Weak Pound Challenges Profits – Fred Olsen Season Launch

Fred Olsen Cruise Lines reported an 8% rise in revenues last year but profits remained static because of the weak pound.

That was the message from Commercial Director, Pete Deer as he launched the 2020/21 Worldwide Itinerary aboard the company’s cruise ship Boudicca, as it moored on the River Tyne at South Shields to host dozens of media and travel agents from across the north.

He told the gathering: “Operating profits were similar year on year, however we have seen a weak pound and higher expenses, the result of purchasing in foreign currencies, consequently costs are up.”

But, despite the challenging profit line, management remained upbeat.

Last year 90% of Fred Olsen’s customers rated the line as excellent or good, he said, an uplift of three per cent on the previous 12 months, a whopping 92% gave cruise ship catering an excellent rating and, overall, the guest experience got a 97% thumbs up.

He said Fred Olsen continued to invest heavily in its four ocean going cruise ships, whilst research and product development had enabled them to put together an exciting programme for the 2020/21 season, with the over 50’s remaining a primary target.

“The over 55’s account for 80% of the country’s wealth. There are 66m people in the UK, 30% are over 55 and, by 2030, half of the population will be over 50. In the next two years alone 600,000 people will turn 60,” he said. And thousands of them either cruised or wanted to do so.

Martin Lister, Head of Itinerary Planning and Destination Experience, said that the new cruise programme would build on three key areas, Port Time, Scenic Cruising and Sea Time with sailings varying in length from 7-28 nights, allied to the 112 night world cruise offering out of Liverpool.

The over 50’s were fitter, felt younger, had little concern as to what people thought of them and were up for adventure.

“Our guests want closer discovery of natural beauty like the Wildlife of Africa or the volcanic landscapes of the Azores, they want Authentic Japan, India and Denmark but, more than anything, they want ‘genuine cultural experience’,” said Lister

Launching the ship’s two Rigid Inflatable Boats (RIBs) he said that the high speed craft would enable guests to get closer to nature, whilst the company’s four sea vessels remained small enough to dock closer to the heart of many destinations like Seville and Bordeaux.

Over the next year Fred Olsen will operate 170 cruises across six continents in 90 countries and 277 ports, with 17 maiden itineraries.