Destination News - Cruising

Airguide Online, Nov 12, 2007

Nov 12, 2007

Following similar moves by Carnival Cruise Lines and Royal Caribbean International, Norwegian Cruise Line and NCL America will no longer pay commission on the air portion of cruise bookings. The new policy goes into effect for all new bookings made after November 30, 2007. The line said "this change will enable us to continue to offer a competitive air/sea program and to maintain a cost structure in line with our major competitors." Some other lines, including MSC Cruises, continue to pay air add-on commission; MSC's is 10 percent. Nov 7, 2007

Cruise industry veterans Rod McLeod and Mike Applebaum have launched McLeod, Applebaum & Partners, a south Florida-based management consultancy focused on the vacation and cruise travel industries. The new firm will advise business owners, senior managers and tourism authorities on creating, developing and implementing business development strategies and action plans. McLeod's background includes senior management and marketing positions at Royal Caribbean Cruise Line, Carnival Corp. and American Classic Voyages, as well as two terms as chairman of the Cruise Lines International Association (CLIA). Applebaum, meanwhile, has held senior sales and management positions with Norwegian Cruise Line, Royal Caribbean and the travel division of the California State Automobile Association. Applebaum served on the CLIA marketing committee for five years and has his CTC. Nov 6, 2007

Carnival Cruise

Carnival Corp. said all its North American brands will charge cruise guests a fuel supplement of $5 per person per day, citing a 50 percent increase in fuel costs over the past seven months. The surcharge will be in effect for all new and existing bookings for cruises departing on or after February 1 and will be limited to $70 per person per voyage. Carnival said the charge will apply only to the first and second guests in any stateroom, meaning the extra fee won't be charged, for example, for kids staying with parents in the same cabin. Still, the $140 additional charge per couple could potentially have an impact on sales by agents to budget-conscious consumers. Nov 8, 2007

Carnival Cruise

The new fuel supplement of $5 per person surcharge applies to voyages of Carnival Cruise Lines, Costa Cruises, Cunard Line, Holland America Line, Princess Cruises and Seabourn Cruise Line. Carnival Corp. Chairman and CEO Micky Arison said the line held off implementing a surcharge as long as possible, but the spike in fuel prices has dramatically affected the company's operating costs. Carnival Corp.'s fuel prices alone have increased 140 percent over the last three years, he said. Nov 8, 2007

Crystal Cruises

Crystal Cruises has announced a new policy to protect its price integrity and the business practices of its travel agent partners. Effective immediately, Crystal Cruises will apply "stiff" commission penalties to any agency that is found offering any cash rebate, discount or payment in kind or in any other manner to a client who books a Crystal cruise, if it reduces the fare below Crystal's published savings rate. Agencies may continue to offer value-added, non-cash amenities provided that the total value of the amenities does not exceed the 8 percent limit. Under the new policy, gift cards or certificates having a cash value are not permitted. Nov 6, 2007

Crystal Cruises

Crystal's decision was sure to elicit travel agent response, which was as much appreciative and understanding as it was ambivalent. Bob Kerby, owner of Bob's Cruises in Toronto, while not turned off by Crystal's declaration, was less enthusiastic. "I admire them for making a decision and taking a stand," he says. "But to tell agents they can't sell for a lower price, I'm not so sure. That's for them to say; however, it's foolish to try and control distribution." Nov 6, 2007

Holland America

Holland America Line is putting up quite an investment in itself: more than $425 million, almost double the amount it initially put into its ships for renovation. When Holland America embarked on the Signature of Excellence program to upgrade its fleet, the company had no idea the renovation program would become its tagline and mantra. Many of the ships already have completed upgrades and Prinsendam is set to receive its makeover next month, which will add closet space in the staterooms and marble vanities in guest bathrooms, as well as a card room to replace the golf simulator and a new Explorations Cafe. Nov 6, 2007

Holland America

Holland America Line is strengthening and redefining its position in the market. The line is also embarking on a marketing campaign encompassing redesigned brochures, a greater use of e-brochures and a framework to attract a younger clientele. Early returns on Holland America's new marketing content are favorable. Almost half the respondents to a study conducted by the cruise line said that Holland America's new advertisements piqued their interest, and 61 percent said they would take action toward booking. This all sets the line up for 2008 and its biggest news: the July addition of its first Signature-class ship, the 2,104-guest Eurodam, which, when joined by a sister ship in 2010, will raise Holland America's capacity 22 percent. Nov 6, 2007