-
Plan my vacation
Trouble viewing? Download Flash 9.0 here.
Sports: Table Tennis and Running
Treat: Chocolate
City: Paris
Stress Buster: 5K races and triathlon relays with other Royal Caribbean executives
Colors: Orange & Black... Go Princeton!
Team: Philadelphia Eagles, Flyers, 76ers and Phillies
Adam Goldstein, the President and CEO of Royal Caribbean International, has been a citizen of the Nation of Why Not since 1988. In 1998, Advertising Age named Adam one of their "Marketing 100," the magazine's annual roundup of the best and brightest American and international marketing minds.
Goldstein graduated with honors from Princeton University, majoring in public policy at the Woodrow Wilson School of Public and International Affairs. He also has a law degree from Harvard and an MBA with distinction from INSEAD, the European business school in Fontainebleau, France.
Adam and his wife have two children and live in Miami, Fla.
Below is a transcript of our April 29, 2009 live chat
with Royal Caribbean President and CEO, Adam Goldstein.
Royal_Caribbean_Host: Hello and thank you for attending the Live Q&A at the Nation of Why Not with Royal Caribbean International's President and CEO, Adam Goldstein. He will be here live starting at 3:30 PM EDT to answer your questions. To submit a question to our moderator, please type it in the yellow box at the bottom of the chat screen and click "Ask Adam." We'll get to as many questions as we can. Thank you again for coming. We'll begin shortly.
Royal_Caribbean_Host: We'll begin the chat shortly, please submit your questions now, in the yellow box at the bottom of the chat screen. Thank you.
Royal_Caribbean_Host: Hello and thank you all for being here. Joining us now is our special guest, Royal Caribbean International's President and CEO Adam Goldstein. To submit a question, type it in the yellow box at the bottom of the screen and click "Ask Adam." We'll get to as many questions as we can. There are a ton of great questions already, so let's begin.
OUTBACKDW: JUST WANTED YOU TO KNOW THAT YOU ALL ARE THE BEST CRUISE LINES
Adam: I'm happy to accept that comment on behalf of all of us at Royal Caribbean. I look forward to answering as many of your questions as possible today. I'm glad I picked a day where there's nothing going on.
CpDx: Why have you chosen Ft. Lauderdale as home ports for both Allure and Oasis?
Adam: We were interested in a full and fair competition between Miami and Ft. Lauderdale. They are both wonderful ports and either would have been an excellent home for Oasis-class ships. The proposal that Port Everglades made was very compelling especially because of the complete renovation of Terminal 18.It will be a spectacular new home for Oasis of the Seas.
debbie: Are there any cutbacks on the cruises do to economic hardships?
Adam: We have continued to make our products stronger over time. This involves a constant process of change. When we develop new offerings and remove previous offerings, we often encounter resistance from guests who value the prior offerings. We believe the reason our current guest satisfaction ratings are the highest that they have been in the recent years, is because on balance the product is stronger. An excellent example of this would be our new My Time Dining offering. We have maintained our traditional dining approach for the many guests who value that and at the same time, we have introduced a new offering that combines flexibility with the incredible service that people expect of us.
G-307121467: First of all I would like to say I think you have done a good job in dealing with the Swine Flu situation. My questions are as follows, I would like to know how the waiters on the ship like the anytime dining concept, do they miss getting to know the guests? Also RCCL is the only cruise line that does not automatically add gratuities to shipboard accounts, wouldn't your life be easier if you started doing that and if you did would it eliminate pre-paying gratuites for anytime dining?
Adam: Many of the guests who use My Time Dining come at the same time most of the nights and are able to be served by the same waiter so the same bond can still be formed. In general, our waitstaff have reacted very positively to My Time Dining as have the customers.
Adam: I believe we are now the only major cruise line that does not systematically require pre-paid gratuities. We offer it as an option, in advance or onboard, and more than half of our guests take advantage. It remains our philosophy that our service personnel should earn the guest's gratuity.
G-307085243: I was recently informed of a change in itenary from mexico to pacific northwest. due to the swine flu. Why was that the route change and why not someplace warm as per the reason we choose the mexican cruise to begin with? why not hawaii?
Adam: Of course I am receiving many questions on Swine Flu and I apologize if I cannot answer all of them. For Mariner of the Seas, we must reach a qualifying foreign port of call to offer a legal itinerary out of Los Angeles. If we are not going to Mexico, our only other choice is Canada. We also were focussed on keeping a seven-nigh offering. To go to Hawaii, and also make a legal itinerary, would have resulted in about a three week cruise.
