Coming up next month (November 30th to December 2nd) is the EIBTM Show, the venue of which has moved from Geneva to Barcelona.  Steve & Diana Bloss will be manning our booth (L265) and will have Mike Beale of Viking River Cruises, Maggie Mantia of RSSC and Tanya Barnette of Seabourn as well as Stuart Gardner of Gardner & Associates in attendance at the booth to answer any questions you might have. We hope to see you there.

Chicago's IT&ME Show.

The Chicago show has always been the most important trade show for our market sector and true to form this years show was no different in some respects.  We where able to revisit with old friends and colleagues and make important new contacts for the future.  Personally, I did not think the show had the same attendance level as it used to have. Day one was a busy day for everyone but day two was slow and day three very slow.  It makes one wonder if the day of these big trade shows is drawing to a close.  With the ease of modern communications, the internet and so on - do we really need to all travel across the continent to shake hands and say a few words of cheer to each other.  Most of our business is conducted via the ether in one form or another, most of us suppliers have web sites with more information than most of our clients can use. It makes one ask the question.. do we need to all be doing this?  We would love to hear your thoughts on the day of the BIG trade show?  Email me at: jcastle@cruiseo.com

Hurricane Season

Well it seems we all rather underestimated mother nature... since our last newsletter went out, we have had to ride out two of the the most powerful hurricanes to hit Florida in years.  The sheer size of these storms was hard to believe, with hurricane watches, advisories and evacuations taking place from the top of the state to the bottom and all stations in between. By now not only has Florida been trashed, but with the extensive flooding and wind damage that has occurred right up to the north eastern states.. it seem as though everyone on the east coast and inland has had their lives touched by these storms.

Once again though, the cruise lines did a magnificent job of handling their part of the situation.  I flew up to Chicago for the IT&ME Show with several families who had just disembarked after spending two and three extra days on-board and nobody had a bad word to say about how they where treated, on the contrary they were more than pleased with the way the cruise lines responded.

The end of September saw the opening of Port Canaveral which had been affected by silting  due to the storm surge.  As I write this, it appears that all the major east coast ports are now back to normal operation. Most Caribbean nations escaped hurricane damage, and cruise ships continue to visit most of their scheduled ports with promises to return to those damaged by the storm just as soon as the ports are ready.

The cruise industry has contributed $2.5m in cash to disaster assistance plus, tons and tons of relief supplies carried down on their ships, Individual cruise lines and the industry, led by the Florida-Caribbean Cruise Association and ICCL, have been raising donations and delivering supplies to the Bahamas, Cayman Islands, Grenada, Haiti, Jamaica and the Dominican Republic.
 

The Caribbean and Hurricane damage

Worldwide is constantly being asked if we know the latest situation in the Caribbean as so many of our cruise lines are operating in the area.  As we have all seen in the news, hurricane-related losses in the Caribbean could reach into the billions of dollars. At a recent meeting in New York speakers from more than half a dozen nations were quick to focus on progress in the recovery efforts.  The Caribbean Islands have also been quick to dispel the image that the whole of the Caribbean has been smashed to pieces.  They have consistently pointed out that certainly some of the islands in the direct path of the various hurricanes have suffered extensive damage and will take some time to bounce back, but that most of the islands suffered little to no damage at all.  They are sending the signal that they’re open for business.

Hurricane Ivan left 29 dead and damaged 90% of Grenada’s buildings but the Grenadian's are committed to restoring the Island back to its former glory. Water and electricity are almost fully restored to the capital and most major roads are open. Security is in place, and flights are arriving during daylight hours. The port is now operational and several cruise lines are expect to begin calls in October. Ivan delivered a relatively light tap to St. Vincent and the Grenadines where beach erosion and debris were the main issues. With damage assessed at $40m. Kingstown’s main cruise terminal suffered no harm and is preparing to welcome ships for the 04/05 season.

