Cruise Newsletter - June 2004

Editorial:

During a recent visit to SITE's website I noted an on-line survey they where conducting that was aimed at garnering information on how well SITE members had faired business wise comparing the first quarter of 2003 against the  first quarter of 2004.  The results at the time I looked showed that 54% of the respondents had had a better 2004 first quarter with about 21% saying business was about the same and 17.5%  responding that business for them had been worse than the same period in 2003.  Worldwide hopes that ALL our clients were amongst the ones that responded that business was better for them.. if you were one of the the ones who's response was in one of the other categories.. well maybe you should be speaking with us more often.  Worldwide continues to develop interesting opportunities and proposals as well as intriguing ideas to offer your corporate clients for their programs.  Remember, it cost you nothing to call us and we do not make any charge for our time spent discussing ideas with you.  Do you want some new and fresh idea's - call one of the numbers listed below and speak with one of our experienced staff.. they are full of bright ideas. 

 

Are you tired of beating your head against the wall when it comes to dealing with the major cruise lines operations departments.  We hear this complaint soooo often and we know exactly what you go through.  That is why you need to have Worldwide on your side.  Our in-house operations department is easy to deal with, takes all the pain and misery out of the planning and programming, plus they know where to look for the accounting headaches that always seem to follow a cruise program.  If you have given up on offering a cruise program to your clients because of the aggravation you've experienced in the past - well I am happy to say that all that can become a think of the past.  Worldwide assigns an account exec. to your program who you can easily reach to discuss your needs.  Often, because of the amount of these program we handle, your account exec. can answer your questions immediately, if she can't she will research the answer and get back to you  without you having to spend hours on the phone.  It is an easy process and one our regular clients greatly appreciate and again, there is no cost to you for this service.  

 

State of the Industry:

A report that came across my desk recently showed that cruise bookings continue to improve, with cruise lines posting their highest per diems over the last four-six weeks for sailings through year-end.  The  survey tracked the Carnival Cruise Lines brand and the Royal Caribbean International and Celebrity brands through mid-May.  Following a very strong wave season the pace of industry bookings continues healthy relative to the pace typically seen in the April-early August period which generally represents 35%-45% of annual bookings.  In the under seven-day Caribbean market, pricing has been stronger year over year versus longer Caribbean itineraries for the Carnival brand, while in the seven-day and up Caribbean market, pricing has been generally stronger for RCI.  Alaska is proving one of the best performing geographic markets.  August/September CCL pricing is up approximately 35% year over year while RCL is up 80%-90%,  which represents a very strong performance for both companies in this peak seasonal period. Both Mediterranean and Northern Europe/Baltic itineraries are demonstrating strong pricing recovery and booking patterns. June pricing in Europe is up 15%-25% year over year for RCI, while third quarter pricing is up 25%.   Fuel remains the most significant cost to monitor (5%-6% of revenues) at almost $41/barrel, up 35% year over year.  However, this expense is expected to be tempered by other cost controls. It was also noted that higher interest rates historically have not hurt demand or cruise line stock performance 12 months after the initial increase.

 

Cruise Opportunities available from Worldwide:

Last Minute Charter Opportunity - January / February 2005;   Worldwide has an exclusive offer available for short charter (3 - 5) nights around the Superbowl next year.  Available for charter is a 2-year old, 1700 passenger ship from either Fort Lauderdale or Jacksonville, Florida in late January or early February 2005.  Bahamian itineraries from 3 - 5 days can be designed from either port.  The ship is priced to sell at $160,000.00 USD per day inclusive of port charges and taxes.  Gratuities would be additional.  The cost is based on the full capacity of the ship which could be up to 2200 guests utilizing third and fourth berths in staterooms.

 

Other Short charter opportunities:

  • Nov and Dec 2004 100+ passenger ship has several 3 to 6 night dates available from San Juan, St Thomas and St Martin.

  • 160 Passenger 5 Star Ship Nov 2005 South America and Patagonia 3 to 7 night opportunities.

  • 7 Nights Mahe/Mahe 290 passenger ship REALLY good price Nov 2005.