KC: Shall we get full refund if we cancel the reservation on one of the cruises to Mexico, which have been either cancelled or have route changed?
Adam: We do have a compensation policy but I suggest you contact your travel agent or visit www.RoyalCaribbean.com.
Todd: Is Royal Caribbean building a permanent dock at Labadee?
Adam: Yes, we are. It will be ready prior to the first call of Oasis of the Seas on December 3. There are also many other improvements to Labadee which we cannot wait to show off. For example, the Dragon's Tail coaster ride.
kevinrick: Are you looking to establish year round sailings from "non traditional" east coast U.S. ports such as Norfolk, Baltimore, or Philadelphia?
Adam: Thank you for giving me the chance to highlight our recently announced introduction of year-round service from Baltimore on Enchantment of the Seas. When the ship arrives in Baltimore next summer, she will not leave.
afrifest: I'm a former celebrity/royal caribbean agent who lives in Wichita. How strong is the midwest market and what booking stratigies would you recommend?
Adam: The midwest market is extremely important to Royal Caribbean and has been for 40 years. Because people living in the midwest normally require flights to reach the cruise, it's important to investigate air options as far as possible in advance of the cruise. Please compare our air/sea offerings to what you can obtain in the open market.
Hombre59: Do you and your family go on cruises for your vacations or do you stray away from cruising because of your involvement?
Adam: During the recent holidays, I had the best of both worlds. We went on a cruise and we went skiing too. Then our Chairman called to see where I was. It's true I cannot exactly have a normal experience on a cruise but all the same it's fantastic.
G-307144441: Will RCCL be coming out with a Genesis class of ships?
Adam: We have two amazing ships coming. Oasis of the Seas in December and Allure of the Seas one year later. They are the most exciting ships that have ever been designed in the industry. Be sure to visit www.OasisoftheSeas.com for regular updates and also check out our Chairman's Blog.
yellowlabs: Do you plan on halting cruises to Mexico after June 14 our cruise is the mariner of the sea leaving June 21 I don't wnat to go to Mexico at all and was told I cannot get a refund. I would never have booked a cruise to Mexico if I had known all this was going to happen. I dont think its right for you not to refund the money and you cant guarantee my health.
Adam: Like anyone else we are dealing with uncertainty as best as we can. We don't know how long swine flu will be a health issue. In order to move quickly, we selected sailings through the departure of June 14 on Mariner of the Seas. And I have to ask your patience in waiting for more information concerning your departure on June 21 and later sailings. If the same level of concern exists for June 21 and later departures, I'm sure our approach will be similar to the prior sailings. I don't believe our policy addresses the question of selecting into a modified sailing from a later Mexico sailing. Please contact us if you want to discuss that.
bearcosmo: Please explain why RCI's prices are much higher than CCL's for same itineraries. I love RCI, but in this ecomomy I have started to look at Carnival, as their prices are so much lower.
Adam: Royal Caribbean expects to and does command a price premium to our closest competition. This is the result of customer expectation built up over 40 years. Our Gold Anchor Service and the incredible features of our ships make for a more compelling guest experience. In other words, we deliver the WOW!
earl: thank you for stepping up and changing the Mariner of the Seas from the port visits in Mexico. we are cruising on May 10th and are very relieved of the decision RCCL has made.
Adam: I appreciate the sentiment. I will say that we very much value Mexico as a very important set of destinations and we look forward to returning there as soon as conditions warrant. In the meantime, we have become excited about offering San Francisco, Seattle and Victoria B.C. from Los Angeles.
G-307120039: im sure u would like to take a question off the topic of the flu/mexico so here it it. thanks by the way. explorer of the seas have the concierge service at the grand suite level?? is this like a butler??
Adam: We are very proud to have introduced a number of enhancements to the suite experience recently. Butler service is not actually one of them however. If you are interested to know more details, please contact your travel agent.
john_1: Dragons Tail coaster ride....meaning a roller coaster?
Adam: The ride is similar to coaster rides at some of the ski resorts in the West and possibly other places as well. You go up slowly and then down fast. It will be quite thrilling if you take it easy on the brake.
G-306683934: Hello Mr Goldstein, Thank you for your Time. Can you tell us, how many years in advance does Royal Caribbean plan a new Class of ship, and in these days of each new Class being larger, is there any chance the next Class after Oasis & Alluew, could be a smaller Class of Ship ? Thank You, and we look forward to Oasis & Allure of the Seas !
