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Wednesday, March 17, 2010
Crystal Cruises - New Dining Option and Some Thoughts About The Line
Yesterday, at the Cruise Shipping Miami Conference (a/k/a "The Home Port of the Cruise Industry") Crystal announced its new dining option: Perfect Choice Dining. It is not "open seating", but rather a reservation option, where you are able to reserve dinner at different times on different days and at different sized tables. Crystal calls this opening dining with a reservation.
When combined with its continuing fixed seating (main or late) option, it allows its guests to mix it up a bit. So one evening you may dine later with your spouse, but another evening you may arrange for dinner with a group of people you are cruising with or just met or have not yet met (as sort of an open/fixed seating mix). This is assuming, of course, that as with any restaurant there is a table available...hence the need for a reservation.
When this is combined with the hefty onboard credits offered by Crystal with its "As You Wish" program I think Crystal Cruises has elegantly allowed for the newer, more inclusive, product to be meshed with the mainstay fixed seating and pay as you go product, it allows for those that wish to have their drinks included, included in the price, and those that do not drink alcohol (or not enough to justify it being included in the price), to use their cruise fare toward tours or the spa.
Both of these enhancements actually fold quite nicely into what it unabashedly touted at the Conference is its focus on families, children and multi-generational cruising. This is, once again, balanced against a truly noteworthy array of intellectually and culturally challenging onboard experiences.
Combining that with its significant refurbishments to the Crystal Symphony and plans for the Serenity and you have a true force in the luxury cruise market. Yes, there are the issues of larger cabins vs. suites, 1,000 guests vs. smaller capacities, etc., but what is certain is with these two major changes (dining and onboard credits) Crystal has added its flavor to the selections available for the new breed of luxury traveler that want what they want, when they want it and how they want it. (But more on that in another post...hint, hint!)
Wednesday, December 9, 2009
Azamara Club Cruises- Changes Are Coming...And I Like It Alot!
That has all changed...and I preface it by stating that Larry Pimental and his staff have picked over Oceania, Regent, Seabourn, Silversea, Crystal and SeaDream and pulled elements from each, tweaking their selected concepts in ways that they believe will provide a far improved cruise experience which touches upon, but does not pretend to be, luxury.
First Azamara is now Azamara Club Cruises. This is obviously a play off of the "country club" marketing of Oceania and the recent emphasis on "country club casual" by many lines.
Second, they have taken the approach of making the product more inclusive....something I have said was essential to distinguish it from Oceania - who operates identical ships. So now
1. Gratuities are included.
2. Wines with meals complimentary.
3. Bottled water, specialty coffees and teas are included.
4. Shuttle buses will be provided (where available) between the port and town at no charge. 5. Self-service laundries are complimentary.
6. Specialty restaurant dining will be complimentary for suite passengers.
These are pretty much the things that Oceania makes money on and (as you know I have told you) can make an Oceania cruise more expensive than a Seabourn cruise if you are traveling in an sort of suite accommodation.
Third, while Azamara has always had solid cuisine, it is, ala SeaDream, incorporating more of the cuisine of where the ship is visiting in its dining menus. Complimenting that is its emphasis on local wines - some of which are not readily available elsewhere because the vinters either do not have sufficient qualities or simply do not market for foreign distribution. (The other night I enjoyed a bottle of Slovenian wine I purchased on my last cruise. It was bittersweet because I know I cannot purchase it here in the U.S. and I want more of it...and it has great memories associated with it.)
Fourth, there will be many more overnight stays. This, to me, is a tricky one. For me, other than say Barcelona, Venice or Istanbul, there are not many ports that I - as a seasoned traveler - want to overnight in when embarking or disembarking. I may be in the overall minority, but there is great value for many knowing that if their flight is late they can still make the ship...and the need to purchase a pre- or post-cruise hotel or a very early private car to the airport on disembarkation becomes a real cost savings. Also, there will be a beefing up of shore excursions as the additional time will permit more unique and in depth experiences. (These will be at extra cost, however.)
What is refreshing is the Fifth point: Prices are going to be higher. All of this luxury comes at a cost. While higher prices may make Azamara Club unaffordable to many, the average target passengers are aged 45 to 60 with a household income of approximately $300,000 per year. One thing to keep in mind is that the vast majority of the accommodations are cabins with very small bathrooms (and tiny showers). As with SeaDream (Pimental's former baby), I am sure the focus is on making the rest of the onboard experience at a sufficiently high level as to reduce the impact of this shortcoming. Note: I firmly believe that being honest with the market and saying you are raising the prices to make this a more inclusive product is the way to go. The concept of "free, free, free" added to high prices, ala Regent Seven Seas Cruises, is to many offensive; especially the astute.
