Where Luxury Is Personal
Crystal Cruises
Tagline
Net Worth
$550,000,000
Started in (City)
Japan
Started in (Country)
Japan
Incorporation Date
01st December, 1988
Bankruptcy Date
-
Founders
- Nippon Yusen Kaisha
About
Crystal Cruises are the second-best luxury cruise line in the Mediterranean with headquarters in Los Angeles. With Japan-based Nippon Yusen Kaisha (NYK) shipping company being the original parent company, Crystal Cruises were titled the innovative leader of global luxury cruising by Maritime Critic. NYK as a shipping company has a fleet of 800 ships which include container ships, tankers, bulk and woodchip careers among many others. Crystal Harmony, now known as Asuka II, was the first ship of the cruise line which was originally built by Mitsubishi Heavy Industries in Nagasaki, Japan. The ship commenced operation in 1990. What is interesting and sets Crystal apart from other cruise lines is its compliance to worldwide environmental regulations to prevent pollution in tandem with their shipboard and shoreside awareness programs about the local environment, its respect and preservation
Beginning
Crystal’s gold standard services are much revered in the travel industry. Crystal Cruises are also renowned for their exceptional services both on the sea and ashore. After Harmony, they launched two other cruise ships Crystal Symphony, launched in 1995 and Crystal Serenity, launched in 2003 which have a combined worth of US $300m. In spite of having international acclaim Crystal’s growth was stuck in a neutral state for the last two decades. Meanwhile, competition in the cruising industry increased from all directions with different concepts, flamboyant suites and more shipping lines. It was clear to NYK that in order to keep up with the exponentially growing competition they have to invest a lot of money in Crystal.
The then-president and CEO Edie Rodriguez had dreamt big for Crystal and tried hard to convince the Japanese board to invest in the line but somehow the parent company was not ready to divest or expand and decided to sell Crystal.
Crystal Cruises was acquired by Genting Hong Kong(GHK) in 2015 who is the owner of Star Cruises and a major shareholder in Norwegian Cruise Line Holding. They are the third largest cruise operator in the world with a combined fleet of 28 ships cruising over 450 destinations. GHK spent US $550 million to acquire Crystal Cruises and renamed it Crystal Pvt. Ltd. The acquisition was aimed to restructure Crystal from a corporation to a limited liability company and taking over the two cruise ships. Rodriguez made sure that Crystal as a brand reached its zenith after the acquisition. The current fleet includes two ocean ships (Harmony was returned to the parent company in 2006), five river ships and one yacht.
Road to Success
In terms of operations, they have now expanded to a wide variety of luxury activities from safaris to private jet travel to yacht charters to underwater wedding ceremonies, you name it and it is there. They are also ventured into offering private jet tours along with selling luxury residences onboard the three ships.
Under the leadership of Greg MacGarva, VP Marine Operations and Tom Wolber as the CEO Crystal also plan to launch new expedition voyages traversing the North-West passage, during Arctic summer. They claim that this expedition voyage will be in due compliance with the Polar Code which is being developed by Cruise Lines International Associations. They also plan to reduce their carbon footprint by using marine gas oil with ultra-low sulphur content along with relatively low transit speed. In spite of this Crystal has to comply with environmental regulations set by International Maritime Organisation and other restrictions set by individual countries such as Canada, tackle the mixed responses of the local community and other territorial disputes over the passage along with amplified cruise traffic and complications of rescue operations.
Challenges
The business has become uncertain with the global health crisis. The constantly changing variables of Covid-19 along with restrictions on international travel have made it very difficult for the cruise line to deliver its best experience. The current design of cruise ships is not safe enough to contain the spreading of germs and the virus. The biggest ordeal which the company is now undergoing is on the financial front with massive cancellations and refunds (both to customers and other stakeholders). This immediate financial impact is a profound challenge not only to Crystal but other cruise companies and the travel and hospitality industry as a whole. In light of growing public apprehensions about taking a cruise during the pandemic, the company does not only come up with flexible cancellation policies but at the same time reassure its customers not to lose faith and trust in the brand. Cruising, for that matter travelling in these unprecedented times, is a big gamble and so is maintaining customer trust. According to a report in May claimed that the company would go out of business as a result of the pandemic.
Failures
According to a report in May claimed that the company would go out of business as a result of the pandemic.
In terms of refunds to date, Crystal has processed tens of millions of dollars in the refund.
Achievements
- World's Most Awarded Luxury Cruise Line
- They are the third largest cruise operator in the world
- “World's Best Cruise Ship” in Condé Nast Traveler's Reader Choice Awards for 24 years
- “World's Best Large Ship Cruise Line” by Travel + Leisure readers for 20 years
Subsidies
- Crystal Symphony
- Crystal Serenity
CEOs
- Tom Wolber
- Jack Anderson