Adam: Our first meeting on the Genesis-class design was in March 2004. So we will take delivery of the ship almost 6 years later. There is no way to describe the degree of involvement that this process demands of us. At the moment all of our energy remains focussed on getting Oasis of the Seas ready for operation. So it is premature to say if the next class of ship would be larger or smaller.
Michael: We miss the 3 day cruises from Los Angeles, why did they go away and will they return? We tried the 3 day Carnival and refuse to do that again.
Adam: We enjoyed offering the product. Unfortunately, we tried 3 times over 25 years to make the economics work and we did not succeed. While we would never say never, renewing this offering is not a priority for us. In the meantime, we hope you will consider our 4 and 5 night cruises on the beautiful Radiance of the Seas out of San Diego.
Royal_Caribbean_Host: If you're just joining us, Royal Caribbean International's President and CEO, Adam Goldstein is answering your questions live. To submit a question to our moderator, please type it in the yellow box at the bottom of the screen and click "Ask Adam." We'll get to as many questions as we can. Thank you.
albie: Zip line on the Oasis, do you just get in line. I picture a very long slow moving line.
Adam: We are still considering how to organize the process. We are not sure how many of our guests will want to be on a zip wire that is nine decks above the floor of Boardwalk. I will be one of them!
Dinah: Hello Adam, this is my first full cruise and we will be at sea the first 2 1/2 days, I am wondering if there will be enough to do?
Adam: Excellent question from a first-time cruiser. Thank you for giving us a try. When you see all the activities in our daily Cruise Compass your worries will vanish. An individual guest, no matter how active, cannot participate in more than a fraction of our activities.
Todd: How are future bookings looking for the Oasis class ships?
Adam: Last week on our quarterly earnings call with Wall Street, I mentioned that we were very pleased with the bookings on Oasis of the Seas. Of course, with double occupancy of 5,400 guests, there is still room on all sailings. Allure of the Seas is now open as well.
K: With current economic conditions and the most recent situation in Mexico, any suggestions on how to generate new business? Bookings are very very slow in coming...
Adam: Even before the outbreak of Swine Flu, we and the rest of the travel industry were confronting the recession just like everyone else. We are stressing the value that a cruise represents. There is no other way to gain such a variety of experiences for the price. We hope that as many travel agents and consumers as possible will understand and respond to this value.
auggie: I am a diamond member who has just learned about the program changes, I am still not happy with the changes to the program, even though it has been revised. Please tell me why I sould continue to sail exclusively with RCI?
Adam: The main reason to sail exclusively with Royal Caribbean is the experience that our people deliver. The Crown and Anchor Society is a very competitive loyalty program as compared to other cruise lines. We recognize that many Diamond members are unhappy about our decision to restrict eligibility for the concierge lounge to suite and Diamond Plus guests. Unfortunately, this was the only means by which we could address the problem of overcrowding in the lounges. Our overall offering and the revisions we made are intended to recognize the outstanding loyalty that Diamond-level guests demonstrate to us.
Royal_Caribbean_Host: We are almost out of time with Mr. Goldstein. Please submit your remaining questions now. Thank you.
Cherisa: Are employees rewarded and shown appreciation for the hard work they do to make cruising what it is?
Adam: We recognize the fantastic contribution that the men and women who serve on our ships make to our success and to the guest experience. We constantly monitor their morale and their sentiments about the company. Our retention rate today is very high. Our senior leaders visit every ship every year through our Anchored in Excellence employee relations program. We attempt to address every concern that our employees raise with us. There is no other way to succeed in this business. My shoreside colleagues want you know that they do a great job too. I agree!
Chip: There seems to be a lack of information filtering through to the Uk, with websites not being updated at the smae time as the .com site. Can you encourage your web people to address this?
Adam: Thank you for an excellent question. I am sitting here with my web producers. They tell me that it should only take two weeks to translate from American English to British English. Seriously, I think I've just learned something important that we need to address.
Trina: Thank you for starting this series; I'm sorry to say I missed the first one. The Oasis class is 220,000 tons. Do you foresee developing even larger ships? Also, with so many more people on the ship, what facilities and processes are being put in place to handle the volume? I'm also curious about what impact such a large vessel will have on the environment.
