| Journal: TWUK | Section: |
| Title: | Issue Date: 22/05/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Operator will use investment to focus on key resorts and international business
First Choice eyes growth after £200m Royal Caribbean boost
Report by STEVE JONES
FIRST Choice will use a £200m investment from Royal Caribbean Cruises to expand its international business and secure more beds in key resorts.The funding follows the signing of a strategic alliance with the cruise company after four months of talks. In the deal First Choice will invest £32m in a new joint-European cruise company with Royal Caribbean, which will take a seat on the First Choice board.
Royal Caribbean will provide a ship for the company, Viking Serenade, which will be renamed and based in Palma from spring 2001. In winter the 1,500-capacity ship will be based in the Caribbean.
First Choice chief executive Peter Long said the alliance will enable the operator to accelerate its expansion.
“We have ambitions and the investment will give us the firepower to help achieve these ambitions,” said Long.
“We are determined to be a leading player in the further consolidation of the European tour operating market.”
He added that expansion will be through acquisition and strategic alliances with southern Europe and Germany among the key targets. Discussions are already believed to be taking place with potential partners.
First Choice, which is ditching Festival Cruises’ ship Bolero this autumn, will continue to charter Ausonia from Louis Cruise Lines until 2002. Other cruise operators will still be offered in its programmes.
“Apart from the £200m investment the alliance will bring commercial benefits to both parties,” said Long.
First Choice chairman Ian Clubb added: “By combining our tour operating skills and Royal Caribbean’s spread of products we are well placed to grow our presence in the European cruise market.”
Clubb: believes First Choice is well placed to grow its cruise market presence