CDFG takes stake in APAC cruise market with second Carnival ship

CDF Cruise Servicesa subsidiary of China Duty Free Group at obtained the right to operate the duty free shop on board a second vessel owned by CSSC Carnival Cruise Shipping (CSSC Carnival)a joint venture between State Shipbuilding Corporation of China and Carnival Corp. launched in 2018.

CDF Cruise Services will operate an exclusive three-year duty-free contract on board Costa Mediterranean. The contract marks CDF Cruise Services’ second win in an international CSSC Carnival tender and significantly expands the scope of CDF Cruise Services’ business in the Asia-Pacific cruise market.

As DFNI reported in 2018, CDFG won the tender to operate the retail business on Atlantic Coast., also owned by CSSC Carnival Cruise Shipping.

At the time, CDFG said it beat “fierce competition” from many international duty-free operators to win the concession after many rounds of negotiations, making it the first time it would independently operate the business of detail on an internationally renowned cruise ship.


CDFG targets the potential of the cruise market

Costa Mediterranean is the second cruise ship of CSSC Carnival Cruise Lines, with a capacity of 2,680 passengers. It aims to start sailing from China by the end of 2022, and its duty-free shop area is expected to expand to 600 sqm.

“This project deepens the cooperative relationship between CDFG and CSSC Carnival, and also has a positive significance for the expansion of CDFG’s market share in the Asia-Pacific cruise duty-free market and the submission of other export duties. ‘duty-free operation for international cruises,’ CDFG said in a statement.

Despite the uncertainties about the recovery of the international cruise tourism market in the short term due to the Covid-19 pandemic, the CDFG believes that in the long term, the cruise industry has broad development prospects based on the accelerated transformation of traditional tourism towards the top of the range. end holiday tourism in the region.

Atlantic coast

CDFG, a subsidiary of China Tourism Group, has been deeply involved in the cruise industry for more than ten years, and its business covers major domestic and foreign cruise lines. “The victory of Mediterranean The cruise ship will further expand CDFG’s market share, improve its international competitiveness and professional operating level, bring better service experience to passengers, and promote the steady development of China’s cruise industry and shipping capabilities. supporting related services,” the company added.

Previously, CDFG launched its duty-free wholesale business on Star Cruises and China Taishan Cruises, but these were not operated directly by the company. DFNI recently reported on the bankruptcy of Genting HK, owner of Star Cruises.

CSSC Carnival Cruises

CSSC Carnival Cruises is a joint venture established in China in 2018 by the world’s largest shipbuilding group, China State Shipbuilding Corporation, and the world’s largest cruise group, Carnival Group.

In 2020, CSSC Carnival Cruises established its cruise ship operations team in Shanghai, with Cherry Wang, former Vice President and General Manager of Princess Cruises China, as SVP. As quoted in China Daily in 2020, the CEO of CSSC Carnival said, “We will leverage the strong capabilities and rich resources of our parent companies to create a fully-fledged flagship cruise line.”

“The company is expected to contribute to the sustainable development of the Chinese cruise industry and become a leading Chinese-funded cruise line by optimizing its product offerings, improving its distribution systems and establishing an all-encompassing ecosystem. understood,” added Yang Guobing, chairman of CSSC Carnival. .

In addition to acquiring the two Costa Group ships owned by Carnival, the joint venture is also working on the world’s first two cruise ships to be built in China for the Chinese cruise market, the first of which will be delivered in 2023, the second in 2024. The deal also gives CSSC Carnival Cruise Shipping Limited the ability to order four additional China-built cruise ships to meet growing Chinese consumer demand.

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