Ponant Explorations Group's acquisition of a third cruise brand, Aqua Expeditions, helps fill out its global footprint while giving the company entry into the growing river cruise sector.
The move came a little more than five years after France-based Ponant, which operates an eponymous 13-ship cruise line, acquired Paul Gauguin, the one-vessel South Pacific cruising specialist.
Ponant's acquisition of a majority share of Aqua adds another destination-focused operator to its collection.
Strategically, it enables Ponant to enter the river cruise business in the Amazon and Southeast Asia and gain access to key ocean destinations, including the Galapagos, Indonesia and East Africa.
Belinda Hindmarsh
"Growth is always going to be on the agenda," said Belinda Hindmarsh, group deputy CEO of global business for Ponant Explorations Group. "We've been curious about river for some time."
Aqua Expeditions sails three of its ships on rivers and two on oceans. A third ocean vessel is slated to launch by the end of the year to sail in the Seychelles and the Zanzibar Archipelago in Tanzania. Ponant Explorations Group's combined fleet from Ponant, Paul Gauguin and Aqua Expeditions now numbers 19 ships.
The partnership will help all three brands capitalize on the cruise industry's fast growth and the consumer trend toward experiential travel, Hindmarsh said. The group is also seeking ways to weave together luxury pre- and post-cruise land offerings for an end-to-end experience.
"Everyone is looking for luxury nowadays," she said, and their definition of luxury has shifted to the quality of experiences.
Hindmarsh said gaining a majority share of Aqua is part of an ambitious international growth plan. The company wants to grow its customer base in the Asia-Pacific region and the U.S., the latter of which Aqua Expeditions said makes up more than 50% of its source market.
The key for the group was finding a partner that complements what its brands already offer, Hindmarsh added. Paul Gauguin's operations are centered in the South Pacific in destinations like Tahiti and Fiji, whereas Ponant sails all over the world, including the poles.
With Aqua, Hindmarsh said the group is most excited about getting its feet wet in river cruising. Aqua sails on the Mekong River in Vietnam and Cambodia and the Amazon River in Peru.
As was the case when Ponant acquired Paul Gauguin, branding for Aqua Expeditions will remain unchanged and business will go on as usual, said Aqua CEO and founder Francesco Galli Zugaro, who will continue to lead the company.
Francesco Galli Zugaro
Zugaro said he spent at least half of last year shopping for a new home for his family-owned cruise line. He wanted to find a partnership that could support Aqua's growth as the brand builds more ships.
"There's obviously synergies in place that we believe will come to light over time and economies of scale and opportunities as far as branding," Zugaro said.
The move gives the Ponant group a fleet of smaller ships: Aqua's vessels range from 16 to 40 passengers. Ponant's sailing ships carry 35 guests, but its Le Commandant Charcot polar expedition vessel carries 270; Paul Gauguin's ship carries 330 passengers.
What travel advisors are saying
Travel advisors said that while Aqua may be a small player, it is one with a solid reputation for its ships and service.
Jeannie Cartier Sauleau, owner of Sixth Star Travel in Fort Lauderdale, said she is impressed by Zugaro and the company's fleet.
"What he's built from the start with Aqua Expeditions is state-of-the-art," she said. "We've had the opportunity to book some cruises with them. Very high end and above the rest."
Combining leaders in high-end, small-ship expedition cruising is a smart strategic move, said Claire Maguire, the expedition-focused owner of Fort Lauderdale-based Cruise Planners franchise Island Girl Travel and Vacations.
The products complement each other, she said, with Ponant's expertise at the poles contrasting with Aqua's specialization in intimate river cruises and ocean voyages to lesser-traveled destinations in South America and Africa.
Putting these three brands under one umbrella could make the group's products more accessible to new markets and clients who are familiar with one brand but not the other, Maguire said. She sees potential for travel advisors to benefit from this arrangement, too.
"I definitely see it as a great new opportunity, sales-wise," Maguire said. "With the power of Ponant behind Aqua Expeditions, hopefully there will be more flexibility for new promotions, especially things that Ponant are known for, like sailings with no solo supplement and Smithsonian expeditions."