There is, alas, a Sixth point: Children. As with Oceania, Azamara Club specifically does not encourage children and touts that it has no facilities for children. However, children are welcome to book and, in a very significant difference, if there are a sufficient number of children on board, Azamara Club will provide youth counselors. This, to me is huge. Not only does this open up Azamara Club to many of the demographically targeted folks who have children, it provides a bit of protection for those who do not want to have children onboard with nothing to do disturbing their cruise.
Here is something to think about: December 14th is the day prices are going to increase. If you act quickly, you can lock in some really spectacular cruises in 2010 and 2011 that will have all these added amenities...and you can do so at the present lower prices. It is like receiving a very significant discount for doing today that which you might well do later.
Tuesday, October 27, 2009
Silversea Offers Pillows All Around and Crystal Offers Some Holiday Spirit
*Soft sleeping pillow of 25% down/75% feather
*Medium-firm choice with a firmer core and a 30% down/70% feather composition
*Firm pillow with extra neck support for sleeping or back support for reading.
*Memory foam that molds to the user’s sleeping shape
*Buckwheat pillow to relieve aches and pains and help prevent snoring
*Body pillow with extra fluff
*Aqua plush polyester down alternative fill pillow
*Fairfax polyester pillow for a down alternative with extra support.
Silversea will also offer aromatherapy pillow cases. The Tiara Collection pillow covers, 300-thread-count cotton or 100% silk charmeuse, have hidden pockets with chamomile or lavender scented sachets.
Crystal Cruises is offering complimentary Christmas trees to the guests in its top suites for its Holiday cruises Lower suites may purchase trees and optional decorations at a very reasonable cost. Cabin guests may purchase table arrangements (as a tree would be a bit crowding) also at a modest price. Hanukkah decorations, if desired, are available for all guests.
Little touches like this can truly make your in-suite experience a bit more special.
Friday, September 18, 2009
A Change in Cruise Line Pricing Is Happening!!!!
It doesn't matter if Silversea or Seabourn or Celebrity or Carnival is offering a 30% off fare in its brochures because, obviously (at least to me) they have never offered the cruise at full fare, so the alleged discount is no discount at all.
Of recent vintage that non-existent 30% discount has been transformed into 60+% discounts...and I won't even get into how that discount is calculated differently by various lines. Yes, there are some excellent deals, but they are not, by any means, 60% off.
The result has been clients calling me up asking why the "discount" isn't greater on one sailing versus another one; while they (it would seem, logically) never actually looked at comparing the actual cost of the cruises. If a cruise discounted 40% costs more than a similar cruise discounted 30%, obviously the better idea is to go with the lower cost cruise, not the more highly discounted one. It is, alas, soooo confusing to many cruisers.
It was reported this week that United Kingdom's Advertising Standards Authority has ruled that as to Silversea's offering huge alleged discounts, the practice must stop. So Silversea cannot utilize the 60% off marketing ploy it continues to use in the United States. It delayed the production of its UK brochures as well, while it formulated its new marketing strategy of booking earlier will result in greater savings.
As I noted in a recent post, this most definitely is not a Silversea issue, but rather an industry issue. In fact, the article references Crystal Cruises also reformulating its UK marketing strategy...and Crystal doesn't discount as a rule, but adds value in onboard credits and such.
While I suspect the change will not be happening too quickly in the U.S., at least you know better to not be misled by outrageous discount claims.
And, by the way, that is why I am a good travel agent. I have NEVER sold a cruise based upon an advertised discount rate. I ensure better for my clients. It takes more time, but in the end my clients receive excellent value for their money...And I also ensure they are on the correct cruise and itinerary (as a great price on the wrong ship and/or going to the wrong places isn't a deal at all!)
Monday, August 3, 2009
Which is the Best Luxury Cruise Line - Another View
As most of you know, I believe SeaDream is a very good product...in fact, one of the best. However, you really have to want to be on SeaDream or you will be sorely disappointed. It has cabins; not suites and their are no balconies of any sort. It is a fairly casual affair. It is small, so if you do not like your shipmates you can be in for a long cruise. (But also is why the ships are great for large families and charters). They are not fun in even slightly rough seas and rainy days are not filled with activities and venues for private escapes. Also, itineraries need to be considered. These ships are, by nature, limited in ports and duration. However, the cuisine is very good and the service is strong.
But you need to ask yourself a single question before you get into your analysis: Do I need a suite? With so many luxury cruisers answering that questions in the affirmative it is no wonder that such a strong product has so many sailing with availability. That is not a criticism, but a reality check. Balinese beds and a marina are great, but defining the best luxury cruise line by them is - for a competent travel agent - a worry.
