Is there any doubt that the success of such global cruise giants as Carnival Corporation & plc and Royal Caribbean Cruises Ltd can be approximated from Asia by an Asian company? Consider Hong Kong-based Genting HK – its Star Cruises and Norwegian Cruise Line brands together constitute the third-largest cruise concern in the world, with a fleet of 20 ships cruising to more than 200 destinations, offering nearly 42,000 lower berths to the market.
What is Star Cruises’ response to the incursions in Asia made of late by the two market leaders and what is its overall strategy for its Asian cruise source and deployment markets? The company is simply making heavy growth-oriented investments in both refurbishment and strategic deployment, among other things, says chief operating officer William Ng – all in order to maintain its leading position in developing and serving the Asia-Pacific region as an international cruising destination.
In January 2014, SuperStar Virgo (the current flagship and largest vessel) underwent its second refurbishment in less than two years, costing nearly US$20 million. Star Cruises remodelled more than 270 balcony cabins and trebled the ship’s retail area to more than 6,000sqft. “This work reflects our ongoing growth in Asia and will reinforce our position as the Asian-Pacific market leader,” says Ng. As will, no doubt, Star Cruises’ 150,000gt newbuild, slated for delivery in 2016, now under construction at Meyer Werft shipyard in Germany. Costing €707.2 million, with more than 1,600 cabins and a capacity of 4,500 passengers and 2,000 crew members, it will, says Ng, be the largest ship permanently homeported in Asia and, of course, be the largest ship in the fleet.
The last few years have been marked by intense refit activity across the fleet. In 2011, the 51,309gt SuperStar Aquarius and 40,000gt Star Pisces underwent refurbishment. In 2012, the 50,764gt SuperStar Gemini, formerly Norwegian Dream, had a hefty US$50 million redo; later in 2012, the 75,338gt SuperStar Virgo underwent works to cater to the Asian market – its expanded retail space including a new upscale, duty-free ‘boulevard’.
After a four-week drydock in 2013, SuperStar Libra began offering cruises to Yangon with a range of new shore excursions. Also last year, the cruise line refurbished and launched the vastly smaller 3,370gt Genting World (formerly the MegaStar Aries) in order to wade into the premium-level market (more elite customers looking for a unique cruise holiday with small groups of their family and friends). By the end of 2013, then, every member of the fleet had been refurbished in the previous few years.
Through most of 2013, SuperStar Gemini homeported in Shanghai, sailing to destinations in North Asia. SuperStar Virgo will be on a homeport deployment in Singapore through March, 2014, offering itineraries to Penang, Phuket (where the elephant riding shore excursion is highly popular), Malacca and Port Klang. The ship will homeport in Hong Kong from April to October, sailing to Keelung (Taipei), Taichung and Kaohsiung in Taiwan, Sanya in Hainan and Halong Bay in Vietnam; then homeport for the rest of the year in Singapore. Ng notes of the line’s decision to reposition SuperStar Aquarius: “We became the very first global cruise line ever to homeport a ship in Kota Kinabalu.”
It would seem the faster-paced renovation and repositioning of the ships will enable Star Cruises, if it chooses, to graduate to selling a more all-inclusive product, along with its current products. Generally, says Ng, “Star Cruises’ growth trajectory in Asia could be quite rapid, if we continue our strategic development of products with highly targeted appeal.” But that requires a lot more than the cruise line’s refurbishments and newbuilds.
“We need investments in infrastructure, terminals, ports and support services, coupled with an easing of visa requirements and more cooperation amongst regional governments to make cruising hassle-free: all are indispensable to making new products possible. It may take some time: considering it took some 30 years for the market to mature in the US, cruising is still an infant in Asia,” he says. “That’s why we are in favor of competition. We believe it helps expand the market and the industry to grow at a faster pace.”
How will Star Cruises’ products reflect elements like new itineraries and onboard innovations? Ng says the company’s onboard strategy is geared to current customers, who they are and what they like. “Certainly we stand out with freestyle cruising. In fact, we are constantly innovating, adding new entertainment, food and beverage choices, shore excursions, and retail variety and wellness options, both to attract new customers and to keep our existing customers coming back.”
In this respect, new shopping options have dominated as much as anything. For example, the latest retail expansion on SuperStar Virgo enables passengers to buy products from international brands such as Shiseido SK II, Biotherm, Lancôme and Shu Uemura. The ship also features duty-free shop China Duty Free, jewellery and watch specialist Canopus, luxury leather goods retailer Milan Station and the Ports O’Call souvenir shop.
Shore excursion development shines, too: “For summer, 2014, we have lined up many new places of interest to our itineraries and activities in terms of our shore excursions. For example, in Naha, travellers can snorkel and dive; in Ishigaki, they can have a Segway riding experience; our Taiwan excursions will also cover several new destinations such as Paper Dome and Taiwan Times Villages in Taichung.”
Generally, Ng notes that Star Cruises will continue to upgrade its fleet, expand choice and develop its range of products and its services, onboard and onshore – and otherwise identify opportunities, within its core competencies and capabilities, to drive its business. In particular, apart from the fleet’s renovation and redeployment, new onboard shopping venues can help the ships stay successful as a business. Needless to say, Ng emphasises the value that the company brings to its customers – as much based upon its unrivalled experience and enthusiasm, as upon its deep understanding of the Asian market.
This article appeared in the Spring/Summer 2014 edition of International Cruise & Ferry Review. To read other articles, you can subscribe to the magazine in printed or digital formats.