  • Opportunity to charter 90 passenger ship for Grand Prix in Bahrain 2005

Ship Report:

  • NCL's Norwegian Star left San Francisco's drydock after a multimillion-dollar renovation. Major changes to the ship include new hull artwork depicting a burst of colorful stars and streamers and the addition of a steak house and a 10,000-square-foot casino. The Norwegian Star is sailing from Seattle in a series of seven-day itineraries to Alaska with calls at Juneau, Skagway, Ketchikan and Victoria, B.C. plus scenic cruising in Glacier Bay. The program operates until September when Norwegian Star repositions to Los Angeles for its winter season of eight-day Mexican Riviera cruises. The itinerary includes a full day and overnight stay at Acapulco plus calls to Zihuatanejo, Puerto Vallarta and Cabo San Lucas.

  • Pride of Aloha:  San Francisco - June 7th will see the Norwegian Sky being reflagging from Bahamas registry to become the Pride of Aloha - U.S.registry.  Following its California drydocking NCL will introduce the ship to West coast agents with a two-night agent event on the 11th in Los Angeles and the following week in San Francisco on the 18th. Jim Huff will be on-board in LA and Jim Castle in SF.  Watch for our ship report on the "new" Price of Aloha in our next news letter.  The Pride is not getting of on a very good start having been accused of  dropping her anchor on a shoal area of off Monterey.   Colin Veitch (NCL's CEO) explains NCL's strategy. "Our strategy would be differentiation versus the other two companies (CCL & RCI) says Veitch. "Homeland cruising is at the core of it, along with Freestyle cruising."  Which explains why NCL has deployed so many of its ships away from the typical routes. There are still a number of places in which NCL is the only ship in the market, Boston in summer, Charleston in winter, Houston year-round, New York in winter, and of course, the only ship out of Honolulu.  In other areas where NCL does have competition, it maintains a very sizeable market share because of the way it has concentrated the ships. "It does surprise people when we explain we carry more people on roundtrip Inside Passage cruises than any other brand," says Veitch. "We also carry more people out of  the Northeast departure ports than any other brand."  Clearly, Hawaii is a very important part of the strategy. "Despite it being highly attractive, we are moving into new territory by running U.S. flag operations," notes Veitch. "Something like Hawaii inter-island cruising is so different that the waters cannot be muddied by competition saying, 'We have that too.'"

  • Island Princess: The  Island Princess left Whittier, Alaska early Sunday after the vessel was scrubbed down following a norovirus outbreak that sickened more than 400 passengers and crew members.  The first signs of illness surfaced early in the trip.   Princess officials said onboard testing confirmed the presence of the norovirus - which includes Norwalk and Norwalk-like viruses.  "There's such a high level of vigilance to this thing," said Charlie Ball, president of Princess Tours, the company's Alaska operations.  "We're watching very, very closely."  The virus can cause diarrhea, stomach pain and vomiting for 24 to 48 hours it is spread through food and water and close contact with infected people or items they have touched. The Centers for Disease Control and Prevention in Atlanta are investigating the outbreak and sent a team to board the vessel in Skagway last week.  The "leading theory," however, is that about 10 passengers were exposed to the virus when they traveled through an area of the Canadian Rocky Mountains where a recent outbreak prompted Canadian officials to close down a private resort. Those passengers were among the first to become ill on board the Island Princess.  "The vast majority of folks didn't get sick and they got to enjoy the home-run weather the whole cruise - real nice weather," Ball said. "For those who got sick there was disappointment. It was a reasonable mixed bag of emotions. Some people were philosophical, some were disappointed, some not bothered at all."

  • Oceana Cruises have now introduced their second R Class (Renaissance) cruise ship - the Insignia.  The decision to delay Insignia’s introduction was based on current world conditions that have impacted overall travel.  The Insignia's inaugural season will take her to the French and Italian Rivieras, the Eastern Mediterranean, Greek Isles, Black Sea, British Isles, Norwegian Fjords, South American and Antarctica. She will then join Regatta and the eventually the latest addition to the Oceania Cruises fleet, Nautica, for an encore season of European cruises in 2005.


Important Information: Many of our clients are still confused or even unaware of the Documentation, Passport & Visa requirements to allow their participants to join a cruise program.  No cruise line will allow anyone to board who does not have the correct travel documents.  This can be particularly confusing if you have foreign nationals on your program whether they reside in the US or have arrived in the US to join a cruise program.  Worldwide has recently added a new section to it's website which lists the most common requirements.  We will be adding to and updating this information from time to time to keep it current.  If you have any doubts about documentary requirements, call our office or call the State Department.  If the ship is going to some esoteric destinations be sure your participants do not need Visa's for those places.

