ROYAL CARIBBEAN CRUISES LTD.

Chairman and CEO

The Philippines may not be on the list of cruise destinations, but it has been providing these tour cruises with excellent Filipino service crewmen. The innate hospitality and service- orientation among Filipinos have captured these foreign employers’ imagination.

Royal Caribbean Cruises Ltd., the world’s largest cruise tourism fleet, has made known its preference for Filipino staff.

Richard D. Fain, RCL Chairman and CEO, personally came over to announce plans to hire a total of 30,000 Filipinos in 5 years or a third of its total crew by then. This is to support its growing fleet and expanding cruise destinations in Asia.

THE COMPANY

RCL is a global cruise vacation company that owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisières de France, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined total of 43 ships with an additional six under construction contracts, and two on firm order. They operate diverse itineraries around the world that call on approximately 490 destinations on all seven continents.

Fain joined Royal Caribbean in 1979 as an outside director. He became the cruise line’s Chairman and CEO in 1988. Prior to joining Royal Caribbean, Fain spent 13 years as treasurer, chief financial officer and joint managing director of Gotaas-Larsen Shipping Corp., a London-based owner and operator of cargo ships.

Fain recently visited the country for two reasons: its new partnership with World Wildlife Fund (WWF) and the expanded partnership with a local manning agency Philippine Transmarine Carriers (PTC) for increased recruitment of Filipino seafarers.

“We will continue building our base here by doing many functions being done on the ships and the proportion of Filipinos will continue to grow as we make our processes more attractive,” declares Fain.

FILIPINO CREW

“By nationality, we have more Filipinos aboard our ships than any nationality there are,” says Fain citing the Filipino crew for being friendly, service oriented and knowledgeable. At present, there are over 11,000 Filipinos out of the total 65,000 total crew members aboard RCL’s 43 fleet.

“The infectious happiness of Filipinos has become our best recruiters so this is a self- regenerating process,” says Fain, who holds a B.S. degree in economics from the University of California at Berkeley and a M.B.A. from the Wharton School of Business at the University of Pennsylvania.

The plan is to raise the Filipino crew to 30,000 over a five-year period in anticipation of strong growth for the RCL cruise tours business. Once this is reached, the Filipino crew could account for about a third of total manpower of the world’s largest cruising company. Most will be for the services functions because they are expanding the hospitality business like restaurants and hotels.

“The Philippines has long maritime tradition, Filipinos are great seafarers. So we have to increase our presence here by making it easier for them to work for us,” adds Fain, who was named the 1999 Statesman of the Year by the Wharton School Club of South Florida.

Under its 75-25 joint venture, in favor of the Filipino partner PTC, RCL has removed logistical barriers for applicants.

“This is a real step forward, this will streamline our processes. This is our very first and if this is successful I think we can replicate the process to other countries but the Philippines will be our lead,” he adds.

“Absolutely, we need to find more people and we offer this tremendous jobs for Filipinos to work for us because we want them,” adds Fain, a recipient of the France’s most distinguished award, the Chevalier de la Légion d’Honneur (French Legion of Honor), and was named Commander, First Class, of the Order of the Lion by Finland..

RCL has put emphasis on the quality of its services to guests whether these are spoken or not, whether working on the ship or serving in an Italian or French restaurant or in China.

“But the real skill is understanding what my guests want. It is the grace and friendliness that make experience great,” he adds.

RECRUITMENT

Under the partnership, PTC will be in charge primarily for the recruitment side and the streamlined processes. RCL will be providing the skills training and education upgrading to new recruits and career advancement of existing crew.

The joint venture will also set up a second training facility at the Mall of Asia from the existing training facility in Maragondon, Cavite. The back office operation will start in April and the training facility on May 6. There will be lots of people support as more functions on the ship will be brought offshore in Manila.

The new offices will be a change in the company’s partnership with PTC, which currently oversees these services. It will offer At Sea employees a streamlined recruitment system, in a modern setting, aimed at building the company’s visibility and building stronger awareness for its various brands.

“We are constantly looking to improve ourselves. The new offices will offer At Sea employees a streamlined recruitment system, in a modern setting, aimed at building the company’s visibility and building stronger awareness for its various brands,” adds Fain.

The new office is part of Royal Caribbean’s strategy to address the increased demand for talent, while simultaneously building employee engagement and improving the overall employee experience, with a focus on enhancing Filipinos’ skills and careers.

GROWTH

Of its current 43 fleet, RLC has ordered 9 more at a cost of $10 billion. Some cruise ships are due for delivery starting this summer while the others are due over the next five years.

“It is a very high investment, but yes it is very profitable,” he adds.

Last year, RCL passengers reached 5 million. Overall, the industry is growing 4 to 5 percent with the new growth coming from Asia. RCL is growing 4 percent.

For its route expansion, RCL will be growing its presence in Asia. It has already some presence in Asia towards the northern part of China and south part to Australia. RCL is looking at going to more places in this region including, Singapore, Vietnam, the Philippines and Hong Kong.

“Most of the new destinations will be Asia because this market is growing very, fast” says Fain.

Fain said they have been working with the Philippine’s Department of Tourism for the possible inclusion of the Philippines in its Asian routes.

Fain is even looking at hopefully including the Philippines as part of its cruise destinations, but he also noted of the port infrastructure, which is a prerequisite to any cruising business.

“We’ve been talking about coming to the Philippines but it is still early days,” says Fain.

But Fain stressed that: “The two factors that are most important in the cruise business are the attractiveness of the destination to tourists and infrastructure because we have to provide a good experience but we cannot provide that if there is no good port.”

