With the announcement of the Residential Cruise Line’s Magellan Vacation Club, the interest in residential cruise ships continues to grow. (See our Quick Guide to Residential Cruise Ships for an overview.)

However, since only The World of Residensea is sailing, Helium Report decided to discuss its operation and success with its senior VP of sales and marketing, Nikki Upshaw.

HR: Tell us about a typical World owner.

Upshaw: Owners are self-made entreprenuers. They’re affluent, inquisitive, and adventurous world travelers. Most of our owners are semi-retired, but still active in their business. A typical owner is a vibrant, active person in the 40-60 age group with an average owner age of 52.

They want to see other countries, and deeply experience other cultures and areas. They are also independent, sophisticated people who want to plan, shape and control their experience on the ship. The on-board community has a social club social feel.

Only 18 percent of our owners had ever been on a cruise before. They’re not cruise ship people, but they may have rented or owned a yacht in the past or do so currently. They rent villas or stay at boutique, five star hotels when they travel. On average, most owners spend three to four months in their residence on the ship, but not all at once. Mostly they spend one month at a time, three to four times a year.

HR: How does The World ownership model differ from a cruise ship model?

Upshaw: The residential cruise ship model is different from the cruise ship industry in many ways including in the travel experience and operation of the vessel. Port stays are usually two to three days, while a cruise ship would only stay one or two days in port. Staying in port longer gives owners a chance to explore the city, and enjoy the area’s fine dining and nightlife.

Residential cruise ships have only 150 people on the ship at once – a lot less crowded than a cruise ship of the same size. The experience is more like a villa rental or a hotel stay. You stay in your residence, and don’t need to hang out on the ship all the time.

There’s also more freedom on The World. Unlike a cruise ship there is no itinerary. You aren’t hearded from diner to activity and then back to the ship. However, there are some planned events such as day trips for a small group of 10 to 12 people at a time.

Finally, you have the comfort and familiarity of your own suite surrounded by your personal belongings that stay there all the time. You’re not living out of suitcases. It’s your private vacation home that moves all around the world.

HR: What do you think of your new competitors?

Upshaw: They have very different business models and all have unique features and spins. Some do rentals, while others have fractional ownership.

The World has a full ownership model. Owners often trade up or down by selling theirs and buying another. This is how The World is sold out but still has some residences available for purchase. They can also use The Word’s staff to help coordinate renting out their suite if they so wish. Also, Exclusive Resorts has four homes on the ship that are fractionally owned and used.

HR: What are your challenges now and in the future?

Upshaw: Having the owners really understand the model and what the experience will be like. We spend time educating prospective buyers, and distinguishing ourselves from cruises and our competition. So far it’s going really well.

Most people rent a suite before they buy one, so they can try it out. meet the other residents, and get a feeling for who they are and if they want to hang out with them. Some people will buy two suites – one for themselves and a second as their guest room for friends and family.

If you are an owner at The World, or have signed a purchase agreement for any of the other ships, send us your feedback at tips@heliumreport.com or write a review.