Wednesday, May 5, 2010

So You Think There is a Better Deal Out There? Think Twice If You Think "Currency".

I have been having some pretty interesting discussions with various people from the UK regarding the differences in cruise pricing between the US and the UK. I though it might be time to discuss this a bit more in the open.  (Ironically, as I am writing this, a major cruise industry magazine has just released this day a short article on the subject.)

As many of you know I have the ability to sell cruises to people all over the world on many different cruise lines. This can, on occasion, result in questions and conflicts concerning pricing as many cruise lines still operate as if there is no internet or email, with things like prohibitions against agencies in one country booking people in another country so as to protect their various pricing schemes.  This was a hot topic at the Seatrade Cruise Shipping Conference where I raised the issue during a Q&A session with the Luxury Cruise market lines and the contrasts in approach were marked.

Personally, I think that for the vast majority of folks the problems and intricacies of using a non-United States travel agent do not warrant even venturing into the discussion.  Why? Because there are many other factors involved that most simply do not want to, or do not have the stomach for, getting involved with.  And there are risks.  Hence, unless you think you are going to save some serious money, it just can't possibly be worth the effort...though some, at least once, think it is.  (As you will quickly see, it usually is "once".) 

I also note, and preface the following with, this:  The US cruise market is by far the largest in the world and the top travel agents here (such as Goldring Travel, if I might say so) truly understand the business and the cruise product.  And, to be sure, there is something about...SERVICE...that comes to the fore, rather than providing the cheapest price.  (Notice I said "cheapest" not "best value").

I mention service because I am honestly losing count of the number of UK and European cruisers who contact me either before, during or after their cruises asking for guidance or assistance after being frustrated by their UK travel agents.  (Yes, there are some good UK agents, but the "culture" of travel agents in the UK is, for some reason, different.) Some were my clients, who found that when the dollar plummeted in 2008 (no longer the case!), there was a real dollar cost savings by booking an expensive cruise in the UK (under circumstances that allowed it - ex. a UK client).  One client eventually admitted that it didn't matter how much they thought they saved in dollars, because their added costs in upset and abandonment and lack of service, made it so it just wasn't worth it. Another emailed me from their cruise - booked with a UK agent - asking me to assist them because their agent wouldn't.  And the list goes on.  (Of course I assisted every person...but don't think of this as an open invite! :-)

Regardless of some of the pricing restrictions and service issues, there are some other things you had better understand.

For example, UK travel agents charge a pretty much mandatory 10% cancellation fee. So in the event you change your cruise or cancel, unlike when you book with Goldring Travel or many other agencies, you get hit with a substantial penalty...and nothing to show for it. Considering the number of times my clients change cruises or cancel plans, I probably would make a very significant sum...at my clients' expense...just on this little gimmick.

Another thing: Most UK agencies do not guarantee lower prices. One prominent UK agency proudly posts that it will meet or beat any lower price on a cruise you have purchased if you give them the quote from the other travel agency...in writing...oh, yes, and it must be within 48 hours of your booking. Don't get the difference to them within 48 hours: Pay the 10% cancellation fee and move your booking. See how that keeps prices up? On the other hand, as you know, Goldring Travel will do everything possible to obtain that lower price for you, 48 hours or 48 days after you book. Booking for 2011 or 2012? Why bet on prices going up, when you can rest assured that if they go up you are protected and if they go down you are as well.

Want another:  Yesterday, two British based cruise lines, Cunard and P&O have announced the return of the Fuel Supplement (about $3.65 per person per day, converted from Pounds). The reason for this is because the Pound is quite weak at the moment compared to the US Dollar.  Do you think Carnival Corp decided to only apply it to UK based cruise lines was by accident?  Of course not.  The power of the US consumer has forestalled this action at least for now.  Let's see how that trial balloon floats....and it affects UK cruise prices.

Then there is the issue of essentially arbitraging your cruise (betting currency against price). Will the Pound or Euro go up or down compared to the US Dollar?  Why is this important?  Because most cruises are either directly or indirectly priced in US Dollars and then converted to other currencies.  So if you buy a cruise in dollars it is the price, but if you buy it in pounds, it may be based upon a rate in November 2009 or January 2011; dependent on two things:  The date the non-US currency rate was established and the current exchange rate.

