admiral Irwin Stephens and Ed Stephan inspecting Dodge Island passenger terminal

In a statement, Royal Caribbean said it, "extends its heartfelt condolences to the Wilhelmsen family."

Recipe: Watermelon Lemonade mocktail for the kids!

In:
11 Apr 2020
By: 
Matt Hochberg

Usually I like to share classic Royal Caribbean cruise cocktail recipes that you can make at home, but with the weekend here, perhaps a treat for the kids is in order.

If your kids are anything like mine, they love to get colorful drinks that look as good as they taste, and the watermelon lemonade fits that bill.

So if you need a tasty distraction for the kids, whip up a pitcher of this for them and let them pretend they are on a cruise (virtual Adventure Ocean staff not included).

Watermelon Lemonade Ingredients

  • 1 ounce kiwi syrup
  • 1.5 ounces fresh lemonade
  • 4 ounces fresh watermelon juice
  • Fresh watermelon for garnish

Suggested music while preparing

  • Baby Shark
  • Jimmy Buffett - Grapefruit

Watermelon Lemonade Instructions

  1. In a cocktail glass, add ice cubes
  2. Add kiwi syrup
  3. Add lemonade
  4. Top with fresh watermelon juice
  5. Garnish with a small wedge of fresh watermelon

Sydney's third cruise ship terminal delayed by 18 months

In:
11 Apr 2020
By: 
Matt Hochberg

Plans for a new cruise ship terminal are delayed for 18 months due to the current COVID-19 crisis.

The Sydney Morning Herald reports the impact the cruise industry has felt as a result of the worldwide shutdown has created cause for concern about the project.

The plan was to build a new cruise terminal at Yarra Bay, but that has been "put on hold with all industry and community engagement suspended".

"[The terminal is] not a priority for government or industry at this time. We're still in the middle of a COVID crisis," he said.

Maroubra MP and former state Labor leader Michael Daley indicated Royal Caribbean believes the cruise industry in Australia needs a cruise terminal east of the Sydney Harbour Bridge in order to grow.

Daley added Royal Caribbean was willing to work with the government on such a project, but did not mention in what capacity or with any funding.

Royal Caribbean amends loans on Anthem and Spectrum of the Seas due to coronavirus pandemic

In:
10 Apr 2020
By: 
Matt Hochberg

In light of the global health crisis, Royal Caribbean Cruises Ltd. has altered the loans it took out to finance Anthem of the Seas and Spectrum of the Seas in order to take advantage of a 12-month debt holiday.

The deal was made between Royal Caribbean Cruises Ltd and Euler Hermes Aktiengesellschaft on April 8, and it essentially means Royal Caribbean to skip a few payments without accruing additional interest. Moreover, it provides the cruise line with $200 million of incremental liquidity through April 2021.

The deferral period is between April 1, 2020 and March 31, 2021. The deferred money will be repayable in eight equal semi-annual installments between April 2021 and October 2024.

In addition, Royal Caribbean amended the export-credit backed loan facility incurred to finance Celebrity Reflection in order to incorporate the benefits of the Debt Holiday. Across these three facilities, the Debt Holiday initiative will generate $200 million of incremental liquidity through April 2021.

Royal Caribbean is also looking into taking advantage of the debt holiday initiative across the remainder of their Hermes-backed facilities.

The loan amendment has a few stipulations, including Royal Caribbean Cruises Ltd. may not take certain actions including:

  • Payment of dividends
  • Repurchase of stock
  • Issuance of debt or equity other than for liquidity