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Ritz-Carlton is Heading to the Seas: Should Traditional Cruise Lines Worry?

The Ritz-Carlton Hotel Company is about to make serious waves, both literally and figuratively. Yesterday, the luxury, five-star hotel chain, which is owned by Marriot International MAR, announced that it will soon enter the cruise industry.

Dubbed the Ritz-Carlton Yacht Collection, the hotel’s foray into the cruise market will consist of three ultra-luxe yachts that invoke the vibe of a Ritz-Carlton resort. Each yacht is custom-built, and includes 149 suites and duplex penthouses with enough space for 298 guests; small cruisers, on average, can carry upwards of 650 passengers, so these yachts will give guests a much more intimate experience.

Interiors are “thoughtfully designed” by Tillberg Design of Sweden, one of the world’s leading ship-design firms. Luxury amenities include The Ritz-Carlton Spa, as well as a restaurant by chef Sven Elverfeld of Aqua, the three Michelin-starred restaurant at The Ritz-Carlton, Wolfsburg in Germany. There will also be a Panorama Lounge and wine bar.

Voyages will range from seven to 10 days, and the first ship will travel to various destinations like the Mediterranean, Northern Europe, the Caribbean, and Latin American. Because these yachts will be smaller than your typical cruise ship, the vessels will be able to dock in smaller ports like Cartagena, Colombia; Capri, Italy; and St. Barths.

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“This unique combination of yachting and cruising will usher in a new way of luxury travel for guests seeking to discover the world in a relaxed, casually elegant and comfortable atmosphere with the highest level of personalized service,” Herve Humler, president and chief operating officer of The Ritz-Carlton Hotel Company, said in a written statement.

Guests can begin making reservations next May, and the first voyage sets sail late in 2019.

Should Traditional Cruisers Be Worried?

There’s no doubt Ritz-Carlton and Marriot are entering a crowded space. Cruise companies like Carnival Corp. CCL, Royal Caribbean RCL, and Norwegian Cruise Lines NCLH dominate this sector of the travel industry, and are likely the first examples of an all-inclusive cruise ship that come to mind.

But because of the size of their commercial ships, these companies are limited on where they can travel. Ritz-Carlton’s yachts, however, will be able to use their small size to their advantage, going to and staying in more exclusive port cities that big companies like Carnival can’t access.

Additionally, guests will have the opportunity to spend less time at sea and more time to explore the cities the yachts dock in. Douglas Prothero, managing director of the Ritz-Carlton Yacht Collection told Bloomberg that “We’ll do four ports in seven days, not seven ports in seven days.”

Voyages, then, will be slower, and each new destination will feature local chefs and artists, and even dignitaries and guest lecturers will come aboard “for a constantly rotating roster of talent and entertainment options,” notes Bloomberg.

Guests will also be able to book pre- and post-hotel stays in Ritz-Carltons at these port cities, combining cruise and land vacations through one operator. And, it’s safe to assume that Marriot’s Rewards program will be an included perk of traveling on a Ritz-Carlton yacht, though the hotel chain will likely have its own loyalty program as well.

The Ritz-Carlton Yacht Collection will certainly be a one-of-a-kind luxury cruise experience. Pricing hasn’t been announced yet, but one can only guess it is very expensive. Due to this, traditional cruise lines shouldn’t be too concerned, as Carnival, Royal Caribbean, and Norwegian have mass-market appeal, and are much easier on the wallet. But if this venture proves profitable for Ritz-Carlton and Marriot, and a huge hotel conglomerate successfully expands out into water, the impact will surely be far-reaching.

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