Hopefully by now you will see that while looking for a bargain, if it sounds to good to be true, it probably is.  While I always do my best to assure the best pricing, and to adjust pricing if the cruise fare lowers, what I really try to do is educate my clients.

Lesson Number One:  You will probably feel the pain of inferior service and/or the stress of having to pay penalties is if you change your mind, than the satisfaction of possibly saving a few dollars/pounds/euros. 

Tuesday, May 4, 2010

Seabourn Sojourn - The Evolution of the Luxury Cruise Experience

Yesterday I inspected Holland America's Veendam, sistership to the Maasdam which I sailed on about a decade ago.  Built in 1996 this 705 foot long, 101 foot wide, 10 deck, ship that carries 1,258 guests, represents where cruising was at that time.  There is a mishmash of cabins (mostly tight fitting affairs with beds underneath the windows, interspersed with public areas (with some new public spaces really improving things, BTW) with a low ceilinged dining room.  You can see where some aspects of the ship are frozen in time, others show a transition (such as the Pinnacle Grill being a smallish and not too fancy, but nice, space off the main dining room).

My reason for inspecting this older ship was, honestly, more to refresh my memory when comparing it to its competition in the premium New York to Bermuda cruise market:  Celebrity Summit, whose design is just four years newer from 2000 (alas she is a Millennium Class ship) that holds 50% more guests.    The differences are incredible.  From far more efficient cabin layouts and better bathroom finishes, to a soaring and dramatic two story main dining room, to a beautifully purpose-built specialty restaurant,a large pool deck with running track above as well as a thalosotherapy pool inside a solarium (vs. the Veendam's small pool in magradome which is more inside than outside), superior spa, etc.

But this is article about the Seabourn Sojourn and her development.  She is slightly smaller than the Veendam at 650 feet long and 84 feet in the beam and serves only 450 guests.  But while she is smaller than both the Veendam and the Celebrity Summit, she offers are superior amenities and options.  For example:

1.  Seabourn Sojourn (and her sister, Seabourn Odyssey) offer multiple dining venues including The Restaurant, Restaurant 2, The Colonnade (popular for al fresco dining) and the Patio Grill.  I mention these separate from the Veendam's Lido and the Celebrity Summit's Ocean Café because they are simply buffets; not true alternative dining experiences.  True you can dine in Ocean Café, but it is not purpose built nor with any true ambiance.

2.  Seabourn Sojourn has a two story, indoor/outdoor spa.  The Veendam has a smaller spa with some nice areas, but most certainly nothing extraordinary though clearly updated.  The Celebrity Summit has a wonderful Persian Garden area and treatment rooms.  But the smaller Seabourn Odyssey has an outdoor waiting/relaxation area, private villa, state of the art equipment, etc.

3.  The Seabourn Square is unique and eliminates the dreaded walk and wait at Guest Relations, Tour Desk and Purser.  While you can check your email and have a coffee on all three ships, the Seabourn Sojourn offers more than additional style; it offers integration so you can get it all done in one place; not on multiple decks in multiple locations...and, of course, with no multiple lines.

4.  Accommodations are another area where the Seabourn Sojourn shines.  While one can have a suite on the Veendam, none are really suites worthy of mention.  The Celebrity Summit does have a few nice suites (the Celebrity Suites are some of the best designed suites I have seen), but its Sky Suites aren't really anything I would call a suite at 252 square feet.  The Seabourn Sojourn has 225 suites on this smaller ship, with some of the largest, best designed and most comfortable suites at sea.  I am not knocking the Celebrity Summit's Penthouses - which are fantastic - but rather am noting the number and variety of suites Seabourn has included.

5.  Seabourn Sojourn's public spaces are designed to bring the outside in, while on the Veendam there is far more of orienting the public spaces inside.  The Celebrity Summit suffers a bit from the same condition, with one of my favorite locations, Michael's Club (the former cigar bar) not having a single window.  To me it seems as over the past decade or so, the transition as been a bit more of focus on the ship, to focus on being at sea and its romance.  I prefer that.

