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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.  

 


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6 Comments so far

  1. Rex on October 1, 2008 7:29 pm

    $60 a day for cruise….wow, if I could get there in time I would join you!!! I will certainly keep my eyes peeled for these types of bargains. For semi-retired people like me with the flexibility to travel last-minute, these sound like great deals.

  2. Jax Condie on October 2, 2008 1:47 am

    Dave -

    I met a couple from the UK who had a similar financial epiphany. The spend three weeks aboard the Jewel because the cost-per-day was so darn cheap. They did a Mediterranean itinerary, stayed aboard for the big float across to Boston, and were onboard for the mirth and merriment in New England and Canada.

    Needless to say, I was seething with envy… LOL

    Jackie

  3. Carlos on October 2, 2008 2:40 am

    Hi Commodore!

    I’d never of thought it would be that inexpensive to travel such a long distance in such luxury for so little! And the way things are looking, this could be a very affordable vacation for a while to come! I guess it’s all about looking for those deals, and if you can be a bit flexible you really can get a bargain! Thanks again for your insight, a valuable source of information in money conscious times!

  4. Linds on October 2, 2008 3:56 am

    I’M SO JEALOUS! 18 days on a cruise!! I wish I could go!!
    that one picture of the boat with two huge pools made me want to go on a fun party cruise again!

  5. commodore dave on October 2, 2008 4:16 am

    Hey Jackie.
    That couple reminds me of the old lady who kept doing back-to-back cruises.
    This was noticed by a fellow passenger who asked how many days she spent at sea each year. The woman replied, “I live all year long on the ship.”
    The passenger said, “I don’t understand,” and the old women replied, “It’s cheaper than a nursing home.”
    She went on to explain that the average cost at her nursing home was $200 dollars a day, and that with her senior’s discount the cruise fare was just $135 per day. Not only was she saving $65 a day, but:
    1. She could have as many as 10 meals a day in the dining room, or order room service.
    2. She could choose from as many as three swimming pools, a workout room, free washers and dryers, and shows every night.
    3. The ship provided free soap and shampoo.
    4. The crew treated her like a customer, not a patient. And $10.00 worth of tips each day had the the entire staff scrambling to help her.
    5. She got to meet new people every 7 to 14 days.
    6. T.V. broken? Light bulb need changing? Need to have the mattress replaced? No problem! The crew fixed everything and apologized for the inconvenience.
    7. They provided clean sheets and towels every day, and she never had to ask for them.
    8. If you fall in the nursing home and break a hip you are on Medicare. If you fall and break a hip on the Princess ship they will upgrade you to a suite for the rest of your life.
    9. Now hold on for the best! Do you want to see South America, The Panama Canal, Tahiti, Australia, New Zealand, Asia, or name where you want to go? The cruise line will have a ship ready to go.
    10. And, when you die, they just dump you over the side at no charge.
    So when it’s time for me to go to a nursing home, you’ll find me on a ship doing the world cruise just like the old lady!! That way I can save enough money to leave a nice nest egg for the kids.

  6. Stuart MacDonald on October 2, 2008 5:09 am

    Another great thing about re-po cruises is that they can give newbie cruisers the chance to try out cruising for a shorter duration, at a lower price, closer to home.

    There are great short breaks from Vancouver to Los Angeles, say, as the ships move south from Alaska. It could be your first cruise, or let you “splurge” on a suite for a lot less for instance.

    - Stuart