Cruise line price scare: real or strategic plan?

Earlier this week, Norwegian Cruise Lines announced that at the end of March prices would go up. Noting high demand for their anything-goes “Freestyle” version of a cruise vacation, the line said it planned to raise prices ten percent. If that announcement has a familiar ring to it, there might be a good reason why says one industry expert. Let’s play along.

First, the line cushion’s the blow of a 10% price increase by extending their current promotional offers until the end of March in a “we’re tough, but we’re fair” sort of way.

“We wanted to give consumers and travel agents the opportunity to take advantage of these offers before the price increase.” said Norwegian Cruise Line CEO and former Undercover Boss Kevin (Sneaky) Sheehan.

“Thanks, we appreciate your kindness and the heads up.” should be the consumer response?

Not so fast says cruise industry expert Stewart Chiron, CEO of CruiseGuy.com “This is NCL’s 2nd Annual April Fool’s Cruise Sale. For some, it’s a message of don’t book NCL after 3/31 because you’ll pay more.”Indeed, cruise lines often promote a call to action for booking in a number of ways that seem to have a bit of strategic ambiguity built in. While accurate, the helpful announcement or glitzy promotion does not exactly match reality.

“NCL made the same comments last year, but (the timing) followed Carnival’s announcement that they were going to raise summer prices.” added Chiron reasoning “They may be trying to generate additional attention for their possible future IPO.”

A price scare tactic is one way to move buyers toward booking. But cruise lines don’t have to mislead the public, they do a great job of that all on their own.

The “cheap cruise” turns out to be much more when taxes and fees are added in. That’s no fault of the cruise lines, they do mention that those extra fees are not included. “Free upgrades” suggest that buying a cheap inside cabin might get you a luxurious balcony stateroom. Again, the fine print lines out the details, but buyers seeing a handsome couple standing on their balcony does suggest that upgrading to one is possible.

Still, most buyers learn quickly to read the fine print even though new strategies still throw them off guard.

Whatever the reason, it’s buyer beware as this year’s busy wave season winds down and the next round of promotions heat up. It might be a good idea to file this information away for later notes Chiron “Stay tuned for next year’s announcement. It might sound quite familiar.”

Flickr photo by markhillary

Cruise prices on the rise along with popularity

Miami-based Norwegian Cruise Line announced this week plans to increase cruise fares by 10% starting April 1st. Not because middle-east unrest might spike oil prices. Not because of cost overruns or shrinking bottom lines. Travelers are buying again.

“We’ve seen exceptional demand spurred by our Wave Season promotion, particularly for the popular summer destinations,” said Norwegian Cruise Line CEO and former Undercover Boss Kevin Sheehan.

Just to make sure there are plenty of great offers to take advantage of before the rise in prices, the line will also extend their current “Upgrades for All” promotion though the end of March.That deal gets up to a four-category upgrade on select sailings and on-board discount coupon books worth up to $400 off on-board products and services

“We wanted to give consumers and travel agents the opportunity to take advantage of these offers before the price increase.” added Sheehan.

Norwegian Cruise Line has 11 Freestyle Cruising ships and plans to build two new 4,000-passenger vessels for delivery in spring 2013 and 2014. The line’s latest ship, Norwegian Epic, debuted last Summer.

Flickr photo by cmerow

Cruise line adds new cabins, upgrades to older ship

Whenever a cruise line adds new stuff to old ships, it’s a big deal. This time, it will happen during a dry dock maintenance period this coming May. Norwegian Cruise Line will add a total of 58 new cabins to the 2,224-passenger Norwegian Dawn including 28 new suites.

The suites include four 667-square-foot to 732-square-foot owner’s suites and 24 family suites, ranging from 408 square feet to 495 square feet, most of which can sleep six passengers.

Norwegian did a similar addition project adding new cabins on sister-ship Norwegian Star not long ago which worked out well.