5.  Service and Inclusiveness - There is no question that on the higher end of the cruising industry including more is the trend.  Whether it be done by Regent Seven Seas jacking up its pricing or Crystal Cruises providing $2,000 onboard credits, it is here.  Celebrity recently announced various drink packages, including one which includes premium wines and liquors for $66.96 per day (including an 18% gratuity).  If you do the math, that comes out to about $1,000 for a couple on a seven day cruise.  Seabourn, on all its ships, includes same in it cruise fares.  This does have an effect on the ship's design because public venues, bars, etc. are not placed to maximize revenue, but rather efficiencies and comfort.  Think of it as a beautiful display vs. the placement of items at the end of the isle in the supermarket that you think are on sale, but really aren't.  Subtle, but noteworthy.

When I look at pricing and value (different things, of course) it is a bit shocking.  For a Category S Suite on the Veendam for a 7 day Bermuda cruise out of New York,the price is about $2,750 per person, plus, plus, plus.  For almost an identical price I can book a Celebrity Suite on the Celebrity Summit.  To those figures one must add drinks ($500 per person) + gratuities ($100) + specialty dining ($50 for two nights), etc. or, about $3,400.

Seabourn Sojourn is offering 7 day cruises, not to Bermuda, but northern Europe, for virtually the same price.

Imagine:  For those of you thinking about a cruise this summer, you can cruise on an older ship with not much going for it (the Seabourn Sojourn is smaller and carries one-third the guests, so intimacy isn't in its favor) or the Celebrity Summit (a fine ship, but without all the offerings of Seabourn Sojourn) or the newest ship at sea with the finest cuisine and service visiting exotic ports in the highest of country club casual style.

Friday, April 23, 2010

Sometimes It Just Ain't Fun - Iamboatman Needs a Cruise!

It is 5:00 a.m. and I am sitting in Continental's President's Club at Newark Airport, Terminal C waiting for my flight to Florida to attend to a family matter. 

On Wednesday I was in a very long meeting of the Colts Neck Board of Education (of which I am a Board member) after the school budget was voted down after our new Governor Christie, who continues to wreak havoc with our education system.  (Yes, some aspects are seriously broken, but trying to fix it with a hammer as soon as you take office rather than with some elegance and, dare I say, education is the height of irresponsibility...though a great boost to his ego.)

On Monday I was finalizing what I think may be a very important appellate brief on the constitutional issues concerning how the same New Jersey state government can condemn well over $5,000,000 of private property under the guise of a federal and state funded road project for what is clearly a municipal roadway...and doing so with the trial court saying where the money comes from is "none of your business" as the only issue is how much of the taxpayers' money the property owner get.  (Seriously, millions of dollars for a silly little road while bridges are crumbling and the Governor demands that school budgets statewide be voted down.  And how our tax dollars are used, even if unlawful, is not to be questioned?!  Go figure!)

Add to this the fiasco the Icelandic volcano has wreaked on travel.

Of course there are the normal, everyday, issues.  Oh, yes, those things are, for Iamboatman, "everyday issues"!

But then, after I take those refreshing moments assisting many of you with your cruises and escapes (I am presently working on a very cool food and wine experience in Northern Italy that is fascinating), I think about sitting in the hot tub on the bow of the Seabourn Spirit, dinner with Captain Buer on the Seabourn Odyssey on her first formal night ever, running into the same obnoxious Slovenian musicians at the Seatrade Cruise Shipping Conference last month in Miami that I endured at my otherwise wonderful wine tasting at Santos Winery in Slovenia and, of course, the utter relaxation and appreciation of sitting at the Sky Bar on all of the Seabourn ships sipping an after dinner whisky and smoking a nice Partagas cigar.

It is not the same as taking a cruise...and it makes me want to get onboard a ship sooner than later...But then I remember I am going to be on a cruise in just a few weeks even though it seems an eternity from now.

