Economic Downturn

Question to TA's mainly I guess.
How is the Economic Downturn affecting the Cruise Lines ?

Tony,

It makes me wonder about economic downturn...we cruised on princess jan 17 and it was full. Pete is cruising sunday and his ship is full also. People are still spending despite the economy.

Hmmm...maybe those cruises were booked and paid for before the effects began kicking in properly so it might be that future bookings will show the effect ?

I'll be interested to see what the TA's will say. My husband was commenting that it doesnt seem like a recession the way people are at the malls and full flights when we have traveled

I think Tony is hoping - as am I - that the 2010/2011 deployment will show lower pricing... Fingers crossed...

mnmomof4 wrote:

I'll be interested to see what the TA's will say. My husband was commenting that it doesnt seem like a recession the way people are at the malls and full flights when we have traveled

Just can't carry on like that with people losing their jobs at the current rate. Even Panasonic have announced closure of 27, yes 27, factories.

misseddie wrote:

mnmomof4 wrote:

I'll be interested to see what the TA's will say. My husband was commenting that it doesnt seem like a recession the way people are at the malls and full flights when we have traveled

Just can't carry on like that with people losing their jobs at the current rate. Even Panasonic have announced closure of 27, yes 27, factories.

People haven't been making good financial decisions....spending more than they can afford...so now everyone is paying for it. Hopefully things will turn around soon and be on an upswing

I was talking to a friend of mine today who works at Celebrity Cruises in the marketing department. Their less expensive sailings will be mostly full this year(i.e. Caribbean), but the exotic and overseas cruises will probably see larger discounts since people have to factor in flying. Celebrity and RCl have been doing more casino junkets, giving the cabins away to their high rollers. We cruised on the Azamara Quest inaugural, and the prices for the Quest and Journey have been discounted significantly this spring on some great itineraries. I've never seen the large amount of discounting than this year. I think it will be hard for the cruiselines to make a profit this year, if they can't keep the ships full and making money off the optional expenses offered by the ship. I hope that the economy turns around soon, as there have been drastic layoffs all over the country. Cruising is our favorite way to use our vacation time, as I'm sure it is of many people on the boards. I do hope everything starts looking brighter for everyone.

Lower prices a nice but none of us want our cruise lines to be damaged by these events. Variety is the spice of life. I don't want take-overs mergers etc.

Unfortunately I don't believe the economy will rebound till 2010 at the earliest.

Working in the financial industry I have seen firsthand the suffering caused
by executives who looked at their own interest. Fortunately, I work for
an investment company who did not get involved in the mortgaged back
securities business. We made profits and are being paid bonuses based on our
performance. Our company laid off a total of 100 people mostly upper management. Our CEO has always been conservative and it turned out to be
a blessing.

Unfortunately, I do believe the the cruise industry will suffer. RCCL was
downgrated and they have quite a few orders for ships.

People will always take vacations and in truth, cruises is the best option in terms
of getting the best for your money.

I got a email from one of those cruise news things that said, maybe because of the economic downturn, folks were booking more cruises, because they were a cheaper way to vacation. It said cruiselines expected bookings to be a record number this year. People may be booking cheaper cruises though or not as high of a cabin category?

Carnival is sailing full anyway according to what I read.

So far, my cruise bookings for the year are about the same as last year. The cruise lines have definitely dropped prices though.

If you are going to book, now is the time to do it. I've recently heard that RCL said they would rather sail with some empty cabins that lower prices any further. So, I expect these deep discounts to end soon, and if the economy shows any signs of life at all, I expect prices to go up. I must tell you that I have not been the best at predictions of this type in the past, but I think this prediction is easier than most.

Steve , When did the deep discounts you mention first appear ?

Discounts have been growing for the last couple of months. Right after Christmas came the latest round of cuts. Carnival introduced the new Early Saver fare. Princess extended their Balcony bonanza through the end of February. Some of the luxury lines have been offering 2 for 1 fares. Costa and NCL have had some shorter cruises priced at about $50pp per day. You almost can't afford to stay home at those kinds of prices. If you are looking for anything in particular, let me know.

I really don't think that these kinds of fares will last too long. The cruise lines don't want to drop prices so low that there will be a revolt when the economy gets better. They would rather protect their value by temporarily losing even more money by sailing with empty cabins, then nearly giving them away.

Thanks Steve , I wasn't thinking of anything in particular. We have quite limited vacations making cruises few and far between. I was just curious if it was because of the downturn or just a seasonal variation.

I was just reading on the NCL site last night that for a last minute deal - 11 day transatlantic from Miami to London - for $399.00 inside cabin!
you definitely can't stay home for that price!
If only I were retired!!! LOL
Unfortunately, only so many days of vacation - and now more than ever, I feel you have to be careful how much vacation you use, as it might be a consideration if the company is going to down-size yet again. At least it's a concern of mine.
(Plus the fact in the last lay-offs, it only left my supervisor & I in our dept. so vacation time is harder to justify taking a whole week or more at a time.)

but still... $400 for 11 day cruise?!?

Yes that is a fantastic price.

And you are a long way from retiring. Then again you don't want to to wish away your youth youngster.

lordoftime wrote:

Thanks Steve , I wasn't thinking of anything in particular. We have quite limited vacations making cruises few and far between. I was just curious if it was because of the downturn or just a seasonal variation.

Tony,

While there are always sales at this time of the year, the discounts are much deeper than what I have seen before. I have attributed that to the economy.

LOL

Thanks, Tony - I needed that!

yeah, I'm just a kid - at heart!

You are 9 years younger than me kiddo

LOL
Okay - then instead of being old enough to retire, how about winning the lottery - and taking an early retirement?!

Sounds like the plan to me.
(however, my $1 and a dream this week, got me a $1. winner - break even)

A better solution would be to get a job on a cruise ship .

I would love to be a taxi dancer

taurus988 wrote:

LOL
Okay - then instead of being old enough to retire, how about winning the lottery - and taking an early retirement?!

Sounds like the plan to me.
(however, my $1 and a dream this week, got me a $1. winner - break even)

Since my 401(k) turned into a 201(k), I'm now waiting on my 401(L). That would be the MegaMillions.

LOL