“We want our guests to feel at home while traveling the world to the most incredible luxury destinations.”
Article from CruisesNews magazine no. 50 – September 2019
Silversea is currently undergoing an exciting transformation in the luxury cruise industry. The European brand, founded by the Lefebvre family and headquartered in Monaco, is experiencing a period of rapid expansion. Meanwhile, Royal Caribbean Group, which has acquired a majority stake in Silversea, is looking to the future with optimism, embarking on one of the largest operational and asset expansions in its history. We interviewed Barbara Muckermann, Silversea's Chief Marketing Officer. Barbara has extensive experience in the sector, having also worked for CLIA and MSC Cruises.
Silversea is now a Royal Caribbean brand. What is Silversea's ideal brand positioning with consumers under the Royal Caribbean umbrella?
We are proud to be part of the RCL group. The agreement is beneficial for both parties: Silversea has gained RCL's backing, while RCL has acquired a significant equity stake in the industry-leading ultra-luxury cruise line. In this way, RCL adds expedition cruises to its portfolio, furthering its goal of having the best brand in every segment.
Silversea will maintain its own distinctive identity. Richard Fain considers Silversea Cruises to be the crown jewel of RCL, and we will preserve and even enhance the features that set our company apart. Differentiation is key in this industry, and over the years, we have been able to demonstrate our position as pioneers in this sector. RCL has been emphatic about wanting to preserve Silversea as it is. No major changes, only improvements. Many synergies from this alliance have already emerged, such as the launch of Project Invictus, which is expanding and enhancing our already ultra-luxurious fleet. However, many more improvements will come in the long term along our product curve. We have ordered three new ships since partnering with RCL, in addition to the two already on order. All of this demonstrates that we have been able to grow organically but at an unprecedented pace—a pace that would not be possible without this collaboration.
How do you manage a transition and create synergies from a family business to a publicly traded corporate holding company?
It's a very enriching experience for both of us, and we're each learning a great deal from the other's strengths. RCL brings solid expertise in many fields that are extremely beneficial to Silversea, such as environmental research, among others. Of course, the acquisition has required some changes, but we've implemented them seamlessly, maintaining our focus on enhancing our offering for our guests.
So, could we say that the company remains the perfect choice for Europeans seeking the ultimate in luxury cruising?
Absolutely, but not just for Europeans; it's for all nationalities. While the majority of our guests come from the Americas, Silversea is the most global cruise line, carrying more international passengers than any other luxury cruise line. The UK is our second largest market, followed by Australia, then the rest of Europe, and other markets. Silversea is a cruise line with a truly international DNA, insofar as our reach is global, yet we maintain a unique and distinct position as the leading ultra-luxury cruise line with a refined European concept.
We offer understated and elegant luxury, never ostentatious. First and foremost, our guests enjoy exceptional onboard comfort, as well as industry-leading service and all-inclusive amenities.
We want our guests to feel at home while traveling the world to the most incredible luxury destinations. Focused on creating unique and immersive experiences, our vision of luxury is unlike anything else in the industry. We believe that grand ships are essential to the onboard experience, but the real magic happens ashore when our guests experience unique wildlife and enriching cultural encounters.
How do you think the industry will manage supply and demand with over 112 new orders through 2027?
It's true, many ships will be launched in the coming years, but there's room for everyone, as global interest in cruising is growing rapidly. Competition is healthy for all, as it demonstrates the strength of the industry. Our segments, in particular, are booming, responding to increasing demand for ultra-luxury and expedition cruises.
We also need to highlight the growing number of expedition ships currently on the market, and this trend is only going to increase. While it's true that they don't offer the full capacity of a large ship like an Oasis-class vessel, the demand for expedition cruises is already a reality. Looking at the numbers, in 2019 the number of cruise passengers reached 30 million, almost double the figure from 10 years ago. This is beneficial not only for cruise lines but also for other companies in the tourism and travel sector, as well as for local and national economies.
Where is the luxury segment headed? Does bigger mean less privacy?
For our guests, size matters. To maintain our sense of intimacy on board and our passenger-to-space ratio, which is the largest in the industry, we see 600 guests as the maximum number. This ensures that our bespoke service is consistently at our trademark level, while the larger ship can offer our guests unparalleled amenities.
Our onboard team is able to learn all of our guests' preferences immediately, allowing us to anticipate their every need. For us, luxury means something personal, intimate, and tailored. We continue to invest in smaller ships, as we believe they are key to differentiating our cruise line through our "travel to the depths" concept. Operating smaller ships allows us to discover less-visited ports and destinations for our guests, offering more authentic experiences while maintaining our unwavering respect for the destinations we visit.
What are Silversea's main strategic objectives for the next five years?