And, alas, I now remember that life is pretty darn good.  Today will be a good day...and just that much closer to a wonderful cruise on the Seabourn Sojourn.

 

Tuesday, April 20, 2010

A Cruise Critic Thorn Exposed...And Why You Can't Trust Cruise Critic - Really!

Yesterday I read probably the most refreshing post I have ever read on Cruise Critic and there was nothing the sanitizing and "protect my favorite poster" Host Dan could do about it.  Without overstating it, it was a bit of nirvana and catharsis at the same time. 

It said what I have been saying for years (and why, in part, I stopped posting on Cruise Critic). You simply cannot rely on the information posted there. Check out my post on the subject from July 2, 2008:  Where Did The "Critic" in Cruise Critic Go?  (I have been writing this blog that long??? Wow!)

While being accused by some, including who I am about to speak of, of having an agenda so I should not be listened to or trusted (not sure what agenda...I could never figure that out), the fact is that tons of great information from me and others has been overwhelmed and obscured by misinformation, clutter and cheerleading.

So with that I feel it important to quote Frank Del Rio, the head of Prestige Cruise Holdings, which effectively owns Regent Seven Seas Cruises and Oceania Cruises, setting forth his opinion of the most flagrant cheerleader of Regent, the greatest supplier of clutter and the purveyor of the most misinformation:

"TravelCat2 comments
are more often than not,
disturbing,
and more importantly,
not true...".

Friday, April 16, 2010

Oceania Cruises Fined and Silversea Re-Writes Brochures - As I Said, "Free Air" Ain't "Free"

Over the past months, including virtually every person who has called or emailed me about all the "free air" promotions that have been tossed about by the cruise lines...from Oceania to Seabourn to Silversea to, well you've got the picture, I have been saying "There is no such thing as free air."

In fact, I had some rather heated discussions with Seabourn marketing department - which were successful!!! - demanding that only lazy travel agents and uneducated clients would be duped into believing the air was "free", so don't insult us.  Call it "Air Inclusive", but not free. See my article:  Seabourn Offering Free Air.  Is it Time?  Does it Matter?  Is it Free?

Similarly, I warned all that while you might think the credits for the "free air" told the whole story, you would be very wrong.  That is because on top of the air price/credit are all those air-related taxes; hundreds of dollars of additional taxes.

It is this latter point that - as I knew would be the case - Oceania Cruises was just fined for omitting from its marketing materials.  According to U.S. Department of Transportation, "The 'free' air fares, as advertised, do not provide adequate notice that certain taxes and fees, which properly may be stated separately from the advertised fare, must be paid by the traveler in order to obtain the 'free' air fare, nor of the amount of such taxes and fees".

Silversea Cruises had a similar practice addressed on the other side of the Atlantic and it was required to pull all of its freshly printed brochures to correct a very similar situation.

You will note that Regent Seven Seas also changed from its sickening mantra of "free", "free", "free" to "inclusive".  And as so many of you have complained to me - regardless of the still lackluster quality of the line - its "inclusive" prices are simply outrageous.  But, at least, it is correctly noting that nothing on a Regent cruise is "free", but rather is "included".

Now it seems that Iamboatman's comments over the past months, both publicly (here) and privately (with the cruise lines) were spot on.   And, while it created substantially more work for me as a travel agent - I refused to pitch the improper "free air" line that so many lazy travel agents did (and, alas, were actually the ones pressuring Seabourn- as an example - to offer it to combat Regent's now known to be unlawful approach) - I continued to make sure my clients received the best value.

BTW, there are some excellent values in some of the "Air Inclusive" promotions - such as Seabourn's Asia itineraries on the Seabourn Pride - but unless you utilize a travel agent that actually is working for you and has the ability to do it properly, you may well be spending thousands of dollars more than you need to...all because of being pitched "free air" that just isn't "free".

As for Oceania:  I still believe it is a wonderful product with great itineraries and a fantastic new ship, Marina, on the horizon.  I endorse the product and am pleased that its marketing is now in line with the consumer receiving accurate information in addition to a solid product.

