Kunal Kamlani, president of Oceania Cruises and president and COO of Prestige Cruise Holdings (parent of Oceania and Regent Seven Seas Cruises), spoke with cruise editor Donna Tunney at Cruise Shipping Miami last week.
Q: You became president of Oceania when Bruce Himelstein stepped down following a brief tenure in the post. Do you intend to serve indefinitely as Oceania president? If so, how would you describe your long-term vision for the line?
A: We’re a flat organization, meaning we are not hierarchical. I don’t come to work every day thinking about titles and business cards; in fact, none of the team does. We focus on: How do we continue to innovate the brand so that we deliver for the guests?
I think about that whether I’m wearing my Oceania or my Prestige hat. If at some point it makes sense to continue to evolve our structure, then we’ll make a change, but nothing is imminent.
The long-term vision goes back to delivering for the guests. Frank [Del Rio, chairman and CEO of Prestige] has set the vision. It’s the team’s job under Frank’s leadership to innovate, and it’s everyone’s job to execute that vision every single day.
Think about the strongest brands out there: Nike, known for winning; Volvo, known for safety; BMW for performance, etc. For Oceania, we think about taste, in itineraries, in cuisine, in wine, in accommodations. So for us, growth is success in having the consumer associate Oceania with taste. When our guests [board our ships] we’re inviting them into our home.
Q: Early this year Oceania introduced beverage packages and excursion packages that can be booked prior to departure and at a discount. How are guests responding to these packages?
A: Historically, whenever we have introduced something to add more value to Oceania, they respond very well. There are two options for shore excursion packages: Your World offers 25% savings on a certain number of excursions on one itinerary; Unlimited Passport Collection offers up to 40% savings. Both are doing well, but it’s too early for me to tell you that one is absolutely outperforming the other.
If you want in-depth experience at every port, you want the Passport Collection. But not everyone has the energy to be out at a port every day.
Q: What is the average demographic of the Oceania guest, in terms of age, income and past cruising experience?
A: The average age is 55, and these are very experienced passengers who already have cruised five or six times. Their annual income is $150,000-plus, and their net worth is $500,000 to $1 million and up.
Q: Oceania’s Regatta will be deployed in Alaska for summer 2013. Why doesn’t the line have an Alaska presence this year?
A: Itineraries are put together 18 months in advance. We knew we’d have Riviera [launching] this year, and we wanted a strong European deployment in 2012, either in the Med or the Baltics. We heard from our past guests that they enjoyed having the Regatta in Alaska in 2011, so we made the decision to put her back there in 2013.
Q: There are indications that the Costa Concordia accident has to some degree eroded the intentions of first-time cruisers to book a sailing. Is the upmarket/luxury sector more immune to consumer fears than other sectors?
A: Yes, we are immune. Our guests have been around for a while and have seen the ups and downs, so they are more resilient not only than the average person but the average cruiser, as well. They don’t wait for the world to return to normalcy; they keep doing what they are doing.
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