Adam: I am often asked about larger ships in the future. While we don't have anything planned, the history of shipbuilding over time is that ships get larger. We'll see. As I mentioned before, our focus is on putting the facilities and processes in place to create a marvelous guest experience on Oasis of the Seas. In case anyone doubts that this is on Lisa Bauer's mind, there is a countdown clock above her door. Lisa, our SVP of Hotel Operations, and her team are the best in the business and they will be ready. As for the environment, between now and delivery of the ship, we look forward to talking publically about the enhancements that Oasis of the Seas will reflect. We are very proud of the progress we will be discussing.
Royal_Caribbean_Host: Due to the overwhelming response and our desire to answer as many questions as possible Adam will continue answering your questions until 5 pm. We would also like to make you aware that Adam will be launching his blog next month to keep the conversation going.
Don: With the increased short cruise and homeport cruise deployments we are seeing with other lines, could you not reconsider and bring Voyager (or something) back to Galveston year-round? Summer is when it got the best yields and we miss that in this market. I'm fully aware that Europe has been a good seller, but isn't it about saturated at this point and we could build some homeport alternatives in addition?
Adam: We try very hard to balance our strategic growth in Europe with the interests of our primary market in the US. The contention as you point out is in the Northern summer. The European cruise markets are growing very fast and they demonstrate an even more acute summer peak period than the one we have here. At this point, we cannot justify keeping Voyager of the Seas in Galveston year-round but we are very cognizant of the market's desire to see that.
Gerry: Sailing on Monday from Miami on jewel of the Seas. Do you anticipate a cancellation of this cruise?
Adam: Please proceed to Miami for a great cruise.
Bonnie_1: When is Allure going to launch?
Adam: The maiden voyage of Allure of the Seas is December 12, 2010.
Jordan: Hello Adam. Having worked with Tom Murphy after his time at RCI and hearing about his experience, I'm curious as to how RCI plans to continue to leverage technology to enhance the guest experience both onboard and off.
Adam: If you see Tom Murphy say hi for me. Tell him I run faster than him now and I'm better at ping pong too. Seriously, he and many other including our current CIO, Bill Martin, have contributed to our market leadership in technology. One area of focus for me these days, is what we call ASR or Advanced Shipboard Reservations. We want our guests to be able to reserve as much as of their experience in advance as possible, from shore excursions to soda packages to specialty restaurants and even their spa appointments. Not to mention check-in. I feel this is a real advance in the cruise experience.
Academy: With the introduction of Oasis of the Seas, RCCL has committed to developing more environmentally friendly ships. Could you describe some of the new technologies that Oasis will use to conserve energy and decrease the ship's impact on the environment?
Adam: As I said before, we look forward to discussing a number of environmental advancements that have been built into Oasis of the Seas. For the moment I will say that we continue to make great progress in the hydro-dynamics of the hull shape, the technology of the propellers, navigation software, waste heat energy recovery and more.
ForkliftSteve: Why is the Freedom of the Seas moving to Port Canaveral, and how long do you think it will take for the turn-around crew to acclimate and be most efficient?
Adam: The Oasis of the Seas arrival created a domino effect. Oasis to South Florida, Freedom to Port Canaveral, Mariner to Los Angeles, and Vision of the Seas to international service. Port Canaveral is a very important homeport for us and the success of Mariner of the Seas indicated we were ready to grow the market to Freedom-class. So this summer we have Freedom of the Seas in Port Canaveral and Liberty of the Seas in Miami. That is the most balanced offering we could make prior to Oasis' arrival.
Bob: How can you command a preimun price over the other lines, when your curbacks in food quality and entertainment etc have made the other lines more attractive, especially with their lower pricing. In the food area you fail to deliver the WOW
Adam: We realize that not everyone is going to be enamored of all of our products and services. I'm confident saying that our entertainment program is foremost in the industry and is widely recognized as such. As for our culinary offering, I believe we are very strong in our Windjammer offering and in our specialty restaurants. We also receive strong ratings in our diningroom but we will look for opportunities to enhance this offering as we go forward.
debbie: Is there a charge for my dining offer?
Adam: There is no additional charge for My Time Dining however, pre-paid gratuities are mandatory with this offering.
Prestons: I would like to plan a cruise for the summer with my Family. I am a C&A member there are no 5 day options out of florida that do not include Mexico. With all that is going on their I am not willing to risk taking the family their.
Adam: There are three possibilities. One is to look at other cruise opportunities this summer. For example, cruises to Alaska are at the lowest prices in memory. Second, and book one of the sailings over the next six weeks that we have just modified to exclude Mexico. Finally, wait and see what happens with the sailings from mid-June as the swine flu situation unfolds.
