The cruise industry has weathered economic and terrorism storms over the past 25 years and now faces another:  lower bookings industry-wide following the January 13 Costa Concordia disaster which is still unfolding.

Earlier this week industry giant Carnival Corporation (which owns Costa Cruises, Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Cunard Line, Ibero Cruises and P&O Cruises) reported a falloff in cruise bookings in both the U.S. and Europe.  Yesterday Royal Caribbean (parent company of Royal Caribbean Cruises, Celebrity Cruises and Azamara Cruises) also says bookings have fallen to the “low to mid-teen percentages” as compared with a year ago.

Royal Caribbean Chairman/CEO said, “Overall, booking volumes from North America have fallen by low to mid-teen percentages versus same time last year for the last few weeks. In Europe, where media coverage has been more extensive, the decline has been higher, though results vary significantly by country. In aggregate, the company’s other markets, including Asia/Pacific and Latin America, are down slightly.”

Forbes Magazine says that Carnival Corp. CEO Micky Arison’s personal fortune has fallen by a half billion dollars after a year of  political and economic problems capped off by the Costa catastrophe.  According to Forbes, Arison owns roughly 29% of the shipping conglomerate, which includes 101 cruise ships.

While Concordia is the main contributor to the slowed bookings there are other contributing factors:  cruise lines and travel agents ceased advertising during “Wave Season” (when roughly 30% of all cruise reservations are made) and warm winter temperatures in the United States result in fewer people dashing off to warm weather vacations.

Another incident shows that the Costa Concordia accident has a major effect on the cruise industry.   According to USA Today’s Cruise Log, “Seattle-based cruise line Holland America kicked a passenger off a ship this week for “non-compliance” during a mandatory muster drill — an unusual incident that suggests a renewed focus on safety in the wake of the Costa Concordia disaster.  The unnamed passenger was put off the line’s Westerdam on Sunday in Ft. Lauderdale (for non-compliance) just before the ship set sail for the Caribbean.”

Typically the cruise industry lures passengers by offering steep discounts and some of these have been rolled out.   And since the cruise industry weathered 9/11, a disastrous economy, political upheaval in Egypt and the middle East, sky-high airfares, Norwalk virus and inaccurate reports of missing passengers I’ll place my money on Arison getting his half billion back. The Love Boats and Fun Ships will continue to chart an international course.

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A week after Costa Concordia ran aground in Italy, Carnival Corporation has launched a comprehensive audit and review of all safety and emergency response procedures across all of the company’s cruise lines.  The company owns nine cruise lines including Costa Cruises, Carnival Cruise Lines, Princess Cruises, Holland America, Seabourn Cruises, Cunard Line, P&O Cruises, Aida Cruises.

“This tragedy has called into question our company’s safety and emergency response procedures and practices,” said Micky Arison, chairman and CEO of Carnival Corporation & plc.

At least 11 people are known to have died in the disaster, and 21 are still missing, according to the Italian Crisis Unit.  Poor weather and movement of the vessel hamper retrieval of bodies.  And, salvage operators are trying to prevent a half million gallons of fuel from escaping the ship and causing a major environmental disaster.

There are several remaining mysteries.

** A major criticism of rescued passengers was that they were not told what to do and the crew was noticeably absent during the crisis.  While a few crew members helped evacuate people, most passengers report that they didn’t see crew or the crew didn’t know what to do.   Seven bodies were found at muster stations (where passengers meet to board lifeboats) in life jackets.  This is the procedure passengers are told to follow during lifeboat drills, although crew weren’t present to tell them how to proceed.

** Costa Cruises CEO said Concordia made a close pass of Giglio Island last August although not closer than 500 meters.  However several days ago the British shipping journal Lloyd’s List Intelligence said that its satellite tracking information indicated that Costa Concordia sailed within 230 meters in August, even closer than it did last Friday.

** Costa Concordia is on a fixed itinerary, sailing each week to ports in France, Spain and Italy and passengers embark and disembark in each port.  The ship’s lifeboat drill was scheduled the following morning and roughly 600 passengers who boarded that day in Rome didn’t know how to proceed in an emergency.  At present maritime law stipulates cruise ships must schedule lifeboat drills within 24 hours of leaving home port.  Should laws be changed so than drill must take place before the ship leaves the port of embarkation?

** When Costa Concordia listed and sank into the water, most lifeboats — which hang out from the side — couldn’t be launched..  Should cruise lines be required to build ships with lifeboats sitting on deck instead of hanging over the side on davits?

** Why did the crew tell passengers to return to their cabins or walk in the hall, that it was an electrical problem — after water began pouring into the vessel?

** There was a 45 minute wait between the accident, when passengers were told it was an electrical problem, and the order to abandon ship was given.    During that time the situation deteriorated rapidly.  Why weren’t passengers immediately told to return to their cabins, get life vests and proceed to muster stations?

