Royal Caribbean Group's sale of its subsidiary Azamara is just one more change in the cruise industry landscape that has been unfolding for over forty years. For example, in 1988, the cruise industry transported 3.2 million passengers and was already beginning to consolidate. Holland America Line (HAL) bought Home Lines, and Carnival later bought HAL. Princess bought Sitmar, and Admiral Cruises was acquired by Royal Caribbean.
Article from CruisesNews magazine no. 56 – March 2021
Previously, in 1984, NCL had acquired Royal Viking and maintained it as a separate brand. Buying entire shipping companies has always been a quick and direct way to enter a market characterized by lengthy shipbuilding and outfitting times, and the Azamara case will likely be followed by other similar transactions in the coming months.
December
2000, one of the first mega-sales in the cruise industry took place: Star Cruises acquired Norwegian Cruise Line. Star Cruises purchased 50.2% of Norwegian Cruise Line (NCL) in what some cruise executives described as a "brilliant move," outbidding both NCL itself and Carnival Corporation, which had also made an offer to acquire NCL. For $1.9 billion, it entered the North American and European cruise markets with a well-known and profitable brand, ample growth potential, and numerous synergies. Star Cruises effectively became the world's leading cruise liner, offering itineraries around the globe, with a fleet of 18 ships and more than 21,000 berths. It also became the third-largest cruise line, alongside P&O/Princess Cruises.
Furthermore, consolidation began immediately with the disappearance of NCL's Australian subsidiary, Norwegian Capricorn Line, which was absorbed into Star Cruises.
The year 2001. The impact of the Twin Towers attacks.
The terrorist attack on the Twin Towers in New York triggered an unprecedented crisis of confidence and economic collapse, severely impacting the cruise industry and leading to several high-profile bankruptcies. The most significant was Renaissance Cruises. This company had already gone bankrupt during the first Gulf War, which dealt a heavy blow to its parent company, Fearnley & Eger. Renaissance had an ambitious expansion plan across all its divisions. American passengers were avoiding European cruises. After a capital injection in April 2001 to finance the $1.5 billion cost of the eight "R" class ships, the plan failed. Following a significant downturn in the tourism industry after the September 11 attacks, Renaissance ceased all operations on September 25. Cancellations had been substantial, and the ships were sailing half empty.
The fear of flying led to the bankruptcy of American Hawaii Cruises, which needed air links to Hawaii to provide its cruises, and also that of Leisure Cruises, which organized the Switzerland, and was owned by an airline, SwissAir, which also went bankrupt.
2002 ended with the bankruptcy of two small cruise lines serving local markets: Empress Cruise Line in the Far East and Valtur Tourism in Cuba. Both operated a single ship, and, especially in Valtur's case, the reduction in flights to Cuba proved to be the fatal blow.
Year 2003. Princess-Carnival Megamerger.
The year 2003 bears a certain resemblance to the present day. The SARS (Severe Acute Respiratory Syndrome) epidemic in Asia affected the cruise industry, but only locally, allowing many ships to be deployed in other markets, such as Australia.
On January 8, 2003, Princess Cruises announced its acquisition by Carnival Cruises, following an initial offer from Royal Caribbean in 2002. Its shareholders accepted Carnival's final offer, as the company was keen to avoid a repeat of its failed acquisition of NCL. The new cruise line became the largest in the industry, nearly doubling the size of its closest competitor, with a combined fleet of sixty ships offering over 100,000 berths and another eighteen ships under construction. Furthermore, this acquisition allowed Carnival to strengthen its multi-brand strategy, enabling it to segment its offerings with brands such as Holland America Line, Windstar, Seabourn, Cunard, Costa, Princess, P&O, P&O Australia, Swan Hellenic, Aida, and A Rosa. Synergies soon followed: Carnival merged its German brands, A Rosa and Aida, and sold A Rosa's river cruise business. Even more importantly, Carnival was able to enter the British and Australian markets with brands like P&O, and with Aida began the dizzying growth of the German market.
