Virgin disruption in the Cruise Industry is reprinted from the Tobago News, with pictorial enhancements.
The recent news that Sir Richard Branson, the maverick businessman of Virgin Group is launching a cruise line may be a concern to many established cruise lines.
However, for consumer, this development should generate smiles because the entrance of Virgin into the cruise space is expected to deliver tangible experiential and financial benefits.
In September 2014, Sir Richard took his “future of travel” conversation to New York City to reignite the focus on delivering quality service to consumers while creating new travel opportunities from the bottom of the sea to galaxies. Virgin’s move into cruises was inevitable, as the company has already developed significant market share in air transport and vacation packages, through the Virgin Atlantic, Virgin America and Virgin Vacations brands. Along the way, ancillary enterprises were developed which drive content or services, back to the core travel business.
Caribbean Christmas
This move by Virgin is big in that is creates a major synergy between its enterprises and creates another big product for Virgin Vacations. Today, European consumers can book cruise and land vacation for Thomson Cruises, P&O cruises, or a land vacation package through the travel agency arm of Virgin Group. In a few years, a consumer will be able to book the same package with the Air and cruise being delivered by the same company, Virgin.
As a travel professional, I expect the cruise product to be delivered by Virgin will be in keeping with its mantra of innovation, that is, bringing a change for the better, with a focus on consumers. Virgin’s partner in Virgin Cruises is Bain Capital. While my readers in the Caribbean may not know Bain Capital, those in the diaspora definitely will. Bain Capital is the financial services company founded by former US presidential candidate, Mitt Romney. Bain has a reputation for making good bets.
Virgin Cruises will be managed by Tom McAlpin, an industry veteran, who once served as President of Disney Cruise Line and most recently as President and CEO of The World, Residences at Sea. Tom is no stranger to cruise start-ups, having worked at Disney Cruises in its infancy. Caribbean nationals should be excited about this Virgin Cruises because it promises to serve travelers from around the world.
If Virgin Cruises were to use the same playbook that has generated a cult following to its airline, here is what we can expect:
- Competitive cruise fares because competitive fares appear to be in the DNA of Virgin;
- Best in class product and customer services on the high seas;
- Spacious elegant designed cruise ship, with amenities to please every lifestyle.
If Virgin cruise is successful, expect a cruise line that will have dozens of global routes servicing the mid-premium markets, and hopefully, Caribbean points of origin. This small change would be a Virgin disruption in the Cruise Industry.
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About Author: Theo is a travel professional and travel author with more than 15 years of experience personalizing cruises, rail vacations and all inclusive resort getaways. His business niche includes small ships and river cruises, and international rail travel. Theo pioneered No USA Visa Cruises™, and Layaway Cruise™ in Latin America and the Caribbean. Theo is a certified cruise, rail and resort specialist. You may connect with him on Facebook here.