SkySea Cruises Comes to an End

Cruise lines had a lot of big plans for China a few years ago, but as the market has cooled, those plans are changing. SkySea Cruises shows that winning Chinese travelers isn’t as easy as taking an old ship and tailoring it to local preferences.

SkySea Cruises, a joint venture between powerhouses Royal Caribbean Cruises and Ctrip, will stop sailing by the end of the year.

The companies disclosed the decision to end the venture late Monday. Both had a 35 percent stake in the line, with SkySea management and asset manager Stone Capital holding the rest.

First announced in November of 2014, SkySea was meant to be “a national cruise line for China” that was created specifically for the market. It started with one ship, which was formerly operated by Celebrity Cruises, and the companies said there was potential to add more over time.

The line started sailing in 2015. But as foreign players including Royal Caribbean International, Princess Cruises, and Norwegian Cruise Line entered the market over the next few years with newer, bigger ships, competition grew fiercer and prices suffered.

Tensions between China and South Korea also kept popular Korean ports off limits for cruises that left China, leading to itinerary changes that also hurt pricing.

SkySea’s ship, Golden Era, will be sold to TUI’s Marella Cruises. It is expected to be delivered in December.

Royal Caribbean and Ctrip expect SkySea to cease business operations before the end of the year. They believe employees can be absorbed into available positions at both companies.

Source: Skift