I have heard such divergent views on Regent Seven Seas (It was fantastic vs. It was terrible. The service was outstanding vs. The service was horrific., The food was marginal vs. The food is was great., etc. many times from the same cruise) that my approach has to be one of caution. Regent has taken the approach of keeping its prices higher, but adding what it has determined is value (ex. inclusive tours). If those tours are not attracting the true luxury guest, then it is a negative in two respects: Lack of justification for the higher prices (since the other luxury lines have slashed prices) and attraction of one-off non-luxury passengers who are attracted to the perceived added value. With excellent suites, newly renovated public areas and 700+ guests when sailing full, it is in a way the antithesis of SeaDream which has consistent raves from its small ship guests.
It has been mentioned that Silversea pours three different complimentary champagne while Regent pours none and Seabourn pours one. Seabourn continues to serve complimentary caviar. Would either cause me to declare Seabourn or Silversea the luxury champion? Me thinks not.
What I have heard from quite a number of guests returning from the Seabourn Odyssey is that she is the best of both worlds: highly personalized cruising with plenty of private space coupled with extraordinary service and cuisine. There have been grumblings of some minor misses on the triplets from a few people (but they were minor grumblings), but then I received an email from someone just back from the Seabourn Pride stating, "Trip was sooooooooooo over the top........I cannot begin to describe right now. We put the deposit down on a trip for next year." So the question becomes: Does size make a difference? Is the luxury experience on the Seabourn Odyssey better than the one on the Seabourn Pride? Are these two different luxury cruise lines or one luxury cruise line with different offerings?
SeaDream vs. Seabourn Pride vs. Seabourn Odyssey vs. Regent Voyager = 100 vs. 208 vs. 450 vs. 700+ (I use the "+" because Regent actively markets itself for children and, as such, the capacity - at least in the summer and holidays - can well exceed the published lower berth capacities).
So what is the best luxury cruise line? Tell me what your desires are. Tell me what your likes and dislikes are? Let me know what makes you happy. Only after I have that information can I tell you what the best luxury cruise line is...for you.
Are you looking for my opinion for me personally? It depends. You say, "What?". Yes, it depends.
If traveling with only my wife I would choose Seabourn without hesitation. Seabourn has greatly improved and unique itineraries and consistently high service and cuisine. Don't get me wrong, I do love the Seabourn Odyssey, but I would not exclude the triplets as the ship itself is not as important to me (for they all have more than acceptable faciliites for me.)
If I am traveling with my wife and children (ages 10 and 13) I would have said Regent Seven Seas...right up until I cruised on the Celebrity Solstice. (I don't think Seabourn is great for MY kids...though others disagree.) In two weeks I am cruising on the brand new Celebrity Equinox for 13 nights in two Concierge Class cabins. I have five evenings reserved in the specialty restaurants to start with. At less than $165.00 a day, adding a few dollars for specialty dining and having to sign for drinks and water doesn't really degrade the possibility of a luxury experience (as I sign at land-based restaurants and private clubs all the time.) I mean, Regent is marketing value to support its higher prices, right? And higher prices do not mean higher quality to an educated consumer, right? So right now I would say, "I don't know, but there are some good options." In the meantime I would say Regent may be the best of the "marketed as luxury lines" if they get their capacity in line with their ability, but I would look very hard at Celebrity.
So which is the best luxury cruise line...for you?
Friday, July 17, 2009
Seabourn and Silversea Cruise Lines - Are They Really Competitors?
Yesterday I learned some very interesting statistics. Silversea claims that it actually has more former Princess passengers on it ships than Seabourn guests. More Holland America passengers. More Cunard (actually the highest percentage). More Crystal. In fact, when providing the statistics Seabourn wasn't even mentioned; and clearly isn't in its top four sources of prior cruisers.
When first faced with this surprise I was, frankly, shocked. Of course Seabourn had to been in the mix, didn't it? But then I started thinking...as I do.
Silversea provides a very upscale product; no question about it. It has gone through, and probably will continue to go through changes, while it struggles with its present situation. However, Silversea has stressed that it is not cutting back, but rather adding value through essentially keeping the product the same and lowering prices. (I do not acknowledge that to be true - I don't have personal knowledge - but that is the company line.)
Seabourn also provides a very upscale product, but what I experience and what I hear consistently - even with the launch of the Seabourn Odyssey - is that it is the staff that makes Seabourn Seabourn. (How many expressed concerns abouth whether Seabourn could deliver the same quality service on its larger ship? I have not heard a single person say Seabourn hasn't succeeded.)
Aside from opinions about cuisine and service levels (or, better, style differences) the ships are markedly different. The Seabourn triplets with only 208 guests are yachtie and the 450 passenger Seabourn Odyssey provides the same yacht-like service. Silversea, however, provides a large platform for all its ships (which are medium to medium-large). Is that why Silversea mentions passenger to space ratios rather than differences in service? Probably.
