The Crystal Story: Turning A Luxury Line Into A Luxury Colossus
by James Shillinglaw /A rendering of the 1,000-passenger Exclusive Class Crystal ship set to debut in 2019.
Two years ago I attended Crystal Cruises’ annual gala for top-selling travel agents aboard Crystal Serenity. The question back then was when the two-ship luxury line would build a third vessel. At the time, Edie Rodriguez, the company’s new president and CEO, said she planned to build seven ships for seven seas, which seemed a bit far-fetched. We were just looking for one new ship!
Indeed, one travel agent friend of mine told me Crystal would be sold before it ever built another ship. He was right!
A year ago Crystal was sold by Japan’s NHK Shipping to Genting Hong Kong. We in the trade press wondered what would become of Crystal, and of Rodriguez herself. We didn’t have to wait long for an answer.
Just a month or two after the sale, Crystal celebrated its 25th anniversary by unveiling the largest expansion plan in luxury cruising, and arguably the largest in the travel industry in the luxury segment. The plan was so ambitious that many questioned whether the company would actually follow through.
As for Rodriguez, she has remained as president and CEO, spending most of her time traveling around the world to promote this grand new venture in luxury travel.
This past week I attended my second Crystal gala for roughly 75 top-selling travel agents—and it seems Crystal is definitely on track with its plan. In fact, it’s even added to that plan over the past year. That means much more luxury product will soon be on the market, with much more for travel agents to sell.
To review, here’s what Crystal is currently promising to deliver in roughly the next five years, as well as what it already has delivered:
Crystal at sea
Crystal’s two existing ships, Crystal Symphony and Crystal Serenity, will remain in the fleet, according to Rodriquez, because they have at least a 30-year lifespan (they were built in 1995 and 2003, respectively) and they are much beloved by past passengers. They have been extensively refurbished over the years, and those updates will continue.
Starting in 2019, Symphony and Serenity will be joined by the first of a new Exclusive Class of three 1,000-passenger, 1,000-crew vessels, to be built in the Lloyd Werft shipyard in Germany. Genting just closed on the purchase of Lloyd Werft earlier this month, so it becomes the only cruise-line owning company with its own shipyard.
Last week, as part of a ship-signing ceremony, Crystal officially ordered the first of the Exclusive Class ships, though financing for the remaining two new vessels is still being completed, according to Genting Chairman Tan Sri Lim Kok Thay. Those ships will feature 48 residences available for purchase in a special section of each vessel.
The proposed new five-ship fleet could also be joined by the S.S. United States, the classic trans-Atlantic ocean liner built in 1952. Right now Crystal is doing a feasibility study to see if the ship can be salvaged and refurbished—it currently is mothballed in Philadelphia—to turn it into a modern luxury cruise ship, at a cost of what some estimate to be roughly $900 million.
Crystal also will feature two yachts, the 64-passenger Crystal Esprit, relaunched after a major renovation in December 2015, and the 200-passenger, polar-class Crystal Endeavor, a new 100-passenger vessel that will be constructed at Lloyd Werft shipyard, for delivery in August 2018.
Crystal Esprit experienced what Crystal executives say were a few “speed bumps” after its relaunch. But after four revenue cruises were cancelled for repairs, including a revamped air-conditioning system, the yacht is now sailing in the Adriatic, complete with its own submarine and other water-sports toys. Crystal Endeavor, which will have its own submarines and helicopters, will begin in 2018 with a series of Antarctica itineraries.
Crystal on the river
Crystal is seeking to seize the luxury end of the river cruise market. Earlier this week Rodriquez presided over a shipyard steel-cutting ceremony in Bremen, Germany, for the Crystal Debussy, the first of six newbuild river ships. The 84-passenger Crystal Debussy will be launched in June 2017, along with the 110-passenger Crystal Bach.
A rendering of Crystal Debussy, which will sail the Seine with 84 guests.