The Bahamas showed resilience after hurricanes Frances and Jeanne and key destinations welcomed cruise ships, international flights and resort guests within days,  Of more than 700 islands in the Bahamas chain, only Grand Bahama and Abaco sustained major damage.

Ivan incredibly skipped around the island of Jamaica but still caused some damage to homes and farmland but Jamaica’s tourism sector fared remarkably well, with minimal damage only in certain areas. The biggest impact being felt around Negril and on the South Coast. Ports almost immediately received cruise ships.

The Turks & Caicos, suffered some flooding, downed power lines and minor structural damage. All flights are operating to Grand Turk and Providenciales. Key hotels will reopen starting Oct. 1.

Hard-hit Grand Cayman is looking at reopening a cross-section of tourism accommodations by Thanksgiving in late November, while individual properties could open in mid-October and cruise ships may be able to return by the end of October.

In the Dominican Republic, international airports are fully operational and 90% of the hotel rooms are accepting guests. Storm impact affected mainly the eastern coastline’s roads and some 5,000 hotel rooms out of a national total of over 56000. However Haiti has suffered extensive damage and is in dire need of international assistance and although not considered a serious tourist destination anyway, it will certainly not be in a position to receive tourists for quite some time.

Cuba, again not a destination for American, but for our Canadian and European clients an interesting and popular Caribbean island for their tourism industries.  It would appear that a large part of Cuba survived the storms with very minor damage, however, some of the old buildings in Havana and some of the outlying farm area particularly on the western end of the island have been badly hit by the storms.  I gather most of the major international resorts fared well and are open for business.

For a change the Leeward islands and the northern Windward Islands where spared any damage as where the Dutch Antilles - Curacaos, Aruba and Bonair.
 

State of the Industry:

Carnival Corp. set a new type of record in the cruise industry, this one being a fiscal one of some major dimension.. posting a net income of $1.03 billion on revenues of $3.3 billion for the 3rd quarter. My rough calculation indicates they are working on a very healthy 33% profit margin.. not bad considering the whole industry is trying to increase revenues even higher. Their yield in the 3rd quarter was boosted by higher ticket prices and higher on-board revenues and was in fact 10.9 % higher than that of the previous year. Carnival family ships carried over 1.8 million passengers. in the period. Interestingly, their net costs increased 3.2% over the previous year, this being accredited to the higher value of the Euro as well as the increase in fuel costs.

Cruise Line News:

Whilst on the topic of Carnival Corp. a recent announcement from their office confirmed that they have contracted with Fincantiere the Italian shipbuilder for four new ships as well as increasing the order for the new Cunarder "Queen Victoria". The deal is the largest on record and its sheer volume has allowed Carnival to negotiate very favorable rates on the first two ships which are US Dollar based contracts costing in the region of $500 - $525m each (around $165,000 to $175,000 per berth). The second two ships are Euro based contracts. With the latest ship orders Carnival's capacity will increase by 5.9% in 2007 and 5.1% in 2008, which is still well below the boom years of 2002 - 2005 when capacity increase by 15% over the three year period. 

Disney Cruise Line has announced the promotion of Tom McAlpin from Senior VP of Operations to President.  He is the second person named as President within the year, his predecessor Karl Holt being moved sideways to the position of President and CEO of Euro Disney.

The m/v Paul Gauguin will be leaving the RSSC fleet at the end of 2005.  Having been recently purchased by Grand Circle Travel who also own Vantage Travel a river ship cruise company as well as the recently purchased Continental Waterways (see article below). The purchase does not allow them to continue to call the ship - Paul Gauguin - so look for it to be renamed and after some refitting to accommodate the new owners concept to reappear as a tour operators vessel.  Rumor has it that the ship will do expedition style cruises, possible to the Artic and the Patagonia region of South America in their summer season. The ship will continue with RSSC through 2005 and will deliver on her planned cruise schedule.