So with the similarity, and knowing that many cruise these lines to be on the ships first of all and itinerary second, why isn't there more cross-over? My experience tells me that I have a much more prevalent move to Seabourn from Regent and Celebrity (and a bit from Oceania). I have had Seabourners try Holland America or Cunard...once. But not so much the other way round. I do have some serious Crystal clients that happily swing between it and Seabourn.
One interesting observation: Seabourn's ships are sailing pretty full this summer. In fact, Seabourn is running into situations where it is oversold. Silversea, on the other hand, ha thrown everything it has (butlers, $1,000 onboard credits, deep discounts, etc.) to attract more guests...and its ships still have significant space available.
With such great deals (and they are) why aren't more Seabourn guests giving Silversea a try? I believe that at this level the guests know what they want and it is not necessarily about getting the best deal...when measured solely by the dollar/pound/euro.
Backtracking to the move-up clients, it would appear that it is a bit more in what the style of service is provided (or, in some instances, marketed) in the mass market/premium market that a particular person latches onto and becomes comfortable with. Every line tries to pitch some sort of service difference and, it would seem, that comfort with the "hint" given on Princess may build a natural acceptance to Silversea's marketing, while the "hint" on Celebrity favors Seabourn.
Regent is a whole 'nuther kettle of fish which I will address another day. Suffice it to say, as I recently discussed with a client, Regent seems to be more of a premium line with great suites; rather than a luxury line with great service and cuisine. It is when those that have been trained that what is truly faux luxury discover what luxury cruising is truly about, the change to Seabourn or Silversea happens. My experience is that there is no real trend toward one or the other. In that respect, I guess, Seabourn and Silversea do directly compete.
I guess, then, it is not so ironic as a top seller of Seabourn cruises I also tend to sell more Celebrity and Oceania than I do Silversea, Princess or Cunard. Mind you I sell them all, and am very familiar with each, but I cannot ignore the trend.
Funny thing, "This is My Yacht" and "Starring You" do have some symmetry.
Thursday, June 4, 2009
Record Phone Calls for More Luxury Lines - What Does It Really Mean?
This is a good news/bad news scenario. (Remember calls and bookings do not equal gross sales increases.)
It is good because the prices have been so low and the givebacks (onboard credits/free air, etc.) by some lines so high that resistance has been broken. This does not mean, however, that the luxury ships are necessarily sailing full. While there are quite a number of cruises that are now sold out or nearly so, it means that quite a few sailings are simply now sailing with higher occupancies.
What I am finding is that there now is a scarcity of upper end suites on these ships. I had warned you all about this happening and, unfortunately, many did not listen. As a result, the across the board bargains (the cruise lines generally did not opt to only severely discount only the lower suites) and complimentary upgrades have filled the ships, but at the possible cost of degrading the perceived rarefied nature of luxury cruising. And...ironically...those willing to "pay the piper" just to get on a cruise this summer or fall are finding that it is the lack of suites, not the price, that is keeping them landlocked.
I am a bit concerned with pressure moving forward that the cruise lines not be perceived as "jacking up" prices when all they are really doing is moving toward "normalizing" them...triggered by simple supply and demand economics. Moreso, I am concerned that many bargain-hunting cruisers who spent their prior years conversing on how they were going to "smuggle booze" onto a ship and protesting even putting on a sport jacket at dinner may adversely affect the cruise experience the lines have been working so hard to maintain (some with more success than others).
With the summer sailing season just about upon us I will be very interested in the feedback from my clients and readers. I would not, however, weigh too heavily the comments on message boards like Cruise Critic because the views expressed will, for the most part, be from those who have never cruised on these luxury lines before and, thus, will be very pleased with the differences from the mass market lines. In other words, while many of the new-to-luxury cruisers will see a steep increase in cruise quality I am concerned that those experienced luxury cruisers will see a commensurate decrease. Hopefully my concerns will be meritless.
There is, of course, the other side of the coin. There are those new-to-luxury cruising that are going to really appreciate the product...not just the price. And those are the new clients that both the cruise lines and luxury travel agents are counting on for the future. There are four new luxury ships coming on line in the next few years (three for Seabourn and one for Silversea). While Silversea is rumored to be considering retiring or mothballing one or more of its ships, there is no doubt that there will be an increased capacity in the luxury market and berths will need to be filled.
Added to that is the increased quality and new ships in the premium market. Oceania has a new ship and Celebrity has its incredible Solstice-class ships. I am confident there will be a strong demand in this premium class to further up their game as those who have gotten a taste of the luxury market during this weaker market will just not be willing to part with their money for a cruise which is too far removed from that experience.
So with some bargains still out there, but inventories getting tight, coupled with the change in who will be aboard the ships, it is going to be very interesting.