A word of warning - NO cruise line will allow any passenger to board who does not have the correct travel documents and, they will NOT refund cruise fares for those passengers denied boarding for this reason.  Besides the Travel Document requirements, Federal Law also requires passengers to complete a pre-boarding questionnaire .  Most cruiselines allow you to do this on-line IF you can find the location on their websites.  Worldwide has linked the more frequently used cruise companies questionnaires and these can be found on our website as well. 

 

New Builds:

P&O Cruises newbuild Arcadia was launched last week at Fincantieri's Marghera yard in Venice.  Following a coin laying ceremony, the Arcadia was floated out of her building dock to a fitting out quay.  As we mentioned in an earlier newsletter - the ship is being transformed from a Cunard-er  the "Queen Victoria",  to a P&O ship - the "Arcadia".  We are advised that the work is coming together well and apart from re-branding the entire interior of the ship there are  some significant changes planned for the public areas,  in particularly decks 2 and 3.   External changes such as the switching of the funnel  and the painting of the hull to all-white have already been completed and the port of registry on the stern has been changed from Nassau to London.   The  ship which is well advanced in her construction will undergo numerous modifications throughout, major changes taking place are,  a complete re-design of the children's area into a well-being center and changing the alternative dining area on Deck 11 into an Asian-fusion dining experience and the addition of a florist and gift shop. As the ship is aimed at adults only, the Cunard planned children's' zone was surplus to requirements on the Arcadia so this is being changed to a relaxation area called "The Retreat", it will have a seating area serving coffees and soft drinks and part-wooden flooring for relaxation activities such as Yoga and Tai-Chi classes.  The Retreat and Spa are part of the well-being life-style experience being offering throughout the ship. In addition a series of meeting rooms called New Horizons will offer passengers a chance to take part in contemporary activities such as digital photography and interior house design.  Arcadia will have two alternative dining areas, The Orchid located on Deck 11 will be of a contemporary style with warm spicy colors, featuring artwork with an eastern flavor by British artists and the L'Epicure gourmet restaurant. 

 

Port News:

  • Royal Caribbean Cruises recently officially opened the country's newest cruise port,  Cape Liberty Cruise Port in Bayonne , N.J.  Cape Liberty will serve as a seasonal homeport to two of RCI's ships.  Following speeches by a number of  State and Local dignitaries RCI's Chairman and CEO, Richard Fain, signaled the official opening of the port by ringing an authentic ship bell from one of the famed World War II Victory ships, which sailed from Bayonne`s Military Ocean Terminal.  "This is a momentous occasion for our company, and we could not have asked for better partners in making Cape Liberty Cruise Port a reality than the state of New Jersey and the City of Bayonne," Fain said. "We are proud to be part of the revitalization program for the Bayonne waterfront, and we are pleased to offer our guests a convenient new departure point, which is attractive to both drive-market guests and those arriving by air."  

  • Cape Liberty Cruise Port is located at the northeast corner of the former Bayonne Military Ocean Terminal, now renamed The Peninsula at Bayonne Harbor it is a 430-acre, man-made peninsula that extends into New York Harbor.  Future plans for the Peninsula at Bayonne Harbor call for a vibrant mixed-use waterfront development comprised of residential, light industrial and office space, film studios, a riverwalk and extensive recreational and park areas.  The new cruise port offers guests outstanding views of the harbor, the Verrazano Narrows Bridge, the Statue of Liberty and lower Manhattan.  RCI has renovated existing structures for it's use in the immediate future with long-term plans calling for construction of a new cruise terminal and supporting facilities.
    RCI will base two ships at the new port from May through October 2004. Voyager of the Seas offers an alternating schedule of five- night Canada and nine-night Caribbean cruises.  Empress of the Seas offers alternating six-night and eight-night Bermuda itineraries.

  • Copenhagen:  Northern European cruising continues to grow at a pace and strategically located Copenhagen continues to attract cruise tourists in ever increasing numbers.  Copenhagen expects this year to be another all time record cruise season with 280 ship calls already booked, including a record 90 turnarounds.  More than 280,000 passengers are expected, with traditionally Americans comprising the bulk of them, however, that is changing with Europeans now making up nearly half of the cruise passengers.  They are typically younger than the average Americans  tourist and use the city more actively, however, a large proportion of American tourists do take pre & post cruise packages. 

