We interviewed Michael Ungerer in Genoa where we attended the coin ceremony for the company's second ship under construction.
Article from CruisesNews magazine no. 64 – March 2023
As Chief Executive Officer, Michael Ungerer is responsible for leading all aspects of the creation, development, and execution of Explora Journeys. The first two of the six luxury superyacht-style ships, EXPLORA I, will set sail in May 2023 and EXPLORA II in the summer of 2024, with the remaining four to be delivered between 2026 and 2028. Ungerer recruits and leads a team of individuals with extensive experience in the luxury segment. Prior to joining Explora Journeys, he held various leadership positions at Carnival Corporation across different geographies and brands. Most recently, he was Chief Operating Officer of Carnival and previously served as President of AIDA Cruises.
We're very curious to finally see Explora up and running. Family-oriented, a fairly new concept in the luxury business. How did you envision the company before you started developing it?
We're a family business, and above all else is the owners' vision. For them, it was a kind of natural progression, starting with cargo, then moving to cruises, and finally to the more luxury segment. In a way, it's a way of expressing how they like to travel, so they're very practical.
Everything we do is meticulously planned and personalized. And it's not just because we're a family business; we truly are a multigenerational family, and that aspect of family-friendly luxury has never been in question. If adults travel with children, then obviously they need their own space. But family doesn't necessarily only mean children; it encompasses a diversity of ages, and that's common across all nationalities.
So we had the owner's vision, but we also adopted a very customer-centric approach. We did a lot of research at the beginning, using McKinsey and Interbrand, and surveyed around 20,000 people in the US, Western European countries, China, Japan, and Australia. There were some common themes that evolved over time, but ultimately, the greatest luxury is time and space. It might seem obvious, and you might think you don't need consulting to reach this conclusion, but you do need it to translate the concept into management.
So, we need to embody authenticity, connection, and individualization as our approach, but also sustainability. People wonder where their money goes and what the owner does with it. We need a sustainable culture and a long-term perspective, and all of that is an essential requirement coming from a company that made its living at sea for 300 years.
We started with a long-term sustainability plan and have been developing it to impact everything we do and everything we've disclosed so far. It's not just for guests, but also for everyone who does business with us—travel advisors, suppliers, and our own employees throughout their time with us.
So, how have you addressed the client's demand for time and space?
We have different types of very spacious suites, up to 300 with private terraces, porches, and so on. Plenty of space in all areas, carefully and individually designed. There are no grand theaters or large main dining rooms, nothing of that nature. As for time, it's how we design the trips. They're never going to be seven-day trips where you arrive completely exhausted after every stopover. We want our guests to go to bed excited, not drained. Everything is slower and more profound: going slower and staying longer; arriving late or staying overnight, etc. These are some of the core ideas. And all of this with a sustainable vision. And it's not just about emissions; it's a 360-degree approach.
The six ships will be built with that premise.
The first one is almost finished, and the inauguration will be on July 8th, followed by the maiden voyage from Southampton on July 17th. The next one is in these shipyards, and you'll see tomorrow that it's already at a good stage of construction.
And in terms of sales, how is the market reacting so far?
We're very pleased to have had our strongest month in January, especially considering we only launched sales in November last year. We're seeing sustained growth; the more we grow and the more markets we activate, the more sales we generate. And it's roughly 50% Europe and 50% other countries.
So you're targeting all markets, not just North America and Europe? How important is the Spanish market to you?
That's right. We now have professionals in Mexico and Brazil, as well as in Australia, and we're also very interested in Japan.
Spain is a key market, and we now have two people in Madrid with extensive experience in the luxury hotel industry, because we don't just bring on board people with cruise experience. After your conference at the International Cruise Summit, we held an event with some of the most important luxury salespeople in Spain at the Rosewood Hotel in Madrid. About 20 people came from different parts of Spain, and even from Portugal. There's a large luxury market in Spain, and we have a clear intention of inviting them to get to know us.
What does Explora Journeys offer in terms of destinations?
Our guests will have the opportunity to experience things with us through a different lens, and there are destinations you wouldn't normally be able to reach easily without the right ship. Our destination policy is definitely a mix of marquee ports and less-traveled ports. We will visit places like Antarctica, but not as an expedition company; that's not our intention, and we have no plans for it.
Our experience unfolds on three different levels. Having time and space to reconnect with yourself, whether in your suite, at the spa, on the outdoor terraces of a cabin, in small restaurants, bars, lounges where you can meet other like-minded people, etc.
The second level of discovery is connecting with the destination, reaching places others can't, and the third is exploring the destination in a way you've never been able to before, with plenty of time to experience it and learn. And that's how the Explora Journeys brand was created.