Two smaller operators closed their doors that year. Regal Cruises went bankrupt on April 28, after a last-minute rescue attempt. And the German start-up Sun Bay Cruises also failed to take off with its concept of cruises on yacht-sized vessels.
Year 2004. The Iraq War Affects Mediterranean Shipowners.
In 2004, it was the turn of two European shipowners, Royal Olympic Cruises (ROC) and Festival. The former had nearly gone under in 1999 due to the political instability caused by the Kosovo War, which led to a significant drop in bookings. Its share price plummeted from $15 to just $2. At the end of that year, Louis Cruise Lines acquired a stake in ROC to try and turn things around. But after 9/11, Royal Olympic, like all cruise lines, was significantly affected by the global tourism downturn. However, during the second Iraq War, customers viewed the Mediterranean as a risky destination and didn't book. With a 55% market share in the Eastern Mediterranean, Royal Olympic was clearly impacted and tried to reverse its fortunes by modifying itineraries, but it didn't work. In late 2003, its ships began to be arrested, and the shipping company collapsed in March 2004.
The Greek shipowner Georges Poulides had built the first fleet dedicated exclusively to the European market, initially with second-hand vessels and later with new builds. However, doubts about its financial health persisted. These rumors materialized in January 2004 when all of Festival Cruises' ships were seized due to outstanding debts. This crisis culminated in the company's demise, with all its ships being sold at auction. Just four months after its vessels were impounded, Festival Cruises admitted bankruptcy. Ironically, this crisis arose after the company had just reported its best results: in 2003, it transported 316,000 passengers (a 22% increase), and its revenue reached €335 million, 12% more than in 2002. Nevertheless, it was clear that the profitability of the business was questionable. The disappearance of Festival gave a strong boost to the expansion of MSC Cruises, which, although it did not acquire the brand, kept its two most modern ships: European Vision and European Stars, which were also sister ships of the MSC Lirica and Opera, which were delivered in 2003 and 2004 by Chantiers l'Atlantique.
In the Spanish market, Spanish Cruise Line ceased operations and Iberojet Cruceros appeared
2005
, the cruise division of My Travel (formerly Airtours) disappeared, having sold its cruise division to Louis Cruises. My Travel continued selling Sun Cruise tickets (already operated by Louis Cruises) that summer. Two other local operators ceased operations. Siam Cruise Company had operated a single ship, the Andaman Princess, from Pattaya, Thailand, since the early 1980s. The December 2004 tsunami was disastrous for the company, which went bankrupt in 2005. But while these companies were disappearing, others were entering the market, some with very innovative ideas, such as EasyCruise, which began its brief run in 2005, offering ultra-cheap cruises: on a fixed weekly itinerary, passengers could embark for two to fourteen nights. Meals and room service were not included in the fare.
2006 and 2007. Investment Funds Take Over
. In 2006, only one significant sale occurred. Marsans sold Pullmantur to Royal Caribbean in an auction where it prevailed over several private equity funds competing to acquire the Marsans Group's cruise subsidiary. Royal Caribbean paid €430 million for all of Pullmantur's shares and also assumed €270 million of net debt. Pullmantur thus became the first European brand of the world's second-largest cruise company, which, with this acquisition, achieved its objective of expanding its market share in Europe. Pullmantur offered a strategic opportunity to significantly and rapidly expand RCCL's presence in the European and Latin American markets. Royal Caribbean assured that Pullmantur would remain an independent brand under its management.
In addition, Kuoni Travel sold Intrav/Clipper to First Choice. It was the first major transaction in the expedition cruise segment. Intrav was a group specializing in adventure travel on small cruise ships, private jet expeditions, and tours around the world.
In February 2007, Carnival Corp. responded to Royal Caribbean's Pullmantur acquisition with a new investment from a North American multinational in the Spanish cruise sector. Carnival, the leading cruise line, and Orizonia agreed to create a joint venture valued at €320 million (€180 million in debt and €140 million in net equity), called IberoCruceros. Orizonia contributed the Iberojet Cruceros fleet (the Grand Mistral and the Grand Voyager) as an asset, generating €240 million in revenue. Both transactions are very similar to the Azamara deal, as they involved acquiring entire brands with a strong presence in their source markets and significant goodwill.
