Travel industry battered by world crises says CNN

by Kraig Becker on

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

by Chris Owen on

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.”

Top 10 Onboard Fitness Innovations for 2011

by Chris Owen on

An evolving cruise industry is way more than a ride around the Caribbean, a 24/7 food fest, bingo and a generic 70’s Vegas-style show at night these days. Giant Oasis-class Royal Caribbean ships, the latest Dream-class from Carnival and an upcoming new Princess ship class have features that go far beyond what the tiny Love Boat of TV-fame had to offer. A focus on healthy living has gone from a basic, obligatory fitness center to ship-wide features, activities and programs both on and off the ship. Onboard gym innovations aimed to help keep guests fit at sea abound and travel agent network Cruise One has been keeping track of what the different lines have to offer.

“Back in the day, cruise travelers came home with more than souvenirs – taking a cruise usually meant bringing home an extra 10 pounds,” said Dwain Wall, Senior Vice President and General Manger of CruiseOne.

Gadling has reported on fitness and health at sea before with a focus on Carnival Cruise Lines new Carnival Magic to debut this May (and Gadling will be on board) with an exclusive Sports Zone that will will feature a SkyCourse, the first ropes course at sea and the first ever outdoor fitness area in the cruise industry. We talked about how Royal Caribbean is making fitness at sea a quiet priority, offering guests more healthy, active lifestyle options than ever before too.

According to CruiseOne, the “Top 10 Onboard Fitness Innovations for 2011” include many other lines as well.

Celebrity Cruises – Learn to Love the Gym
Guests who are uneasy about entering the gym can look for guidance with Celebrity Cruises’ “Help! I Don’t belong in a Gym” training sessions. Trainers will happily guide beginners through weight training and teach them how to use the various exercise equipment available onboard.

Crystal Cruises – Walk on Water (WOW)
Guests can take advantage of the line’s exclusive Walk-on-Water (WOW) program featuring the WALKVEST® Training System, a weighted vest that adds resistance to workouts, which can be utilized on the ships’ 360-degree promenade. The WALKVEST can be used with customized music-driven audiotapes, a day-by-day guided walking program, and educational instructions on how to walk safely and effectively on deck.

Seabourn – Walk in Water
Seabourn Sojourn offers a Kneipp Walk pool, a shallow, circular pool separated into regions of very warm and chilled water. When guests walk around the pool, the combination of changing pressures, temperatures and motion improves capillary circulation, aiding in the cleansing of toxins, increasing hormonal balance and reducing stress.

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Carnival Cruise Lines – Cycling at Sea
Several Carnival ships feature “virtual bicycles” in which guests “tour” a variety of routes, including mountain pathways and snow-covered trails. Guests can choose a different course each day and depending on their fitness level, the routes chosen may be bicycling through highways, cross-country or even participating in the Tour de France.

Disney Cruise Line – Sports go Virtual
Parents and kids alike will enjoy Disney Dream’s Goofy’s Sports Deck, where Digital sports simulators are available, providing a variety of state-of-the-art virtual sports-gaming experiences that include soccer, golf, tennis and basketball. Thanks to realistic graphics and sounds, guests are invited to kick, swing, throw and compete in some of their favorite active sports while out at sea without the use of an actual ball.

MSC Cruises – Aurea SPA with Breathtaking Views
MSC Cruises’ unique signature Aurea SPA offers a variety of aerobic classes including step, Pilates, Latin dance, passive gymnastics, personal training and yoga. Guests will love the view in the sun-kissed exercise room onboard all MSC ships, which is suspended above the water.

Norwegian Cruise Line – Epic Fitness Firsts
Norwegian Epic itself has many firsts that take sports and fitness to a new level, including the first rappelling wall at sea and the only U.S. rated climbing wall afloat. The fitness center features an unprecedented 37 treadmills and 18 cross trainers; extensive weight equipment and free weight areas; stretching areas and four distinct aerobic studios. For those who enjoy group settings, Norwegian Epic has diverse fitness classes such as TRX and kettlebell training; yoga; Pilates; Activio® group cycling; Gravity® reformer; and body sculpting boot camp classes.

Oceania Cruises – Tip-Top Toes
Oceania offers specialized wellness services including Yamuna® Foot Fitness classes offering simple techniques that improve the alignment and flexibility of hard-working feet. Through the class, guests can re-educate healthy foot function, by restoring balance, strength and proper gait.

Princess Cruises – Core.Balance.Strength
Lotus Spa on Princess Cruises now offers guests an exclusive fitness program focusing on three vital components of balanced health called Core.Balance.Strength., which is designed to help guests maximize their wellness potential by focusing on these three fitness components, each with a series of corresponding classes.

Royal Caribbean International – Jogging through Innovation
Guests of Oasis of the Seas and Allure of the Seas, Royal Caribbean’s newest and most innovative ships, can jog their morning mile in the middle of the ocean, with breathtaking 360-degree views from the Sport Deck’s running track. The track winds through various areas of the ship, unlike many other onboard jogging offerings.

