Tag Archives: Cruising

Cruising’s advantage over theme park magic

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By Tom Stieghorst
I had the chance last week to spend some time at a Central Florida theme park, one of the cruise industry’s competitors for the vacation dollar.

Universal Studios Orlando offers a formidable array of attractions, including an evening entertainment complex, three luxury hotels with a budget-priced resort in the wings and a pair of theme parks chock full of roller coasters, rides and faithful backlot reproductions of New York, San Francisco and even Homer Simpson’s hometown, Springfield.

The latest project at Universal is a re-creation of London for an attraction devoted to literary wizard Harry Potter. Sometime this summer The Wizarding World of Harry Potter — Diagon Alley will open, bringing the Wyndham Theater and other landmarks of the city to more than 6 million Universal Studios visitors annually.

Cruise lines have one crucial edge in the competition. While theme parks must re-create the world in Central Florida, cruise ships can actually bring guests to all of the fascinating destinations that can only be represented at land-based parks.*TomStieghorst

It seems almost too obvious to mention, but “destination” sometimes gets lost in the cruise industry’s sales initiatives.

One of Wizarding World’s marvels will be a train, the Hogwarts Express, running between the new attraction in Universal Studios and the original Harry Potter theme area in the adjacent Islands of Adventure park.

Although Universal is withholding details, executives hint that the train will have video screens instead of windows to project images of London and the British countryside on the journey from Diagon Alley to the imaginary Hogsmeade village in Scotland. It will be exciting to see, and I’ll look forward to it as much as the next theme park fan. But on a cruise excursion one could see the real thing in all of its glory. That has to trump seeing the facsimile in Orlando, no matter how clever the reproduction.

The same applies to the themed re-creations of France, China and Morocco in Walt Disney World’s Epcot or the Bavarian beer hall at Busch Gardens in Tampa. How much better to drink some locally brewed beer in Hamburg, or see the quays of Shanghai from the deck of a cruise ship.

Orlando has its advantages, too. Plenty of people who struggle to afford going abroad can see a version of distant lands there. But cruises can take guests to the real thing, and that’s a selling point agents ought to play up.

RCCL overcoming negative media coverage of cruising, says Fain

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RCCL overcoming negative media coverage of cruising, says Fain

By Jerry Limone
_ Richard FainDespite the “unrelenting pressure of a deluge of negative publicity” on the cruise industry this year, things are looking up, said Richard Fain, chairman and CEO of Royal Caribbean Cruises Ltd.

Speaking during RCCL’s second-quarter earnings call on Thursday, Fain said the company is overcoming what he called “the CNN effect” of media scrutiny on events that have occurred this year, including fires on the Grandeur of the Seas and Carnival Triumph and the Carnival Dream stalling.

Negative coverage “clearly hurt our bookings, and unfortunately to a greater extent than we originally understood,” Fain said.

The company’s net income for the second quarter was $24.7 million, compared with a net loss of $3.7 million in the same period a year earlier.

The company managed a profit despite the Grandeur fire in May, which resulted in the cancellation of six cruises. Royal Caribbean estimated that the financial impact of the Grandeur incident was about $11 million in the second quarter (an approximate $11 million hit is expected for the third quarter, too).

An unexpected noncash charge of about $15 million also was a second-quarter setback. The charge occurred because the company needed to readjust liability in its affinity credit card program.

Still, Royal Caribbean was profitable, and Fain credited robust onboard spending, effective cost control and the performance of its largest, newest ships — the Oasis and the Allure of the Seas.

Looking ahead, Fain said that bookings for the rest of 2013 and 2014 are ahead of where Royal Caribbean was at this time last year, in terms of load factor and pricing.

The company is still dealing with the effects of negative publicity from incidents in the industry that occurred earlier this year, Fain said, including “competitive pricing.”

However, he added, “We can already see indications that [the media coverage] factor is waning, and this is most encouraging going forward.”

Addressing concerns about cruise safety, Fain said, “I think most of you understand that the recent incidents in our industry are an aberration from an otherwise exemplary safety record over many decades.”

Cruising said to be a $42 billion business in U.S.

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Cruising said to be a $42 billion business in U.S.

By Tom Stieghorst
The U.S. economic impact of the cruise industry grew 4.6% last year to $42 billion, according to a study done annually for CLIA.

That compares with an increase in the U.S. gross domestic product of 2.2% in 2012.

Direct spending by the cruise lines was pegged at $19.6 billion, up 4%, according to the study by Business and Economic Research Associates.

The study said the cruise industry generates 356,311 jobs in the U.S with wages of over $17 billion.

North American cruise lines carried 16.95 million passengers last year, a 3.8% advance over 2011.

Florida, which accounted for 60% of cruise embarkations, benefited the most from the cruise industry, garnering 36% of all spending.

Ten states account for 80% of the cruise industry’s economic impact: Florida, California, Texas, New York, Illinois, Massachusetts, Alaska, Georgia, Washington and New Jersey.