So how's business? - A quick look at how the cruise lines are adjusting to the economy

So how's business? - A quick look at how the cruise lines are adjusting to
the economy

It is interesting to see how the cruise lines are reacting to the current
economy. There seem to be a lot of ideas out there...

1) Drop the price now and get the deposits on the books. Carnival has taken
the lead by offing lower fares further away from sail dates. They have a
new "Early Saver" booking code that gives discounted prices up to 5 months
prior to a sailing. Cheaper fares... but they are very restrictive. For
example... the deposit is now non-refundable and non-transferable.

2) Hold the fares as best you can... but offer other inducements. Celebrity
and Royal Caribbean ran a promotion where all deposits on individual
bookings were 50% of normal.

3) Expand and extend traditional sales. Holland America's usual one day
FLASH sale now lasts a week... similar to Princess. Royal Caribbean and
Celebrity still have their one day "sales events" but we get word of them 4
days ahead of time.

4) Last minute sales. Carnival has instituted a Pack-and-Go sale every
week... it usually comes out on Wednesday. More and more of the Royal
Caribbean and Celebrity promos are geared to last minute bookings.

5) Increased commissions to travel agents - a few of the cruise lines have
offered slightly increased commissions during certain booking periods.

6) Increased group amenities - in an effort to stimulate group sales
(especially on traditionally "soft" sailings) some of the cruise lines have
increased the group amenities they offer.

7) Increased advertising.

One very general observation... Carnival Corp lines tend to discount earlier
and deeper. Royal Caribbean companies tend to discount later... and may
sail with a few empty cabins rather than devalue the fares of the
reservations they have already booked.

Carnival reported a 10% increase in bookings in January and Princess
reported a 6% increase. I understand Royal Caribbean also had an
increase... but while all cruise lines are making more bookings, the
cost-per-day has dropped significantly leading to a somewhat pessimistic
profit outlook for 2009.

And of course, there are exceptions to every observation.


--
George Leppla http://www.CruiseMaster.com

Cruise Specials Weblog http://cruisemaster.typepad.com/my_weblog/

May 10, 2009 ALASKA http://www.cruisemaster.com/moagc4.htm
January 10, 2009 Southern Caribbean
http://www.cruisemaster.com/caribprin.htm
October 16, 2010 OASIS http://www.motherofallgroupcruises.com

"George Leppla" wrote in message
...
So how's business? - A quick look at how the cruise lines are adjusting to
the economy

It is interesting to see how the cruise lines are reacting to the current
economy. There seem to be a lot of ideas out there...

1) Drop the price now and get the deposits on the books. Carnival has
taken the lead by offing lower fares further away from sail dates. They
have a new "Early Saver" booking code that gives discounted prices up to
5 months prior to a sailing. Cheaper fares... but they are very
restrictive. For example... the deposit is now non-refundable and
non-transferable.

2) Hold the fares as best you can... but offer other inducements.
Celebrity and Royal Caribbean ran a promotion where all deposits on
individual bookings were 50% of normal.

3) Expand and extend traditional sales. Holland America's usual one day
FLASH sale now lasts a week... similar to Princess. Royal Caribbean and
Celebrity still have their one day "sales events" but we get word of them
4 days ahead of time.

4) Last minute sales. Carnival has instituted a Pack-and-Go sale every
week... it usually comes out on Wednesday. More and more of the Royal
Caribbean and Celebrity promos are geared to last minute bookings.

5) Increased commissions to travel agents - a few of the cruise lines have
offered slightly increased commissions during certain booking periods.

6) Increased group amenities - in an effort to stimulate group sales
(especially on traditionally "soft" sailings) some of the cruise lines
have increased the group amenities they offer.

7) Increased advertising.

One very general observation... Carnival Corp lines tend to discount
earlier and deeper. Royal Caribbean companies tend to discount later...
and may sail with a few empty cabins rather than devalue the fares of the
reservations they have already booked.

Carnival reported a 10% increase in bookings in January and Princess
reported a 6% increase. I understand Royal Caribbean also had an
increase... but while all cruise lines are making more bookings, the
cost-per-day has dropped significantly leading to a somewhat pessimistic
profit outlook for 2009.

And of course, there are exceptions to every observation.

Thanks for the info, George.
Does Royal Caribbean still give onboard credit if you own their stock? I see
their stock is now at $5.93 and wondered if maybe now was the time to buy if
they still gave the OBC.

Are there any sailings from New Orleans now?..We haven't been there since
Katrina and would like to sail from there again.

--Jean

"Jean O'Boyle" wrote in message
...

Are there any sailings from New Orleans now?..We haven't been there since
Katrina and would like to sail from there again.

--Jean



Just a quick search produced NCL and Carnival. I'm sure George can fill in
the details and book it for you.

Happy sailing...
John

"Jean O'Boyle" wrote

Thanks for the info, George.
Does Royal Caribbean still give onboard credit if you own their stock? I
see their stock is now at $5.93 and wondered if maybe now was the time to
buy if they still gave the OBC.


They still are doing the OBC. I've pried around a bit and no indication if
they are going to discontinue this. OTOH... no indication that they will
continue it either.

Are there any sailings from New Orleans now?..We haven't been there since
Katrina and would like to sail from there again.

Carnival has the Fantasy doing 4 and 5 day cruises but that will be replaced
by the Triumph doing a mixture of 4, 5 and 7 night cruises. NCL has a ship
there part of the year and that it is.