  • Athens Olympic Games:  The US Vessel Sanitation Program (VSP) is assisting Greek public health officials as they prepare to ensure sanitation aboard the seven cruise ships that will be on hand for the Summer Olympic Games in August.  The Athens School of Public Health's Vessel Inspection Program asked the US Centers for Disease Control's VSP for guidance in preparation for the games.   Since January 2003, VSP inspectors including program chief Dave Forney have trained their Greek counterparts using US government inspection standards. VSP officials will also work alongside Greek inspectors during the summer games.

  • Key West:  Key West is currently working on the section of the Navy pier used by Carnival for their port calls.  Carnival has attempted to tender passengers ashore, but this was not successful due to the short time frame of the port call.  So Carnival has temporarily removed Key West from the Imagination's itinerary and extended the stay at Cozumel by five hours - this puts the Imagination in Cozumel from 7.00am to 10pm.   The Fascination's calls allow it to utilize another berth that is empty on every other visit. The work on the dock is expected to be completed in early November. 
     

Shipping  News:

  • MyTravel Group plc has announced its withdrawal from  cruise ship operations.  MyTravel will however, continue to sell the cruise products of other third party providers.  MyTravel has struck an agreement with Louis Ltd, a cruise and hotel group listed on the Cyprus Stock Exchange, under which Louis will take over operation of three ships (subject to the fianancing banks approval).  The disposal of the ships will result in a significant reduction in both the fixed costs and risks associated with cruise ship operations.  The arrangements with Louis is for the ships,  Carousel, Sunbird and Sundream previously operated by MyTravel`s  Sun Cruises business.  There will be a phased handover of the three ships over the next four weeks, after which Louis will operate them.  Each of these ships will sail as normal until 26 September 2004, in the case of Sundream, 15 January 2005 in the case of Sunbird, and May 2005 in the case of Carousel, with departures as advertised. MyTravel will continue to sell Sun Cruises holidays on these ships up to these dates.  MyTravel`s remaining cruise ship the Seawing which is operated by Sun Cruises is due to leave the fleet at the end of Summer 2004.

  • Olympia Explorer: The Institute for Shipboard Education has chartered the former Olympia Explorer from Stellar Maritime a company established by V. Ships and will shortly commence the vessel's first Semester at Sea program.  KfW and Fortis Bank sold the high-speed vessel to Stellar Maritime which has  entered into a 15-year charter/purchase option arrangement with the Institute. The ship has been renamed Explorer and reflagged from Greece to the Bahamas.   It replaces the aging Universe Explorer, which has operated the University of Pittsburgh's Semester at Sea program since 1996.  The Explorer is currently at Cascade General in Portland undergoing work prior to sailing for Vancouver on June 13 in preparation for a 65-day voyage to destinations in Russia, Korea, China, Vietnam, Taiwan and Japan. The Institute has 420 students booked for the summer semester, with 750 scheduled for the autumn term.   V. Ships Leisure will manage and crew the Explorer.   With a cruising speed of 28 knots, the 2002-built Explorer is considerably faster than the Universe Explorer's average 16-knot speed, which will enable the inclusion of more geographic areas in the Semester at Sea program. The ship will carry an 11,000-volume library, a computer lab with wireless Internet access, a student union and campus store in addition to the two restaurants, a fitness center and 418 cabins.   The sister ship - Olympia Voyager has been chartered to the Spanish operator Iberojet by Horizon Navigation, which purchased the vessel from the KfW-led consortium of banks.
     

Opt-in

Another issue we are concerned about are the new rules covering such things as unsolicited emails and faxes.  Whilst we are making every effort to comply with the new rules as they appear, it is never the less easy to run foul of something one is not aware of.  Currently we give our clients the option to "Opt-out"  of receiving our news letter but, this is a blanket opt-out which also has the effect of removing your name from our mailing list for such things as complimentary ship cruises (site inspections) and resort inspections as well as other complimentary offers we are able to make to our clients from time to time.  We have given this a lot of thought but the difficulty of managing multi-lists to cover everyone's requirement is more than we feel we can manage successfully at this time.
 

With this in mind, we have decided to make a start on "Opting - in" ... we realize that not everyone reads every issue of our newsletter so many people might miss this announcement (we always receive a good number of "out-of-office reminders" back from our clients - so we know you're all hard working folk... ).  So starting with the May  issue and running through the summer we will add this note to the bottom of our newsletter and respectfully request that you take just a second or two to complete the "Opt-in" form so you may continue to receive communications from WWTCA.