Hans Birkholz has been president of Windstar Cruises since 2010, when he was brought on by then-owner Ambassadors International to restructure and improve the company's capital and operating position. He stayed on after the sale to Xanterra Parks & Resorts and engineered the acquisition last year of three ships from Seabourn, including the new Star Pride. He spoke with cruise editor Tom Stieghorst aboard the vessel on its first voyage in the Mediterranean.
Q: Bigger cruise lines are struggling to raise prices. Have you been able to raise prices at all?
A: Our yields are improving. We think we offer incredible value. What is the success of Windstar Cruises over the last couple of years? We provide an exceptional product at a great prices. We're not going to be able to raise our prices unless we provide more and more value to our guests. We're going to new places, opening up new areas, offering private events, providing better food, training our people to be better servers. If we provide more value, we will continue to have that reflected in the price.
Q: Do the guests for Windstar and other Xanterra assets overlap?
A: There is overlap in certain segments. There is significant overlap between [Vermont Bicycle Tours] and Windstar Cruises. We also think there is overlap with the Broadmoor Hotel, Kingsmill and Sea Island. The strategy is not to force it, but where the [synergies] exist to take advantage of them.
Q: What do past guests of Seabourn think about the Star Pride?
A: Based on the answers I got [from guests on the first night of the initial voyage], they are extremely positive. We're known for our sails. When you talk to guests and you find out what they really love about Windstar Cruises, it's that private yacht experience. It's that combination of service, treating people special, going to places you don't normally go and that small-ship ambience. And you can get it on a small sailing yacht or on a small power yacht. That is the commonality, and that is what they're responding to.
Q: Are you looking at expansion through newbuilds or acquisitions, and are you talking about sailing vessels or conventional ones?
A: It really comes down to economics. What is the cost to build vs. the cost to buy and what is the potential revenue that can be generated to have a decent return on the investment. And the answer is right now, the economics do not favor newbuilds for smaller yachts unless there are government subsidies. That is the reality. So we're in the business of providing a great product. We're also in the business of providing a return to our investors. Our marketplace is sub-300 [guests] so we're looking at yachts we can operate economically under 300 passengers.
Q: Are the crew onboard the Star Pride all from your sailing ships, or are there some from Seabourn?
A: Everyone onboard has been a Windstar employee for a while or is new to Windstar.
Q: A real hot area of the cruise industry is river ships. Would you consider acquiring a river ship, which is about the same size as the ships you're operating? Is that something you can see getting into?
A: We're looking at all sorts of expansion opportunities. I can't say much more than that.
Follow Tom Stieghorst on Twitter @tstravelweekly.