Q&A With Colin Veitch, CEO of NCL Corp.
With NCL Americas flagship, the Pride of America, just days from its official launch (June 17), cruise editor Rebecca Tobin asked NCL CEO Colin Veitch for an update on crew training and bookings:
Q: Whats the biggest benefit for NCL America by mandating this training?
A: The entire crew will have had practical experience on the Pride of Aloha or a combination of three weeks training at Piney Point and onboard training while the ship has been approaching readiness in the yard.
This means we will have a more capable, more settled and more disciplined crew than we did when we started out on Pride of Aloha.
The other advantage we are deriving from the Piney Point training is that we are able to see before someone gets to the ship whether he or she has what is takes to adapt to shipboard life.
The Piney Point training is very structured, and only self-disciplined people with a willingness to work as part of a team do well in that environment.
Q: How much is it costing NCL to run the training operation?
A: It is a very big investment. I cant talk about the quantum, but it is important to see it as that: an investment.
It is designed to improve the skills of our crew, to build team spirit and to reduce turnover. It is also important to note that we are making this investment jointly. The Seafarers International Union is genuinely a partner in this venture. It has made its school available to us. We have invested in additional facilities there.
Together, we are upgrading the skills of the expanding U.S. seafaring work force. Its good for them, and its good for us.
Q: Are concerns about the Alohas rocky start-up still affecting the operation?
A: No. Not at all. Pride of Aloha is well booked, and passenger satisfaction scores are high.
Q: How are bookings on the Aloha and the America?
A: We never had any doubts about the potential of the market. Filling the ships is going according to plan. We knew our challenge would be operational, but that, too, is coming into line with our plan.
PINEY POINT, Md. --
Its lunchtime and, just as on the Pride of Aloha, theres a line for
the buffet. Young, fresh-faced Americans wearing NCL Americas
distinctive, blue, button-down crew uniforms grab the serving
trays.
But this is no
cruise ship buffet, and Hawaiis Na Pali coastline isnt just outside
the windows. And these crew members arent serving guests. Not
yet.
These are NCL
Americas recruits, hundreds of them from all over the U.S. They are
undergoing a rigorous, three-week training program at the Seafarers
International Unions Paul Hall Center for Maritime Education and
Training in southeast Maryland.
Executives here say
trainees undergo more training than what an international crew
member would receive before joining one of NCLs foreign-flagged
ships. But for NCL America -- at least right now -- more is at
stake: The company is hoping the training will help the
American-crewed cruise line, which debuted last year and
immediately ran into trouble with the crew.
The lines upcoming
challenge is a smooth introduction of the flagship, the Pride of
America, which will be christened in New York on June 17. NCL aims
to show it can mold and train a pleasant, hard-working, homegrown
crew.
Its a point that
NCL has been trying to prove for a year. Its first attempt, with
the U.S.-flagged Pride of Aloha, got off to a rocky start. The
ships first crew was inexperienced, and the turnover rate was high.
There were suggestions that Americans simply dont make good crew
members.
But NCL is refusing
to buy into that notion. It has two U.S.-crewed ships ready to roll
and a third one on the way in 2006.
What we want is to
show that you can deliver a good product with a U.S. crew, said
Bill Hamlin, NCLs executive vice president of fleet operations,
during a lunch cooked and served by future NCL America crew
members.
At Hamlins remark,
everyone at the table -- the top brass of the Seafarers
International Union (SIU) and school administrators -- raised their
water glasses in a toast.
Theres a number of
people who thought we wouldnt come this far, Hamlin
added.
School
days
During the week
starting May 8, about 315 NCL America recruits were on campus. On
average, about 100 recruits start training each week. As of early
May, 915 people had graduated from the program.
The trainees at
Piney Point are not yet officially crew -- NCL is paying for
recruitment and training. Trainees get a $50-per-week stipend
during their stay. Their time at Piney Point is basically an
interview, said Mark Kansley, who serves as NCLs permanent hotel
director at the school.
Some trainees dont
make it through the three-week program, which is designed to start
slow and build up to the lifestyle the crew would have onboard:
10-hour workdays and seven-day workweeks.
This is probably
the only place where you couldnt finish the program because of your
attitude, said Ed Jenks, president of the Jenks Group, a
corporate-strategy consultant thats overseeing the crews
customer-service training.
You could qualify
for your merchant marine documents, but if your attitude isnt good
here at any time, the instructor could pull you over and say, Im
looking for a smile, Im looking for you to be engaged, and if youre
not engaged with us, youre not going to be engaged with the guest,
he said.
Each week,
soon-to-be waiters, busboys and cabin stewards leave Piney Point
and fly to the Pride of America in Germany, where they join
previous graduates of the training program and former Pride of
Aloha crew members. They take their places in the ships
restaurants, laundry or maintenance room.
After 90 days of
employment, crew can qualify for an affiliate union of the
SIU.
And just like a
turnaround day on a cruise ship, a new busload of recruits arrives
in Piney Point on the same day the graduates leave.