“The flow of the ship has improved on the Star with these changes and we think it’s more in line with the way we build ships today,” said Crane Gladding, NCL’s senior vice president of revenue management and passenger services. “We are putting more public spaces together for guest flow to be more smooth around the ship.”

The work will be done at the Grand Bahama Shipyard in Freeport, Bahamas, from May 1 to 27.

More changes are on the way for the ship also, but the cruise line is keeping those a secret to be revealed later.

Flickr photo by Ken from NY


Norwegian Epic studios win design award from Travel + Leisure

Hailed by single cruise travelers as the first and only cruise line to offer special accommodations for the solo cruiser, Norwegian Epic’s studio staterooms were recognized for their innovative design.

“The Studio staterooms on Norwegian Epic have been extremely well received and we are pleased to be able to offer solo traveler’s an opportunity to visit great destinations while experiencing Freestyle Cruising on board our most innovative ship,” said Kevin Sheehan, Norwegian Cruise Line’s chief executive officer and former star of TV’s Undercover Boss.

Norwegian Epic was awarded “Best Transportation” for its innovative studio staterooms, a private key-card access complex on two decks consisting of 128 staterooms and the Studio Lounge.

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The staterooms are secure and comfortable for one person…two on a lucky night at the Studio lounge, just steps away. (Well, the line does say “you’re free to do…whatever!”) Each Studio stateroom has about 100 square feet of living space and features a contemporary design with a full-size bed and separate areas for the bathroom, sink and a larger-than-average shower (two can easily fit). The separate areas for bathroom, sink and shower received mixed reviews when the ship was first launched, mostly by passengers sharing a stateroom with another person.

Singles, however, loved the design of the studios and gave the special accommodations rave reviews.

Design Awards were selected by an esteemed panel of judges, including Henry Urbach, curator of architecture and design for the San Francisco Museum of Modern Art; Norma Kamali, fashion designer; Danny Meyer, restaurateur; Paulette Cole, CEO and creative director of ABC Carpet & Home’s; and David Childs, Chairman of Skidmore, Owings, & Merrill.

Photos- Nowegian Cruise Line




Historic cruise ship to be given a new life

It was and still is the largest ocean liner constructed entirely in the U.S. The 53,330 ton SS United States that ran transatlantic sailings until 1969, setting speed records that have still not been broken today. Still, the ships fate seemed doomed with her next stop being the scrap yard.

Built from 1950-52, the SS United States operated uninterrupted transatlantic passenger service until 1969. But the ship was withdrawn from service and bounced around from one idea to another. At one point there was talk of making it into a floating time share-like ship. Later it was stripped of its fittings that that would become furniture in a North Carolina restaurant. Most recently the ship was slated to become part of Norwegian Cruise Lines American-flagged Hawaii fleet.

The SS United States Conservancy announced Tuesday it has purchased the legendary ocean liner, berthed in Philadelphia since 1996, from Norwegian Cruise Line and its parent company for $3 million and hopes to restore the ship to its original glory in an extreme makeover the likes of which has never been seen.

They have a long way to go though.

The annual costs of upkeep tops $800,000, the ship is full of toxic PCB’s, fire-resistant chemicals once commonly used in paint which must be removed, and the refitting price tag is high at $200 million.

“While we’ve already been talking with a number of investors, municipal officials and developers, we can take these conservations to the next level because we now hold title to the vessel,” said Susan Gibbs, conservancy board president and the granddaughter of William Francis Gibbs, the ship’s Philadelphia-born designer. “Our doors are open and we’re ready for business.”

Why bother?

This is a ship that carried President John F. Kennedy and actress Grace Kelly. Prince Rainier of Monaco, England’s King Edward VIII and former Rhodes scholar Bill Clinton were on board. This is a piece of history that once gone, we will never get back. Today’s cruise ships are built in a totally different manner in foreign shipyards. This one, the one that still holds the transatlantic speed record, was built in America. How many things can you say that about these days?

While private backers are being sought to fund the enterprise, donations are being accepted via the Conservatory’s website.

Flickr photo by Mihai Bjorn