November 2003 Newsletter

Editorial
The economy may be expanding at a record rate - or so we are told - but never the less, our clients are being very careful with their budgeting for programs in the works. We had a recent experience which drives the point home. Our resort division had a large group that wanted to take over a property in Jamaica. We did the numbers and the result was a surprise for all of us. The resort was a little more expensive than a comparable cruise, but that was acceptable to the client however, when we priced the air for the group it added approximately another $550 per person to the program, which was a large percentage of the total price. Regrettably this was outside of their budget so the program did not get off the ground.

Bearing this experience in mind... I wanted to remind our clients that the problem of the cost of the air could be removed or at least greatly reduced if your client would consider a cruise for their program.

Currently the various cruise lines have ships sailing from ports located close to most major population centers. For example, serving the northeast, there is Boston, New York, Baltimore, and Philadelphia. Serving the southeast, there is Charleston, Savannah, Jacksonville, Port Canaveral, Fort Lauderdale and Miami, on the Gulf Coast ships sail from Tampa, New Orleans, Galveston and Houston. On the west coast there are ships sailing from San Francisco, Seattle, Los Angeles and San Diego and this does not include some of the smaller ports being used by the boutique cruise lines.

It is really possible to operate a truly national program without having commuter flights or luxury coaches handling the transportation of the participants.

There is no question that the traveling public, and this of course includes the participants you cater to, love to to cruise. Recently released figures from CLIA show that over 7.6m North Americans cruised in 2002 and the number is expected to hit 8.3m in 2003. Estimates for 2004 are equally impressive. So it appears obvious that we need to cater to the desire of the participants and put a cruise into the mix as an additional choice for our corporate programs.
 

State of the Industry:
As stated above, CLIA is starting to release its annual figures and these continue to show a healthy increase in passengers sailing on all types of ships across the board. However, what is a cause for concern is that revenue for the bulk of the major lines has not increase and whilst this is a concern for the cruise lines, it is in fact a boon for purchasers of cruise inventory. As we have been stating for months, NOW is the time to look at cruising for your clients program, cruises will not continue to offer such value into late 2004/5 (when most newly booked programs will sail), as can be found at this time.

Certainly some destinations have proven to be more popular than others. For this year, Europe in all its variations has suffered from a lack of suitable inventory (due to relocating ships after the war / terrorism threats of 2002) along with the problems of finding bulk air (for the same reason give or take). But look for Europe to bounce back in a big way - there is a huge demand and cruising in Europe, for Americans who struggle with different languages, cultures and so on, is still the easiest way to get your feet wet and sample the delights knowing you will return to your comfort zone (the ship) at the end of each day.

With new ship deliveries expected to start building up again in the last two years of the decade, expect capacity to grow by another 25% between 2005 and 2010.
Worldwide, the cruise industry is now valued at about $15.3 billion, only $1 billion up from 2000, with North America contributing about $11 billion.


This Week's Specials
We still have an incredible deal for someone on the WIND SPIRIT, Windstar Cruises 148 passenger ship sailing from San Juan to St. Thomas on February 21, 2004. This has to be the deal of the year, if the dates fit -- we guarantee the price will! CLICK HERE FOR DETAILS

Sea Cloud Cruises has a very unusual opening on the SEA CLOUD II, departing Barcelona May 17 to Malaga May 21. This won't last long as the ship so rarely becomes available due to her ongoing tour operator commitments. Priced to sell quickly. CLICK HERE FOR DETAILS

Don't forget we still have a small ship for exclusive charter for the MONACO GRAND PRIX in May - an exclusive from WWTCA. CLICK HERE FOR DETAILS

Silversea Cruises - SILVER WIND unique 6-night voyage in the Caribbean, sailing April 15, 2004. The vessel sails roundtrip from St. John's, Antigua. Excellent opportunity due to a cancelled charter. CLICK HERE FOR DETAILS


Shipping News
While all of the cruise lines like to talk bout the new builds and new features, most people don't focus on what's going on with the existing ships -- WE DO!

Holland America recently announced the biggest fleet wide enhancement plan in our memory to the tune of $225m to be completed to all ships and facilities by the end of 2004. All S-Class ships will be getting alternative dining rooms, new decor packages, and new premium bedding. These are but a few of the the changes coming to their entire fleet. Numerous onboard improvements and enhancements are also planned for all ships. Last but not least will be the additions of a stingray park and a wave runner lagoon on HAL's extremely popular Half Moon Cay.