In 2007, Carnival Corp., which has always focused on large-ship cruises, decided to divest two of its brands dedicated to niche markets, in transactions similar to the one Royal Caribbean recently completed in 2021 with Azamara. On February 22, Carnival sold WindStar Cruises for $100 million ($19 million in cash, $61 million financed, and $21 million in assumed debt). In March, it also divested Swan Hellenic, selling its brand and database to Lord Sterling, former chairman of P&O. Finally, another relatively small and specialized brand, Windjammer Barefoot Cruises, which sold sailing trips, went bankrupt in October 2007 amid a legal battle between the heirs of its founder, which exacerbated its financial problems.
2007 marked the beginning of another phenomenon that is relatively common today: the arrival of investment funds as shareholders in cruise lines. On August 17, 2007, it was announced that the investment fund Apollo Management had invested $1 billion in Norwegian Cruise Line (NCL) in exchange for 50% of its shares. Apollo had entered the cruise industry in February 2007 when it purchased the "upper premium" brand Oceania Cruises for $850 million, a direct competitor of Azamara Cruises. At that time, Oceania's fleet was exactly the same as Azamara Cruises' fleet in 2020. However, Sycamore only paid 25% of what Apollo paid 13 years earlier. In February 2008, Apollo acquired Regent Seven Seas Cruises, creating the foundation of today's NCLH group.
Years 2008 to 2010
The effects of the bankruptcy, on Monday, September 15, 2008, of Lehman Brothers, the fourth largest investment bank in the United States, which cost the American economy $22 trillion, lingered for a long time in the global economy and in the cruise industry in particular.
The first brand to fall was Orient Lines. On June 26, 2008, Wayne Heller, through Origin Cruise Group LLC, purchased the Orient Lines brand and database from Star Cruises, as its only ship, the Marco Polo, had been sold in 2007. Heller was the founder of Cruises Only, the largest cruise seller in North America. However, he was unable to find a suitable ship, and the prevailing economic crisis brought an end to that iconic brand.
Carnival continued closing smaller subsidiaries, or those with less growth potential, and on October 30, 2008, announced the liquidation of Ocean Village. Ocean Village brought a fresh perspective to the British cruise market and influenced the rest of Carnival's brands in that country. However, the arrival of new ships for P&O Cruises and Cunard in 2010, as well as the increased presence of Princess Cruises in Great Britain, ensured Carnival UK's growth despite the closure of Ocean Village. On the other hand, the North American cruise line Cruise West paid a heavy price for becoming a global operator during a time of crisis and went bankrupt in 2010.
In Spain, after trying for two years to gain a foothold in the market, Visión Cruceros disappeared. In March 2009, Santiago Labrador announced this due to "the lack of profitability of cruises.".
2011
to 2013, the cruise industry displayed surprising resilience amidst a severe economic crisis. The major shipping companies had already optimized their brands and were focused on global growth. The cruise lines that went bankrupt during this period were relatively small, either due to their specialization or their national focus.
In Spain, it was Happy Cruises' turn, the successor to Quail Cruises. On September 23, 2011, the first alarms about the operator's financial situation began to sound, and when the Gemini docked in Lisbon the following day, the cessation of operations was announced, coinciding with a drastic capital reduction. All scheduled departures were suspended. Happy Cruises promised agencies from the outset that it would pay all refunds to affected customers, based on the solvency of the cruise line's nearly twenty-five shareholders, including Globalia, Ahorro Corporación, and the Brazilian wholesaler CVC. During those days, Happy Cruises' management fought tooth and nail for the company's survival. To this end, they held meetings with ship owners and other suppliers, also seeking financial contributions from various financial institutions. At the same time, the partners tried to renegotiate other debts with various suppliers, some of whom were receptive, but ultimately the bankruptcy was irreversible.