Friday, April 2, 2010

Seabourn Announces Some Incredible Deals for June, July and August 2010 - One Week Sale!

I haven't been writing much because I have been terribly busy and am now trying to take a short break out in beautiful Lake Tahoe, California.  However, I just received word that Seabourn is having a significant One Week Sale for select sailings this summer - April 5th through April 12th.

The sale includes both cruise only and air inclusive pricing and it applicable to all available categories.  Of course, if you choose the air inclusive you also receive transfers.  One unusual aspect of this sale is that the pricing is available with air deviation (arrive early and/or depart later), but then the transfers are not included. (There are 40 Gateway cities to choose from, but some cities may already be sold out for particular sailings.)  The offer is combinable with most other offers and there are even some combination cruises offered.

Another interesting thing:  These fares are only available to residents of the Americas.  (It is about time!)

Below is a short-hand list of cruises with starting air/cruise only fares per person (double occupancy).  Note:  Additional taxes ranging from $26.93 to $606.98 are applicable.

Seabourn Pride - Asian Itineraries
June 3 and June 11 - $5,400/$3,499
June 23, July 29 and August 10   - $5,130/$3,499
July 5 and July 17 - $6,500/$4,999

Seabourn Spirit - Italy, Croatia and Eastern Med
June 26, July 3, July 17, July 24, July 31 and August 14 - $3,550/$2,499
August 7 - $4,750/$3,699

Seabourn Legend - Western Med
July 24, July 31, August 7, August 14, August 21, August 28 - $3,550/$2,499

Seabourn Odyssey - Greece, Turkey and Italy
June 26, July 31, August 7, August 14 and August 21 - $3,950/$2,999

Seabourn Sojourn - Northern Europe
August 8   - $7,100/$5,999
August 22 - $6,400/$5,299

So if you have not made plans, are considering Seabourn but thought it was too expensive, or the value just has you thinking, "Why Not?!", give me a call on my mobile (732-693-8797) or email me at eric@goldringtravel.com.

And if you are a client of mine already booked on one of these cruises...not to worry.  I've got you covered!

Friday, March 19, 2010

Cruise in Alaska? - Probably Not...An Environmentalist's Perspective

I write this post as a Life Member of the Sierra Club, a 20+ year member of the Nature Conservancy, a college graduate with an bachelor of science with honors in biology...and, of course, as an avid boater and cruiser.

During the Seatrade Cruise Shipping Conference, at the State of the Industry program, it was announced at the outset that the Governor of Alaska and a large contingent from Alaska was present.  As the morning progressed, with the heads of most larger cruise lines discussing a particular topic, it was time for Stein Kruse, President of Holland America, to speak about the issues with cruising in Alaska.

Mr. Kruse pointed out that the demand for cruising in Alaska has dropped dramatically and that was related more to the pricing and taxing by Alaska then it was to an inherent reduced interest by the cruising public.  Emphasis was made that Alaska is a fantastic cruising and land tour area and that the satisfaction of cruise passengers as to the substance of their trips is high.

The problems, he pointed out, is that Alaska not only has included the now infamous $46 per person tax (which, by the way, has most of its funds - over $200,000,000 sitting in a fund unused...because Alaska hasn't figure out how to use the funds for its  mandated purpose - essentially developing and supporting the cruise industry infrastructure), but that Alaska has developed a complicated and disjointed set of regulations and requirements that make operating in Alaska, shall we say:  frustrating.

In addition to the aforementioned tax, Alaska has targeted the cruise lines with a special targeted income tax, a gaming tax, a mandatory Ocean Ranger program with attendant fees...in addition to local taxes assessed by the various cruise ports.

But it gets worse because Alaska has created discharge regulations that actually require the water discharged from the ships to be cleaner than the water that it require be discharged from land (and there is significantly more land-based discharge than ship-based discharge.)  Mr. Kruse pointed out that in some instances the cruise ships cannot take on the fresh water being delivered to the local population because if fails to meet the "cruise line only" standards for copper discharged in water.  What this means is that the water that is acceptable before being used for land-based operations fails the standard before it even gets on the ship!

