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Hotel chains are rapidly entering the cruise industry

The entry of companies from the hotel industry into the cruise business continues at a good pace.

Article from CruisesNews magazine no. 64 – March 2023

Hotel chains

This trend, which began a few years ago, has seen new players eager to extend their own concept of hospitality and interpretation of the hotel industry to the sea. Experience in the hotel sector and the prestige of their brands undoubtedly offer excellent potential to capitalize on the growth of the cruise industry, which is expected to recover quickly from the growth recorded up to 2020.

This phenomenon is not new, as some brands have been operating in the cruise sector for some time, but it has certainly become more evident in recent years, with several additions even in the post-Covid period. 

We know, for example, Belmond, which has long operated in the river cruise sector with itineraries in Myanmar and France. Small boats that, while they may not offer the space and comfort of the group's hotels, undoubtedly provide equally attentive service with an undeniably elegant touch.

This phenomenon is also present on some smaller scales, such as the Jaz river cruise line, which has no less than seven ships operating under the brand on the Nile and another eight belonging to the same group under the Iberhotel and Steigenberger brands.

Hotel chains

Currently, Evrima, the first unit built for Ritz Carlton, is already sailing, and will be followed by a ship almost twice the size, a sign of a first move away from the project of small luxury yachts, taking the maximum occupancy from just under 300 to more than 450 people. 

In July 2022, Four Seasons announced a partnership with Nadim Ashi and Philip Levine, prominent luxury entrepreneurs, to build its first unit at Fincantieri and an option to add two more ships to the fleet. The project will feature 95 villa-style suites with floor-to-ceiling windows and 2.4-meter ceilings, offering guests a new level of comfort and revolutionizing the concept of "cabins" on board cruise ships.

Project Sama, on the other hand, will represent the first ultra-luxury experience at sea for Neptune Co., a joint venture between the Aman Group and Cruise Saudi. This elegant 183-meter-long, 23,000-ton vessel will also be the first new build from the Italian shipyard Mariotti to be powered by dual fuel. The interiors will be designed by the prestigious yacht designer Sinot, taking into account the spaciousness and luxury that characterize Aman. This achievement will clearly elevate the brand's offerings at sea, which until now have been limited to the small sailing vessel Amandira, currently sailing in Indonesia.

Instead, the Accor group will focus on a very special project, having just announced the construction of the Orient Express Silenseas, a ship that will be the largest sailing vessel ever built, developed by Chantiers de l'Atlantique. The two-ship option represents a significant entry into the luxury market. Here too, the focus is on the environment, with hybrid propulsion utilizing three-masted sails and an LNG fuel source. Luxury and comfort are the key words, with ample space for guests and a cutting-edge design.

Evrima, the first unit of The Ritz-Carlton, is already sailing, but their second ship will be bigger.

However, the maritime advancement of services available at their hotels is not something to be taken for granted. Although they are much larger than cruise ships, replicating on yachts what guests are accustomed to experiencing on land is not always easy. And the client may not always be aware of what inevitably cannot be achieved at sea. But at the same time, operations like the ones we have recently observed enjoy a significant advantage.

These are brands that already enjoy prestige and recognition, with an established customer base. They have a much more solid foundation than new companies entering the market. The other side of the coin is maintaining their own identity in a product that, although it may seem similar to the hotel industry, actually presents many radical differences. 

There is no shortage of positive experiences; one only needs to consider the Radisson group, which managed to transform its fleet under the Regent brand several years ago into one of the most prestigious and established cruise lines. But there have also been difficulties, from the design phases to construction, which are just the first step on the path to recognition and consolidation of a hotel group's cruise division.

Finally, a cruise ship doesn't necessarily have to be a carbon copy of a hotel. Many of the vessels ordered will be launched in the coming years, and it's possible that they will also want to offer something different from what guests might find in a prestigious luxury hotel. Luxury remains the common denominator for these large hotel groups, but it will also be effective to give each fleet its own unique characteristics and, above all, to create a very distinct identity, especially at a time when competition is increasingly fierce. 

The final verdict, as always, will be given by the guest, who is the one who must evaluate the service offered at sea by their reference hotel group, without forgetting that the first phases of operation will be decisive to gain good reviews and maintain the prestige acquired in the industry. 

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