First interview with Virgin's new CEO.

[CineGraphic]

New CEO Nirmal Saverimuttu who was previously president and chief experience officer, has some interesting things to say.

 

https://www.yahoo.com/news/first-q-ceo-virgin-voyages-182551253.html

[cantgetin]

Given that he was McAlpin's number 2 and McAlpin is now likely getting a fat salary for minimal work as Chairman of the Board, I don't expect a lot of changes.

What was interesting was learning that they are committed, likely by contract, to one ship in Miami year round and a second in winter.  That might imply additional summer options for that ship, especially when the next ship launches.

We also learned that he is at least talking the trendy buzz word talk, whether he is actually committed to the actions or not.

[CineGraphic]

15 minutes ago, cantgetin said:

I don't expect a lot of changes.

 

When I read something like this, I instinctively foresee changes/cuts coming.

"Early on when we were a startup, we focused less on profitability and what that meant. Now that we have the new funding in place, and the product established, we’re focused more on performance-based metrics like profitability, cost structure, and EBITDA. We talked a lot about what it meant for the business to be profitable."

[AlyssaJames]

8 minutes ago, CineGraphic said:

 

When I read something like this, I instinctively foresee changes/cuts coming.

"Early on when we were a startup, we focused less on profitability and what that meant. Now that we have the new funding in place, and the product established, we’re focused more on performance-based metrics like profitability, cost structure, and EBITDA. We talked a lot about what it meant for the business to be profitable."

 

Welp. 

We had a fun few years. My furthest booking is 12 months out, hopefully they don't turn the product into NCL that soon. 🙂

[cantgetin]

Well, we are definitely not seeing the great prices I've gotten in the past.  We didn't book the cruise that I had some interest in on day 1 because the cost was almost double what we've been paying  for VV cruises and we were looking at some personal issues that might interfere.  Now we won't be booking it as we can't get a cabin.  So, if "profitability" means "we grossly underpriced our product in the past and will make up for it now,"  that makes a difference.  Obviously there are people who are willing to pay the increase.

[raphael360]

15 minutes ago, cantgetin said:

Well, we are definitely not seeing the great prices I've gotten in the past.

I'm seeing prices consistently 30 - 40% higher than late last year and earlier this year.  Lower prices and fewer passengers go hand in hand, I guess, and it was fun while it lasted.

[AlyssaJames]

29 minutes ago, raphael360 said:

I'm seeing prices consistently 30 - 40% higher than late last year and earlier this year.  Lower prices and fewer passengers go hand in hand, I guess, and it was fun while it lasted.

I was on one of those last year with a friend who was a first time cruiser. 900 pax and no solo supplement on XL sea terraces, which were going cheap anyway. I made a point of telling her repeatedly, “it’s not going to stay like this”.

 

That said, I’ve been on some sold-out sailings now and they’ve been able to scale up to bigger crowds pretty well. 

[raphael360]

1 hour ago, AlyssaJames said:

I was on one of those last year with a friend who was a first time cruiser. 900 pax and no solo supplement on XL sea terraces, which were going cheap anyway. I made a point of telling her repeatedly, “it’s not going to stay like this”.

 

That said, I’ve been on some sold-out sailings now and they’ve been able to scale up to bigger crowds pretty well. 

My first several cruises this year were $800 for a Solo Insider. My upcoming cruise in December is almost $1500 for the same cabin. I’ve taken 6 cruises so far this year and am glad to have helped VV in their slow times. 😃

One more cruise for ol times sake. 

Edited September 29, 2023 by raphael360

[rebeccac]

From what I heard on a YouTube live (where a vlogger had a rep from VV on their show), they had been underpricing cabins and are now working on getting up to the levels that the investors think they should be to be profitable.  Prices are going nowhere but up!

[CanadianCruiser21]

Whenever I price a cruise on any other line, once I factor in gratuities and wifi and loot, the VV sailings that I have chosen (which admittedly are among the lowest cost per day) always cost way less. Right now, especially with DBE and MNVV, it’s hard to go with another line because VV offers a better product for a lower price. 
 

[Cloud9 Bob]

Yes, they have moved mountains but can't seem to improve their underperforming wifi.

[cantgetin]

33 minutes ago, Cloud9 Bob said:

Yes, they have moved mountains but can't seem to improve their underperforming wifi.

We had no problem with the premium wifi on the April TA....and premium was complimentary with the DBE package.  Now the app is a very different story both in advance (worst) and on board (somewhat better)

[raphael360]

3 hours ago, CanadianCruiser21 said:

VV offers a better product for a lower price. 

Totally agree.  VV offers a unique experience and is the best cruise product available in this price category.

[c-boy]

18 minutes ago, cantgetin said:

We had no problem with the premium wifi on the April TA....and premium was complimentary with the DBE package.  Now the app is a very different story both in advance (worst) and on board (somewhat better)

things wifi wise went swimingly for us this summer

[jon81uk]

11 hours ago, Cloud9 Bob said:

Yes, they have moved mountains but can't seem to improve their underperforming wifi.

I’m currently on Valiant Lady and had zero issues with the WiFi.

[CruisingWalter]

22 hours ago, CineGraphic said:

When I read something like this, I instinctively foresee changes/cuts coming.

 

The biggest change will be the pricing will continue to move up. They're underpriced for where they need to be in terms of profitability as the new CEO mentioned. Investors want to see a higher income per Sailor so expect the cabin fares to continue to move up. That's why it was such a shock to many of us when they dropped their cabin pricing by about $500 recently. It's starting to self correct and I expect we'll see it inch up even more. 

 

It will be very interesting to see how that strategy works out because the current demand is not overwhelming by any means. The current cancellations and re-bookings notwithstanding, it's pretty easy to get a booking on most sailings. 

