Damn the torpedoes: Cruise industry finds smooth sailing in rough seas
The new cruise ships just keep coming and the cruise industry rolls on despite downturns in the general tourist market.
What’s behind the continued christening of very luxurious ships?
One major reason is discounted tickets, say cruise experts. Another factor: all-inclusive prices, though that can be deceptive. And with dozens of ports, many cruisers can avoid the cost of airline flights.
"The super-sizing of the cruise industry comes as other industries are downsizing and consumers are curbing unnecessary expenses," says The Economist.
The cruise industry has been far outpacing other travel businesses such as hotels and airlines, which have been battered by the world recession.
Silversea Cruises last month christened the latest ship with champagne, the 540-passenger Silver Spirit, and sent it on a 91-day voyage around Latin America.
The ship is the line’s most luxurious. Suites are serviced by butlers. Guests can choose between eight types of pillows. There’s a huge spa.
"If it sounds out of tune with the times, it is: the ship was commissioned in 2007, before the start of the economic crisis. But Amerigo Perasso, the boss of Silversea Cruises, insists he is happy with the investment," reports The Economist.
In 2009 cruise companies invested $4.7 billion to build 14 new ships. They will launch a further dozen vessels this year. Many of these plans were laid before the economy began to leak.
To entice customers, cruise lines have cut prices dramatically, sometimes by as much as 40 percent.
Because of these discounts, more people are taking cruises: 13.4 million in 2009, up from 12.6 million in 2007, according to the Cruise Lines International Association (CLIA).
At Carnival Corporation, the biggest cruise line, revenues were more than 10 percent lower in 2009 than in 2008.
But at the same time, the future market appears enticing. Only about one in five Americans have been on a cruise. Officials are already looking at ways to lure this potential new market.
By David Wilkening
David
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