In Finland, Kristina Cruises announced on November 27, 2013, that it was entering administration. Its only ship, the Kristina Katarina, was detained in Las Palmas while the family-owned shipping company sought corporate reorganization. All cruises to the Canary Islands were suspended, and the cancellations affected approximately 2,500 cruise passengers.
On April 1, 2011, Ambassadors International, the parent company of Windstar Cruises, filed for bankruptcy protection. The Commercial Court auctioned off its assets. On May 19, 2011, the court approved the sale of Windstar Cruises to TAC Cruise, a subsidiary of Xanterra Holding Corp., for $39 million in cash.
In July 2012, Antarctic Shipping SA, owner of the Antarctic Dream, announced it was suspending cruises to Antarctica. The shipping company stated that the Antarctic Dream's operating costs and its limited passenger capacity, due to the ship's size, made its Antarctic voyages unprofitable.
2014: The Year of Bankruptcies.
2014 was a particularly intense year in the cruise industry. The most significant transaction was undoubtedly the acquisition of Prestige Cruises International Inc. by Norwegian Cruise Line Holdings Ltd., the world's third-largest cruise operator, for approximately $3 billion. With this deal, announced in early September, Norwegian Cruise Line, a company then valued at $6.8 billion on the stock market, gained access to the upper-premium and ultra-luxury segments through Oceania and Regent Seven Seas, respectively, Prestige's two brands. It's worth noting that the owner of Prestige Cruise Line, the investment fund Apollo Global Management, also held a 20% stake in Norwegian Cruise Line. This transaction resulted in the creation of a conglomerate with a combined fleet of 21 ships, with a multi-brand structure similar to that offered by the two giants, Carnival and RCCL.
In Spain, the long-anticipated demise of Iberocruceros was finally realized, as it was dissolved by Costa Cruises. Following the merger of the two companies in December 2012, this decision was expected. Costa first transferred Iberocruceros' flagship ship, the Grand Mistral, to its own fleet, and then announced in May the discontinuation of the Iberocruceros brand, although it maintained its full program for the 2014 summer season. This change in Costa's strategy was theoretically due to the fact that Spanish consumers were demanding a higher-quality experience, with a wider range of leisure options, something the Italian brand already offered. The last two Iberocruceros ships were sold that same year.
Another major news story in 2014 was the sale of the historic Norwegian shipping company Hurtigruten to the British investment fund TDR Capital, which, along with Periscopus AS and Home Capital AS, acquired control of the company in a deal valued at $700 million. The price paid was 7 kroner per share. TDR Capital valued the contract with the Norwegian government to provide services to businesses and communities along its coast, and its potential in the international exploration cruise sector, as key assets.
The second Gulf War led to the demise of two shipowners specializing in the Eastern Mediterranean, such as Royal Olympia and Festival.
In Germany, the strength of the country's two large shipping companies led to the bankruptcy in 2014 of up to four small shipowners, who only operated one ship: Ambience Kreuz (Azores), Passat Shipmanagement (Delphin), Premicon (Astor) and Deutschland GmbH (Deutschland) successively entered into suspension of payments and disappeared from the cruise industry.
In France, the Paris Commercial Court declared the judicial liquidation of the French tour operator TAAJ Cruises on July 29, after it filed for bankruptcy. Until that year, TAAJ offered cruises by chartering ships from Costa, in a long-standing partnership established in 1986. The partnership initially worked very well; TAAJ reached 14,000 passengers in 2012, with the goal of reaching 20,000 customers in 2014, but it ended amid accusations of unfair competition.
2015. Another Year of Consolidation.
In 2015, the influx of investment funds into the cruise industry continued, along with activity in the luxury segment. The most significant transaction of the year was undoubtedly the sale of Crystal Cruises by the Japanese shipowner Nippon Yusen Kaisha (NYK) to Genting Hong Kong, which used the proceeds from its divestment in Norwegian Cruise Line to acquire one of the leading players in the luxury segment. Crystal was celebrating the 25th anniversary of its first cruise in 1990 and changed hands for $550 million. Crystal's last ship had been built in 2003, and it had clearly fallen behind the expanding competition. Following Genting Hong Kong's acquisition, Crystal entered the luxury river cruise and luxury exploration cruise segments and began planning its fleet expansion.
