Speaking at this year’s Clia conference in Southampton, chief executive Larry Pimentel was vocal in his concern about the amount of new tonnage entering the luxury sector.

“The luxury sector is seeing the most amazing growth that it has ever seen in its history,” he told delegates. “But it’s too much, too quickly, and it will drive down pricing.”

He acknowledged that for agents, this was “an opportunity – and for your clients,” but he said the result would be damaging for the industry.

“There is too much capacity, and it’s happening too fast – this won’t create higher pricing; it will drive it down.”

Pimentel warned that the increased volume would also likely have dire repercussions for the luxury cruise lines themselves.

“Within the next three years, I believe there will be cruise lines who will [be sold] or will merge, simply because they have to.”

His comments come after a number of new ship announcements from lines. This  includes three new ships from Crystal Cruises; at least one and the potential for another from Scenic; two Viking ships which are already sailing, and another four on order; one Silversea ship due for delivery in 2017; two new Seabourn ships due for delivery this year and in 2018 and four new ships on order by Ponant.

The growth is such in the sector that Pimentel admitted it had hampered any growth ambitions for Azamara at the current time. “I believe the timing for new capacity [from Azamara] is wrong. I think there is too much coming.

“We have only two ships but we are a very profitable little company. I’m worried that there is too much capacity too quickly, which will drive everything down. [To build a ship] would send the wrong message to our shareholders.

“I wished we had pressed that button [to order another ship] before,” he added.