We've seen that Silversea has been very active in recent years, and we plan to continue innovating the luxury experience going forward. Differentiation is one of Silversea's key assets. Over the years, we've been able to reaffirm our initial positioning: Silversea was the first cruise line to launch all-inclusive and create the luxury expedition segment when our first expedition voyage set sail more than 10 years ago. By maintaining this pioneering approach, innovation will remain an important part of our strategy.
Silversea will grow at an unprecedented rate in the coming years, and our marketing will evolve to support the increased demand we aim to create in our core markets. Baby Boomers are, and remain, our primary target demographic. Silversea is not a product for Millennials but for accomplished professionals who can finally enjoy life and travel the world in comfort. We will continue to invest in our beautiful ships through the most aggressive and costly fleet rejuvenation program ever undertaken, which will continue with the dry-docking of Silver Shadow this fall and the conversion and refit of Silver Wind into an ice-class vessel in 2020.
Last but not least, we continue to focus on environmental and sustainability issues, not only in how we design our new ships or how we refurbish existing ones, but with a 360-degree approach. From the support we provide to the destinations we visit to the respect we show to local people and the environment, every aspect of our onboard and shore experiences will be designed to enrich the places we visit.
Luxury and expedition mean different things to different people. How does Silversea offer both luxury and expedition?
Silversea pioneered the ultra-luxury cruise concept in 1994, launching the cruise line with an unprecedented all-inclusive approach. Silversea also brought innovation to the industry through ultra-luxury expedition voyages in 2008. Ten years later, this concept has proven to be a huge success, with many new competitors entering the luxury expedition segment. Silversea's ultra-luxury expedition offers a clear focus on the cruise line's destination experience and industry-leading service to deliver something truly unique, in line with the evolution of "luxury" as an experiential concept. Increasingly, travelers, especially Baby Boomers, are interested in experiences, as opposed to commodities.
Travelers want to learn and broaden their horizons as a means of personal development. New luxury destinations offer unforgettable, unusual, and unique experiences, along with choice, comfort, and personalized service. This is what Silversea, and especially our expedition voyages, unlock for guests. Silversea's 2020 World Cruise, Legends of Cruising, for example, will connect these immersive experiences in the world's most remarkable destinations across all seven continents.
Our World Cruises have always been exceptionally popular, offering guests the opportunity to discover the authentic beauty of the world, while enjoying the superlative amenities that Silversea offers, feeling right at home.
We've now enhanced this incredible experience with Zodiacs and a variety of expedition activities, such as exploring the waters and landscapes of Antarctica. The guest response has been remarkable, demonstrating that products like these resonate with our guests' desire to travel deeper.
In 2018, the global luxury market grew by 5% to approximately €1.2 trillion (source: Bain & Company). Luxury hotels saw positive growth in real terms; travel has become a “state of mind,” with hotels evolving into social hubs, in tune with the cities in which they are located. There is also growing demand for luxury cruises: this segment performed best in 2018 in real terms, with the expedition segment showing particularly strong signs.
The order book for expedition ships is enormous for the next five years. Part of your older fleet is also being refurbished as Expedition-class ships. Could you explain the short-term strategic evolution of the fleet?
We are converting Silver Wind into an ice-class vessel to enhance the ship's versatility and improve the options for our guests. We see choice as a luxury currency, and the range of in-depth travel experiences offered with Silversea will be expanded, along with more space.
There's always a demand for new experiences, and guests always want to discover new cultures, cuisines, landscapes, and people. We visit more destinations than any other cruise line: over 900, while other cruise lines in our segment reach approximately 350.
The strategic evolution of our fleet will focus on unlocking even more immersive experiences for our guests in the most incredible destinations around the world. Furthermore, our ships are forging strong connections between guests and the destinations we visit: Silver Origin, for example, will be our first destination-specific ship, designed entirely with the Galápagos Islands in mind to immerse guests in the archipelago's authentic beauty. Silver Moon, meanwhile, will connect guests with the world's culinary cultures through a comprehensive culinary discovery ecosystem in the SALT program. In addition, there's Project Invictus, a long-term plan to grow and enrich our already ultra-luxurious fleet. In other words, our luxury icons have been enhanced even further.
Are there plans for Shadow and Whisper to become “Explorers”?
Not at the moment. These two beautiful ships are beloved by our guests, especially the most loyal members of the Silversea family. Both Silver Shadow and Silver Whisper have some of the best guest-to-space ratios at sea, and both ships foster the intimate atmosphere that is Silversea’s signature. As of now, and with so many ships currently on order, there is no need for a deep refurbishment of these two ships. Silver Whisper underwent a comprehensive refurbishment in December 2018, while Silver Shadow will undergo an extensive refurbishment in November 2019.
Silver Whisper will then benefit from the addition of Zodiacs ahead of World Cruise 2020, further enriching the ship's offerings for guests. The "Cruising Legend" will be the first world cruise to visit all seven continents, and Silver Whisper's Zodiacs will allow our guests to experience the authentic beauty of each destination like never before. We are also incorporating an increasing number of expedition-style experiences for our guests across the fleet, facilitating a more immersive travel experience.