Monday, March 23, 2009
Regent Seven Seas Voyager World Cruise Problem - Oh Nets!
Tuesday, January 20, 2009
Oceania Cruises - Comfortable In Its Own Skin
Oceania is a solid performing cruise line that consistently does what it does well and without pretense of being something it is not. Oceania is not, and does not pretend to be, a luxury cruise line. While it may well qualify as luxury when compared to some mass market lines, it fairly and accurately identifies what makes a line a luxury line and says, "We do lots of things very well, but we don't do X or Y."
Before discussing what Oceania doesn't do, I want to mention what it does well. Its mid-sized ships (684 passengers) have many excellent itineraries, excellent and happy multicultural crew, solid cuisine available at four no-charge open-seating venues (and a pool grill) and an upscale ambiance with a strictly country club casual (i.e. no formal) dress code.
There are a number of wonderful amenities such as cabanas which can be hired for the day or for the entire cruise (which can be pre-booked if for the entire cruise), comfortable outdoor living room spaces and such.
Oceania is, most definitely, not a cruise line for children and it cautions that it is not designed for children. Have children cruised it? Of course..and there is no litany of reports of it being a problem. However, its 55+ demographic (though getting younger) is seen as a positive. Just take note of it.
While the top cabins are spacious and have very nice amenities, the standard cabins (Penthouse to Veranda to Oceanview) are fine and well appointed, but really do not have anything special to note. The bathrooms are rather small. They are not suites (about 35-40% smaller, in fact) and, hence, one of the luxury requirements is just not there for most onboard.
Also, you pay as you go for drinks of most sorts (coffees, espresso, etc. are complimentary). For some this is a negative, but for others they are happy to only pay for what they drink rather than shell out a premium just so they don't have to sign. (Personally, signing checks don't bother me in restaurants or at the club, so it doesn't bother me on a cruise.) This has become another luxury requirement Oceania cannot, and doesn't want to, check off. (Crystal takes the same approach and it a luxury line; so there goes that one!)
Oceania charges $12.50 per day per person for gratuities. The preferred method is charging your shipboard account as with open seating your waiters may be dfferent at every meal. Again, other than Crystal, this is another non-luxury line difference as most have gratuities included.
The crew to passenger ratio is not what it is on, say, Seabourn and the polish may not therefore be at quite the same level, but I rarely hear of this being a deal-breaking issue. Related to that, you will have 683 fellow passengers, which is 50-250% more than you will find on most luxury ships (Regent and Crystal being exceptions), but there are quite a number of attractive public spaces to spread out those bodies.
So if you would love to cruise a luxury line, but can't afford it or justify the expense and are willing to compromise on the size of your cabin, Oceania with its interesting itineraries, consistent crew and solid cuisine just might be worth giving some serious consideration.
Oceania is, plain and simple, comfortable in its own skin.
Thursday, January 15, 2009
Waiting for Last Minute Cruise Deals or Lower Prices For Your Preferred Cabin or Suite? You May Miss the Boat!
Princess just sent out an email that the other day was the busiest booking day in the line's history. SeaDream Yacht Club just stated in a conference call that it anticipates increasing its fares. CLIA (Cruise Line International Association - the industry association) stated earlier this week that overall cruise line sales are up about 2.8% over last year.
To what extent this trend holds true for the luxury lines I am not sure. Personally I am finding many Seabourn cruises this Spring to be very short on suites; one A2, a couple of A3s and such. My cruise on the Spirit in September is essentially sold out. Obviously that is not true for all cruises, but the sales are getting more bodies on the ships. On the other hand, Regent is getting pretty aggressive as to added value while pretty much maintaining their "highest in the industry" pricing; Silversea is not seeing (from what I can tell) full ships, Crystal is apparently having light loads and Seabourn is running fairly aggressive discount promotions.
I have seen a definite trend toward less cruises, but for longer cruises with higher bottom lines. Essentially my luxury clients are seeing "value" and, especially in rough economic times, "value" can be more important than price. So rather than taking a one week cruise that last year would have cost $9,000, this year's similar cruise costs $6,000...so spending $12,000 for two weeks is such a great "value" makes the decision easy.
To be sure, I (and many travel agents) are spending almost as much time repricing previously booked cruises as booking new ones. As a result I have figured out quite a few pricing strategies that can provide even greater "value" to my clients. (I could let you know what they are, but then you wouldn't need me...at least as much!)
What I am wondering, and I have no data on this, is if the cruise lines (especially the inclusive luxury ones) are trading dollars for passengers, but are losing revenue because of the lower fares. (Less passengers paying higher fares vs. More passengers paying lower fares) On the mass market lines, the holy grail of onboard revenue plays a large part in revenues, so I can understand the discounting a bit more. Only time will tell if luxury net revenues are up or down.