** Perhaps the most important question:  Can cruise ships be evacuated in 30 minutes (from the time when the abandon ship signal is given) which stipulated by international maritime law.   Costa Concordia’s passengers were stuck on board for five hours and longer.  It was 14 hours before the last person stepped off the ship.

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Like most cruise writers, in January my advice was to book early because the cruise industry expects prices and occupancy to increase in 2011.  Europe, especially, was the hot ticket we all said.

But that isn’t what happened.  Instead, in short order airline prices climbed astronomically along with the price of fuel;  uprisings in Egypt, Tunesia and other popular ports caused cruise lines to revise itineraries; a great deal of publicity about crime in Mexico saw a softening in that destination.  Oh yea, the disastrous Japan earthquake and subsequent tsunami resulted in cruise lines bypassing this popular country.

The result:  cruise lines wound up with a tremendous amount of unfilled capacity, including companies like Oceania Cruises and Regent Seven Seas Cruises which typically sell out in January.   And you’ve got a lot of terrific bargains.

Bargains Too Good to Pass Up

Cruise deals fluctuate so quickly that these low fares are valid as I type them but may be gone by the time the sentence is finished.  Well, not that fast, perhaps, but suffice to say when you find a “too good to pass up cruise deal” pounce, because someone else will.  All cruise fares are per person, double occupancy.  For reservations and additional information, contact your travel agent.

*** Oceania Cruises offers steep reductions in fall and 2012 cruises, a particularly good deal since fares include round-trip airfare.   Starting September 19, 10-day Mediterranean cruises start at $1999.  In additions reductions are available on the Sept. 9, 21-day San Francisco to New York sailing; Nov. 22 Dubai to Cape Town voyage (30 days); Nov. 30 Miami to Los Angeles (16 days) cruise; Dec. 10 Rio to Buenos Aires voyage (12 days) and the 12-day round-trip Miami cruise departing Dec. 10, 2011.      Visit Oceania Cruises’ website for additional information.

*** Save on a Norwegian Dawn seven night Bermuda cruise sailing round-trip from Boston during peak season.  The July 22 and 29 departures start at $849, including a free shore excursion and up to $75 free on board spending.   Visit Cruises Only’s website for this exclusive offer.

*** Terrific deal on East Coast repositioning cruise between New York and Miami.  MSC Cruises’  Poesia sails from New York on a 12-day voyage that stops in Jamaica; Cristobal, Panama; Puerto Limon, Costa Rica and Cozumel at rates starting at $899 (plus $56 government fees and taxes).  Visit MSC Cruises website for additional information.

*** Voyages of Discovery’s small ship Discovery makes a 22-day voyage between Mumbai and Bangkok with five overnight stays in port departing Nov. 27.   The starting price is $3599 which includes round-trip airfare and a pre/post cruise hotel stay.   For itinerary specifics and other details, visit the cruise line’s website.

*** Sail round-trip from New York to the Caribbean on Celebrity Cruises spectacular Silhouette at rates starting at $1299.  Sailing from Bayonne, NJ, the ship visits St. Thomas, Antigua, St. Maartin, St. Croix, San Juan and Labadee, Haiti.  Visit the cruise line’s website for additional details.

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*** Royal Caribbean Discovers Cruisers Love to Drink.   It seems that while Royal Caribbean operates fleet of passenger ships very successfully, the company is off the mark in anticipating how much cruisers drink.    Captain Greybeard, an industry expert who writes for the Mirror, a U.K. newspaper, reports that three weeks after Royal Caribbean announced packages that allow passengers to drink unlimited quantities of beer, wine and spirits, the cruise line is having second thoughts.   Greybeard reports that “packages have been withdrawn from Independence of the Seas, although not from Grandeur of the Seas, which is in the Caribbean, or from Legend of the Seas in the Far East. Must be a British thing.”    He reports that they’ll be reinstated with “revised terms” which probably means an increase in prices.

*** Ever Wonder What Happens When A Ship Goes Into Drydock? Princess Cruises gives you an up close look with a video series of Grand Princess’ refurbishment  during drydock in Freeport, Bahamas.    Between April 12th and May 4th roughly 1400 workers will be busy 24/7 adding many of Princess’ trademark features including a new Piazza atrium.  Click here to see the fascinating overhaul.

