Virgin Voyages CEO on the company's debut ship, Scarlet Lady

Tom McAlpin, Virgin Voyages CEO and President, joined Yahoo Finance Live to discuss the company's debut ship set to starting crusing on October 6 and how the company is handling COVID-19 while on board.

Video transcript

ADAM SHAPIRO: A lot of people are ready to jump ship and get out of town. And what better way to do that than aboard a brand new, state of the art luxury cruise liner? Virgin Voyages, this is the latest offering, you might say, from Sir Richard Branson and his partners. Virgin Voyages is offering just that aboard their brand new ship, the Scarlet Lady. It will set sail next week from the port of Miami. You can book now. I actually went online to check out the cabins.

But don't take it from me. Take it from Tom McAlpin. He is Virgin Voyages president and CEO. And I think one of the things that you're offering here because we want to talk about what's going to happen with the cruise industry, but this will be attractive to a lot of people who really want an adult experience because the voyage is, at least right now, are 18 years and older. It's not the family kind of thing. This is more of a relax and be an adult kind of trip, right?

TOM MCALPIN: That's right. Think about this as a boutique hotel on the high seas that's designed specifically for adults in mind with restaurants that are fantastic, six different restaurants you go to each night. These are restaurants you're going to want to go to on land, whether you're in New York or Miami, with entertainment that is much more immersive, a theater that changes configuration three times, all put together and delivered and only in a way that Virgin can do. We call it setting sail the Virgin way.

ADAM SHAPIRO: I have nothing against children. Children are great. But let's talk about where you're going with this because you've got-- I mean, there are going to be more ships coming into your fleet. But is this a precarious time to be going into the cruise world as we emerge from COVID-19?

TOM MCALPIN: Well, listen, who could have ever predicted that COVID was going to hit us the way it has? But the good news is that there is pent-up demand. Number one thing that people miss is getting out there and traveling and enjoying life. So I think we came at a good time. There's a lot of pent-up demand. The early bookings are good. We've had a very successful season in the UK during the month of August.

So as we talk to people, they're very excited because we've created a very safe environment for them to do that. The combination of protocols that we're taking on board, combined with requiring vaccines for both our sailors and our crew, as well as an additional testing measure, creates the safest environment possible. I mean, think about this. You can't get a safer environment going to a hotel, to a restaurant. You can't get a safer environment going to your grocery store. So we think that this is the safe way to travel. And we want to build that confidence with the American public.

ADAM SHAPIRO: I, just for fun, went onto the website and I was looking at a potential five-night cruise in the Rockstar Cabin, I think it's called, which is, by the way, for rockstars. It's lovely. The cost of that, though, I think it was around $3,500 for the five nights. But I was looking at, you know, a hotel in Key West if you go to the southernmost resort. They're charging 800 a night right there. So I mean, this is a comparable experience. Plus, you're on the ship. How are bookings going? Are you sold out?

TOM MCALPIN: Well, you know, we've got plenty of room to go. We want to launch with about 50% occupancy. We have opportunity to grow above that. But pricing is very competitive. I mean, if you look at a regular sea terrace, which is what the most of the ship is, you can get into a sea terrace for just over $200 per person per day, which is a great value when you consider all the things that are included.

All of your dining is included. Your gratuities are included. Wi-Fi is a human right, basic human right. That's included. Your fitness classes and much, much more. So it's a tremendous value for consumers. And that's why the cruise industry has continued to be very, very successful. Great value, great guest satisfaction, and the reviews speak for themselves. We've had great reviews.

ADAM SHAPIRO: Hey, I should point out when I give you that cabin price, I have Grey Poupon taste, but I have a Snicker bar budget. So it was good to hear the 200 per person a night in the sea terrace view cabin. I checked that one out, too. What will I experience or what will a traveler experience once they book a cruise with you? What are the protocols that they-- do they have to come with proof of vaccination, that kind of stuff?

TOM MCALPIN: Yeah, so we've taken a lot of time to really study how do we make this a safe environment. We've invested in enhancing our protocols as we get on board that don't affect the sailor. We've invested in new technology, atmosphere filtration system, purification systems. We're requiring vaccines. You have to present your vaccination card when you come on board. And we are actually doing a test right here at the terminal before you get on board the ship. So we're doing an antigen test just as an additional precaution. Because we want people to come on and enjoy themselves and be able to relax and have a great time and enjoy cruising the way it used to be.

ADAM SHAPIRO: OK, so tell me, by the way, because the Scarlet Lady, for people who are Virgin Atlantic fans will recall these, that was the name, actually, of the aircraft years ago when the airline launched. Tell us more about it's your lady ship, the whole origin of the names of the ships and your lady ship.

TOM MCALPIN: Well, it goes back to the early days of ships from England and a nod to your ladyship. We wanted to name all of our ships with that concept. We have the first ship, the Scarlet Lady. Our second ship, which we will launch in March of next year, is Valiant Lady. She'll sail from Barcelona in the wintertime-- in the summertime, in the wintertime here in Miami, doing six to eight night cruises. And then the third ship is Resilient Lady. What a great name, given the last 18 months. And Resilient Lady will sail from Athens in the summertime and in the wintertime from San Juan. And then we have a fourth ship in 2023. So all of these will be lady ships.