Celebrity Cruises' decision last month to sell its two small Galapagos vessels to Lindblad Expeditions was a strategic win for both brands.
The move will reduce Celebrity's Galapagos footprint to one ship when the transaction closes in January, and means the loss of two coveted and hard to get permits to sail in the remote and protected archipelago.
But in terms of capacity, the 16-passenger Celebrity Xploration and the 48-passenger Celebrity Xpedition, combined, represent less than half of Celebrity's berths in the Galapagos, where it will still operate the 100-passenger Celebrity Flora.
And the experience on those small ships, each about 20 years old, is a departure from what the line is now known for: blending a luxury vibe with a big-ship experience and amenities.
"The history of these ships is that we bought them because they came with licenses to operate in the Galapagos," said Jason Liberty, CEO of Royal Caribbean Group, the brand's parent company. "And when we think about how they connected to the brands, it was really not connected, experience-wise."
The Flora, meanwhile, which debuted in 2019, was purpose-built by Celebrity and offers an experience more in line with the Celebrity brand at large. Liberty hinted that the company has ambitions to grow in the expedition space and may seek to expand its presence in the Galapagos in the future.
For Lindblad, however, the Xploration, to be renamed the National Geographic Delfina, and the Xpedition, to be called the National Geographic Gemini, fit well in its expedition wheelhouse, said Noah Brodsky, chief commercial officer for Lindblad.
The Celebrity Xploration will be renamed the National Geographic Delfina. Photo Credit: Lindblad Expeditions
The acquisition brings the line's Galapagos fleet to four vessels, joining the 98-guest National Geographic Endeavour II and the 48-guest National Geographic Islander II.
The Delfina will be a good option for group and charter bookings, especially smaller groups or families, Brodsky said.
"We do a lot of group business on both of our other ships, and we'll continue to offer those as group charters. But with a 16-person, an eight-cabin option, it really opens the door to a lot more," he said.
Both vessels will undergo multimillion-dollar renovations before debuting for Lindblad in February and March and sailing year-round, 10- or 16-day Galapagos itineraries.
Celebrity's vessels are valuable not only for their hardware, but for their licenses.
The Ecuadorian government issues a very limited number of licenses to operate in the Galapagos in order to protect and preserve the islands' pristine waters and unique biodiversity.
Those licenses are attached to specific ships and itineraries, Brodsky said, and the number of licenses is not likely to ever grow. This makes the acquisition of ships with licenses the main expansion strategy in the market.
"While demand for the Galapagos may be going up and up and up, supply is fixed and will be fixed forever," Brodsky said.
Other lines have similarly expanded or entered the market in this way. HX, formerly known as Hurtigruten Expeditions, in 2022 acquired a 24.9% minority stake in Metropolitan Touring, a South American company that operates the Santa Cruz II in the Galapagos. Metropolitan now operates HX sailings there.
Lindblad will renovate the ships, most significantly by building the brand's "circle of truth" lounge for evening recaps with guests, along with other changes. Lindblad will keep the ships' current staff but will add photo instructors, youth program specialists and its own naturalists.
When it's time for Lindblad to replace one of the roughly 20-year-old ships, Lindblad can sub in a ship with the same passenger capacity in order to keep its license, Brodsky said.
The Galapagos is booming as a destination, Brodsky said, with Lindblad's itineraries sold out over the summer.
Liberty similarly called Celebrity's Galapagos product "very successful" and that "the ships are full all the time."
Ashton Palmer, president of Seattle-based Expedition Trips, which exclusively sells expeditions, said Galapagos demand had softened over the past few months because of political unrest in Ecuador but picked up recently. He was surprised Lindblad was increasing capacity in the Galapagos but said small ships are popular.
"I know that Lindblad and all Galapagos operators struggle to maintain occupancy each week, however, there are several peak seasons throughout the year so the revenue equation must pencil out," he said.
Robin Leonard, owner of Polaris Travel Advisors in Clayton, Mo., said the Galapagos is hot right now in terms of demand, and she applauded Lindblad for buying the ships. She sees a growing interest in small-ship cruising from several demographics: Not only are experienced big-ship cruisers ready for the next experience, but younger, new-to-cruise clients are interested in expedition and adventure travel, including honeymooners.
While the small ships fit better in the expedition category, she said the Celebrity Flora is optimal for certain travelers.
"I don't think of Celebrity as my 'go-to' for a client looking for true expedition travel, but I would consider the Flora for a client looking for a more traditional cruise experience in the Galapagos," she said.
Arnie Weissmann contributed to this report.