*** Crave Cruise Ship Photos? USA Today’s Cruise Log is the site to visit if you want to see photographs of cruise ships’ interiors.  Ace photog and editor Gene Sloan added the 19th “Cruise Ship Tour” (i.e., slide show) showling the splendors of the new 246-passenger Le Boreal, a French ship.  Since photos can tell stories much better than journalists can, I suggest checking out other vessels including Disney Cruise Line’s Disney Wonder and Disney Dream; Azamara Club Cruises’ Azamara Journey; Carnival’s Carnival Ecstasy, Carnival Splendor and Carnival Dream; Holland America’s Nieuw Amsterdam, Crystal Cruises’ Crystal Symphony, Seabourn’s Seabourn Odyssey and Seabourn Sojourn; Princess Cruises’ Ruby Princess and Crown Princess, Celebrity’s Celebrity Eclipse and Celebrity Constellation, Norwegian Cruise Line’s Norwegian Epic and Norwegian Gem, Royal Caribbean’s Oasis of the Seas, Oceania Cruises’ Marina and Cunard Line’s Queen Mary 2 and Queen Elizabeth.

*** New Comprehensive Riverboat Cruise Website. Until now it’s been a hassle comparing riverboat cruises, getting real advice on what the experience is line and travel tips.   Now the travel agency CruiseOne makes it much simpler with the new website River Cruising Experts which lists inland water way cruises in Europe, Asia, Russia and Egypt plus details of all boats, including deck plans, itineraries, reviews and virtual ship tours.

Skipping The All-American Experience by Cruising Aboard a European Cruise Ship. In the Miami Herald writer David Molyneaux tells what it’s like to cruise in Europe aboard MSC Splendida, an Italian ship, with passengers who were 99% European.  He says it’s all a matter of attitude: “My assigned evening dining room table of nine was cramped and was surrounded by big, boisterous families, but as we all relaxed and got to know one another, my table of four women from Scotland and two couples from England was enlivened each evening with tales from several cultures, including one couple who seemed surprised to learn that Scotland was not part of England.”   Click here to read his story.

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If your spouse wont vacation anywhere that doesn’t have a golf course nearby, here’s an opportunity to lure him/her on a cruise:  Azamara Club Cruises has launched escorted an all-inclusive golf tours and cruises program that that features some of the world’s premier golf courses.    Azamara Club Cruises operates two 694-guest ships, Azamara Journey and Azamara Quest.

Designed specifically with the passionate golfer in mind, Azamara Club Golf Cruises combines a range of  itineraries with the superior golf experiences at four or five of the world’s most heralded courses, such as Old Head and Portmarnock, Ireland; Oitavos Dunes, Portugal; Montgomerie Links, Vietnam; Mission Hills, China; Four Seasons Provence, France; and Sperone, Corsica, depending on the itinerary.

add-ons are available through travel agents and Azamara directly, starting at $2,682 per person, as well as non-golfing companion rates, starting at $669 per person.

All golf programs commence with a one- or two-night pre-voyage golfing land stay, which includes luxury hotel accommodations, welcome cocktail reception to meet fellow guests, and dinner with select wines to share in the camaraderie of the sport, as well as optional sightseeing tours for an additional charge.  PerryGolf takes care of every aspect of the experience, from reservations to post-game activities.

Included also in the program are overnight golf shoe shining, green fees, golf cart rental, ground transportation, and golf bag delivery to the first tee and return to hotel or ship and storage after the round. On board, Azamara Club Golf Cruises guests enjoy an inclusive drink package, post-game cocktail receptions with fellow enthusiasts, and two group dinners, one in a specialty restaurant, to recount the day’s play.

The golf program add-ons begin at $2,682 per person, as well as non-golfing companion rates, starting at $669 per person.  Single supplements starting at $263 also apply for the pre-voyage portion of the program.

Reservations and additional information may be obtained from travel agents.

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The brand new Disney Dream was christened in Florida yesterday by Jennifer Hudson with press and travel agents turning out to welcome the 2500 -passenger vessel.  The 130,000-ton ton ship will home port in Port Canaveral and will sail on three- and four-night Bahamas voyages which feature a stop in Disney’s private island, Castaway Cay.

Disney Cruise Line’s ships are distinguished by beautiful interiors, exceptionally large standard cabins with a bath and a half, fantasy special effects and, of course, the presence of Micky and his buddies.

USA Today’s Gene Sloan captured Disney Dream’s beautiful interiors with a series of stunning photos.   Click here to view his slide show.

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If you love the biggest, tallest, longest new cruise ships rolling out of European shipyards at a brisk pace, enjoy it now because it’s not gonna last. Through 2011 we’ll welcome eight new ships which will end the decade-long expansion of the cruise industry.

Yesterday, Queen Elizabeth (left) officially named Cunard’s newest cruise ship Queen Elizabeth.

