CEO being selective in synergies between Oceania and Regent
CEO being selective in synergies between Oceania and Regent
By: Johanna Jainchill
March 30, 2009
Onboard Oceania Cruises’ Insignia last summer, I looked for the qualities that had turned the three-ship cruise line from a scrappy start-up in 2003 into a line on which it can be difficult to get the cabin of your choice.
The 10-day sailing on the Insignia took us to many small ports in Italy as well as Dubrovnik, Croatia; Monaco; and Marseille, France.
Frank Del Rio, CEO of Oceania’s parent company, Prestige Cruise Holdings, and the founder of Oceania, did not think there was a secret to Oceania’s success.
“We know what guests like about Oceania,” he said.
“It’s not gray. It’s black and white,” he added, citing the dining experience, the service and the ports.
Passengers on the Insignia agreed with Del Rio on that. But they disagreed with Oceania’s contention that it is an “upper premium” cruise line as opposed to a luxury line.
On the contrary, passengers were fully convinced that Oceania was a luxury cruise line.
“It’s a luxury ship, absolutely,” said Leah Cohen of Delray Beach, Fla.
“The only difference on the luxury lines is all the liquor is included,” she said. “There is no difference in the service or the amenities.”
This assertion came from many passengers who had sailed on Seabourn, Silversea, Crystal and Regent, lines that place themselves solidly in the luxury camp.
Many pointed to the food on the Insignia, saying it was as good as or better than the food served on luxe brands.
Karen Morgan of Pasadena, Calif., was on her fifth Oceania cruise, sailing with her husband and 14-year-old daughter. She had previously sailed with Celebrity and with Seabourn.
“It’s a really nice size, the food is excellent, the crew couldn’t be nicer,” she said. “I don’t see the advantage [of smaller, more expensive luxury lines].”
I asked Del Rio why passengers had that perception.
“We underpromise and overdeliver,” he replied.
Perhaps that is why Del Rio, who one year ago became CEO of Regent Seven Seas, is so intent on upping Regent’s brand of luxury.
Apollo Management acquired Regent in December 2007 and formed Prestige, making Del Rio CEO of Regent as well as Oceania.
As of January, he had only been on an Oceania ship once but had been on Regent ships five times since assuming the dual role.
On a recent tour of the Seven Seas Voyager, which had recently emerged from a $20 million drydock and was preparing to embark on its world cruise, Del Rio explained how the line is raising the bar on its brand of luxury and becoming the “six star” brand it needs to be.
Del Rio also promised not to “Oceania-ize” Regent, which he said was a top concern of travel agents.
“We didn’t spend $1 billion on a company to change it,” he said, citing Regent’s price tag. “We want to keep the brands separate and invest in the attributes that make them special.”
But Del Rio also admitted it would be foolish not to adopt Oceania’s successful practices, and in some cases, to adopt synergies where possible.
The lines have combined some of their departments, such as marine and hotel.
Taking from the success of Oceania’s Polo Grill steakhouse, during the Voyager’s refurbishment, Regent replaced its Asian fusion restaurant, Latitudes, with a new steakhouse called Prime 7.
The menu will include prime beef, two-pound Maine lobsters and a glass wine cellar.
To exemplify how much Regent is pouring into the improvement of its product, Del Rio said that the line will spend an average of $35 per person, per night, in Prime 7, vs. the $11 per person, per night, it spent in Latitudes.
“I wanted the best steakhouse at sea,” he said.
Other additions to the refurbished ship are an ice cream bar on the pool deck and new teak furniture, with upholstery reminiscent of the furniture aboard Insignia.
But Del Rio said he had no intention of having guests walk onto the Regent ships and see Oceania.
“If Oceania is a Ritz-Carlton, this is a Four Seasons,” he said of the brands’ design styles.
Also new to the Voyager is a coffee bar in the atrium, modeled after the success of the one on the Seven Seas Mariner.
As he does with Oceania, Del Rio puts a lot of his own energy into the small details of the ship.
“I was not pleased with the artwork,” he said during the tour. “Since we don’t have a curator, I became the curator.”
Asked whether Oceania would follow Regent’s lead of including shore excursions in its pricing, he was again quick to point out the importance of maintaining the brands’ identity.
“We didn’t want to cannibalize the other brand,” he said.
“Regent has always been all-inclusive,” Del Rio said. “We are reinforcing that. Oceania has never been all-inclusive.”