Brian_1: How come there are not more "adults" only locations onboard the ships?
Adam: During the day, a number of our important spaces have age restrictions: spa, fitness center, solarium, specialty restaurants, casino.
Adam: At night, besides the above restrictions, the bars and lounges often become nearly adult only just because of the hours involved. We do not receive significant feedback on this issue but thanks for the input.
madoma: well... Adam, since you do not seem to know about Mariner and whether pools are covered or not, and if there is one for adults that is covered and one for teenagers... I will have to try and find someone with authority who does. If not getting an answer from you is the "gold anchor" wow... than it should be called the ouch.. not the wow. I am sorry if I seem upset... but all my questions are being ignored.. and a Royal rep. told me to come here today. Adam, why wont you give an answer to our questions we have been asking you?? since the ship is now going north... will the pools be covered for the adults only area and also for the teenagers??? it is a simple question!!!
Adam: Thank you. I just got off the phone with the ship. The pools on Mariner of the Seas are not covered but we are hopeful given the time of year that we will offer a positive pool experience.
dancruiser: Is it possible the government may temporarily waive the stopping at a foreign port requirement for cruises?
Adam: There is no indication of such. If anything, the Government has become more strict over time.
yellowlabs: Mixed answers on passports if you are on a cruise leaving LA going to cabo san lucas mazaltan amd acapulco do you need a passport at any time during that cruise getting on and off in Mexico will you need one?
Adam: For US citizens, a passport is not required on a roundtrip cruise from a US port. You will need a Government-issued photo ID and a birth certificate. Having said that, if you have a passport it is always a good idea to have it with you when travelling internationally.
Royal_Caribbean_Host: We are almost out of time with Mr. Goldstein. Please submit your remaining questions now. Thank you.
Bazwizard: In the US memebrs of C&A have access to their cruise history through the internet. In the UK we cannot do this. Are there any plans to bring the UK in line with the US?
Adam: To be honest, I don't know the answer to this specific question. However, we clearly need to bring such capabilities up to US level as quickly as we can given the rapidly increasing significance of markets such as the UK.
Derek: I'm sure there are many, but if there is one thing about Oasis that you are most excited for your cruisers to experience, what is it?
Adam: Speaking selfishly, I would say the state-of-the-art table tennis stadium. Really, we are all tremendously excited for our guests to experience Central Park, the Boardwalk and the AquaTheatre because such spaces have never existed on a ship before. And you may think you know the Royal Promenade but you don't know THIS Royal Promenade.
G-307160826: Thank you for reconsidering and amending RCI's changes to the C&A program. Especially as it pertains to Diamond members. Are these new benefits the "final edition" or are they "a work in progress"?
Adam: They are the final edition. As I said in my letter, although many of our best customers were unfortunately aggrieved, the passion they displayed for our products and services is an incredible asset for our brand and a true reflection of their incredible loyalty.
Nancynurse: I just wanted to say thank you so much for this opportunity to chat with you. We are really looking forward to our upcoming consecutive cruises on the Liberty of the Seas on May 30th.
Adam: Thank you and everyone else for cruising with us. Without you, there is no Royal Caribbean.
Chip: i agree that royal deliver the WOW, please do not drop prices so far that you also drop quality, at the moment times are hard, but please be proud of Royal, i am happy to pay that little bit more, but want to have the older standards, your thoughts on this please?
Adam: I actually believe our newer standards are higher than our older standards. I realize not everyone may go along with that sentiment, but I submit that if we tried to offer exactly what we were offering 15 years ago, people would walk off our ships. That's how much more and better we offer today. And the main reason why that is true, is the customer feedback we get every sailing. Please keep it coming.
Royal_Caribbean_Host: I am sorry to say that our time with Mr. Goldstein is up. Adam, thanks so much for being here to answer our questions today. It was fun, and most informative.
Royal_Caribbean_Host: Thanks to all of you who attended our Live Q&A today. If you missed any part of the event, please come back soon to see the full transcript. Don't forget, if you'd like more information please visit www.nationofwhynot.com and www.royalcaribbean.com. Thanks again and have a great day!
Royal_Caribbean_Host: Thank you all for attending. Due to the overwhelming response, we ran out of time before we ran out of questions. We value your questions and we'll answer as many as we can on our website or on our new blog. Please check back soon, or visit royalcaribbean.com for more information.