A new Canal and River barge company has emerged to fill the void in the market recently held by Continental Waterways.  As we recently reported Continental Waterways was sold to Overseas Travel Group a division of Grand Circle Travel one of the largest tour operator in the US.  Grand Circle purchased the wholly owned members vessels of the fleet, but not the leased / managed vessels, this has freed up a number of the nicer, small river ships and barges, amongst them the ever popular Anacoluthe (which will continue doing its popular Paris/Seine itineraries), the canal barges Litote, Lorraine, Libellule and the newer l"Esprit d"Europe to come together under a new company called "Canal & Co".  Whilst the company is new the management is NOT, the driving force behind the company being John Senior, who for many years ran the Continental Waterways operation, he expects to reform his old team and continue to deliver the highest quality river cruises as they did in the past.

Ship News

Fincantiere has had a long relationship with Carnival Corp. and is currently constructing six news ships for the Carnival Family as well as the ongoing "Pinnacle" project, which calls for a ship of around 180,000 tonnes carrying between 3600 and 4000 passengers.  The latest order will consist of a 110,000 ton Conquest class ship for Carnival Cruises, and a 116,000 ton Caribbean Princess class ship for Princess Cruises.  The remaining two ship will be of similar dimensions. The Queen Victoria ship which was nearing completion will have its overall length extended by 35 feet which will have the effect of increasing its tonnage to 90,000 but at the same time the plan calls for decreasing its lower berth capacity from 2000 to 1850 passengers making for a more generous space ratio in keeping with Cunards' luxury image. 

Back in our May issue we reported that RCI intended to stretch the Enchantment of the Seas next year. Some interest details of the work have been made public.. The work which has been in the planning stages for over a year and a half is expected to take a mere 30 days to complete as much of the extension work will be prefabricated prior to the ship arrival at the yard. The ship will be increased in length to 990ft by inserting a 73 foot mid-section.  The pool deck will have some unique features, the actual pool will be increased by around 15% and feature an outdoor bar and band stand, the whole area will be creative lit at night and be protected from the weather by 12ft high glass panes.  Spanning the area will be two suspended walkways which will overlook the pool area below. The plan calls for the two suspended walkways to be a structural part of the ship, they will look like giant dorsal fins in profile. The ship's passenger capacity will increase by 151 additional staterooms as well as a number of new public rooms, a Latin themed lounge - "Boleros", a bigger art gallery and Lattetudes coffee shop as well as some changes to the spa and fitness area. Still undecided is the proposed 110 seat alternate dining room proposed as a replacement for the under utilized lounge on deck 6.  There will also be some refurbishment to the dining room and other areas. A new thrill seekers product is being wind tested to assure it is safe to use at sea, the plan calls for 4 huge trampolines to be placed on a platform at the top of the ship. Passengers will be suspended in a bungee harness where they will bounce to achieve an enormous lift.  Possibly the most interesting part of the project from an engineering point of view would have been the "Lifting bow".  The ship in its new guise will actually be about 30 foot longer than the locks on the Panama Canal so to enable it to pass through the locks RCI planned on making the bow hinge so it could swing upwards thereby making the ship physically shorter by the required amount. Probably due to the cost involved and the limited amount of times the ship would in fact need to use the Panama Canal RCI has decided not to proceed with this part of the project.

America's Cup - Final preparations for the first America's Cup racing in Valencia
Probably the worlds most expensive and competitive race in the world of sail boat racing is gearing up for an exciting summers racing which will culminate in the grand finale - The America's Cup races in 2007.  This event has an unusual appeal to patriotic audiences from all the competing countries as well as enthusiasts worldwide.  We at Worldwide Cruise Associates feel this is a truly unique opportunity for both corporate groups and companies doing business in the luxury sector on a worldwide basis.  Do not hesitate to talk it up as we are already quoting business for the event.  As an indication, here are some of the events which are taking place in the immediate future.  There will be more as the date grows closer.

Valencia, Spain; The sailing crews of the eight teams racing in the Valencia Louis Vuitton Acts 2 and 3 today (Wednesday) underwent their final preparations on the water ahead of the first meaningful racing in Valencia, Spain, the Host City of the 32nd America’s Cup.

