Going for a hat trick

Describing the company’s intention to achieve “phenomenal growth” with Crystal Yacht Cruises, Crystal River Cruises, and the Crystal Exclusive Class of ocean vessels, Rodriguez says: “I think it is game-changing for this industry. That’s not a term I use loosely.”

The climate for that growth was created by new owner Genting Hong Kong, following the purchase from long-term proprietor NYK. Of the former, Rodriguez says: “They were an absolute delight to work for and with. But I said to them when I accepted this job, you have such brand equity in the power of the Crystal Cruises brand and when you look at the competitive landscape you really have to grow. I philosophically believe you either grow or die.”

While NYK invested faithfully in the brand’s exacting refreshment schedule – “Other two-ship operations typically spend six million dollars every five years to refresh. Thanks to NYK, we spent US$120 million every two years to refresh” – no new ships were forthcoming. The crunch came when the company divested to focus on its core business.

In seeking a new owner, Rodriguez was upfront about the deal she wanted in order to keep the existing ships fresh and build new ones: “If they were not willing to make a billion-plus investment – because that’s what it was going to take – I said, don’t waste our time.”

Her first two fiscal years were among the most successful in the history of the company, and Crystal this year won the Travel and Leisure World’s Best award for the twentieth year in a row. “If NYK were going to sell, this was the time, from a profitability standpoint and from an awards standpoint.” The company engaged JP Morgan and soon there were “a myriad of entities” vying for the brand. “Crystal was very hot. JP Morgan would have been very happy to sell this brand for ten times EBITDA. We in fact sold for 14 times EBITDA.”

Describing herself as “over the moon” that Genting was the winning bidder, she says of chairman Tan Sri Lim Kok Thay: “What I loved about my first meeting with Tan Sri from our very first meeting is that he sat across the table from me and he said: ‘When we acquire you…’. Not ‘if’. And I just loved that spirit. I thought, this man gets it and has the right sort of oomph to take us forward, and with Genting being publicly traded they had the backing and the finance not only to acquire us but to then spend the billion or so that it would take to really achieve the goal of growing Crystal.”

Following its purchase of the company for US$550 million, Genting took a hands-off approach, which Rodriguez appreciates. “We shouldn’t change unless the guest input is telling us to do so. Tan Sri very much respects the ethos and the hallmarks that made the brand what it was and is.”

Rodriguez is fond of quoting business leaders who have influenced her. One of these is Donald Trump, whose mantra, ‘You have to think anyway so you might as well think big’, she has made her own. “When I started at Crystal everybody thought I was crazy because I would say: my goal for the brand is seven ships for seven seas on seven continents, and long-term I would love to do an IPO. But my thinking big pales compared to my chairman. His visions are even bigger than mine – I love that and I think we make a great team together.”

The sheer ambition of the new ventures is breathtaking in the context of the often sedate pace of growth at the top end of the cruise market. Just for starters, there will be three new oceangoing ships (instead of the one announced earlier this year), all to be built at Lloyd Werft in Germany and set to take luxury to a new level with one-to-one staffing. An added feature will be Crystal Residences at Sea: luxury quarters onboard that guests can own.

Long before these ships take shape, Crystal will enter the mega yacht arena, starting with one yacht, Crystal Esprit, previously owned by the chairman and set for Seychelles-based cruises from just before Christmas this year, following refurbishments in Asia. Features will include a two-person submarine kept onboard. Next will be the riverboat piece, with two ships to be custom-built for Crystal, also at Lloyd Werft. Finally, the piece de resistance: the company has bought a 787 Dreamliner and plans to convert it to accommodate 60 people instead of the usual 300. Crystal Luxury Air will offer 28-day itineraries to off-the-beaten-track destinations.

Is there a risk of all these new options diluting the luxury market that is currently loyal to the Crystal brand? Rodriguez thinks not. “Since we have been in business for 25 years hosting at least 50,000 guests a year, we have a very rich database of global consumers,” she says. “We will continue to source just as we always do, with communication to our Society members on a global basis through our GSAs in each individual country as well.”

In keeping with a trend towards a wider definition of Crystal’s business, the company now talks of the Crystal Exclusive Class vacation. “Many guests will come from our Society members but others will be new to Crystal. A lot of cross-pollination will be going on throughout.”

Meanwhile, plans for the construction of the oceangoing ‘triplets’ are advancing. All three will be built to Polar Class specifications to allow for a more expedition-ready experience to allow for landings in locations like Antarctica.

All this growth creates considerable additional staffing needs, of course. “It’s a planned progression,” she says. “We do have a concerted plan to man up. Recently I aligned my executive management team because I knew what was coming but I’m sure many thought: what is she doing, adding all these new executives? The team that I have in place now is the right team to carry us where I need us to go.” One of the new hires is former Azamara itinerary chief Claudius Docekal. Says Rodriguez: “He will take our itinerary planning to new heights that have never been accomplished before, at Crystal or anywhere else.”

She is conscious of the need to prevent the existing ships suffering from neglect as the new ventures take off. “It’s so important when you are growing in this manner that you don’t take your eye off the ball – in this case, the genesis of the brand, Serenity and Symphony. I tell everybody: never lose focus; this is our priority today.” Popular voyages that had been planned for the two ships prior to the expansion announcement include the first-ever cruise ship crossing of the North-West Passage in 2016 (sold out in record time and with more than 700 people waitlisted) and four world cruises on Serenity and Symphony in 2018.

Currently, the brand sources 50% of its guests from USA and Canada, the rest consisting of an international mix with the UK, Australia and Germany leading bookings. Asian cruise growth is just one of the factors behind the company’s growth plans, says Rodriguez. “I see us organically growing with Chinese guests because China has more billionaires and millionaires than any other country in the world today.”

Managing the complex new corporate goals will add to an already very demanding schedule for Rodriguez. “When people ask me where I live, I say ‘Seat 3a on any airline’,” she quips. “In this day and age, work becomes life and life becomes work, so you’d better be passionate about what you do. My DNA is unique: I can sleep 3-4 hours a night and balance it all.” Given the challenges she has set for herself and the brand, these qualities will certainly come in handy over the next couple of years.