Hub Shop Among Trio Pitching Royal Caribbean Assignment
ATLANTA--With new marketing executives at the helm, Celebrity Cruises and its parent, Royal Caribbean Cruise Lines, have embarked on separate national searches for a new agency, with close to $70 million in total billings at stake.
Royal, which plans to launch five new ships over the next five years, is listening to three shops regarding its $33 million account: incumbent McKinney & Silver, Raleigh, N.C.; Arnold Communications, Boston; and Temerlin McClain, Irving, Texas, sources said. The agencies declined comment.
Royal has been holding a separate pitch for its $10 million direct marketing business, which has been narrowed to McKinney; Rapp Collins, Irving, Texas; and FCB Direct and OgilvyOne, both New York.
Celebrity, which recently split with its agency of two years, Harris Drury Cohen, has doubled its creative budget to $35 million in anticipation of adding three ships next year. The line recently handed $8-10 million in collateral and domestic planning and marketing duties to WestWayne in Miami.
Representatives for WestWayne have previously said they "would love to work even more with [Celebrity]" in the wake of the resignation of HDC, Fort Lauderdale, Fla., but last week referred questions to the client. Neither Celebrity nor Royal returned phone calls last week.
Overcapacity in the cruise industry has led to a scramble for passengers, even as demand has softened, sources said.
The two Miami-based companies have also hired new marketing executives. Royal's Dan Hanrahan previously held senior marketing and sales posts at Reebok and Polaroid.
Celebrity's newcomer is James Lamonosoff, an 18-year Saatchi & Saatchi executive who most recently was vice president of international marketing at Walt Disney Attractions.
Young & Rubicam's The Media Edge in New York handles a portion of the media tasks for both cruise lines. McKinney does broadcast and print planning for Royal, as well as print buying.
At present, rival Carnival Cruise Lines is the industry's largest player, topping Royal Caribbean on a capacity basis, according to figures from the Cruise Lines International Association.
Carnival accounted for about 18 percent of industry berths among CLIA's 24 members, while Royal ranked second at 17 percent. Celebrity has 6-7 percent of the industry's capacity.
--with Mike Beirne
and J. Dee Hill