Travel industry battered by world crises says CNN

A recent report from CNN says that the spate of world crises that have occurred in the first three months of the year has hit the travel industry especially hard. Natural disasters and political unrest have left many travelers rethinking their plans or cancelling trips altogether as they scramble to avoid a host of issues across the globe.

The earthquake and tsunami in Japan, coupled with fears of radiation and a potential nuclear meltdown in power plants there, has significantly reduced demand for travel to that country. It has gotten so bad that Delta Airlines has announced that they are cutting capacity to Tokyo’s Narita International Airport by as much as 20% through May, and suspending flights to another regional airport altogether.

Similarly, travel to Northern Africa and the Middle East has also dropped significantly as political upheaval has spread across that region. It hasn’t just been the airlines that have felt the pinch however, as disruption in travel to Bahrain, Tunisia, and most importantly Egypt, has put a dent in the cruise industry too. According to Carnival Cruise Lines more than 280 of their cruises have seen a change in their itineraries thanks to issues in the Middle East. They estimate a loss of $44 million so far, and the region hasn’t stabilized just yet.

The Middle East unrest has brought another unwelcome side effect to the travel industry as well. Any threat to the distribution of oil means an increase in prices, which is always passed on to the consumer. Soaring oil prices has led to an increase in the cost of airfares, and the dreaded term “fuel surcharge” has reared its ugly head once again too. With the busy summer travel season still ahead, it seems unlikely that oil prices will be coming down again anytime soon.

2011 is certainly off to a turbulent start. If the first few months are any indication, we could be in for one very memorable, but chaotic, year. Has any of the recent global calamities caused you to change your plans? Are you now going elsewhere because of recent events? Worse yet, have you canceled your plans to travel this year altogether?

Cruise lines hit rough waters, navigate well

While the popularity of cruise vacations has never been higher, earnings at major cruise lines are down. First they adjusted operations in a depressed economy. Then they absorbed high oil prices to hold the line on fares. Now, thanks to the effects of worldwide travel turmoil and a natural evolution of the industry, cruise lines hit rough waters and have a full list of decisions to make. While changes are inevitable, count on cruise lines to not stray far from their proven formula for success.

We start with this week’s announcement by industry leader Carnival Corporation that said turmoil in the Middle East and North Africa could cost about $44 million in lost revenue. From changing itineraries for safety purposes to a lack of interest in traveling to troubled areas, 280 voyages had to be issued new sailing orders.

“We pulled out of just all North African stops, in Tunisia and Morocco and Egypt, and we’ve pulled out of — actually, in some cases, we’ve had to pull out of Israel because we got a lot of resistance,” said Howard Frank, Carnival’s vice chairman and chief operating officer.

Other lines reported a similar effect on operations because of worldwide turmoil too and timing could not have been worse. This just after cruise lines have announced/deployed a record number of ships to the European market. Viewed as a smart move at the time, the more lucrative European markets were to bring greater earnings that came along with higher prices cruise lines could get from under-served Europeans.

But not if they don’t sail.

Here now we see the down side of cruise ships as mobile assets.

On one hand, the ability to move your floating resort to safe waters is a huge factor in favor of a cruise as a vacation option. Most itinerary changes are weather-related and happen with some regularity. Cruise ships can make alterations to itineraries and still provide a good vacation experience to consumers. Land-based vacation options hit by weather events don’t have that option or as cruise travel agents are fond of saying “We can move the ship, we can’t move the island” in defense of cruises over all-inclusive land vacations.

On the other hand, cruise lines really wanted to sail to the Middle East and North Africa among other destinations affected by weather or political unrest events. They can quickly modify an itinerary but can’t quickly sail back across the Atlantic to safe, calm, North American waters. In many cases, they are finding not the full ships of Europeans, eager to sail but less than full ships which at the end of the day are not producing the profits they want.

Then there’s the oil problem. Nobody wants to say the “F” word.

