MAJOR Chinese OTA Ctrip.com is buying over Royal Caribbean Cruises’ Celebrity Century, and the two companies will set up a joint venture company to manage the ship.
“Since its inaugural sailing, Celebrity Century has created many wonderful memories for hundreds of thousands of guests, and we expect this successful history to continue as she transitions to the Chinese cruise market,” said Richard D Fain, chairman and CEO of Royal Caribbean Cruises. “The vessel’s sale is an excellent business opportunity for both Royal Caribbean and Ctrip, and will generate strong value for both companies’ shareholders.”
Min Fan, vice chairman of the board and president of Ctrip, commented: “China is becoming one of the largest cruise markets in the world…As the largest cruise agency in China, Ctrip has sent over 120,000 guests to cruise trips so far and acquired more than 10 per cent of market share in China.”
A new joint venture company will be set up by Ctrip and Royal Caribbean “to manage the operations of the acquired cruise ship and potentially broaden the relationship”, said Ctrip’s release.
Royal Caribbean’s statement said the sale will result in a non-cash loss of US$20 million, and that the company will operate Celebrity Century until April 2015.
Before changing hands, the 1,814-passenger Celebrity Century will complete its scheduled sailings through the March 22, 2015, itinerary, but its scheduled 15-night Dubai to Rome sailing on April 5, 2015 has been altered to a 14-night sailing from Dubai to Singapore.
Guests with affected bookings can cancel and receive a full refund, or pick an alternative sailing and receive a re-accommodation onboard credit as well as compensation to cover air change fees.
