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Commodore Dave's Blog

 The beginning and end of the European cruise season have always presented some great bargains for value-seeking cruisers – particularly for last-minute departures. But for a variety of reasons, this fall and spring appear to be shaping up as two of the best seasons ever for deeply discounted trans-Atlantic cruises.   

Take the booking I just made aboard the Emerald Princess for a trans-Atlantic cruise that departs Venice on October 3. Just one week before the scheduled departure, Princess Cruises sent me an email promoting the 18-day voyage to Ft. Lauderdale with fares starting at a ridiculously low CDN$999 for an inside cabin. With fuel surcharges, taxes and port charges, the total per person cost for this 18-day cruise starts at just CDN$1,084.37, or an amazing $60 per day.  

At these prices, it hardly makes sense to get on an airplane to cross the pond. After all, where else could you get transportation, a hotel, three meals a day and entertainment for just $60 a day? My airplane ticket alone was $450 one way (including taxes and fees), and a night in Venice would have set me back at least 200 Euros.  

So why are we getting such great deals on trans-Atlantic cruises? 

Traditionally, the reason has been “yield management,” which is the way cruise lines manage the occupancy rate and pricing point of every voyage. The objective is to get the highest level of revenue per voyage, which means selling off inventory close to departure dates when ships are sailing well below capacity. Since trans-Atlantic voyages at the beginning and end of the season are difficult sells, this has always resulted in some very attractive fares.  

But there appear to be more factors at work this year that are producing lower fares than ever.

First, with the higher price of oil, it’s more expensive than ever for ships to sail well below capacity. And since the cost of fuel to sail across the Atlantic is both substantial and fixed, it makes good sense to subsidize that cost with as many paying passengers as possible, even with last-minute fares that are break-even or less.

Second, with airlines cutting back capacity and increasing fares, it’s more difficult than ever to get last-minute flights at reasonable rates. And even if you do, it can mean annoying stop-overs and plane changes rather than a direct flight. So last-minute sell-offs have to be priced at very attractive rates.

Third, with consumer confidence in the economy hitting record lows, people have been cutting back on spending, especially for items they consider optional. And while most people still consider a vacation essential, they are retreating to destinations that are closer to home. In fact, in response to this trend, several cruise lines have begun to discount Mediterranean cruises for the 2009 season, and redirect ships to the North American market.     

And fourth, with more than 34 new ships slated for delivery in the next four years, there will be more capacity than ever competing to get passengers up their gangplanks.  

While these trends will make life more interesting than ever for the world’s major cruise lines, they will continue to find innovative ways to fill their ships. And for the foreseeable future, that means we’ll continue to see great deals at sea, particularly for longer-haul destinations like Europe and South America, and for last-minute departures.  

That’s good news for value-conscious consumers looking for a great vacation deal, and even better news for cruise fans with the flexibility to travel on short notice.  

 

I just booked a cabin on a cruise ship for $1,569 per person. And it’s not even the cheapest cabin on the ship – an inside stateroom can be had for just $1,349. Even with port charges, fuel supplements, and all taxes, my tab still came to a very reasonable $2,265.

Not bad for a 10-day cruise, right?

Wrong! This is a 14-day voyage which means my costs average out to just $161 per day. Try living that cheaply while vacationing in a major destination and Arthur Frommer will canonize you in a travel book.

So you think I’m sailing on some kind of rust bucket or freighter, and that I’m bunking in with the engine crew?

No way. We’re talking premium cruise line here on Royal Caribbean International, and a relatively new and beautiful ship in the Radiance of the Seas. This is a 4-star vessel, and I’m sitting pretty in an outside cabin with a balcony. Yes, a balcony!

Okay, this must be some kind of repositioning cruise without any ports of call, right?

Wrong. This is a dream itinerary around Cape Horn from the west side of South America to the east. It will take me from Santiago, Chile to Buenos Aries, Argentina. And during the cruise, I’ll be visiting 10 South American ports, and cruising through the beautiful Chilean fjords and the historic Strait of Magellan.

Furthermore, my fare includes accommodations, meals and entertainment on ship. The only thing I have to pay for is booze, which I realize in my case, could raise the daily cost of cruising by more than a few bucks!

And that’s not the only deal being offered by major cruise lines. Just recently, Holland America had a 32-night South Pacific cruise with air on sale for just $3,206. And there are more great cruise values out there – just check out the line-up on tripharbour and you’ll find deals like a 3-night cruise for just $165, a 4-night cruise for $419, a 7 night Alaska for only $859, and a 7-night Caribbean staring at just $479.

Now compare these values to a land vacation. During my recent Med trip, I paid in excess of $300 a night for hotel rooms in Rome and Venice, more than $150 a day in restaurant meals, and plenty more in train, bus and taxi fares – never mind the cost of flying from Venice to Rome. As for entertainment, who could afford to go out after all those expenses?

The bottom line is that cruising is still a great value, even when we add in the cost of fuel supplements to reflect the high costs of oil. That’s good news for anyone who loves to travel, and even better news for those who love to cruise.