Virgin Voyages Inks Deal for Fourth Newbuild with Fincantieri

Virgin Voyages

Fincantieri and Virgin Voyages have signed a contract valued at approximately 700 million euros for the construction of a fourth cruise ship, which will be delivered at the end of 2023.

The new vessel will be a sister ship of the three ships on order with Fincantieri.

Construction is underway at the Sestri Ponente shipyard (Genoa) and the first three ships will enter Virgin Voyage’s fleet respectively in 2020, 2021 and 2022.

The fourth vessel will be approximately 110,000 gross tons, 278 meters long and 38 meters wide. The ship will feature over 1,400 guest cabins designed to host more than 2,770 passengers, accompanied by 1,100 crew members, the company said.

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MSC TO BUILD FOUR 1,000 GUEST LUXURY CRUISE SHIPS

MSC Seaview in Valletta, Malta
MSC Cruises is continuing its impressive growth in the cruise industry as the company today announced an agreement to build four ultra-luxury cruise ships at Fincantieri.
The 1,000-guest, 64,000-ton ships will enter service in 2023, 2024, 2025 and 2026. The memorandum of agreement is for a total value in excess of two million euro, MSC said and marks the company’s first dedicated luxury ships.
Pierfrancesco Vago, MSC Cruises’ Executive Chairman, said: “It is off the back of the great success of our ship-within-a-ship luxury concept that our guests asked us to enter into the ultra-luxury segment, as a natural evolution of the MSC Yacht Club. These ships will be able to offer unique itineraries, thanks to their size, and the guest services will be taken to another level, including our personalized MSC Yacht Club butler service, available 24/7.”
By 2027, MSC will have 25 mega ships in service, up from 15 today. The additional four ships will put the MSC fleet at 29 ships by 2027 with over 98,000 berths and a market capacity of over 5 million guests annually, according to Cruise Industry News estimates.
“I am especially pleased to be able to further extend our partnership with Fincantieri through this new order. The award-winning Seaside and Seaside-Evo class have already been recognized as ground-breaking and innovative designs. We are now introducing another new class, which will establish a new standard of ultra-luxury at sea with ships that will showcase the quality and highest standards that are associated with Made in Italy,” Vago said.
Giuseppe Bono, CEO of Fincantieri, stated: “It is with pride that two great brands – an Italian one and one with a strong Italian DNA -, well-known all over the world, today announce an important construction program. We are extremely satisfied that to launch a new class of ships in the luxury segment, MSC Cruises has acknowledged that our project will allow creating a new generation of cutting-edge units from both a technological point of view, safety and with particular attention paid to passenger comfort. With this project Fincantieri can count on 53 cruise ships in its order book, confirming to be an absolute market leader in all the cruise shipbuilding segments.”

With long waits for new builds, current ships get new cabins

Image result for cruise ship renovations

MS Enchantment of the Seas refurbishment/lengthening in 2005

By Tom Stieghorst |Jul 30, 2018.

Ship renovations are big business and getting bigger as cruise lines face long waits at shipyards to build new vessels.

Celebrity Cruises recently announced it will spend $500 million, up from an original target of $400 million, to modernize its fleet and harmonize it with the new class of ships coming, beginning with the Celebrity Edge.

The Edge is coming in November. There are three more copies coming in 2020, 2021 and 2022. So there’s no lack of new capacity for Celebrity. But if it is interested in adding more, getting space at a shipyard is increasingly competitive: major slots already being booked into 2027.

Likewise, at sister-brand Royal Caribbean International, there are newbuilds lined up, starting with the Spectrum of the Seas in 2019. But like Celebrity, Royal is also on a renovation tear. It has budgeted $900 million to upgrade 10 ships over the next four years, but it wouldn’t be surprising if the end amount of its Royal Amplified program is closer to $1 billion.

The first of those ships, the Independence of the Seas, received a total of 107 new cabins in the process of its renovation, which ended up costing Royal $110 million. In addition to a big block of cabins added above the gym, Royal squeezed a few more cabins here and thereby converting areas from other users.

For example, Royal got rid of a cigar smoking venue, moved the library into the former cigar lounge and then carved four cabins from the old library space.

The Mariner of the Seas, the next ship to get amped up, got a $120 million makeover for the short cruise market out of Florida, raising its capacity from 3,114 to 3,344 at a drydock in The Bahamas.

By adding cabins during drydock, Royal Caribbean is swelling its overall fleet capacity in an under the radar way. It is also taking advantage of the availability of renovation shipyards around the world, which although busy, are not as busy as the European yards where ships get built from scratch.

Some of the new entrants that are clogging the shipyard order books, such as Viking Ocean Cruises and Virgin Voyages, are not much competition for drydock space because their ships are all either under construction or are too new to need much work.

So look for the established cruise lines to do more quiet capacity expansion as they upgrade their ships along the way.