Carnival to Sell Windstar Cruises

Here’s some interesting news from Carnival. They have announced an agreement to sell their Windstar Cruises brand for $100 million to Ambassadors International, Inc. If all goes well, the deal should close at the end of the second quarter of 2007. The three-vessel Windstar brand is a wholly owned subsidiary of Holland America Line, a unit of Carnival Corporation & plc.

According to Micky Arison, Carnival CEO, "Windstar is an outstanding and unique cruise product and has garnered an extremely loyal following, however, Carnival Corporation & plc's growth strategy is focused on expanding our core growth brands and opening new markets. We made the decision to exit from the niche cruise business some time ago and the sale of Windstar is in line with that strategy. Last year, we made a decision to cease operation of UK's Swan Hellenic and transfer its one ship to the Princess Cruises brand. Both of these are excellent products, but simply do not fit into our future growth plans."

Windstar loyalists are already getting a bit anxious about the transition but Holland America Line president and CEO Stein Kruse is trying to quell those fears. "We are pleased to have a committed buyer like Ambassadors International to take over Windstar. The transaction has been structured to ensure a smooth transition for all parties. Holland America Line will continue to operate the company through a transitional services agreement in the short term which includes vessel, reservations and other operational functions."

Some travelers fear that Ambassadors International will place more emphasis on meeting and incentive travel, thus eliminating cruise inventory for leisure travelers. Only time will tell, but this will be the cruise line to watch for the next few months.