Ovation’s Jack Ezon’s 2018 luxe-travel predictions
inspired a mass-market suggestion.
IN OTHER NEWS
Caribbean airlift capacity is down by 10% in December
‘The key is to compete with rebaters
by providing superior planning.’
See AIRBNB on Page 22
IN THE HOT SEAT ARUBA ALASKA LEGAL BRIEFS
Patrick Miller, president of Vegas’ Monte
Carlo, on the change to Park MGM.
Examining the benefits and drawbacks of
all-inclusive and European plan resorts.
Coming in February: A chalet perched on a
peak bordered by Denali National Park.
16 VESSELS TO BE DELIVERED IN 2018
Too many ships? Cruise execs
unfazed by capacity concerns
By Tom Stieghorst
With orders for new cruise ships
stacking up nearly as far as the eye
can see, concerns about whether
there might be too many ships for
the supply of potential passengers
are once again making the rounds
To date, there are 90 cruise ships on order
through 2025, backed by an estimated investment of $55 billion.
Next year alone will see the delivery of 16
oceangoing ships, including giants such as
Royal Caribbean International’s Symphony
of the Seas ( 5,400 passengers), Aida Cruises’
Aidanova ( 5,000 passengers), Norwegian
Cruise Line’s Norwegian Bliss ( 4,200 passen-
gers) and MSC Cruises’ MSC Seaview ( 4,138
If the number of berths exceeds passenger demand, the argument goes, cruise lines
could be forced to lower prices to maintain
bookings, eroding the profits investors have
come to expect.
On a recent conference call with Carnival
Corp. executives to discuss fourth-quarter
and year-end earnings, Stifel Nicolaus & Co.
analyst Steve Wieczynski said worries about
excess supply are the biggest negative overhanging Carnival shares.
“How do you guys counter that?” Wieczynski asked.
Carnival Corp. CEO Arnold Donald said
that as the question pertains to Carnival,
the answer is to keep capacity growth to a
digestible number. Because Carnival Corp.
has more than 100 ships in its fleet, he said,
Airbnb-branded apartment complex
fuels opposition from hotel industry
By Danny King
A partnership between Airbnb and apartment developer Niido is preparing to open
the first apartment complex specifically designed for tenants who want to sublease their
units to short-term guests.
The partnership, backed by up to $200
million in equity financing from real estate
giant Brookfield Property Partners, signals
Airbnb’s most significant collaboration yet
with the housing industry.
The move is further fueling opposition from the hotel industry, which accuses
Airbnb of facilitating illegal hotels.
Airbnb’s partnership with Niido, called
Niido Powered by Airbnb, will make its
debut in early 2018 with the opening of a
324-unit apartment complex in Kissimmee,
Fla., about 20 miles south of Orlando. On a
conference call on Dec. 18, Airbnb and Niido
executives said that the partnership plans to
open three more apartment complexes by
the end of the year.
Chris Lehane, Airbnb’s head of global pol-
icy and communications, remarked on the
call that, in the past, “the housing industry
was keeping its distance. Now, industry lead-
ers are lined up to knock on the door as a
Niido CEO and co-founder Harvey Her-
nandez added, “We believe the combination
is very powerful and look forward to build-
ing communities to enhance how people live,
share and travel.”
See CAPACITY on Page 24
Visitors to Puerto Rico and St. Thomas, especially cruise
passengers, are helping to fuel the islands’ recovery efforts.
The locals have only one plea: Send more tourists.
REPORT AND PHOTOS BY JOHANNA JAINCHILL PAGE 12
THE TRAVEL INDUSTRY’S TRUSTED VOICE