But, if you are looking at cruising in 2009 I am getting the feeling that NOW is the best time to book your cruise.
Thursday, December 11, 2008
Crystal Cruises Announces 2010 Port Calls to Iran and Other Unique Middle East Ports
When a place like Dubai is actually very safe (and thanks to huge marketing efforts many Americans believe that) it is, by some, lumped into areas like Yemen as the "Middle East - No Go" area. Mention Kuwait and probably nothing other than Iraq's invasion quickly comes to mind...so it is unsafe. Again, not a true or fair statement.
Sorry, I am not trying to insult, but rather present what is - on the world stage - a perceived undeniable fact. And, to be honest, until I was invited to speak at a superyacht conference in Dubai, U.A.E. (United Arab Emirates), I had a pitiful lacking understanding of not only the geography of the area, but even the basic differences in cultures generally between Dubai, Kuwait, Saudi Arabia, etc. The broad differences then break down into many interesting facets that both fascinate and help explain the basis for many of the political and religious issues in the area. (Just the differences between U.A.E. emirates of Dubai and Abu Dhabi are as interesting as the existence of a "secret" island where Kuwaitis go to party.
And while there are, respectfully, many with deep convictions on political, religious and moral grounds not to support the economies of certain countries or rulers, I am one of those that thinks it just might be worth dipping my toe into those foreign (and possibly "scary") waters so that I can better understand what things are really like rather than just what is marketed to me by the media or politically motivated sources.
Crystal Cruises has decided to shake things up a bit and provide an incredible opportunity for those interested in dipping their toes into, and learning a bit more about, this area of the world. Crystal's 2010 108 day "Exploration of Ancient Empires" World Cruise includes maiden calls in:
- Manama, Bahrain;
- Bandar Abbas, Iran;
- Kuwait City, Kuwait;
- Fujairah, UAE;
- Khasab, Oman; and,
- Jeddah, Saudi Arabia.
If you are not inclined to take the entire Wold Cruise, you can book World Voyage IV: Middle East Mystique (#0305) which starts in Mumbai and ends in Dubai and/or World Voyage V: Modern & Ancient Marvels (#0306) which starts in Dubai and ends in Athens (visiting Egypt, Israel and Jordan as well as some of the above ports).
With some of the great pricing now available reserving your chance to experience this part of the world in the comfort and security of Crystal Cruises could just be the great opportunity you are looking for.
Tuesday, November 11, 2008
Use Caution and Common Sense When Booking Your Cruise
I found out that last evening that one of the largest online agencies has effectively closed up shop with millions of dollars of debt and a number of cash paying clients (even luxury clients) apparently hung out to dry with no cruise and no money. What is truly disturbing is that its website is still functioning while its phones ring off the hook unanswered.
Before I go on: I don't care what any other travel agency tells you, USE A CREDIT CARD NO MATTER WHAT. If you have an expensive cruise and need to pay in installments, do it. If you are concerned about "showing" cash, find another solution. In this environment there are big and small travel agencies really under the gun. If you use a credit card (not a debit card) you have real protection regardless if there is a problem with the travel agency or the cruise line. I would also caution that the credit card charge should be directly with the cruise line rather than the travel agency. Ask. Don't Assume!
Clearly, travel agencies that depend on high volume/low profit cruises to fund their day-to-day cash flow needs are really suffering...and struggling. When an agency is making $50 net on an NCL or Carnival cruise there has to be lot of bookings to keep the lights on. What has happened, unfortunately, is that many of these lower cost reservations just stopped being made due to loss of job security, home equity and overall fear of what is yet to come.
Part of the reason for the problem is that the retention rate for their clients is less than 20%...because price, not service, is pretty much the singular draw to these agencies. I call this the "Love 'em and Leave 'em" approach. So with a low repeat rate and no real way to draw in new clients, these "Love 'em and Leave 'em" agencies are now trying to figure out how to stay in business, but they are for the most part "One Trick Ponies".
Yes there are those individuals that purchase their luxury cruises on Seabourn, Silversea, Regent Seven Seas and Crystal...even Oceania and Azamara...from these discounters. They are, with only a couple of exceptions, really not getting a lower price and suffer with lesser service and now, to be sure, insecurities.
I know of no legitimate way to quickly take a "sell low cost, heavily discounted, cruises" model and turn it into a working model of a travel agency that creates loyalty and stability through good pricing (while not giving the cruises away) with great customer service.
So when looking to book your next cruise, or even maintain your present bookings, please be sure to be cautious. You might just even consider canceling your bookings deposited with cash or having them transferred to an agency you have faith will be there down the road. Now is the time to be sure you are getting the most for your dollar, not just what seems like the best price.
Remember, if it seems to good to be true, it probably is.
