By
David Mott |
This article first appeared in the Spring/Summer 2015 issue of International Cruise & Ferry Review. To read other articles, you can subscribe to the magazine in printed or digital formats
When an eminent critic of the cruise industry like Douglas Ward, long-term editor of the prestigious Berlitz Cruise Guide, awards two of your four ships a rare five star-plus rating, you know you are not doing much wrong. But even the top-quality operation provided by Hapag-Lloyd Cruises in its four ships is not beyond revitalisation, especially after a tough period of recession.
So 20 months ago hospitality expert Karl Pojer switched from parent TUI AG, the huge German travel group where he was on the executive board, to take over at the cruise company as chief executive officer. One of the first things he did was to set about buying the company’s newest ship, the 516-berth Europa 2, which had been long-term chartered to the company by a German investor.
It was a very expensive charter, according to Pojer. “Negotiations with the German owner, who lives in Switzerland, were very difficult, but it was important that we got through them and we did,” he says. “The benefit to the line’s finances is about €20 million a year.”
In a broader sense the new CEO saw a need to draw a sharper distinction in the fleet between the luxury cruises offered by Europa, now 15 years old, and her new fleet sister, Europa 2, and the very different expedition cruises operated by Hanseatic and Bremen for those who want a hands-on experience. The concentration will now be on those two areas.
He explains: “The two Europas have a common DNA. But the introduction of Europa 2 has brought with it a big increase in international clients. They are the new luxury customers who are younger than on Europa; the more modern international clients who want resorts for younger people.”
The expedition cruises are operated by the Bremen, which has already sold out for the new season, and the more international Hanseatic, which wrote history last summer by being the first non-Russian ship to navigate the Northeast Passage to the north of Russia, a feat made possible because of the retreat of the Arctic ice. Both ships will do it again over the next couple of years and it seems this navigation is likely to become a permanent feature for the company.
There are also ambitious plans this year for the two expedition ships to undertake four trips up the Amazon from the mouth of the river at Belem in Brazil as far as Iquitos in Chile, a round trip of 4,000 miles which can only be achieved because of the ships’ shallow draft. Pojer points out that none of this trip can be achieved on automatic pilot. Europa 2 will also be going to Africa for the first time with five cruises to East and South Africa taking in such ports as Cape Town, Port Elizabeth, Walvis Bay and Durban.
Pojer, who is pleased by the increase in international passengers since the Europa 2 came into the fleet, says the UK, US, Netherlands, Belgium, Australia and Scandinavia have been identified as prime international target markets. In 2014 Hapag-Lloyd Cruises increased the number of international guests onboard its fleet by 52%; and on Europa 2 by 230%.
“We would like to enhance further new international markets and address the different needs of our international guests,” says Pojer.
In a nod to international clients, from 1 October last year the company began to apply an onboard beverage credit to all international markets up to a maximum of US$200 per person depending on the length of the cruise on Europa 2 and Hanseatic. The company has also introduced some changes in suite designations – which, for a luxury line, is significant. Spa Suites are now known as Grand Ocean suites with no personal butler and a corresponding reduction in price. Grand Suites on decks 8 and 10 are now called Penthouse Suites and the price of the deck 10 accommodation will increase.
As with most cruise lines Hapag-Lloyd is greatly concerned with preserving the environment, particularly on its expedition cruises. The company has spent €12 million on equipment to cut the impact of its ships on the environment. Notably it was the first cruise company to fit a catalytic converter (on Europa 2) to filter out nitrogen oxides.
The CEO says the equipment cannot be retrofitted on an existing ship because it takes up too much space. Like many others the line has adopted a policy of slow steaming for some time now and estimates it reduces its fuel consumption by about one third. A special hull form design on Europa 2 cuts consumption by about 18%.
The company continues to use crude oil to propel its ships except when they are in Northern Europe, where new legislation forces it to switch to diesel. This is also the case in the polar regions, where the use of crude oil is forbidden and reduced-emission diesel is employed. This diesel fuel had been used in the polar regions for some time before the crude oil ban came in four years ago. But sources at the company have said it would not be viable to use it around the world.
Hapag-Lloyd expresses two serious concerns about switching to diesel as the main source of power. In the first place it seriously questions whether there will be adequate facilities and supplies of diesel in future with the increased use now being seen. Though not as important as a steady supply, the line also predicts that the increased use of diesel because of new regulation will send the price soaring over the next five years.
As a matter of perspective the company points out that cruises only represent about 8% of total sea traffic and the prominence given them by the media probably misrepresents their impact on the global environment.