Crystal Debussy will cruise the Seine, while Crystal Bach will sail the Rhine. Those two ships will be followed in August 2017 by the 84-passenger Crystal Ravel, which will cruise the Rhone and Dordogne rivers, and the 110-passenger Crystal Mahler, which will cruise the Rhine, Maine, and Danube rivers.
Crystal also announced earlier this week that it will build two additional new river ships in 2018, for a total of six. Those will include one 84-passenger and one 110-passenger river ships.
The six new luxury river yachts will join the 158-passenger Crystal Mozart, the reimagined river vessel, for a total fleet of seven. Mozart will begin cruising on the Danube in July 2016 after undergoing a major refurbishment in Austria.
The all-suite river ships are being designed to deliver what Crystal calls the luxurious experience on the rivers of Europe. They will feature 250-square-foot guest suites with walk-in wardrobes, king-size beds, and bathrooms with double vanities.
Each river ships also will have two 500-square-foot Penthouse Suites. Major public areas will include the Palm Court with a dance floor and glass-domed roof, a large fitness center and spa, and four dining options.
But the dining experience won’t end there. Crystal River Cruises plans to include a Michelin-star restaurant experience with every cruise, where guests will get the chance to eat individually or in small groups on land at top dining venues at no extra charge, according to Thomas Mazloum, Crystal’s chief operating officer. They will be transported by private car to the restaurant.
Back on board, the ships will feature the smallest number of passengers of any river cruise vessel in Europe, and a high staff-to-guest ratio, with the focus on food and service. For example, 91 crewmembers will serve 158 guests on the Mozart, including full butler service. On the new ships in France, 59 crewmembers will serve 84 guests.
On land, Crystal will seek to deliver a better destination experience, with multiple tour options, including morning, afternoon, and full-day programs. New buses will be smaller, with extended seats and free Wi-Fi. Tours will feature top guides and special experiences at iconic attractions on the rivers of Europe.
Crystal in the air
Crystal isn’t just sticking to the seas and rivers in its effort to provide a complete luxury travel experience. Last month it introduced Crystal Luxury Air with a 12-passenger Bombardier Global Express XRS jet as the first in a potentially larger fleet of private jet aircraft.
Crystal Luxury Air has been launched with a 12-passenger Bombardier Global Express aircraft.
This past week I flew on the jet on a two-hour excursion from Cortone, Italy, where Crystal Symphony was docked, to Bremen, Germany, to see the steel-cutting for the first river ship and the signing of a contract between Genting and Lloyd Werft for 10 new ships (eight for Crystal). It was a very special experience, with a crew that offers great service and meals in a very comfortable aircraft.
Crystal Luxury Air will take passengers to the Crystal ocean or river experience, as well as on pre- and post-cruise trips, and potentially link different Crystal products. At $8,000 per hour plus fees, the service is aimed at high-end clients or groups, though it will offer transport to individuals and couples. It also offers 5% commission for travel agents. Crystal sees the product as a way to link travel agents with a private jet service, if they don’t already have one that they use.
Next year Crystal will launch a new Crystal AirCruise product using a modified Boeing 777 with just 88 seats. Scheduled for delivery in September 2017, the aircraft will feature 28-day “round-the-world” tours, as well as 14- to 21-day programs with classic, off-the-beaten path, and themed journeys. For example, Crystal will offer golf tours or Michelin restaurant tours.
Mazloum calls the aircraft “a cruise ship with wings.” It will have butler service, enrichment programs, and numerous dining options, plus it will keep hours in the air to a minimum, spending two to three days in every location, with customers staying in the best hotels.
Depending on how Crystal AirCruise is received, Crystal has plans to add another wide-body jet, though that might not be a Boeing 787 as previously announced, but another 777, which Mazloum says may better fit Crystal’s requirements.
With new cruise ships, a brand new river fleet, a private jet division, and an air-cruise product, Crystal is poised to deliver luxury on all fronts. And if that’s not enough, Rodriquez vows there is more to come.
Could new Crystal resorts or hotels be in the company’s future? I wouldn’t bet against it, as long as Crystal can deliver on what it’s already promised.