On July 28, 2015, it was announced that Ponant had been sold by the investment fund Bridgepoint to Artémis, the holding company of French businessman François Pinault. At the time, Ponant transported around 30,000 passengers annually, primarily to polar regions, operating in the luxury exploration cruise segment. It had been acquired by Bridgepoint in 2012 from CMA CGM, a French container shipping company. Ponant had the youngest fleet in the market, with five ships averaging 2.5 years old. Under Bridgepoint's ownership, the company had doubled its sales to €140 million and tripled its profits, thanks to a combination of factors: 1) an 11% annual increase and improvement in fleet capacity; 2) geographic expansion with the opening of sales offices in China and Australia; and 3) the acquisition of TDI, a sales distribution channel in North America. The price paid for Artemis was not made public, but a figure close to €400 million was mentioned. Following the acquisition, Artemis ordered seven new cruise ships, which have solidified Ponant's leadership in the exploration segment.
And in October 2015, the third major deal of the year took place: Lindblad, another expedition cruise line, was acquired by Capital Acquisition Corp II, a firm created specifically for this transaction by a group of investors. Sven Olof Lindblad continued to lead the company and retained a 29% stake. The transaction was valued at approximately $439 million. The combined company went public on the New York Stock Exchange and changed its name to Lindblad Expeditions Holdings, Inc. Since 2004, Lindblad and National Geographic had collaborated on the exploration and conservation of the planet's pristine regions. Following the closing of the deal with Capitol, Lindblad and National Geographic extended their partnership until 2025, with a clear focus on growth in their joint ventures. Since then, Lindblad has built four new exploration vessels and purchased a fifth.
2016 and 2017. End of Carnival Corp.'s volunteer cruises.
In May 2016, RCCL sold 51% of Pullmantur to the Luxembourg-based private equity fund Springwater Capital, retaining ownership of the company's ships and aircraft. The agreement included the creation of a joint venture between the two companies. It also expanded the existing relationship between the two companies in air transport, travel agencies, and tour operations through the Wamos group, formed from Pullmantur's non-cruise tourism business, which Springwater acquired from RCCL in 2014, with the cruise line maintaining a minority stake.
Most of the shipping companies that have gone bankrupt in the 21st century had a small fleet, of one or two ships.
In 2017, Carnival Corp.'s experimental Fathom concept ceased operations. A brand focused on social impact, Fathom made history in the spring of 2016 by pioneering cruises between Miami and Cuba. It was also instrumental in the opening of Amber Cove, a privately owned port of call in the Dominican Republic that cost $85 million. What distinguished Fathom from other cruise lines was that it gave travelers interested in charitable work the opportunity to do so during their vacations. However, despite considerable support from Carnival CEO Arnold Donald, Fathom failed to achieve critical mass as an independent brand, and Carnival returned Fathom's sole ship, the Adonia, to its subsidiary P&O Cruises in June 2017.
In January 2017, All Leisure Group, the British operator of the boutique cruise brands Swan Hellenic and Voyages of Discovery, each operating one ship, went bankrupt. More than 400 passengers had to be repatriated, and 7,000 advance bookings, affecting 13,000 passengers, were canceled. Swan Hellenic and Voyages of Discovery offered destination-focused cruises for mature cruisers eager for cultural experiences, to areas such as the Eastern Mediterranean, North Africa, and the Black Sea. But increasingly in recent years, since the Arab Spring, it had become more difficult to operate in these areas, whether due to Foreign Office travel advisories or declining consumer demand. It was the first time a cruise operator had ceased operations as a result of events in the Mediterranean over the previous five years. In November 2015, All Leisure had sold Hebridean Island Cruises, which specialized in cruises around Scotland, in an attempt to keep the rest of its brands.
Finally, in April 2016, Celebrity had purchased Ocean Adventure, and its ships Eclipse and Athala II, to increase its market share in the Galapagos Islands.