Fuel Surcharge. Cruise lines have for the most part held the line on pricing, not adding on the rabidly unpopular Fuel Surcharge. While they are much better prepared to implement a fuel surcharge and oil prices have risen far above the threshold at which they can, they don’t want to because they know what will happen. Booking levels will fall. Those who hold existing bookings recoil at the mention of the term and will be mad about it. Consumers know the price of oil is up but have little tolerance for an additional charge that really adds up fast.

For example, here is Royal Caribbean’s current policy

Royal Caribbean International reserves the right to impose a fuel supplement on all guests if the price of West Texas Intermediate fuel exceeds $65.00 USD per barrel. The fuel supplement for 1st and 2nd guests would be no more than $10 USD per guest per day, to a maximum of $140 USD per cruise; and for additional guests would be no more than $5 USD per person per day, to a maximum of $70 USD per cruise.


For a typical family of four, the market cruise lines have made such a huge push to get on the ships, that’s an extra $210 on a seven-day cruise. That could force those families off ships and on to land vacations and that is exactly what keeps cruise lines awake at night.

Still, Royal Caribbean announced plans this week for growth in Europe for 2012 adding another ship. The interesting part of the line’s 12-ship 2012 European deployment is adding (politically sound and happy) Amsterdam as a cruise port, handy to get to now with KLM service from Miami to Amsterdam.

Smart.

Smarter yet, passengers can get on and off ships at eight interports, creating 20 choices for embarkation and debarkation when the 12 homeports are included. That’s a lot of flexibility and exactly what they need to shore up confidence in their plan and help navigate what storms may come their way.

The ongoing trick to it all is to keep cruise vacations relatively convenient and affordable compared to other options. Cruise lines learned the hard way that in bad economic times travelers cut back on travel…but only for just so long. They may be looking for a greater value now than they once were. They may not be satisfied with just the lowest price now and will look beyond to see what they get for that price. The click-to-book people are probably clicking a whole lot more than they used to or using a travel agent to help insure value.

To get a look at the future, a glimpse at the past tells the story:

“The convenience and affordability of a cruise vacation continues to gain recognition as consumers discover the unrivaled experience cruising offers,” Carnival Chair and CEO Mickey Arison said. “As a result, long-term fundamentals for our business remain attractive in an environment where consumers increasingly value the importance of taking their holidays.”

Where are all the travel guide apps for Android?

Nearly two years ago, I bought my first smartphone: the T-Mobile Android MyTouch*. I’m only occasionally jealous of my iPhone-carrying friends, as I find few travel guide apps for Android. Even after a move to Istanbul, I still use and rely upon it daily; Android‘s interface is fast and easy-to-use, and seamless use of Google applications like Gmail and Google Maps is part of the reason I bought it in the first place. Living in a foreign country means English-language books and magazines are expensive and hard-to-find, and like many travelers, I don’t want to carry bulky books around when I’m on the road. This leaves a perfect opportunity for mobile developers to provide real travel guide content and not just travel-booking apps, especially apps produced by reliable media sources with professional editorial. These days, every guidebook and travel magazine publisher is coming out with apps for the iPhone and now iPad, supplying users with content and directions on the go, but there are hardly any for Android.

So what’s available for mobile travelers from the top travel book and print sources? Better hope you’re running Apple OS…Guidebooks:

  • Fodor’s: Happy 75th Birthday Mr. Fodor, but we wish you had more than just five city guides for purchase (in London, New York, Paris, Rome, and San Francisco) and only for Apple.
  • Frommer’s: iPhone guides are available for ten major cities in the US, Europe and Asia, but nada for Android.
  • Lonely Planet: iPhone users are spoiled for choice: dozens of city guides, language phrasebooks, audio walking tours, and eBooks optimized for the iPad. Android users in 32 countries including the US are in luck: there’s a free Trippy app to organize itinerary items, as well as 25 “augmented reality” Compass city guides and 14 phrasebooks. NOTE: This article originally mentioned that the Compass guides were unavailable in the Android Market store, but they should work for most US users. I happen to be in a country where paid apps are not available and not shown in the Market.
  • LUXE City Guides: 20 cheeky city guides work for a variety of mobile phones, including iPhone and Blackberry, but none are compatible with my Android. Bonus: the apps come with free regular updates and maps that the paper guides don’t have.
  • Rick Steves: If you are headed to Europe, you can get audio guides for many big attractions and historic walks for iPhone, plus maps for the iPad. You can also download the audio files free for your computer, and props to Rick for mentioning that Android apps are at least in development.
  • Rough Guides: Here’s a new one: the Rough Guides app works for many phones but NOT the iPhone OR Android! It’s not as slick as some of the other guides (it’s a Java app) and you will use data to use it on the road, but it provides lots of info for many cities in Europe. You can also find a Rough Guides photo app on iTunes to view pictures from around the world with Google Maps and captions from Rough Guides.
  • Time Out: City travelers and residents might want to look at the apps from Time Out for 5 European cities and Buenos Aires, with Manchester and New York on the way. More cities are available for free on iTunes, search for Time Out on iTunes to see what’s available. iPhone only.
  • Wallpaper* City Guides: 10 of the design mag’s 80 city guides are for sale for iPhone for Europe, Tokyo, New York and Los Angeles.

Print media:

  • Conde Nast Traveler: It makes sense for magazines to embrace the iPad, and CNT has free Apple apps specifically for Italy, cruises, and their annual Gold List of hotels and resorts. Blackberry users can download an etiquette guide, but Android users are snubbed.
  • National Geographic: As befitting any explorer, Nat Geo has a world atlas, national parks maps, and games featuring their amazing photography, all for iPhone. A special interactive edition of National Geographic Traveler is for sale on the iPad; you can also read it on your computer. Androids can download a quiz game and various wallpapers; and all mobile users can access a mobile-friendly version of their website at natgeomobile.com.
  • Outside: Adventure travelers can purchase and read full issues on the iPad, but no subscription option yet.
  • Travel + Leisure: The other big travel glossy also has an iPad app for special issues. Four issues have been released so far with one available now on iTunes (romantic getaways) but future editions will follow to be read on the app. Just in time for spring break and summer, they’ve also released a Travel + Leisure Family app with advice and articles specifically geared towards travel and families. The apps are both free but you’ll need an iPad – these are designed for tablets, not phones. You can also read full issues of T+L and their foodie cousin Food & Wine on Barnes & Noble’s NOOK Color ereader; you can save per issue if you subscribe to the e-reader version.
  • USA Today Travel: Most major newspapers have mobile readers for all types of phones, but USA Today is the only one with their own travel-specific app. AutoPilot combines an array of cool travel booking capabilities and information with articles and blog post from the newspaper. Only iPhone users can enjoy free.

Two of our favorite magazines, Budget Travel and Afar, have no mobile apps yet but great online communities to tap into their extensive knowledge.

All in all, other than Lonely Planet’s Compass guides, a pretty weak showing for Android travelers. While iPhone has been around longer as a mobile platform that Android, they’ve lost the market share of users to the little green robot. As Android is available on a variety of phone manufacturers and providers, expect that number to continue to grow, along with the variety and depth of content for mobile and tablet users. Will the developers ever catch up or will travelers have to choose?

*Android has not endorsed this or paid me anything to write about them. But to show I’m not biased – Apple, feel free to send me a sample phone and I’ll test out the apps!

Photo courtesy Flickr user closari. Special thanks to Sean O’Neill, who blogs on Budget Travel and the new BBC Travel blog.

Are you ready for a once in a lifetime cycling holiday?

Pedalers Pub and Grille may sound like a place where you’d stop for some grub after a long day riding your bike, but in actually, its an adventure travel company that specializes in cycling holidays to some of the best destinations on the planet. To celebrate their 25th anniversary, the company has just announced a new tour that will take riders on an eight month, six continent odyssey that will truly be a once in a lifetime experience.

