A Royal homecoming

Having taken the reins at Royal Caribbean International midway through the introduction of the first two Quantum-class ships, Michael Bayley was instantly immersed in the buzz of the new prototype. “It feels great because I’m a loyal Royal Caribbean fan myself and I have a great passion for the brand,” he says. “I literally grew up in the brand. I know everything about it and I like where we’re going with it.” The move from Celebrity Cruises has gone smoothly, the transition barely raising a ripple for him. “It’s a change from one brand to another, but in many ways, for me it’s a little bit like coming home. So I’m very excited about that.”

What are Bayley’s main ambitions for Royal Caribbean International in his first year in the job? “When you run a brand of this magnitude, you’re looking way beyond one year,” he says. “You tend to be thinking for in terms of three, five and 10 years, because it’s really about the strategic direction of the brand.” But bringing it down to the near-term view, he says: “Since I’ve rejoined the brand, our focus has been on short-term things such as the wave period (it was a good wave), the launch of Anthem of the Seas and announcing Ovation of the Seas into China – and the development of a strategy that we don’t discuss but that we are starting to execute.”

The aspects of Royal Caribbean International’s China strategy that have been publicly aired are certainly complex and far-reaching. Bayley is confident the cruise line is up to the job. “Every year for the past five years, Royal Caribbean International has been voted the best cruise line in China and we’re the number one brand in China in terms of market share,” he points out. “We’ve been investing in the Chinese market for over eight years. Our ambitions in China are to continue to grow our business and to attract Chinese cruisers, who are all new to cruise.” This growth will be boosted when the third Quantum-class vessel, Ovation of the Seas, joins Quantum of the Seas, Mariner of the Seas, Voyager of the Seas and Legend of the Seas in China. The Quantum mould has proved flexible, with Anthem of the Seas asserting a subtly different design aesthetic from that of her older sister. Bayley says that Ovation will be equally dynamic, with a strong focus on onboard art.

“Every ship at Royal Caribbean has its own personality and part of the personality is the art that we select on that ship,” he explains. “It just so happens that I think the art of Ovation has been particularly well selected. When you interact with the art, it needs to make your life more enjoyable. I think, given the comments we’ve received, we’re achieving that. The idea of making life better is resonating. People seem to like art that is more interactive; they engage with it more.”

Much has been made of a younger demographic being attracted by all the new technology onboard the Quantum-class vessels. “The Quantum class is in many ways not built for the past or for today, it’s built for the future,” remarks Bayley. “I think that’s why we see such a lot of innovation and technology; because the world is rapidly changing. You can see people are engaging in a different way with the community that they live in and work in. That’s all based upon a technology foundation.

“Every one of us is now carrying a smart phone; we relate to the world that way. So Quantum really uses all of the technology, including things like O3b, which provides incredible bandwidth. It’s just relevant; it’s the right context for the future. I think that’s really what Quantum class embodies.”

This relevance does not come cheap, of course. Lower than desired ticket prices have long been cause for concern and this spring, Royal Caribbean took the bold step of calling a halt to last-minute cutting of prices. Bayley thinks the market will adapt to the loss of the cheaper fares. “In the US market we decided that we’re going to stop any last-minute discount pricing. We’ve done that and we’re going to continue doing that. “I think it’s going to take some time before there’s a realisation that suddenly these last-minute discounted prices are not available anymore. Everybody is opportunistic in terms of looking for the best prices, but that’s just what we all do. We’re happy to offer good pricing during certain times of the year; we just don’t want to engage in the last-minute discounting that drops the price 20% or what have you. It just devalues the brand. And I think many of our loyal customers don’t enjoy that: the idea that because someone waited to the very last minute, they could buy something at a discounted price. We would prefer to sail with empty rooms.”

He also believes passionately that the brand’s offerings are worth paying full price for, especially when it comes to the itineraries available. “The thing about Royal Caribbean International is the sheer scale and breadth and depth of the itineraries that we offer. We visit more ports in the world than anybody else.” On a personal level, Bayley admits that his work is a very dominant part of his life. Aside from the odd vacation, often enjoyed onboard a Royal Caribbean ship (he took his two sons on a cruise on Oasis of the Seas in the summer), he seldom switches off. “My work and life are all one thing and that is Royal Caribbean. I love what I do. I’ve done it for a long time, from working on the ships to doing all kinds of things. Everything for me is intermingled together.”

I suggest that perhaps he is the ultimate ‘company man’ but he sees it a little differently. “I think that if you understand the soul of cruising, if you can really climb into the minds and the souls and the spirits of all the employees and people from all over the world who spend decades travelling the seas, you’ll find it’s very much a way of life. The life that you live is intertwined with the adventures that you have. And those adventures come from travelling the oceans on ships that are just divine.

“Think about the truth of most people’s reality, stuck in traffic every day – compared to sailing into Rio de Janeiro at 8am on a Tuesday morning. There’s nothing more beautiful than a gorgeous blue-skied day with a calm sea sailing past Sugar Loaf Mountain, looking at Copacabana beach – it’s heaven.”

It’s a persuasive argument and one that clearly works for a man whose name has been synonymous with Royal Caribbean’s brands and business over the years.