Most Silversea cruises strive for the finest service at sea and sail to unexpected destinations. Are there still places on the planet waiting to be discovered?
Absolutely! There are many. Part of Silversea's mission is to continue exploring new places and sharing our passion for discovery with our guests. Each year, we visit many new ports and destinations, and we will maintain this focus as a key aspect of ultra-luxury travel. Innovation has long been key to Silversea Cruises. In the most remote and hard-to-reach destinations, we are continually investing resources to find untapped places to visit and new and exclusive experiences to offer our guests. As an example, we will embark on a major exploration voyage to Antarctica in early January 2020 to find new and secluded locations to land our Zodiacs.
What is your favorite destination? Some people think cruising is about the destination, others about the ship itself. What is Silversea's marketing mix?
As Silversea's marketing director, I travel regularly. I'm fortunate to have experienced many incredible places around the world, and I feel enriched as a person every time I discover a destination abroad. But I would have to choose the far-flung Eastern Russia as a particularly special region: here, the spectacular landscapes are as otherworldly as one can imagine, and the remote communities welcome us with open arms. However, it is the region's incredible wildlife that stands out in my memory. From orcas to rare bird species, the variety of animals is astounding. Witnessing them in their natural habitat is an unforgettable sight. There was one particular occasion I will never forget: a wild fox approached our group and apparently wanted to play. In this isolated place, the animals have no fear of humans. I find inspiration in these rare moments, as do our guests.
In my opinion, cruise travel should be a holistic experience of discovery for our guests, driven by the incredible destinations we visit. We see our ships as ultra-luxury outposts that allow our guests to travel to the heart of each destination, to better understand its culture, its people, and its landscapes. While enjoying the comforts of home and enhanced luxuries, guests experience unique moments and truly engage with a place through meaningful experiences. Silversea is an experienced travel company; immersive experiences are at the heart of everything we do. We incorporate rare experiences for guests in more destinations than any other cruise line. Our research shows that the variety of experiences offered, combined with Silversea's industry-leading destination expertise, is one of the main reasons guests choose to travel with Silversea.
Gastronomy. Blessed gastronomy. One of the main objectives for many cruise lines? Silversea has always been thinking a step further in this value proposition.
Could you tell us the latest about your culinary experience onboard and offshore?
At Silversea, we see food and drink as a means to travel more deeply to a destination, just like our guests, and SALT is a natural extension of our cruise line's immersive approach to travel.
Our groundbreaking new culinary program will allow guests to learn about ingredients, culinary traditions, and regional recipes onboard, before venturing ashore to experience these things firsthand, guided by local food experts in each region. The goal is to truly strengthen the connection between guests and the destinations they visit. Aboard Silver Moon, guests will enjoy a complete ecosystem centered around culinary discovery, through three new venues: SALT Kitchen, SALT Lab, and SALT Bar.
Spanish market. How are we doing? Is there room for growth? How would you convince a Spanish cruiser that Silversea is the perfect alternative, combining the ship experience with the destination?
Considering that the Spanish cruise market comprises approximately 600,000 cruisers, of whom less than 1% are in the luxury segment, we believe there is a significant opportunity for growth. The contribution of our business partners in Spain is crucial for us. We are focused on training and supporting our business partners on land, on board, and also on family trips, when suites are available.
Potential customers in Spain's luxury segment should consider traveling with Silversea instead of embarking on multiple trips. Our itineraries typically incorporate three or four countries, offering a sense of seamlessness that is simply unattainable when traveling independently overland. Instead of taking multiple flights and connections, and staying in numerous hotels, a Silversea voyage allows guests to explore more deeply into multiple regions with the comforts of home. Instead of packing and unpacking, let our butler assist you while you relax and admire the views from your private terrace, champagne in hand. Our all-inclusive offering simplifies the process and includes the icons of luxury as standard: from caviar to champagne, you won't want anything less.
We don't compare our offering to that of our competitors, as our product is entirely unique, with many distinct advantages. As the first cruise line to launch an ultra-luxury, all-inclusive product in 1994, we have been refining our product to meet the desires of our loyal guests for over 25 years. The range of destinations we visit is broader than that of any other cruise line: we enable our guests to discover more than 900 destinations in approximately 140 countries across all seven continents. Our bespoke service is the best at sea, and we take a personalized approach to serving each and every guest. Our culinary offering, which will be further enhanced with the addition of the SALT program in August 2020, is unrivaled. Onboard our expedition ships, our industry-leading Expedition team enriches the guest experience with in-depth onboard lectures and immersive shore excursions.
The list goes on, but simply put, there's no other way to travel so deeply to so many destinations, with such luxury and comfort. I think we have plenty of reasons to encourage Spanish travelers to choose Silversea!
