We have reached exciting times for the luxury cruise industry. Whilst the mainstream cruise market has forged ahead with its substantial new build programmes, the luxury sector has remained largely static since the last growth surge in the late 1990s.

Looking back to that time, we will remember that Silversea was completing its two new sisters Silver Shadow and Silver Whisper; RSSC’s partnership with CGM had resulted in the Paul Gauguin, whilst Seven Seas Navigator was nearing launch, and parent company Carlson had committed to the first all-suite all-balcony ships at sea, Seven Seas Mariner and Seven Seas Voyager; Crystal’s construction of Crystal Serenity was well under way, Hapag Lloyd was completing Europa, and CIP’s Levant was ready to go. Last but not least, floating residence The World was nearing completion, with unsold capacity which was also to be released onto the market in the rental programme as ‘cruise’ product.

But since then, all has been quiet: the surge in capacity and downfall in business following 9/11 lead to a fall in yields in the luxury market, and a recovery that has been relatively slow. Now, all has changed, and we are suddenly preparing for a significant hike in capacity which will benefit cruise lines and customers alike.

Newcomer Oceania had no trouble filling its three (former Renaissance) ships, and went searching for investment to drive its plans for growth. New investor Apollo committed not only to the purchase of the company, but also to a newbuild programme to the value of a possible $1.6 billion. Oceania’s new ships will offer substantially larger accommodations, whilst retaining the Oceania features – excellent food, port-intensive itineraries, and a casual style.

Meanwhile, Seabourn appeared to pip Silversea at the post with its order for new ships. The first build is well under way, with the launch of Seabourn Odyssey scheduled for June 2009. She will be followed by two further vessels – also 450 guest luxury ships featuring 225 spacious suites.

Silversea appeared to have been diverted into work on its expedition ship acquisition, which, although due for launch in June 2008, still does not have finalised itineraries, fares or any brochure. However a rather low-key ceremony in early January put paid to rumours that the newbuild would not now take place. The ceremony to mark the cutting of the first sheeting of the new super-luxury cruise ship which Fincantieri is building took place at Ancona. The event marks the official commencement of construction work.

The 36,000-tonne ship, due for delivery at the end of 2009, will be 195.8 metres long and 26.50 wide and able to reach a speed of 20.3 knots. Her passenger capacity will be 540 guests, with a crew of 378. All 270 passenger cabins will have a sea view, and 222 cabins, in addition to the ship’s 34 suites, will have a spacious private balcony. The cabins and suites will also all have light, airy living areas and be provided with every comfort.

Finally, following Apollo’s acquisition of Regent Seven Seas Cruises which was finally completed in December, an announcement has been made that this, already the largest luxury line, has the go-ahead to progress with plans for its own newbuild programme, with an announcement expected towards the end of the year.

Elsewhere, the rumours that similar projects to The World are underway still bubble on. Hotel chain Four Seasons has made no secret of its aims in this area, whilst Arizona based Magellan Cruise Line continues to market itself, and the captain of The World has moved on to pastures new, as part of the development team of The Orphalese. Whether any of these projects finally moves to build stage is yet to be seen.

All of this means good news for the luxury cruise buyer with increased options leading to more competition, higher standards, and – possibly – reduced prices!