2018. RCCL acquires Silversea.
2018 was set to be the year Silversea celebrated its tenth anniversary in the expedition cruise segment. Since entering the market in 2008, Silversea had successfully combined luxury with unexplored destinations, opening a market with innovative itineraries to uncharted territories that other operators later imitated. However, on June 14, 2018, it was announced that Royal Caribbean Cruises Ltd. had acquired 66.7% of Silversea's shares for $1 billion, in what constituted one of the most significant acquisitions in the cruise industry in the last decade. With this transaction, RCCL acquired a super-luxury brand in its portfolio for the first time, while also acquiring one of the leading players in the expedition segment, a sector that had experienced exceptional growth in recent years. The agreement gave RCCL, for the first time, a full range of brands: from Royal Caribbean International in the standard sector, to Celebrity Cruises in the premium segment, Azamara Club Cruises in the upper premium, and Silversea in the super-luxury range. RCCL's two largest competitors, Carnival Corp. and Norwegian Cruise Line Holdings, already had luxury brands: Seabourn and Regent Seven Seas Cruises, respectively. However, neither operated in the expedition cruise niche.
The pandemic has claimed six cruise ship owners in 2020.
Silversea, for its part, gained access to the financial resources of a giant like RCCL, listed on the New York Stock Exchange. It's worth remembering that the agreement valued Silversea at two billion dollars. RCCL was approximately ten times larger, with a market capitalization of 22.9 billion dollars. Silversea was also able to leverage RCCL's distribution network and its extensive connections with travel agencies. Synergies were also created in personnel, supplies, and other areas, but Silversea retained (and continues to retain) the same management team. After the acquisition, Lefebvre remained as CEO of Silversea, which continues to operate as a separate brand within RCCL. Silversea then had a fleet of eight ships; today it has nine, with three more on order.
2019
In 2019, NYK sold 50% of its Asuka Cruises brand to Anchor Ship Partners, a Japanese maritime investment and management fund. The sale price was not disclosed, and the transaction was completed in March for 50% of the shares of Yusen Cruise Co., Ltd. Anchor stated its intention to maintain the level of luxury and quality aboard the Asuka II (formerly the Crystal Harmony) for its 960 passengers. NYK had previously sold Crystal Cruises in 2015.
In May 2019, Portuguese businessman Mario Ferreira sold 40% of the shares of Mystic Invest Holding, his expedition cruise line, to the American fund Certares. The transaction was completed for approximately €250 million, an amount that the Portuguese businessman did not confirm. This sale allowed Mario Ferreira to strengthen the company's capital and invest in other projects, most notably the expansion of its fleet of exploration cruise ships and its subsidiaries, such as the German company Nicko Cruises. Certares is a fund that invests in travel, tourism, and hospitality companies, and it enabled Mario Ferreira to consider listing his group on the New York Stock Exchange in 2024, when it projects a valuation of over €2 billion, more than triple the €625 million valuation at the time of Certares' acquisition. Within the holding company of which the businessman sold 40% are companies such as Douro Azul, Nicko Cruises or Mystic Cruises USA, which was later renamed Atlas Ocean Voyages.
In August 2019, Artemis Holding, following its acquisition of Ponant in 2015, acquired Paul Gauguin Cruises in a deal that united two brands with renowned French heritage and a clear interest in increasing their market share in North America. Ponant retained the Paul Gauguin brand, its Washington offices, and even its president, Diane Moore. The key objective was to market both brands, both based on smaller ships but with different itineraries. That same year, Ponant announced an order for two ships for Paul Gauguin, a project that has been put on hold due to the pandemic.
In 2014, NCL Holding, the third largest cruise ship group, was created thanks to the investment fund Apollo Global Management.
In August 2019, Genting Hong Kong announced it had reached an agreement to sell a 35% stake in Dream Cruises to the Canadian investment fund TPG Darting, owned by TPG Capital Asia and Growth Funds. Genting Hong Kong stated that the deal would strengthen its balance sheet and its ability to continue expanding its fleet. The sale reduced the group's financial burden to meet future funding requirements related to the construction of Global-class ships or to finance new investments should the opportunity arise. According to a statement from Genting, the transaction was valued at US$488,645,875. Genting then had a fleet of three ships: the Genting Dream, World Dream, and Explorer Dream. It also had a contract to build two Global-class ships at MV Werften.
