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Three
itinerary trends characterize the cruise industry in 2010:
A:
capacity reduction in Alaska, increased capacity in the Caribbean and a build-up
in Europe.
With
Cruise lines are struggling to make a profit in Alaska. The head tax is
part of the problem because ultimately that cost is passed along to the
consumer, adding to the cost of the cruise.
More
ships will be leaving Alaska in 2011, with more predicted to do so. (since
this was written - the Governor of Alaska has proposed reducing or eliminating
the head tax - but it has to pass the Alaska Senate first).
B: The Caribbean is seeing its first major capacity increase in years. The
increase is mainly to the new ships – the Carnival Dream, the Oasis of the Seas,
the Norwegian Epic and the Allure of the Seas. And all of that new capacity is
out of South Florida.
As for Europe, there are two sides of the industry and both are growing in 2010:
the cruise lines that source in Europe and internationally, and those that
source primarily from North America. More Americans are again interested in
going to Europe, which is a good sign.
C: A common trend among most cruise lines is more international deployment and
passenger sourcing.
At Royal Caribbean Cruises, they will continue to focus on international growth,
including dedicating ships to foreign markets.
Princess Cruises, will continue to focus on port content. They look for
demand and the highest revenue, but must make sure that the customer is happy,
The proposed Emission Control Area (ECA) for North America; the heavy-fuel ban
in Antarctica; the $50 head tax in Alaska; and declining demand for the Mexican
Riviera, attributed to media coverage of drug wars, are among the many issues
that cruise lines are tackling.
The Lines have to be more careful in planning and pricing, and wbe flexible, so
they can expand or constrict if they have to. They are also offering more
variety of cruises and different starting points and days,
Holland America Line deploys ships where they can expect the highest yield,
typically plans are set 18 months out. Passenger spending plays a key role,
sShore excursions are HAL's number one gross revenue producer. But the numbers
vary dramatically in different areas, with shore excursions in European being
the most popular.
The Lines criteria is to focuse on creating itineraries that they are able to
sell and that work operationally, The biggest concern is fuel. The Lines
are working to find more ways to conserve and to offer sellable ticket
propositions. Once in port, there is a need to generate revenue from shore
excursions.
Edited Excerpted from the Spring 2010
Cruise Industry News Quarterly Magazine
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Plantation, FL 33324 - USA
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