The entire Wind Star fleet is under going major upgrading as well. Entirely new cabin décor and new furniture throughout the ships are only a few of the items being improved on all three ships. Work is scheduled to be completed in Jan. 2004.

Costa will be placing 5 of their ships in dry dock this winter for improvements as well. The major change will be the addition of balcony cabins to the Costa Classica.

Carnival's FANTASY is the first "fantasy class" ship to receive a multi-million dollar makeover. Entirely redone cabins and bathrooms head the list of items including décor changes to most of the bars and lounges throughout the ship. All fantasy class ships will receive the same treatment in the not too distant future.

Royal Caribbean's Monarch of the Seas received major renovations including the addition of an alternative dining room the past June, before moving to Mexico.

The latest ships doesn't necessarily means it's the greatest ship with some cruise lines.

Worldwide continually tracks and monitors improvements and changes to all ships that we sell.


New Construction and Recent Launchings
Med Shipping & Cruises, based in Naples, Italy, has announced exciting plans for 2004. Their brand new flagship, the MSC Lirica, will have her inaugural celebration in Fort Lauderdale, Florida in January, and the company will introduce a second new cruise ship, the MSC Opera, in April 2004. Eight new ports have been added to the company's Mediterranean itineraries for 2004.
The Pride of America floated out of drydock in Lloyd Werft shipyard in Germany recently. All is on schedule for the July 4 inaugural in Hawaii and the pre-introductory cruises to 15 North American ports starting May 8.

Empress of the North is a small ship which has recently started service. It's totally unique in as much as it is the first stern wheeler to be operating in Alaska in some 100 years. Ideal for an exclusive Alaska charter and able to cruise the more interesting small channels of the area. Check our site for details.

Century Star, Viking River Cruises' newest ship has just been completed. The 23rd in the Viking fleet will start cruising on China's Yangtze River starting March 2004. The 186-passenger Century Star has all balcony cabins, gym - complete with sauna and massage rooms, a beauty salon, a 180-degree observation lounge and a medical center. Onboard service will blend the best of East and West integrating the warm hospitality of the Chinese people with the high standards and quality service of the Swiss team of hotel management and food and beverage operators. The company's Swiss hotel management staff will oversee day-to-day ship operations. The Century Star sails a fixed 7-nights cruise itinerary from Chongqing to Wuhan (or reverse).


Port News
New terminal for the Turks and Caicos is planned to open in the winter of 2005. It was announced that Grand Turk will be the location for a new $35m cruise terminal. More than 150,000 cruise passengers currently call on the destination each year, a figure that will only increase dramatically when the new port opens.

Fort Lauderdale - a spokesperson for Port Everglades announced that seven new vessels will be making their inaugural voyages from the port in the 2003-2004 Caribbean cruise season, beginning this fall. On the top of the list is Cunard Lines' new flagship Queen Mary 2. Other additions to the list are the Island Princess, Caribbean Princess, Crystal Serenity, Costa Mediterranea, HAL's Oosterdam and MSC's Lirica.

New Orleans - The New Orleans Mayor's office and Delta Queen Steamboat Company, Inc. announced the expansion of Delta Queen's operations in New Orleans with the introduction in April 2004 of a new land-river cruise package that combines the area's finest hotels, restaurants and attractions with a luxury cruise aboard the grand American Queen.

Cancun, Mexico - the city elders are rethinking the location for the new port. Current thinking is that it will be located much closer to the city.

In Memoriam
Peter Deilmann was laid to rest at his hometown in Neustadt/Holstein, his coffin carried by six of his captains. A cruise pioneer, Deilmann died Nov. 2 at the age of 68, a who's who of the German and international shipping community.  Together the family, friends and entire 120 employees of the Neustadt-based Peter Deilmann Reederei gathered to pay tribute to Deilmann. Peter Deilmann founded his eponymous enterprise in 1972 and made Neustadt/Holstein the homeport for all his ships, spreading the name of the small city on the Baltic around the world. Besides his professional accomplishments, Deilmann loved art and was a composer who was inspired by nature. Daughters Hedda and Gisa will assume leadership of the company.