[CruisingWalter]

22 hours ago, cantgetin said:

So, if "profitability" means "we grossly underpriced our product in the past and will make up for it now,"  that makes a difference.  Obviously there are people who are willing to pay the increase.

 

It's not 'grossly underpriced' but they are definitely underpriced for where the investors want to see the per Sailor rate. Where you might see a category starting at $2500 today you may see it start at $2750 in the near future. In other cases it might be more dramatic.

 

One area where I see a 'fail' at the moment with the new itineraries is just keeping the same old, same old in terms of Miami when there is one ship. Sure the 4 and 5 nighters are great introductions to the cruise line, but when you're running those same itineraries continuously for 3 years for 8-9 months per year, that does get old.

 

It would be nice to see them mix in a few 7, 9 or even 10 day itineraries ala the Greek Starry Night itinerary when they just have the one ship in Miami. Such as a few 9-night itineraries going to the A-B-C islands. The repeat business is high when a first time sailor comes on board and experiences VV for the first time. But to continually keep coming back for the same 4 and 5 night sailings gets lower. There is a need to mix it up a little from time to time. 

[MarkWiltonM]

18 hours ago, CanadianCruiser21 said:

DBE and MNVV

Wha?

[MarkWiltonM]

1 hour ago, CruisingWalter said:

One area where I see a 'fail' at the moment with the new itineraries is just keeping the same old, same old in terms of Miami when there is one ship. Sure the 4 and 5 nighters are great introductions to the cruise line, but when you're running those same itineraries continuously for 3 years for 8-9 months per year, that does get old.

 

Totally agree. I think they are going to be doing some 6- or 7-night Miami-Miami RT cruises, as well as a Miami cruise that ends in Puerto Rico (not as interested in that as the former). But maybe that's when they have two ships here. I ordinarily wouldn't bother with a cruise of less than 7 nights but am going on a 5-day VV cruise next week to check the line out. 

[CruisingWalter]

2 hours ago, MarkWiltonM said:

But maybe that's when they have two ships here.

 

Only with 2 ships in Miami generally November - April.  Right now it's the Valiant Lady offering the longer itineraries for this season. Scarlet will go across the pond in 2024 for a Med season, a drydrock and then come back to Miami in the winter to take over the longer itineraries. Valiant will remain in Miami and take over the 4-5 night itineraries. 

 

Honestly with only 4 ships, it seems a waste to have 2 ships in Miami for that long of a time period. They would be better served sending Brilliant through the Panama Canal in the Winter of 2024 and let her sail the Mexican Riviera and Hawaii itineraries instead. Let Valiant do 4, 5 and the occasional 9-10 night itineraries from Miami. 

[cantgetin]

4 hours ago, CruisingWalter said:

One area where I see a 'fail' at the moment with the new itineraries is just keeping the same old, same old in terms of Miami when there is one ship. Sure the 4 and 5 nighters are great introductions to the cruise line, but when you're running those same itineraries continuously for 3 years for 8-9 months per year, that does get old.

 

 

I agree.  It is possible that their contract with the Port of Miami guarantees a given number of dockings, passengers, or both as well as basing one ship there all year and a second in the winter.   If that is the case, the shorter cruises may be needed to attain the requisite number of dockings.  Most lines earn more on a per diem rate on new passengers and shorter cruises than the alternatives; don't know if that applies to VV or not.  On the other hand, it costs them more to attract a new customer than to retain an existing one.  They seem to have found their footing in appealing to a wider range than they initially seemed to target.  

The problem for frequent cruisers is that Miami offers a lot of "been there, done that,"  It may be a growing pain for many new lines.  

Oh well, we have our 2024 plans booked, so guess I can relax and see what they offer in the future.

[CineGraphic]

3 hours ago, MarkWiltonM said:

Wha?

 

Deep Blue Extras

https://www.virginvoyages.com/sailing-club

 

My Next Virgin Voyage

https://www.virginvoyages.com/my-next-virgin-voyage

[Chrish2]

Lots of people focusing on these comments and assume prices will go up, quality will go down. That’s not quite how I read the comments the new CEO has made. There are a whole world of options they have
 

For example just thinking about Miami departures

* on turn around day they have staff come on board to help with cleaning cabins. If you change your mix of itineraries to have slightly more longer sailings you increase profit per person per night by not having that cost as frequently. Does it diminish the product or lower quality? No

* they current have transfers sorted for rockstars but how many people outside terminal v are making the same identical trip to the airport? Adding paid for ground transport for regular non-rockstars like transfer to the airport would improve the experience for travellers and increase profit 

* likewise they can look at growing how much you book through them. I know they varied their terms earlier in the year permitting them to sell flights and hotels. Whilst TAs can do this VV don’t seem interested yet in that side of things.

* There are some interesting things they could do within the Virgin group to bring UK customers, which the virgin brand (and ship offering) really hits home for, to their sailings. 

[cantgetin]

Currently the airport transfers from BCN cost more than a taxi, and on the April TA, the entire transfer system was a mess with many very unhappy sailors.  On the other hand, the taxi system rans smoothly and was well managed by the terminal people.  So, if they are going to do transfers, they need to get their system sorted smoothly!  We had a taxi for 2 for less than half the cost of VV transfers!

I've always thought it odd that they didn't have an air department or other way to sell flights other than their shore services reps looking on line and finding things that cost more and had worse times than I'd already found on my own! 

Edited October 2, 2023 by cantgetin

[CineGraphic]

I don't think there's any money to be made with transfers. One can already get from the ship to the airport in Miami for next to nothing. The ships hold less than 3,000 passengers, all disembarking ar different times. How many buses would they need to contract in order to keep people from waiting for the buses to fill up and get to the airport in a timely manner? Why would anyone want to sit on a bus waiting, while they could be on the their way in a taxi?