Virgin Calls New Cruise Line ‘Fun and Sexy,’ Agents Say ‘We’ll See’

Richard Branson’s Virgin Group is testing the waters again. Literally.
 
And—like previous ventures—this one is making waves.
 
An announcement last week confirmed the long-standing buzz that Branson will enter the cruise industry. Virgin Cruises will launch by the end of the decade, operate two new “world-class ships” and be based in Miami.

Tom McAlpin, former president of Disney Cruise Line, will serve as CEO. And the venture will, initially at least, be flush with cash, thanks to backing from private equity firm Bain Capital.

“We plan to shake up the cruise industry and deliver a holiday that customers will absolutely love,” said Branson in the announcement.

Launching a new line is not an everyday occurrence in the industry. But it’s being done. Viking Ocean Cruises will launch in 2015, with the first of three newbuilds.
 
What will Virgin’s foray into cruising mean for agents?

Travel Market Report asked some cruise-specialists and industry insiders for their thoughts.
 
It’s all in a name
“The great thing about Richard Branson’s Virgin Group coming into the cruise business is that they already have a very recognizable and quality brand,” said Brad Anderson, co-president of Avoya Travel, an American Express agency.

Michelle Duncan, president and CEO of Centerville, Va.-based Odyssey Travel, a member of The Affluent Traveler Collection, said, “I’m excited any time Branson announces a new venture.

“He has awesome products and great brand presence. I know that everything he touches seems to have excellent service.”

Rising tide
Though it may be a while before ship details — or even a launch date — are confirmed, the attention Virgin Cruises is generating is good for everyone, agents said.
 
“On a global scale, cruising isn’t where it should be. Anything that expands the market is a good thing,” said Duncan.

“I can definitely see Virgin Cruises attracting clients to cruising that previously hadn’t thought about it,” she added.

Anderson believes the new cruise line stands to attract newcomers to cruising.

“Virgin’s outstanding name recognition will increase awareness for cruising and most likely attract several generations of first time cruisers, from baby boomers to millennials,” he said.

“This is more validation that the growth of cruising is still in its infancy,” he added.

Enter travel agents
Anderson also looks forward to Virgin Cruises’ strong support of travel agents.

“We’re also confident that Virgin Group’s leadership will look at the most successful business models in travel today and rather than have a platonic relationship with travel agencies, they’ll understand the value of professional travel agents and create a relationship that is filled with engagement and excitement,” he said.

Importance of customer service
Customer service is one of the hallmarks of the Virgin track record, said the new cruise line’s CEO McAlpin in last week’s announcement.  

But is good customer service reason enough to start a cruise line? Some agents aren’t so sure.

“I don’t know that we need another entrant in the market,” said Gary Silverstein, owner of Mann Travels in Charlotte, N.C., a Signature agency.

“Branson talks big,” Silverstein added. “I like the fact that he’s out there doing things like dressing up in a stewardess outfit on his airline. It beats the boring guys that run other companies.

“He’s a great showman, but I wouldn’t want to be one of his cruise investors.”

Creating a new market
Though short on details, Virgin executives are using words such as “informal, fun, sexy, hip and cool” to describe their new venture.

For agents, figuring out just what that means is a guessing game.

Silverstein thinks Virgin Cruises will probably go after the low-cost Carnival Cruise Lines market.

“We all remember what happened when another European airline, EasyJet, tried to get into the cruise business. It didn’t work out well,” said Silverstein.

Its own niche?
Other agents are guessing that Virgin Cruises will create its own market niche.

“Virgin has a reputation for being in tune with people’s needs,” said Ralph Santisban, owner of CruiseOne of Miami in West Kendall, Fla.

“They operate in a casual, laid back way that’s in tune with young travelers,” he said. “I think they’ll come up with some new things we’re not seeing on other lines.”

Even a new twist in one aspect of cruising can shake up the industry, Santisteban added.

“Remember when NCL came up with Freestyle Cruising? It’s pretty much a standard way of dining now,” he said.

Duncan thinks, “If they’re going for hip and cool, Branson is the one to pull it off.

“It will be great to see some of the fun things they offer on flights, such as mood lighting, come to cruising,” she said.