New cruise ships debut in difficult economy, prices drop
By David G. Molyneaux, editor, TheTravelMavens.com
Why is the cruise industry bringing out a dozen new ships and riverboats this year? Because the ships are ready to float. New ships take years to plan, finance and build. Who knew that 2009 was going to be a year of economic turmoil?
Big new ships include the MSC Splendida, Costa Pacifica, Celebrity Equinox, Carnival Dream and, the biggest of all, Royal Caribbean's Oasis of the Seas with 5,400 passengers.
One result of all these new ships in bad times is that prices for a cruise have never been better, especially among the mass-marketed ships operated by such companies as Carnival, Norwegian, Royal Caribbean and Holland America. You can cruise for as little as $80 a day per person for two. And you might do even better on the Internet a few days before the ship sails.
The goal for cruise lines is to leave the dock with every cabin full on every cruise, and some lines keep lowering the rates until all the cabins are sold.
"We fill our ships," said Holland American president Stein Kruse at the spring Cruise Shipping Miami convention in Miami Beach. "Not filling our ships doesn't make sense."
"We find that when we bring the price down, we sell out our cruises," said Gerry Cahill, president of Carnival Cruises.
Does the product suffer when the rates come down?
I asked cruise line executives that question and got a resounding "no." But who would expect them to say "yes." My experience with off-season land resort stays, at a discount, is that resorts diminish the product, such as closing restaurants and cheapening the food service. Will cruise ships switch to cheaper cuts of meat in the dining rooms? Fewer choices of fruit on the buffets. Less entertainment or lesser performers? This will be the year to find out. Veteran cruise passengers will be watching.
"The key is not to fall back, but to drive the quality level and big bang for the buck, to keep value high," said Kevin Sheehan, president of Norwegian. "Taking a cruise is one way to save money on a vacation."
"The product is as robust as it's ever been," said Adam Goldstein, president of Royal Caribbean International.
"It's a real opportunity to draw in consumers who have never cruised before," said Cahill of Carnival. "We sell fun, we sell value. We are not cutting the product."
"People want the product this year that they had last year," no matter what they pay, said Gregg Michel of Crystal Cruises.
"The mindset among vacationers is caution," said Pam Conover, president of Seabourn Cruise Line, which is bringing out three new ships in the next three years, all with a passenger load of less than 500. "The luxury passenger is looking for value. We are offering prices that never have been seen for the luxury product, and we are selling cabins on all our ships."
Looking at Cuba
Cruise lines are eagerly anticipating voyages to ports in Cuba when the United States changes its policies about Americans traveling to the island off the coast of Florida. Cruise lines expect to sell a lot of tickets.
Short cruises are in high demand, and Cuba is close, so cruise ships quickly will change itineraries, adding a port or ports in Cuba.
Cruise ships have an advantage over other forms of travel to countries that are under-developed for hotels, restaurants and entertainment. Ships bring their own beds, food and theaters. All they need is a dock and busses for sightseeing.
David Molyneaux, a frequent cruiser, writes about news and trends. He is editor of TheTravelMavens.com and blogs at TravelMaven.Typepad.com
For Primary Color, Universal Press Syndicate, June 2009
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