Richard Branson's Virgin Group to create Virgin Cruises business, build two cruise ships

Virgin Group, the investment arm of billionaire Richard Branson's family, is expanding the brand's travel empire by creating a cruise line with backing from Bain Capital Partners.

Virgin Cruises, which will be based in the Miami-Fort Lauderdale area, plans to design and construct two cruise ships, the company said on Thursday. The companies didn't disclose how much Bain is investing in the venture, and closely held Virgin Group didn't say when it will start operating, citing "competitive reasons."

Virgin Cruises will be competing for passengers against Carnival and Royal Caribbean Cruises, the two biggest operators. While about 22 million people will take a cruise this year, the industry is fighting an image of overcrowded buffet lines and ships full of older travellers in an effort to woo more consumers.

Branson's company could inject some more fun into the business, said Vicky Garcia, chief operating officer of Cruise Planners, a network of travel agents based in Coral Springs, Florida.

"Virgin can bring the unexpected, they're creative, it's a sexy brand," she said in a telephone interview. "I don't think it'll be a boring, grandmother cruise."

Branson already operates an airline and train business that bear the Virgin name. The billionaire's space-tourism business Virgin Galactic suffered a major setback in October when a test flight crashed in California, killing one pilot.

Tom McAlpin will join Virgin Cruises as chief executive officer. He was most recently CEO of The World, Residences at Sea and has served as president of Disney Cruise Line, according to the statement.

Bloomberg