During the summer of 2019, Canadian expedition cruise operator One Ocean Expedition went bankrupt due to the abrupt termination of the charter of two exploration vessels, stemming from disagreements with its Russian shipowner.
2020. The year of the pandemic
began with another step by Royal Caribbean to increase its presence in the ultra-luxury market. Following the acquisition of Silversea two years prior, it used its joint venture with TUI, TUI Cruises, to acquire 50% of Hapag-Lloyd. TUI Group and its partner Royal Caribbean Cruises planned to increase their presence in the luxury and expedition cruise segments and attract new customers. The expansion of the Hapag-Lloyd Cruises brand would be central to this strategy. In February 2020, the contract valuing Hapag-Lloyd Cruises at €1.2 billion was signed in Hamburg. The transaction was finalized last summer. Under the joint venture's profit-sharing agreement, TUI Group and RCCL will each receive 50% of Hapag-Lloyd Cruises' profits. With this transaction, TUI and Royal Caribbean Cruises further expanded their partnership using the proven joint venture structure TUI Cruises also for the luxury and expedition cruise segment.
Subsequently, as many as six companies have disappeared as a result of the global tourism crisis caused by the pandemic (see CN55). The largest was Cruise & Maritime Voyages, which entered administration in July in the UK and in Germany, where it operated as TransOcean Tours, after attempts to save it failed. On September 9, 2020, it was announced that Cruise & Maritime Voyages' five ships would be auctioned. Three of them are already being scrapped in Turkey and India.
On June 22, Pullmantur Cruises became the first cruise line to disappear, a victim of the Covid-19 pandemic. Its two largest ships were sold for scrap in Turkey, while the Horizon is being dismantled in Greece, awaiting the same fate barring a major surprise.
On July 28, the German tour operator FTI Group closed its cruise subsidiary, FTI Cruises, which had operated the small Berlin cruise line since 2012, offering Caribbean cruises in the winter and European cruises in the summer. Birka Line stopped offering short Baltic cruises last spring. And in August, Blount Small Ship Adventures closed its cruise division. In India, Jalesh Cruises, a local cruise line that began operations in 2019, announced the cessation of its operations on October 9.
2021. Sale of Azamara Cruises.
On January 19, news broke of the sale of Azamara Club Cruises, RCCL's "upper premium" brand. Since the arrival of the pandemic, cruise ship owners have been taking drastic cost-cutting measures to ensure their survival. The prolonged crisis led Royal Caribbean Group (formerly RCCL), which had already divested itself of subsidiaries like Pullmantur and sold ships such as the Empress and the Majesty of the Seas, to part ways with one of its brands, in this case, its smallest, Azamara Cruises. Its focus on the luxury segment following the acquisitions of Silversea and Hapag-Lloyd had left Azamara in a precarious position, competing with Oceania, a brand that NCL Holding had invested in with new ships, something Royal Caribbean never considered.
The exploration cruise sector has attracted the most investor interest in recent years.
Royal Caribbean finally did a great job convincing the US investment fund Sycamore Partners to take over the entire company for $201 million, a relatively low price compared to what was paid for companies like Oceania or Silversea. However, the opposite interpretation is also possible: that it's a high price in the current context, although it's true that opportunities to acquire a complete cruise operator in this market segment are very rare. The transaction is expected to close in the first quarter. In 2007, RCCL launched Azamara Club Cruises as a small, upper-premium cruise line with two ships acquired from Pullmantur, to complete the group's offering in the high-end market, complementing the large ships of Royal Caribbean International and the premium vessels of Celebrity Cruises. Sycamore Partners' commitment to Azamara was confirmed with the acquisition of the Pacific Princess, which will be the fourth ship in the fleet when it begins sailing in 2021.
