Hotel tycoons are jumping on the wave of luxury cruises – E24

Luxury cruises on the seven seas is the tourism trend that “everyone” wants to get into.

They promise peace of mind, unique dining experiences and “quiet luxury”. Ship ohoi and welcome to luxury sailing. Here the drinks are loud, the bags are expensive and the view is nothing short of amazing.

The upper end of the luxury market is one of the biggest drivers in the cruise and tourism industry right now, explains Patrick Scholes. He is the Managing Director of Residence and Leisure at Truist Securities, the investment bank.

– Everyone is trying to control this trend, he adds bloomberg.

Or at least a number of the hotel billionaires, who see the luxury niche in the travel industry coming to life faster than other parts of the market.

floating wings

One player that has jumped in is the largest hotel chain in the world, Marriott International. They own the Ritz-Carlton brand name.

The company launched its first luxury yacht last year. Less than a year later, there are already plans to expand the business, according to Business interested.

Trips through 2024 are planned and available for sale. Travelers can choose between various destinations in the United States and the Caribbean, such as Fort Lauderdale and Bermuda, or European gems such as Barcelona, ​​Nice, and Venice.

Also hotel chains Aman Resorts And Four seasons Plans to provide guests with luxury cruises in the seven seas with thick enough wallets.

The last floating pavilions cost about $4.2 million to build. The most expensive is 892 square meters and has four floors, a private spa and a pool, according to one. press release.

Aman Resort is owned by real estate developer Vladislav Doronin, who lives in Switzerland. The Four Seasons is owned by Microsoft founder and billionaire Bill Gates and Saudi business prince Al-Waleed bin Talal.

Already established hotel chains can offer existing customers more places to spend money and rewards points. A well-known name and direct sales to regulars help fill the boats, Bloomberg writes.

Troubled times for old Kroll

At the same time, more established and traditional cruise operators are struggling with high debt and a lower coverage ratio than before the pandemic.

Among them are Carnival, Royal Caribbean Cruises and Norwegian Cruise Line Holdings.

In all, the pandemic has left these companies with debts of $74 billion, or about NOK 768 billion. Since 2019, its debt has increased by $44 billion, according to a Bloomberg Intelligence analysis.

Analyst Judy Lowry explains that lower incomes and higher interest rates have a dampening effect on companies’ development plans, because they still rely on loans for available capital.

Now, among other things, the cruise giant Carnival expects more competition for customers who spend the most money. But they also hope to participate in some recovery.

– If they feel satisfied, they might say, “Cruises are a great way to travel. Next time I might want to bring my kids and grandkids, and then the Four Seasons or the Ritz-Carlton won’t be an option,” David Bernstein, Carnival’s chief financial officer, tells the news agency. .