On May 19th, several executives from the luxury cruise line Silversea held a virtual press conference with various industry media outlets. Marketing Director Barbara Muckermann shared encouraging news about the number of customers rebooking their canceled cruises for late 2020 and 2021.
He said many customers aged 61 to 80 (Baby Boomers are Silversea's core clientele) are rebooking their trips using cancellation credits. Muckermann said these are the "real travelers" who are ready to travel again.
Interestingly, Silversea's luxury expedition trips are the best-selling for 2021, he said, with the Galapagos Islands as the star destination at the moment, followed by Antarctica.
Company executives also expressed concern for travel agents, noting that commissions will be paid on both canceled and rebooked reservations. The luxury cruise line also extended its flexible cancellation policy until December 31, 2020.
Silversea ships are still sailing and working to repatriate some crew members to the Philippines and Europe. The crew on board are being treated as “internal guests,” dining in the restaurants, participating in organized activities, and staying connected with full internet access, said Damien O'Connor, Senior Vice President of Hotel Operations
Silversea Cruises confirmed that the delivery of its new expedition ship, the Silver Origin, will take place very soon, although its maiden voyage will initially be delayed until August 22.
The ship was being built at the De Hoop shipyard in Lobith, a relatively isolated corner of the Netherlands. After numerous difficulties, construction was able to continue during the pandemic lockdown, and the ship successfully completed sea trials at the end of April.
The Silver Origin, with a capacity for 100 passengers, has been specially built for the Galapagos Islands itinerary.
The delivery of Silversea's other new ship, the Silver Moon , will also be delayed because the Fincantieri shipyard in Ancona, Italy, had to close on March 16.
However, Silversea's president and CEO, Roberto Martinoli, said: "Our future expansion projects will not be affected."
“We have and will continue to have five firm orders: the Origin will be operational very soon and the Silver Moon will begin operations during the month of October. With this we will have two of the five.”
“Followed by the Silver Dawn which will be operational next year and will be delivered in Ancona after the summer.
“Finally, the two Evolution-class ships, which are being built and designed in Germany, will come after these, so in terms of firm orders there are no changes.”
Martinoli admitted that business was tough in the short term, with the company dealing with "hundreds" of cancellations, but that long-term interest was still high. The company went from an average of 10 to 20 cancellations per day to managing more than 1,000.
“We’ve had eight weeks of discouraging news, but the numbers are starting to turn positive, and that gives me great hope for the future,” he said.
In terms of passenger destination preferences, there is a strong trend toward booking the same 2021 itinerary they had planned in 2020, Muckermann said. If they booked a Mediterranean cruise this year, that's the exact trip they want to take next year.
Another trend is the search for remote destinations, with the Galápagos Islands as the star destination, followed by Antarctica. This could be partly because customers are wary of densely populated areas and want to go where they know there are fewer crowds. However, another important factor is that these are places on people's "bucket lists," he said.
Reaching remote destinations during a pandemic is difficult, as countries have different air travel regulations; Ecuador still has all its international flights suspended, the company noted. But Silversea had already arranged charter flights for its passengers to more remote ports from larger airports; this could be expanded to ensure guests continue to have a luxury Silversea experience, it said.
Another destination that is currently experiencing considerable success is the British Isles, with cruises departing from London and Tilbury.
Barbara Muckermann also commented that the new food and beverage program known as SALT (Sea and Land Taste), which was to be launched on the Silver Moon, would only be affected by the delay: “We don’t expect any changes other than the delivery delay from the Fincantieri shipyard.”
“Once the Moon is delivered, the SALT program will be fully implemented. The biggest difference will be in the shore excursions. We are in contact with our shore excursion operators to ensure that these are managed with the highest possible safety standards, which could mean renting an entire restaurant for our guests instead of sharing it with others.”.
Reference was made to current health and safety issues, especially regarding visits to remote parts of the world, such as Antarctica, where COVID-19 has not yet arrived:
“We are still following very strict protocols today, but visiting these places is also an advantage because we have less contact with other cruise passengers,” said Vice President of Hotel Operations, Damien O'Connor.
The topic of social distancing was also addressed, and it was stated that Silversea was well-positioned as the cruise line boasts one of the highest space-to-passenger ratios: “We are in a privileged position due to the spaciousness of our ships. There will undoubtedly be less contact between customers and crew, as well as less contact between passengers.”.
He didn't go into further detail regarding health and safety protocols on board. "We don't know for sure what it will be like." He noted that Silversea's buffets are not self-service, so the cruise line will likely continue with this option but with waiter service.
Silversea was unable to confirm a definitive date for a return to operations.
O'Connor said: “The reason we haven't put forward a plan to return to operations is because we are in a better position with smaller ships and fewer passengers on board, however we will follow what the rest of the industry is doing.”.
Silversea operates ships ranging from the Silver Origin to the largest, the Silver Moon. All ships have a high space-to-passenger ratio, so many of the social distancing rules on conventional ships will not apply to the Silversea fleet.
Despite the difficulties caused by the COVID-19 pandemic, the customer response to the brand, as well as the large number of bookings, make Silversea executives confident that the cruise line and the cruise industry will return stronger than ever.