The trip will begin with a “get acquainted” ride through Vermont, which will give everyone who signs up for the tour a chance to get to know one another before the real excitement begins. That shakedown cruise will also give travelers an opportunity to work out the bugs of the trip, such as learning what to carry with them on their daily rides, how to pack and unpack the bikes, and how to endure the rigors of the open road.

From there, the route will take cyclists across Europe, Africa, Asia, Australia, South America, and Central America, before eventually returning to the United States. In all, they will ride will through nearly 30 countries, including Ireland, France, Italy, Egypt, Kenya, India, Nepal, New Zealand, Peru, Costa Rica, and more. They’ll average anywhere form 45-60 miles (80-100km) per day on mostly paved roads with the occasional dirt track as well.

The Once In A Lifetime Tour won’t get underway until June of 2012, which gives you plenty of time to save your pennies. With a price tag of $95,000 the trip doesn’t come cheap, but that price does include all accommodations, most meals, all transportation costs, guides, tours, and even a custom built bike.

If you happen to have $100k and 8 months of free time coming your way, you may want to consider joining this trip. If nothing else, it sure seems like it’ll live up to its name and truly be a once in a lifetime experience.

[Photo credit: Pedalers Pub and Grille]

Useful foreign phrases, Part 1: how to say, “I’m just looking” in 10 languages

I’ve frequently pimped Lonely Planet’s Phrasebooks on this site, but I swear I don’t get kickbacks from the company. It’s just that I’m a big believer in not being a). A Tourist (although, let’s face it, if I’m not at home, I am indeed A Tourist) and b). helpless.

Even if you’re the biggest xenophobe on earth–which would make foreign travel a really weird and pointless pastime you might want to reconsider– it’s hard to dispute the importance of knowing how ask “Where’s the bathroom?” in certain urgent circumstances.

It’s with such experiences in mind that I came up with this fun little series. There are a handful of phrases I’ve cultivated in various languages that have served me well, in situations both good and bad. Not only are they inscribed on the dog-eared inner covers of my trusty Phrasebooks; they’re etched into my mind, so I can summon them at will. Whether you need to ward off annoying vendors, personal humiliation, potential suitors, or would-be attackers, it pays to be prepared and know what to say, when. Since things like “Yes, No, Thank you, Please, Hello,” etc. are generally not too challenging, for the purposes of this series, I’ll leave them out. That doesn’t mean they’re not very important to learn, however.

This week’s lesson: “I’m just looking.” Invaluable for politely but firmly stating your desire to see with your eyes, not your wallet. It may not stop persistent hawkers from trying to close a deal, but at least you’re showing respect by speaking in their native tongue (or an approximation thereof). And who knows? If you change your mind, that alone may help you score a better bargain.

P.S. I don’t claim to be polylingual: I’m compiling phrases based on past experience or research. If I offend anyone’s native tongue, please provide a correction in the “Comments” section. Be nice!

1. Spanish: Solo estoy mirando.

2. Italian: Sto solo guardando.

3. French: Je regarde.

[Photo credit: Flickr user Gerry Balding]4. German: Nur schauen.

5. Czech: Jen se dívám.

6. Portuguese: Estou só a olhar.

Many languages, especially those spoken in Asia and the Middle East, use written characters. Transliteration will vary, depending upon the guidebook/translator, which is why the spelling or phonetics below may be different from other sources. Since these languages are largely tonal (and may require accents or characters not available on a Western computer), look at this way: odds are you’re going to mangle the pronunciation anyway, so just do your best! It’s the thought that counts.

7. Chinese (Cantonese): Tái haa.

8. Japanese: Watashi ga mite iru dakedesu (here’s to Japan getting back on its feet and attracting travelers soon!) To make a Red Cross donation, click here.

9. Vietnamese: Tôi chỉ xem thôi.

14. Moroccan Arabic: Ghir kanshuf.

What’s the most useful phrase you’ve ever learned in a foreign language? How has it helped your travels? We want to hear from you!

[Photo credit: Flickr user wanderer_by_trade]