The Race Committee for the Louis Vuitton Acts set a race course for practice matches on Sunday, and many teams took advantage of the opportunity for some last minute speed tuning against the opposition. After a short delay to allow the wind to increase and stabilize, racing began in light conditions, with a six to eight knot breeze.

Team Alinghi renewed acquaintances with its old rival from the 31st America’s Cup, Emirates Team New Zealand, while Team Shosholoza and +39 faced off in a series of starts between the first two Challengers to register for this America’s Cup. There was some close action on these starts, as both teams battled hard in this ‘friendly’ match.

On Monday morning at 10:00, the skippers from the teams will face the media in the opening press conference, while the crews complete their final training before racing begins on Tuesday.

The opening ceremony for the Valencia Louis Vuitton Acts 2 and 3 begins with a fleet parade open to the public at 20:00 hours in the Darsena Interior (the inner basin of the Commercial Port). Full details of the show are a secret, but there will be a spectacular light and sound show on the water, followed by fireworks, to officially welcome the America’s Cup, and the entire Cup community to its new home in Valencia, Spain. The public is welcome to enjoy the show.

Racing in the Valencia Louis Vuitton Act 2 begins on Tuesday with a full set of eight pairings on the schedule.

Racing for the 32nd America’s Cup - Valencia will continue in 2005 and 2006, with several more Acts in various locations, including Valencia, the Host City of the 32nd America’s Cup. Date of interest during the lead up and contender trials are;

• June 18 to 28, 2005 Valencia

• August 25 to Sept Kiel

• Sept 29 to Oct 10 Trappani (Sicily)

• In 2007, a fleet race event will precede the Louis Vuitton Cup, whose winner will then race the Defender, Team Alinghi, in the America’s Cup Match in Valencia

Featured small cruise Line

The small French cruise line which goes under the name of Le Compagnie des Isles du Ponant started with one ship, the Le Ponant back in 1991. 

The company, as with many small start up cruise lines was basically the brain child of the two senior partners who personally borrowed the capital to build their first ship.  The ship itself was a break from tradition, not only being a sailing cruise ship, but a modern, high tech vessel capable of sailing fast speeds in ocean going conditions.

As the ship neared completion it became obvious that a marketing plan was needed if the ship was to work.  They hired an experience and colorful character who in a short time was able to cobble up a plane to sell the  ship through a small number of agents based around Europe.  Worldwide being one of them. Over the years the company has also managed an few small ships for other owners gaining invaluable experience in the small cruise ship market without the risk of owning their own ships.

In 1996 they launched their first new motor ship, the Le Levant, which was equally as modern looking as her sailing sister, lovingly constructed and very well thought out she made her debut  to an appreciative audience and was immediately snapped up by a number of tour operators wanting to do unique itineraries suited to the size and quality of the ship.

Over the course of years the company's reach expanded, a new director of sales was able to make inroads into the American market and it soon became apparent that the two ships fleet needed to be expanded.  A number of small ships where looked at with a view to purchase, but for various reason where not considered suitable, until in 2004 the company purchased the "Song of Flower".

The "Song of Flower" was renamed "Le Diamant" and went into a yard for a mini refit and refurbishment, some changes where made and some additional staterooms added.  By the time the ship was ready to commence operations the tour operators, alumni organization and so on had already started to fill out her calendar.

In the meantime, the original partners sold of a piece of the company to a wealthy individual who also had travel interests in his portfolio, so now armed with a solid financial partner they are ready to continue growing their fleet. A large part of the companies success has to be attributed to the "can do" attitude of the crew and officers that they hire.  The ships have a solid reputation for excellent service, exquisite French cuisine as well as unique destination's  A winning combination at any time.

The 2005 itineraries are interesting and unusual enough to attract attention:

Le Levant will be cruising: The Caribbean, Orinoco River, Mediterranean, Europe and the Baltic as well as various ocean passages between.

Le Ponant is to found in the Seychelles, Mayotte, Madagascar and Reunion.

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.