Richard Branson, who never liked cruising, looks to disrupt the industry with Virgin Voyages

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Richard Branson is looking to disrupt the $100 billion cruise industry with Virgin Voyages.

The business tycoon who started Virgin Group, the company behind dozens of Virgin-branded ventures, is looking to disrupt the $100 billion cruise industry — at a time when the major established operators are still figuring out how to manage Covid.

Branson said the fact that he had never enjoyed cruising is what actually motivated him to start Virgin Voyages. "Do you know I was never interested in going on cruise ships, and I suspect there's something like 90% of people who are listening are not that interested in going on cruise ships," he told CNBC. "That's the reason I started a lot of businesses over the last 50 years.

Private equity firm Bain Capital is Virgin Voyages' largest investor. Sources familiar with the arrangement said the total investment, largely from Bain, made in the cruise line and its three ships is around $3 billion, with each ship costing around $800 million. Virgin Voyages is attempting to build a narrative that its ships will be cooler and edgier than what's currently on the market. Industry experts said the challenge will be figuring out how to set itself apart from the big brands to attract younger customers while not alienating cruise loyalists.

 

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