Virgin chairman Richard Branson is pressing ahead with plans to launch a cruise operation which will rival the industry’s big two, Carnival Corporation and Royal Caribbean International.
According to Sky News, US corporate advisory firm Allen & Co has been given the task of developing plans for the venture, along with an upmarket city hotel operator.
Branson has spoken of his ambitions to enter the cruise market in the past, saying he was looking for the right vessel to offer something different to conventional operators.
Sky News claims Virgin has held talks about raising more than £500 million to fund the operation and is looking for outside investors.
The report refers to ‘acquisition of vessels’ suggesting the line would be based on second-hand ships rather than new builds.
Sky News said sources close to the venture stressed it was still early days.
Virgin is thought to be interested in breaking into cruise as it is a sector dominated by a small number of large operators.
The big two, along with Norwegian Cruise Line, represent 80% of a sector which has seen significant growth over the last decade despite fears that capacity has outstripped demand in recent years.