Wednesday, October 29, 2008
Troubled Waters on the Luxury Cruise Front...And A Safe Harbor: Seabourn
One of my Seabourn client's wrote two weeks ago, "These markets are taking their toll though. people are scared on the ship and the talk at dinner is often about the "market." Thought we could get away."
But just yesterday, upon her return, the email was remarkably different:
"We are back from another perfect Seabourn experience. The weather was magnificent, food seemed more delicious than ever and we had a great time. It is the ideal vacation for us. So ideal that I'm sure you know by now, along with [our friends], we have already signed up for the next trip."
With the concept of "Is taking...or even thinking of taking...a luxury cruise at a time like this?" at the fore of most people's minds, the cruise lines are feeling the pinch. The question becomes, from the guest's perspective, how much trouble are the cruise lines? That is not, in most cases, an easy question to answer.
Case in point: Royal Caribbean/Celebrity/Azamara, etc. (albeit not luxury lines). This week it announced record 3rd quarter earnings, but great concern for the future. This raised concerns over cash flow. Fortunately, it assured the markets by announcing it has $1.4 Billion dollars in cash and no need for new financing.
But on the luxury front the story, at least for some, MAY be a bit different:
First, Regent pushed off its heavily touted new ship, then it announced the ending of its relationship with the Paul Gauguin and now rumors abound that its $40 million dollar refurbishment of two of its three ships will be cut back (though this has not been confirmed.) and its third ship, Navigator, will be waiting about 2 more years for any upgrades...if at all. While all this may well be prudent business (a good thing), it is evidence that reliance on the perception of their being a high profit/cash flow "gravy train" in luxury cruising may have been a bit too much.
Then , Crystal announced a very generous reworking of its booking policies so that you cancel within 45 days of departure without incurring penalty. To me this signaled a concern for getting people to book cruises they were "just not sure about" and to get them onboard the ships...to, in part, generate onboard revenue. There is a great truth that once someone books a cruise they become emotionally invested and, therefore, are less likely to cancel it even if times get rough. It did not concern me much since it does not seek to keep your cash if you cancel.
Then Silversea came out with drastically discounted cruises...and a 25% travel agent commission on close in sailings. (I did not previously mention the amount, but it quickly was spread publicly over the internet, so what the heck.) This is a clear cry for cash. To me, and honestly to most of my clients I have spoken to about it, it is a Red Flag that Silversea may be in serious trouble. A cruise line cannot sell a $10,000 cruise at a 40-50% discount (OK, it is really at a 35% discount, since a 10% Early Booking Savings already applied) and then discount it another 25% for the travel agent's (frankly, perverse) commission. The result, at least for me, has been interesting: Not a single booking. Rather, the questions are uniformly, "I am uncomfortable booking with Silversea. Will my deposit and final payment be protected? Do I need added insurance...and from whom? Will my cruise actually take place?"
Now SeaDream has announced a "Cancel Anytime Within 48 Hours of Departure and Get a 100% Credit" toward a future cruise within 18 months thereafter. This is, again, very scary...and SeaDream is quite a fine product. SeaDream had always prided itself on its charter schedule being its base. But charters are drying up as corporations are not making the same profits and perceptions of such expenditures are presently more negative then positive. Being a unique product it is not the easiest cruise experience to get people to consider and, honestly, not many travel agents even think about SeaDream as an option. With its new program, a more aggressive play on the new Crystal approach, SeaDream will keep your cash so that it operates today with a (hopefully) positive cash flow and worry about what cruise you take later. Clearly this short-term strategy is worrisome.
Seabourn has, at least for now, taken a different approach. Ala Tiffany's and Louis Vuitton, it is taking the approach of Stability. It has not changed its deposit policy. It has not changed its cancellation policy. It has not offered travel agents any increased (or absurd) commissions. Has Seabourn reduced some amenities? Yes, such as the less-and-less popular once a cruise complimentary tours. Seabourn has done, possibly with a bit more aggressiveness, what it has always done when there is a slower selling sailing: It has offered a better deal...but never "giving away the store". For example, its $1,000 off on any 2009 Med Sailing is a way to lower its prices for some and to, possibly, attract new business. (Truth be told, that promotion has caused me more headaches than happiness because the vast majority of my clients already had a better deal since they were on 14 day or longer cruises or on Club Signature Value sailing offering 50% off.)
Will Seabourn be making better or different deals? My guess is: Yes, but with a caveat. When you are not taking drastic actions (because you do not need to: Stability), you can tailor your promotions to the then existing market (subject to forecasting sailing performance). So will there be some offers for complimentary upgrades? Sure. Will there be added values? I am confident there will be. But will it give you a sense of desperation? I am confident it will not.
