Lisa Lutoff-Perlo from Celebrity Cruises, looks back over the highlights of her first year in office
This article was first published in the Spring/Summer 2016 issue of International Cruise & Ferry Review. All information was correct at the time of printing, but may since have changed
Lisa Lutoff-Perlo has been in her current position as president and CEO of Celebrity Cruises for almost two years, having taken on the role in December of 2014. Asked what she will remember as the highlights of this period, Lutoff-Perlo says that there has been a strong focus on how to make the brand more attractive, “both to people who already cruise but haven’t tried Celebrity and to people who haven’t cruised.
She adds: “I’m really excited about where the brand is going. We have been communicating in a different way that is more exciting and more representative of modern luxury. We are working on the new creative strategy of the brand moving forward and we have a big job to do over the next two years to prepare for the Edge class.”
Although little concrete information has been released about the new Edge class of vessel, it has been trailed as a tipping point for the brand. In January, the cruise line confirmed that it had hired Venables Bell & Partners as its new creative agency. The straight-talking honesty of the agency’s founder seems to have won Lutoff-Perlo’s respect. “Paul Venables, when he was looking at cruise categories and how we positioned and marketed ourselves, said: ‘Your industry is a bankrupt cliché and you are doing your brand a disservice in showing yourselves to people in the same way – not just Celebrity, but cruising in general.’ We need to go in a completely different direction.”
Celebrity’s ‘Modern luxury lives here’ campaign is part of this approach to positioning the brand. “The new campaign platform is serving us in every form of media. We have identified digital and social media as very important for Celebrity, which is an advocacy brand. We have great guest satisfaction and people love to brag,” she says.
She is excited about the brand’s upcoming itineraries and destinations within its four core markets of the UK, the US, Canada and Australia. Although Celebrity is active in broadening its reach to areas such as Asia and other markets, she says:
“Our highest-revenue guests are from the US and the UK. We will continue to position our brand in a very meaningful way and invest more in those markets through a creative platform that will work for us globally and will help us to continue to bring the brand to our core markets and to find more affluent vacationers in those markets.”
The two new ships that will introduce Project Edge will confound even the most experienced predictions, according to Lutoff-Perlo. “I have been in this company for 32 years and I’ve been part of very many ship launches – and many classes of ship launches. The proudest time of my career was when we launched the Solstice class. It really elevated Celebrity to a level we had never experienced before. But in all these classes of ship, I’ve never felt such a level of enthusiasm and anticipation as I do about the Edge class.
“My goal with the Edge class is that people will say: ‘Holy cow, Celebrity did it again!’ That is the reaction that we want. Before the year ends we will start talking a lot about Project Edge. Meanwhile, I want to thank everyone for their patience in waiting.”
Refits have been carried out on Celebrity Infinity and Celebrity Eclipse and will be completed on Celebrity Summit in the spring and Millennium later in the year. “Every time a ship goes into drydock, which is required by law every five years, it’s another opportunity to continue to enhance the model,” says Lutoff-Perlo. “It will always be important to invest, to add new consistent experiences across the fleet.”
Her favourite additions introduced in the recent round of revitalisations include gastro bars serving craft beers; new speciality restaurants; private studio portraitists for all guests across the ships to meet demand from multigenerational family groups; use of the Rooftop Terrace area on Infinity and Summit for film screenings with f&b service; and finally the reworking of the spa and solarium on Infinity “to look like a South Beach hotel”.
Sometimes, a change that doesn’t seem all that crucial can turn out to be a major turning point for a brand, as Lutoff-Perlo has discovered: “Something small we did that had an impact on our ‘modern luxury’ branding was when we eliminated the formal night across our fleet. Our guests don’t want formal night; it’s just not how they live their lives. This sends a very big message about what Celebrity is.”
Another big area of development is the brand’s approach to how guests experience the places they visit. Destination is one of the ‘five pillars’ of Celebrity, “tied with culinary for the number 1 or 2 spot,” says Lutoff-Perlo. “Our guests want to experience destinations in a meaningful way.”
This has led to the addition of more overnight stays, including some double or triple overnights. “And we added overnights in the Caribbean, because if overnights are a part of your brand strategy, why would you eliminate them from one third of your destinations?”
Celebrity has also worked hard to align deployment with spectacular events in its ports of call. From the British Open in Ireland to the Cannes Film Festival in France, Mardi Gras in New Orleans and the Carnival in Rio, “guests can experience bucket list opportunities,” she says.
Shore excursions are also receiving an overhaul. “We’ve really done a great job in our shorex offering in all ports around the world.” The company now offers four types of excursions: Uniquely Celebrity, Culture and Locale, Lifestyle and Wellness, and Family.
All of this modernisation requires a significant investment of time and money. “It does take a lot of effort and commitment to come up with tailored offerings. We need to continue to evolve, to remain relevant to current guests, but equally important is trying to attract new people to cruise with us. Destination is the number one reason people pick a cruise.”
Last year, Celebrity broke new ground by appointing the first US female captain of a cruise ship, a decision that makes Lutoff-Perlo very happy. “Kate McCue is an amazing navigator and captain, with a stellar reputation. From the moment I met her I knew she was special.” She adds a shout-out to women considering this career path: “This is a role woefully in need of great women. The problem we have in hiring women captains is that not many women are taking this path as a career. I’m hoping lot of women read this article and will call me!”
In addition to her job as CEO and president, Lutoff-Perlo maintains a hands-on role in marine operations management, which includes the technological advances that are shaping entertainment and day-to-day life on the ships. In this context, she sees no limit to what is possible for passengers onboard the brand’s ships: “The underlying premise for the guest experience is that there is really no barrier anymore between land and sea. Another part of technology is enabling our crew to make their jobs easier and faster. We really need to be at the forefront of technological development to build the right systems so we can be as good as we want to be.”
Balancing technological innovation with environmental awareness, parent company Royal Caribbean Cruises Ltd. recently announced a partnership with the World Wildlife Fund, a move which Lutoff-Perlo describes as “really important. It affirms our continued commitment to sustainable tourism. The cruise industry – and our company in particular – is driving that because we care so much about it, we are forcing our partners to find the right solutions. It takes time but we are very committed. That is at the top of the list of what makes me proud to work here.”