There is a cost-benefit analysis that must be runf or any business...which includes environmentally sensitive ones.  Here there obviously was a very simplistic and unrealistic analysis done by the State of Alaska.  As reported on March 31, 2009 (one year ago) by the Juneau Empire newspaper, so it is clear that what Mr. Kruse says is accurate:

Voters in 2006 passed a cruise ship ballot initiative that imposed new taxes on the large ships. Each passenger pays a $50 head tax, technically an excise tax. The initiative imposed on the companies themselves a corporate income tax and a 33 percent tax on gambling income. It also set strict new environmental pollution rules.


Chip Thoma and Joe Geldhof, two Juneau residents who helped pass the initiative, said they thought it was misleading to identify the taxes as the problem. They blame the economy, and say the head taxes are minor in the whole price of an Alaska cruise vacation, including airfare, hotel, gifts and excursions. "It's the worst kind of cheesy scapegoating, because nobody really believes it," Geldhof said. Geldhof's evidence: Cruise numbers didn't go down in the first two years the head tax was levied.  Thoma said the head tax money is supposed to fund dock improvements that large ships need, so it's counterproductive for them to fight it.

Now, let's do that "cost benefit analysis".  If the cost of a cruise is, on average, $800 (the concept of airfare, hotels, gifts and excursions don't truly enter into the analysis...and for many, if not most, these items do not generate income for the cruise lines, but the local or other economies) and there is a $46 tax, plus a corporate tax, plus a gaming tax, plus the Ocean Rangers fees, plus the very stringent and expensive pilotage fees (in Alaska it is essentially a full time operation, not just in and out of ports), it quickly becomes clear that the profit margins are very slim.

On the environmental side of things, I am a firm believer in "Leave only footprints.  Take only memories." but understand that everything that we do has some sort of environmental impact.  The question is:  What is the impact and do those impacts allow for more benefits than the obvious detriments? 

Here, there are no studies showing the impact of the cruise ships is greater than the fishing fleets (it is far less) or the tanker fleet (it is far less) or the recreational boaters (it is far less).  Science cannot be skewed by the size, financial impact or personal perceptions of the cruise industry.  Nor can the economic benefits to Alaska of those hotels, excursions and gift incomes...and the use of those revenues to fund environmentally beneficial projects be ignored.  (Now what is the discharge standard for those hotels...and those excursion boats???)

And, alas, what would be the environmental impact of those port improvements - whatever they might be - if they ever come into existence?

The fact is that the State of Alaska saw (whether true or not) a bunch of big fancy cruise ships filled with tourists with big fat wallets and said, "We want some.  In fact, we want more than some."  And the economies of those passengers with the purported big fat wallets said, "I will pay $800 for my cruise, but not $1,000" so the cruise lines have been eating much of the expense...not to appease Alaska, but its passengers.

However, the cruise lines will not operate at a loss or walk away from profits if there are sufficient passengers to fill the ships at higher profits margins in the Caribbean or Europe...because they are in business to make money.

So, if the concept in Alaska is merely to protect the environment by instituting something akin to cigarette taxes (i.e. making the tax so high it uses the economy to force people to quit smoking) it has been successful in at least slowing the sales.  What it hasn't done is show that its actions are net better for the environment(balancing environmental programs that the economic boost pays for and are implemented versus the environmental impact of the ships).

If there were validated scientific studies that show the net environmental impact of cruise industry was a negative, they would be published...but they do not exist.

If there was a nexus between all the taxes and a benefit to the environment, it would be published...but it does not exist.

If it were untrue that Alaska has singled out the cruise industry and sought to gouge it, it would show how the State treats other industries in comparison...but it does not exist.

And with that, we must remember, there is no birthright to have the presence of a Holland America or Princess or Silversea ship in Alaska and Alaska cannot demand it.  Ships move and so do their economies.

So Alaska it is time to stop trying to make what I believe is a deplorable situation , both economically and environmentally, into a public relations issue.  By penalizing the cruise industry I am very confident Alaska is are negatively affecting the Alaskan environment, economy and people.