With Europe and Alaska markets fading... and all the new ships coming out
this year, I think it is possible that New Orleans will see another cruise
line... and possibly Galveston, too. I hope so!


--
George Leppla http://www.CruiseMaster.com

Cruise Specials Weblog http://cruisemaster.typepad.com/my_weblog/

May 10, 2009 ALASKA http://www.cruisemaster.com/moagc4.htm
January 10, 2009 Southern Caribbean
http://www.cruisemaster.com/caribprin.htm
October 16, 2010 OASIS http://www.motherofallgroupcruises.com

On 3/8/09 4:04 AM, in article ,
"Jean O'Boyle" wrote:

Are there any sailings from New Orleans now?..We haven't been there since
Katrina and would like to sail from there again.

Jean, check neworleanscruiseguide.com. Click on the calendar link.
You'll see many Carnival departures and a few NCl sailings.

"George Leppla" wrote in message
...
With Europe and Alaska markets fading... and all the new ships coming
out this year, I think it is possible that New Orleans will see another
cruise line... and possibly Galveston, too. I hope so!


George, what is causing the weakness in those markets? I would have
thought Alaska to be one of the more popular destinations. Some
of the transalantic crossings with numerous European stops
are looking interesting too. I'd like to see more sailings from
New England, but it will never happen.

Pete

On 3/8/09 2:36 PM, in article , "Unca
Pete" wrote:


"George Leppla" wrote in message
...
With Europe and Alaska markets fading... and all the new ships coming
out this year, I think it is possible that New Orleans will see another
cruise line... and possibly Galveston, too. I hope so!


George, what is causing the weakness in those markets? I would have
thought Alaska to be one of the more popular destinations.

The demand may or may not be high, the supply is amazing. Staying home is
more expensive than 14 days for about $ 600 on a premium ship.


Some
of the transalantic crossings with numerous European stops
are looking interesting too. I'd like to see more sailings from
New England, but it will never happen.

Why wouldn't those cruises not see discounts come September?

Pete

"Unca Pete" wrote in message
...

"George Leppla" wrote in message
...
With Europe and Alaska markets fading... and all the new ships coming
out this year, I think it is possible that New Orleans will see another
cruise line... and possibly Galveston, too. I hope so!


George, what is causing the weakness in those markets? I would have
thought Alaska to be one of the more popular destinations.


Too many ships, too high taxes, lack of reliable, inexpensive airlift.

The cruise lines wanted to expand the more exotic markets thinking that the
baby boomers are starting to retire and will be willing to travel. With the
economy in the tank, those boomers are more content to stay closer to home.

Princess and Holland America are now selling 7 night Alaska cruises starting
at $399 pp.
http://cruisemaster.typepad.com/my_w...ines-specials/
http://cruisemaster.typepad.com/my_w...line-specials/

That said, some sailings and itineraries are holding fares pretty well...
especially balcony cabins. It isn't unusual to see a sailing with a $499
inside cabin get $1299 for a balcony.


--
George Leppla http://www.CruiseMaster.com

Cruise Specials Weblog http://cruisemaster.typepad.com/my_weblog/

May 10, 2009 ALASKA http://www.cruisemaster.com/moagc4.htm
January 10, 2009 Southern Caribbean
http://www.cruisemaster.com/caribprin.htm
October 16, 2010 OASIS http://www.motherofallgroupcruises.com

"George Leppla" wrote in message
...

George, what is causing the weakness in those markets? I would have
thought Alaska to be one of the more popular destinations.


Too many ships, too high taxes, lack of reliable, inexpensive airlift.

The cruise lines wanted to expand the more exotic markets thinking that
the baby boomers are starting to retire and will be willing to travel.
With the economy in the tank, those boomers are more content to stay
closer to home.

Princess and Holland America are now selling 7 night Alaska cruises
starting at $399 pp.
http://cruisemaster.typepad.com/my_w...ines-specials/
http://cruisemaster.typepad.com/my_w...line-specials/

That said, some sailings and itineraries are holding fares pretty well...
especially balcony cabins. It isn't unusual to see a sailing with a $499
inside cabin get $1299 for a balcony.


--
George Leppla http://www.CruiseMaster.com

Cruise Specials Weblog http://cruisemaster.typepad.com/my_weblog/

May 10, 2009 ALASKA http://www.cruisemaster.com/moagc4.htm
January 10, 2009 Southern Caribbean
http://www.cruisemaster.com/caribprin.htm
October 16, 2010 OASIS http://www.motherofallgroupcruises.com

Thanks George. I was watching some unbelievably cheap airfares
and Alaskan cruises out of Canada (Victoria??) for last September.
The Canadian air was a bargain compared to the west coast for
some odd reason? We generally cruise during in October or just
before Thanksgiving, when the rates are the cheapest, and when
less younger children are on vacation. Alaska is one of our
planned destinations when I'm able to retire.

Pete

"John Sisker" wrote

Just a quick search produced NCL and Carnival. I'm sure George can fill in
the details and book it for you.


IIRC, Jean has booked cruises with at least 4 travel agents who post here
on r.t.c.

I'm guessing you aren't one of them.


--
George Leppla http://www.CruiseMaster.com

Cruise Specials Weblog http://cruisemaster.typepad.com/my_weblog/

May 10, 2009 ALASKA http://www.cruisemaster.com/moagc4.htm
January 10, 2009 Southern Caribbean
http://www.cruisemaster.com/caribprin.htm
October 16, 2010 OASIS http://www.motherofallgroupcruises.com