Seabourn is mostly concerned with the long term...because it has no short term need for cash. Yes, it wants full ships and, after being spoiled with, consistently selling out cruises, the concept of empty suites is a bit hard to come to grips with...but a few empty suites does not create a disaster. Plain and simple: Seabourn is focused on keeping "luxury" luxury.
When I think of Seabourn I keep thinking of the old commercial, "We Make Money the Old Fashion Way. We Earn It!"
How does it make you feel?
Thursday, August 7, 2008
Cruise Vacation Sales Are Strong...For Some
While I would like to think that this dramatic increase is based solely upon my providing excellent service and pricing AND extremely loyal clients - for which I am more than grateful, appreciative and, likewise, loyal - I really don't think that is the only reason.
When I look at what types of cruises are selling, with which lines and with what sort of advanced planning, I see two very distinct trends.
Those that are purchasing the true luxury cruises (and I define those not only by they type of accommodation, but also the exoticness of the ports and cruise length) are not only continuing to cruise, they are increasing the length and/or frequency of their cruises. But within that group, I am seeing a bit less of the cruise line loyalty (which previously seemed to be omnipresent) and more of a focus on "value". What I mean by value is not a cost-per-day figure, but rather "What is the experiential value of the cruise?"; be it visiting new ports, experiencing a new ship or insisting on a certain level of service.
Seabourn is very strong in 2009 as it relates to its new Seabourn Odyssey and its industry topping consistency of service. There are only two things which seem to limit the Seabourn cruises that I can sell: Available space and Itineraries. Both of these factors are being addressed as the three new ships are rolled out and the smaller triplets are able to be sent to more exotic ports. (Note: For all of those folks who keep speculating that Seabourn will dump the smaller ships you should remember that: 1. One thing which has made Seabourn special is that those small ships can and do visit ports that larger ships cannot visit; 2. There may be demand for an exotic itinerary sufficient to support a 208 passenger ship, but insufficient to support a 450 passenger ship; 3. There is the attraction for many to the intimacy of a 208 passenger ship and a similar aversion to a 450 passenger ship; and, without limitation, 5. For most of the year demand outweighs supply and the trend is to an increasing, not decreasing, demand...so eliminating 624 berths doesn't make sense if the trends continue.)
Silversea has also seen a much stronger 2008 over what can only be considered a dismal 2007. While I continue to marvel at claims of passenger increases of 30+%, I also note that the only way Silversea could have such growth is by sailing half-empty ships in 2007 and that the majority of the passengers are, according to Silversea, first time passengers (54% to be specific). In a world where the mantra is "It takes $1.00 to keep a customer, but $10.00 to get one, so keep the customer happy in order to sustain growth" I have to wonder why the repeater rate on Silversea is so low. (Over analyzing this point, possibly the 2005-2207 period caused disgruntled passengers to go elsewhere, so it will take time for the repeater levels to exceed 50% as the product hopefully improves.) That said, I love their Africa, new French Polynesia and Exploration itineraries and expect very strong sales for those products.
Regent is a line that frustrates me. I won't repeat my rants, but assuming improvements in hotel, cuisine and overall services continue and are accelerated, I remain baffled by the pricing. As I recently showed, the new Silversea "ultra-luxury" venture in French Polynesia starts at 28% less expensive than the premium Regent product. The same holds true for even less exotic cruises to Northern Europe, the Caribbean, etc. This summer Regent was offering travel agent rates to Northern Europe in the peak month of August. That is a sign of weak demand...and a real need look hard at the cruise fares. If those prices come back in line with the product provided, I am confident the demand for Regent will increase. Without bodies on board, the holy grail of "onboard revenue" can be very illusive. There really isn't that hard a balance between paying a premium not be "nickeled and dimes" and being perceived as ripping people off so as to avoid same.
I also want to mention Crystal Cruises here. While I have not cruised with Crystal, I have never met anyone who has uttered anything but satisfaction to unequivocal praise for the cruise experience it provides. My guess is that what is now considered a large ship with smaller (but not small) cabins, in a more formal setting, truly focused on older guests, needs to change a bit. I know Crystal is feeling the pressure, but I have not a clue as to how it plans on meeting the challenge of an overall younger luxury cruising market and a growing demand (even by the older passengers) for a less formal experience. Ironically, Regent's talk (but no action of yet) of larger ships and the premium/mass market lines growing behemoths, may actually assist Crystal in softening its "large ship" positioning.
Now, as to the premium lines, sales are most definitely weaker, but I am finding that the issue is not the lack of sales, but rather the sales are closer into the actual sail date. What I do not see is any downgrading. People who regularly purchase suites are still purchasing suites. Balconies, balconies, etc. What I am seeing at least the start of happening, are some aggressive last minute deals (actually 90 days out); which have been pretty much absent the past few years.