Three
programs
The three weeks of
training are split into three separate programs. Theres one week of
Coast Guard-mandated safety training, which every crew must pass in
order to get required merchant marine documents (MMDs).
Theres a week of
departmental training, in which crew members learn the tasks theyll
be performing onboard.
NCL shipped a
couple of Norwegian Jewel cabins from Germany to Maryland so
trainees could practice cleaning a real cabin.
Prospective
bartenders mix drinks in the school bar. (NCL trainees can drop by
for a drink after class hours but must adhere to the same alcohol
policies here that they would onboard -- a limited amount of beer
and wine.) Cooks, meanwhile, train at the culinary department and
feed the trainees. A third week is devoted to customer-service
training in a classroom setting.
In one of the
classrooms, about 50 trainees were watching a movie about customer
service. Theres almost always someplace else [customers] can go,
the man on the screen told the room.
Each trainee had a
yellow-bound workbook titled Personal and Professional
Development.
Jenks was at the
facility last month, en route to the Pride of America in Germany to
oversee the kids, which is how executives at Piney Point often
refer to the trainees.
Although there are
some middle-age candidates, the majority of the Aloha-shirted crew
appear to be in their late teens and early 20s.
The centers main
building resembles a cross between summer camp and community
college -- during lunch break, the kids hang out, eating at big
round tables (hamburgers and hot dogs are on the menu), chilling
out on the couches or heading out in packs to grab a
cigarette.
The difference is
that everyone wears Aloha shirts and demonstrates the appropriate
attitude for visitors they pass: Smiles and shy hellos.
Obligations
of the flag
A U.S.-flag
operation comes with a lot of hurdles: There are different U.S.
regulations to follow, and the company must pay U.S. income tax on
its earnings. But crew training was always the biggest hurdle, the
biggest unknown, the make-or-break factor for the line.
The much-maligned
crew on those initial sailings in 2004 were trained to the required
Coast Guard standards, but customer-service training took a
backseat to getting the ship crewed up from scratch.
But crew, not used
to the long work hours and unfamiliar conditions on the Pride of
Aloha, were jumping ship.
NCL didnt have a
well of replacements. A tough working environment got
worse.
When the Aloha was
introduced in July, the annualized turnover was 250%, said Colin
Veitch, the companys CEO, in March. These days, the turnover rate
runs closer to 110%.
The challenge is to
keep the flow coming and to make sure they have some skills and to
retain those people so there isnt that kind of turnover rate,
Veitch said. The quality of the crew is much higher.
There appeared to
be a sense of camaraderie among the recruits at Piney Point,
although only time will tell whether their enthusiasm and smiles
will stand up to the rigors of the job.
As several
executives have pointed out, cruise ship work is almost completely
new to American workers.
To make the
experience more true to the onboard experience, bunk beds were
brought in. Trainees sleep NCL America-style, four to a
room.
Prospective crew
can satisfy some curiosity about shipboard life during Q&A
sessions with current Pride of Aloha crew who are at Piney Point
for service retraining.
As per a mandate
passed down from Hamlin, seasoned Aloha crew are required to take
the classes at Piney Point.
Training turns more
boot camp-style over at the adjacent safety-training area, which is
similar to a top-notch fire and safety facility at Barbers Point in
Hawaii.
International crew
also practice fire and safety training, although theirs is often
done onboard their ship.
Student
firefighters battle controlled blazes outside and inside a mock-up
engine room. Donning a Gumby suit that protects them from frigid
waters (never mind that the Pride of America will sail exclusively
in Hawaii) and flipping a giant, inflatable raft are just some of
the tasks recruits need to successfully perform before qualifying
for their MMDs.
In another area,
trainees are required to rescue dummies by navigating a
pitch-black, fun house-style maze while an instructor blows in
smoke to simulate fire conditions.
People come to the
school and say, Im going to wash out, Jenks observed. In 21 days
youre amazed.
Agents come
around
Danny Ching, the
president of Nonstop Travel in Honolulu, books a lot of NCL America
business, so much so that he does once-a-month tours of the Pride
of Aloha.
For awhile, Ching
said, he was giving clients a heads-up about the onboard
issues.
Now, that has
abated. Basically, since November weve had no complaints, he said.
They finally got a crew that knows whats expected of them, he said.
Ive talked with some of the [crew], and theyre quite
happy.
In October, Travel
Weekly polled several travel agents who said they were
recommending, at least for the time being, that their clients take
a wait-and-see approach to the Aloha. Last month, the same agents
said they would recommend the NCL America product.
Im becoming much
more comfortable with the NCL America product, said Doug Crosby,
owner of Cruise Holidays in Henderson, Nev.
Lissa Leong, vice
president of Cruise Holidays in Honolulu, said her clients in the
local market are well aware of the start-up problems on the
Aloha.
They [clients] ask
us how it is going. And we ask them when they come back [if there
were] any operational problems. And they say it was fine, they had
a good time. So I present that to other clients. Id say its going
along quite well, Leong said.
To contact
reporter Rebecca Tobin, send e-mail to [email protected].
Get
More!
For more
details on this article, see NCL America to take delivery of Pride of
America.