Whatever it is you do in your active, real life, be it hiking, cycling, walking, running or any number of assorted gym machines, there is something special about doing it on vacation in different surroundings. On a cruise you may get the opportunity to try you passion at multiple destinations, adding even greater depth to your experience. I go to the gym every morning and spend a lot of time on a treadmill. I do that on a cruise too but in front of me is not a bank of televisions or the other people I see at the gym each day. Instead I see any one of hundreds of cruise ports or the open sea, a totally different experience.

“Today’s travelers have asked for healthy and fun activities to choose from while onboard and the cruise lines have responded adds” CruiseOne’s Wall “The best part? Many of these offerings are included in the price of the cruise.”

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Ten cruise packing list items your friends want you to bring

by Chris Owen on
There are some things you can do without, some you might call must-have items and some that just belong on any list. These are those items. You could sail without them and have a good time but sailing with them will get almost guarantee a great time for you and a whole lot of other people on the ship. These are ten cruise packing list items your friends want you to bring. They will thank you for it later.
  1. Manners– Leave the trailer-trash person in you at home. You give cruise passengers a bad name. We don’t all live in trailers with horse poo in the front yard and three weeks of garbage in the kitchen because everyone is too lazy to take it outside where the shower is that they never visit either.
  2. Clothes that fit- Let’s get real ladies. Just because you can squeeze into a size 8 does not mean you look good in one. If size 14 is what you really need to wear, do that. Yes, you will never see these people on the ship again but no need to give them nightmares that will last for years. Men, you’re not off the hook either. If you are even thinking of competing in the belly-flop contest (see above) you are overweight and need to get to the gym pronto.
  3. A great big pile of money– Let’s face it; hardly anything of any importance is included in the price of your cruise. Yes you can eat at the buffet until you explode but all the best food you will pay extra for. Casino? Pay. Spa Treatments? Pay. Shore Excursions? Pay. Drugs ashore? Pay. (except on Royal Caribbean- they deliver)
  4. Your A-game- Whatever side of you it is that is icky, leave it at home. Go get a pedicure, manicure, haircut, clean socks, a bathing suit that fits (see #10) or a generously sized cover-up. Everyone will be looking at YOU and YOU alone.
  5. A good attitude– Check your sour “I hate to stand in lines” attitude at the door. There will be lines. You will stand in them. You will live to tell about it. Get over it before boarding please.
  6. A gourmet palate– Leave your “belly up to the buffet” demeanor at home. Feed your gaping maw at Golden Corral and bring along an appetite for the good stuff. Cruise lines employ Chef’s from all over the world to make fine cuisine for you. Eat it.
  7. Your brain or the brain of someone else– Bring a brain along. At least one per traveling party will keep you safe, secure and happy. It does not have to be yours, someone else’s brain will do. That old line: “It’s a no-brainer” is a sneaky one. No, standing on the guard rail is not a good idea no matter how cool you think it makes you look. Take up smoking instead, at least you can quit that later. Death from falling into the ocean? Not so much.
  8. A calendar/sticky notes- This is just so you can remember that you are on this cruise. No one cares how many cruises you have been on, that you are a Superior Diamond Deluxe member of the past-guest club with bonus Rubies and Gemstones or that you know the captain personally. We. Are. Not. Impressed.
  9. Handcuffs– They’re just fun to have around. There is always a joke or two when you bring out the handcuffs at dinner. Great ice-breaker.
  10. Anti-Hormone Venom for your teens– I don’t know what it is about being on a cruise but teen sex urges go into overdrive at sea. That “look” dads know to beware of on teen boys that come sniffing around for their daughters gets muddled by alcohol too so either don’t drink or don’t buy those kids booze to be “cool”.
Flickr photo by lotopspin

Carnival Magic completes sea trials on way to May 1 launch

by Chris Owen on

On track to debut in Venice, Italy May 1st, new Carnival Magic has completed sea trials in the Adriatic Sea.

Currently under construction at the Fincantieri shipyard in Monfalcone, Italy, the 3,690-passenger vessel had a full contingent of officers, technicians and engineers on board who thoroughly tested the Carnival Magic’s sophisticated navigation and mechanical systems.

A sea trial is the testing phase of a watercraft (including boats, ships, and submarines). It is also referred as a “shakedown cruise” by many naval personnel. It is usually the last phase of construction and takes place on open water, and can last from a few hours to many days.

Following sea trials, Carnival Magic returned to Monfalcone, where it is undergoing final interior outfitting prior to its delivery late next month.

Carnival Magic will introduce a number of new features, including the Caribbean-inspired RedFrog Pub with its own micro-brewed draft beer, Thirsty Frog Red, and a menu that includes conch salad, spicy chicken wings and other bar food favorites; Cucina del Capitano, a family-style Italian restaurant that taps Carnival’s Italian heritage to the table; and SportSquare, a top-deck recreation area featuring cruising’s first ropes course and outdoor fitness area.

Carnival Magic is set to debut in Europe with a series of seven- to 12-day Mediterranean cruises operating May 1 – Oct. 16, 2011. Following a 16-day trans-Atlantic crossing, Carnival Magic will launch seven-day Caribbean service from Galveston, Texas, Nov. 14, 2011, becoming the port’s largest year-round cruise ship.

Photo courtesy Carnival Cruise Lines