EMPLOYER OF CHOICE

While most companies could sacrifice quality and the welfare of its people and consequently the image of the organization for profit, RCL seeks to further strengthen in all areas.

RCL has always been an employer of choice, but Fain believes there is more the company can do to improve its image. Despite its status, RCL is undertaking initiatives to further hone its service and improve its overall organization.

“We don’t want to rest on our laurels, we are the choice but we have to keep on improving so you will work for us,” says Fain, a former chair of the Miami Business Forum, the Greater Miami Convention and Visitors Bureau and of the Cruise Lines International Association (CLIA), an industry trade association representing nearly 17,000 affiliated travel agencies and the bulk of the world’s cruise lines.

Aside from taking care of its people, RCL is also taking care of its environment.

RCL has entered into a new partnership with World Wildlife Fund (WWF). Being the world’s largest cruising fleet, RCL has taken upon itself a responsibility towards its environment, especially the seas. The global partnership supports ocean conservation.

The partnership was announced in Donsol, Sorsogon, home to a model community- based ecotourism program. RCL also made a separate $200,000 donation to WWF Philippines in support of conservation programs in the Donsol area.

The five-year partnership will set measurable and achievable sustainability targets that will reduce Royal Caribbean’s environmental footprint, raise awareness about ocean conservation among the company’s more than five million guests, and support WWF’s global oceans conservation work.

The targets focus on supply chain sustainability and emissions reductions through 2020. Royal Caribbean and WWF are also working together to develop targets aimed at strengthening the company’s sustainable sourcing strategy and its destination stewardship and sustainable tour operations platforms.

“Our mantra at Royal Caribbean is ‘Continuous Improvement,’ and this partnership with WWF represents a great opportunity to make a big step forward in meeting our special responsibility to protect the oceans,” says Fain, a 1998 Humanitarian of the Year by the American Red Cross of Greater Miami and the Keys.

“It is also gratifying to see that our determination to make a meaningful difference is shared by our employees and our guests. This new partnership aligns all of us at RCL with WWF’s mission to conserve the world’s oceans. Together we are setting aggressive goals and together we will start implementing them right away.”

RCL has recognized that the oceans are greater than ever – in the last 30 years, some ocean wildlife populations have declined by nearly 50 percent.

“If we are going to reverse the downward trends, we must take serious steps to repair, restore and protect the oceans. So, the RCL initiative centers on two core concepts: first, committing to specific and measurable targets to reduce carbon emissions, increase sustainable sourcing and build destination stewardship; and second, comprehensively engaging their millions of travelers to learn about the ocean and then act to help save it,” says Fain.

The new 2020 environmental stability targets jointly developed by RCL and WWF include: reduction of greenhouse gas emissions by 35 percent by 2020 and responsibly source 90 percent of its wild-caught seafood by volume from MSC certified sustainable fisheries, fisheries in full assessment for MSC certification, comprehensive Fishery Improvement Projects (FIPs), and/or sourced from International Seafood Sustainability Association (ISSA) member companies.

For its North America and Europe operations, RCL will responsibly source 75% of its farmed seafood by volume from ASC certified responsible farms, farms in full assessment for ASC certification, and/or comprehensive aquaculture improvement projects.

In addition, by June 30, 2016, RCL will set specific traceability goals with targets for obtaining MSC and ASC chain of custody.

In addition, Royal Caribbean and WWF have agreed to develop and announce new targets by June 30 that will address destination stewardship. As part of this, WWF and RCL will collaborate to strengthen RCL’s destination sustainability assessment and selection process.

Royal Caribbean also will financially support WWF’s global ocean conservation work through a $5 million philanthropic contribution during the partnership, and will collaborate with WWF to build global awareness about ocean conservation issues among its millions of passengers.

BEST JOB

“I have the best job in the world and I am enjoying every minute of it. I only worry today,” says the 68-year old executive, father to four and a doting grandpa to 6 gorgeous kids whom he would spend time with scuba diving.

“I don’t cruise that much anymore,” says Fain, whose work now is mostly land-based and has become more leisurely. Fain and his wife, Colleen, have four children and reside in Miami-Dade County, Florida.

“I have 4 children and I love them all the same and like my 43 ships love them all the same,” he adds.

But what makes his job more meaningful?

“How much of economic impact will go to those countries, that is what nice about my job,” says Fain.

“At Royal Caribbean, the people and our ships are our first and foremost. Without a doubt the passion of our people provide an amazing and unparalleled vacation. So we do put a lot of efforts for most exciting and innovative ships around the world and if you look at our ships we have the most outstanding fleet around,” says Fain.

SATISFACTION

Fain is confident that cruising will become an in thing in the future.

“It is not as big as flying but satisfaction is a lot higher. We take extensive surveys and satisfaction levels are outstanding and they keep getting better. 2015 was the best satisfaction rating,” says Fain, who noted that a first time cruiser is 5 times likely to take a second cruise.

Fain also debunked the notion that cruising is more expensive than flying. He explained that a cruise is so inclusive of food, entertainment and activities. At the end of the day, the cost is cheaper than flying.

People are also mistaken into thinking that those who cruise are old people. “It shows how mistaken people are because the average age is 45 years,” notes Fain.

“For the 6 years in our history, we have men and women on our ships who provide service and amazing vacation to millions of our guests. Attracting, retaining and working with those crew members one of important success factors,” he adds.

Cruising offers a better alternative for tourists. And with Filipino staff around, experience would be a lot better.