2010 Trends in the Cruise Industry

2010 Trends in Cruise Industry

Source: Cruise & Vacation Agents

There are ten trends in the international cruise industry influencing both the supply-side in terms of product improvement and development and the demand-side in terms of market profiles and expectations. 

Mega Ships Mania

The introduction of Royal Caribbean’s Oasis-class twin ships the Oasis of the Seas and the Allure of the Seas (220,000-ton, 5,400-passenger or 40% larges than the next biggest cruise ships the Freedom-class ships, also of Royal Caribbean) are attention gathering mega ships due to their size.

Oasis-class innovations include delightfully surprises - the outdoor Central Park, complete with live plants; the Boardwalk, an exterior promenade, complete with an antique carousel; and the Aqua Theater, a pool area and amphitheater at the ship's bow that features high-dive and other aqua-acrobatics.

Focus on Improved Refurbishments

Some of the most popular features on new-built cruise ships - such as balconies and verandas, children facilities, outdoor sports, expanded shopping areas and expansive spas - are part of the refurbishments of the older model cruise ships.

Carnival's "Evolutions of Fun" initiatives upgrades in the children's water parks with 300 ft. water slides and adults-only sun decks. Refurbishing also includes enhancements to cabins, pool decks, soft goods, and entertainment options, including new resort-style retreat aft and spa-centric staterooms.

On the luxury end, Regent Seven Seas Cruises is undertaking a program to enhance its trio of all-suite vessels. The US$40 million project includes the addition of a steakhouse; redesign of lounges, public rooms, and suites; and the addition of pizza ovens and ice cream bars.

Luxury Boutique New-Builds

New-built boutique ships are the first brand new luxury ship designed, like the Seabourn Odyssey a luxury ship with roomier accommodations (the vessel is three times larger than its fleet mates but carry only double the passengers) and course-by-course, in-room dining; and more. Silver Spirit will be similar in style and design to the line's existing trio of upscale ships, but with a few firsts—including a supper club and an Asian-themed restaurant—and a larger spa.

The Dining Room Revolution

Cruise lines continue to implement freestyle dining - being able to eat when and where you want, rather than committing to a set table at a set time. Pioneered by Norwegian Lines, this concept is now the norm in all big-ship lines.  Royal Caribbean introduced and successfully tested "My Time Dining" a program that offers flexible evening dining options - on the Freedom of the Seas, Brilliance of the Seas, and Serenade of the Seas.  

Resurgence of Homeports 

Traditional embarkation cities, like Miami or Ft. Lauderdale are no longer the vogue. Homeport cruising - the strategy of basing ships in drive-to ports all along the East, West, and Gulf Coasts -is back in favor because they remove the hassle and extra cost of flying to the embarkation ports.

Last year Carnival's announcement that it would base Carnival Pride in Baltimore on a year-round basis;  while other U.S. coastal cities, ranging from Charleston to San Francisco and from Boston to San Diego, also have varied options - often newer, more amenity-filled cruise ships - than ever before. Norfolk, Virginia is the base of Carnival Triumph and Royal Caribbean's Grandeur of the Seas now sails from Boston, Massachusetts.

Close to Home Cruises

Interest in exotic (and world) cruising to far-flung places like Australia/New Zealand, South America, and Asia - which, in the economy's boom time, were hugely popular - has slowed way down. Not only are these trips pricey, but they also generally last longer than the average seven-night cruise and require long and expensive air flights.

As a result, closer-to-home destinations are experiencing a renaissance: Bermuda, the Caribbean, and the Mexican Riviera for North Americans and the Mediterranean and Baltic for U.K.-based travelers.

Last year cruise line cutbacks on world voyages and exotic cruises meant less choice and higher prices. However because lines have moved ships out of the traditional embarkation ports to the more accessible “homeports” there are more choices to the Caribbean and the Mediterranean - and the additional competition will result in lower fares.

One exception is the Middle East - a region that most would consider "exotic." The Middle East rising in popularity has prompted both Royal Caribbean and Costa Cruises to base ships in Dubai.

Short Cruises Better Than No Cruises

Taking a less-than-a-weeklong cruise is one way to cut vacation costs, and cruise lines have responded by upping the appeal of short cruises. In the past, ships deployed on shorter cruises were usually older models with far fewer amenities. Today's travelers now have the chance to sail on newer, more amenity-laden trips.

Carnival Cruises serves the short cruise markets but has embarked on a new series of four - and five - night voyages alternating between the Western and Eastern Caribbean. On the West Coast, Royal Caribbean offers four - and five - night Mexican Riviera cruises. 

New Perks for Solo Travelers

On the marketing side, cruise lines are now reaching out to every potential traveler by introducing the “Solo cruisers” who use to pay double the cruise fare to occupy a cabin alone or waiving the single supplements. A limited percentage of cabins are designated for solo occupancy, however and these are decorated for single occupant – no second bed, for instance, to make room for a couch. The most interesting development is P&O’s announcement that the vessel, the Azura, launched this year has solo cabins design and built purposely for solo travelers. 

 

Last-Minute Cruising

Fabulous last-minute cruise deals are back, due to a soft economy. And although a last-minute cruise is defined roughly as a sailing that departs 15 days to 3 months in the future, there are now super-cheap sailings just a few days prior.

This trend appeals to those who are not to choosy about leftovers and have flexible travel dates. It also takes advantage of homeport cruising that do not require flight components or find that flights to and from major a cruise sailing ports are too expensive.

Beware of a la Carte Charges

Be warned that there are some “a la Carte” charges:

Dreaded fuel surcharges - the extra fees, ranging from US$5 per person, per day to the most expensive £19 per person (about US$27 per day) that were a result of a 2008 oil price spike.

           

Alternative restaurant charges - on some cruise lines there are service fees at alternative restaurants and some a la carte menu charges for some onboard venues;     and speaking of specialty restaurants, service fees - which used to hover in the US$5 to US$15 range - have risen fairly dramatically to about US$30.

 

In-dining-room charge - Royal Caribbean's US$15 charge for a special “in-dining-room” (room service) steak is particularly controversial. While most passengers accept paying extra fees to dine in specialty restaurants, the ships' main restaurants are still off-limits for picking the guest’s wallet.  

 

Admittance fees - as cruise ships get bigger, cruise lines will charge extra fees for admittance to venues since these can only accommodate so many passengers. Also as   cruise fares continue to drop and cruise line profits suffer, it is unavoidable that companies will investigate new areas for revenue enhancement.

Fitness class charges - at US$10 to US$15 per session and these can add up on weeklong trip.

Still, while cruise travel has never been a truly all-inclusive experience – there are always extras for spa treatments, Internet and phone access, casino gambling, shore excursions, and the like – so every additional bit is welcome.