Not
only is Fathom a new brand, but it also lays claim to an entirely new travel
category. Michele Witthaus learns more from Tara Russell, president of the
world’s first social impact cruise line
Tara
Russell is new to the cruise industry. Having trained in engineering, she has
had a successful corporate career working for the likes of GM, Intel and Nike,
with a growing focus on philanthropy over the years. “I am passionate about
using business for social good; building social enterprises from the ground
up,” she says. “For me, the opportunity to use business to meet social needs is
my personal focus – to harness and leverage sizeable platforms in ways never
done before.”
Carnival
Corporation has chosen Russell as the figurehead of its bold new business
venture, Fathom, which aims to harness pent-up demand for what it calls ‘social
impact travel’. She is also Global Impact Lead for the corporation’s ten
brands.
Founded
on principles of social entrepreneurship, Fathom seeks to develop long-term
relationships in its partner countries in the fields of education, environment
and economic development, so that the brand’s guests can experience meaningful
personal enrichment through projects on the ground.
The
idea for Fathom grew out of a “crazy idea” that Russell developed together with
Carnival Corporation’s president and CEO Arnold Donald (whom she describes as a
friend) about pairing voluntary community work with cruising. “Carnival
Corporation has a history of doing great things in the world – Micky Arison and
his family have a history of generosity,” observes Russell. “I believed the
company could do more to harness assets in a unique industry platform in a way
nobody had done before. Arnold Donald shared the corporation’s interest in
leveraging older corporate assets by marrying real market demand with real
social needs for the long term.” The catalyst in this is a diverse group of
travellers composed of “people who have a growing hunger to make a difference
in the world,” as Russell puts it.
Qualitative
and quantitative research followed to gauge the true level of demand for this
differentiated travel experience. The company used McKinsey in the US to
conduct an extensive market research study of both psychographic and
demographic data. Russell points out: “This is not some corporate social
responsibility project but is a business venture that has had to justify its
potential ROI for a place among the brands.” Happily, the numbers added up and
Fathom was born. The new operator will initially transport guests – mostly
sourced from North America, the United Kingdom, Northern Europe and Australia –
to the Dominican Republic (from April 2016) and to Cuba (from the following
month) on Adonia, which is being redeployed from P&O Cruises (UK). Around
700 people will be part of each voyage, served by approximately half as many
crew. It is expected that nearly 40% of guests might otherwise never have
chosen to cruise.
“The
range is broader than other cruise lines, including millennials who combine
travel hunger with values; mindful families; and what we call the ‘bewildered
and aware’: they are already cruising, well experienced and travelled, and have
been philanthropic through money but want the opportunity to do more,” says
Russell.
There is clearly value for Carnival Corporation in being
the first mover in this new travel category as it will allow the global company
to gain an early foothold in Cuba as it opens for business with the US. It was
announced on 7 July that the company had achieved US approval as the first step
towards bringing Fathom’s guests to Cuba for cultural exchanges under the existing 12 criteria for
authorised travel.
“The
addition of Cuba as a destination enhances the impact Fathom can make in the
Caribbean,” explain Russell. “While the Dominican Republic was established as
Fathom’s first partner destination, Cuba represents an important step for
Fathom to expand its purpose-driven approach to ensure holistic,
transformational societal contributions that will help the entire Caribbean
region flourish.
“In
terms of potential economies of scale, some of Fathom’s Dominican Republic
partners also provide support services in Cuba, so they understand the real
needs that exist in that country as well.”
She
emphasises that, like the relationships Fathom has established in the Dominican
Republic, the Cuban partnerships will be formed with proven, trusted local
organisations. “Many Americans are interested in and curious about Cuba, and
the country provides great potential opportunity to make a tremendous
humanitarian impact through Fathom's cultural exchange programmes authorised
under the US Department of Treasury.” Cuba currently hosts approximately three
million visitors a year, of which just 90,000 are from the US, a number which
the IMF estimates may double following the easing of US travel restrictions.
Regarding
its plans for both countries Fathom will visit, Russell says: “We are excited
and people are demonstrating a real desire to engage. Now we are focused on
converting that to bookings as we get additional tools out to the trade.”
A
key message to consumers is that the day-to-day experience on a Fathom voyage
is going to be immersive, to say the least. “We’re excited about the holistic
impact of the journey. The Fathom experience starts long before you sail and
should linger long after. The first one-and-a-half days are spent onboard – we
have a variety of onboard programmes, with films and workshops to prepare
people for what to expect. We see the Fathom experience as so different that we
don’t even call it a cruise,” says Russell.
She
emphasises that although there will be some training and education as part of
this process, “this will not be a ‘boot camp’.” The ship will be repurposed to
allow for special activities, including scavenger hunts, onboard workshops and
mixers to help people get to know other travellers. Once onshore, the ‘three
e’s’ of education, environment and economic development are embodied through
intensive learning from local partners.
The
initial seven-day voyage will depart from Miami for Amber Cove, Carnival
Corporation’s new dedicated cruise port in the Dominican Republic.
Starting
with one ship will enable Fathom to test the market – and if it works, the
model may be extended. “With the Adonia, the intention is long-term but we have
to demonstrate a sizeable enough market. The hope is to grow the fleet of
Fathom social impact ships.”
The
refit of Adonia scheduled for March 2016 at Grand Bahama Shipyard is not
architectural, but comprises soft ‘wallpaper’ changes. Fortunately, given the
Fathom ethos, the ship doesn’t have a casino, so there will be no need to spend
money removing such a facility.
Key
partners for Fathom include Stanford Design School, social entrepreneurship specialists
Ashoka, Etter Design, McKinsey & Company and Uncorked Studios. In the
Dominican Republic, the brand will work with IDDI, a non-profit organisation
that helps alleviate poverty in rural and urban areas in the Caribbean. Russell
says Fathom hopes to extend its work with IDDI to Cuba.
Drawing
guests from many walks of life and offering a novel alternative to the
voluntourism and cultural immersion options currently available, Fathom expects
to carry 35,000 travellers a year (more than 700 per voyage) and Russell is
confident that this will grow in future. “We are feeding a growing and deep
hunger,” she says.
In
her capacity as Global Impact Lead for Carnival Corporation & plc, Russell
is already at work to enable the other brands to engage with the Fathom
experience through shore excursions and activities in the partner countries.
She says: “The executive leadership of Carnival Corporation has been eager to
find ways to harness the scope and scale of the company’s global resources for
social impact. As such, Carnival Corporation will continue to explore unique
opportunities – tailored to each brand – to integrate social impact into its
operations.”
-Cruise
& Ferry
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