When the economic crisis hit, cruise lines closed their check books; as a result, orders of new ships have slowed to a trickle with only a few new vessels entering service after 2011. The cruise industry’s record of incredible innovation in ship design stops for the foreseeable future as the era of grand innovation in ship design wanes. After spending $3 billion building the two biggest ships on earth — Oasis & Allure of the Seas – Royal Caribbean, the leader in building the largest vessels with the most remarkable on board features, has no new vessels on order. In 2013, only one new ship, an unnamed Princess vessel, is scheduled to debut.

So feast on the line up of gleaming vessels ranging from a second 6300-passenger behemoth with non-stop fun for the entire family to a Cunard cruise liner destined for global voyages and a luxury ship where well-heeled guests dine on sumptuous cuisine created by a world-famous chef.

Twelve Months of New Ships

Queen Elizabeth, debuted October 11, 2010, continuing Cunard Line’s tradition of building graceful English liners destined to explore the far reaches of the globe when she enters service next month. A sister ship of Queen Victoria, the 2014-passenger liner boasts ballroom dancing, live shows in an opulent theater with boxes, a large pub and exclusive dining and private lounges for suite passengers.

In November, 2010, Allure of the Seas, sister ship of Royal Caribbean’s popular Oasis of the Seas, begins its year-round schedule of one week Caribbean cruises from Fort Lauderdale. Aboard the 6300-passenger behemoth you’ll find Central Park and the Boardwalk, zip-line, “Flow Rider” (faux surfing), a 3D theater, dozens of restaurants to choose from, Aqua-Theater and the best kids programs in the industry.

Disney Dream gives Mickey & Co. are larger area for frolicking. This larger Disney ship, which debuts in January, 2011 carrying 1250 passenger staterooms and 4000 total capacity boasts the longest water slides at sea (765 ft.), inside cabins with animated “portholes”, 3-D movies, staterooms with a bath-and-a-half and a lot more activities for adults and kids.

Oceania Marina, the first new ship built by Oceania Cruises, also enters service in January carrying 1260 guests, with six restaurants under the tutelage of renowned chef Jacques Pepin including a namesake restaurant called “Jacques,” the first onboard culinary school with workstations and exceptionally large staterooms and suites.

Carnival Magic, entering service in May, is a sister ship of Carnival Dream that boasts a secluded deck area for adults, water slides and more bars, lounges and clubs for having fun; she carries 3652 passenger berthss.

Costa Favolosa debuts in July with 3012 passengers with a new entertainment area for teenagers comprising 4D Cinema, PlayStation World, a bar with ice-cream, drinks and popcorn, and a Teens’ Dance Floor; a childrens game room, and a new open-air Aqua Park water playground with its own pirate galleon plus more dining options.

Celebrity Silhouette is the fourth 2850-guest ship in Celebrity Cruises’ Solstice-class with signature features like a deck-top lawn using real grass, glass making demonstrations by Corning, spacious staterooms and several elegant restaurants. She debuts in November sailing on Caribbean itineraries.

Seabourn Quest is the ultimate in luxury, carrying only 450 pampered guests, will debut in May. Sublime dining with cuisine created by celebrity chef Charlie Palmer is the star of this ship, where you may order anything you can imagine and dine in the most elegant restaurants at sea. This ship charts a global course and will be among the choices for those who decide to circumnavigate the globe.

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I came across a survey that focuses on Americans summer vacation plans and the results aren’t terribly surprising given the state of the economy:

Public opinion polling firm StrategyOne recently surveyed more than 1,000 Americans about a range of topics and found that less than 3 in 10 Americans (28%) plan to take a summer vacation this summer.  Some 16% say they have not decided whether they will take a summer vacation or not, and more than half, 56%, have already ruled out taking a summer vacation.

However, according to CLIA (Cruise Lines International Association), the cruise industry experienced 103% occupancy in 2009. (NOTE:  In 2007, the cruise industry realized 105% occupancy)   Now keep in mind occupancy is not revenue.  To lure people cruise lines slashed prices significantly and based on what I see ahead, that will continue.

Returning to the StrategyOne survey, the reasons so many Americans are forgoing travel this summer is concern about the price of gasoline (72%) and, of course, the economy.  Some 48% say they are spending less on vacations this year than last year.

So why do cruise ships continue to go out full in the worst economy since the great depression?

1.   In the airline industry, when occupancy drops, you park planes in the Mojave Desert and lay off crew.   You can’t do that with a cruise ship which must sail no matter what.  But by by dangling cheap fares ships fill up quickly.  And while revenue from ticket prices decreases, passengers are spending money aboard ship and the crew is getting paid.

2.  Homeland cruising.   As we all know, airfare prices are obscenely high and the experience of flying is awful.    Since 9/11, cruise lines learned that if they reposition cruise ships to different parts of the country, they’ll attract many people who wouldn’t ordinarily take a seagoing vacation.    Today cruising from New York is so popular the Manhattan piers couldn’t accommodate all the ships and passengers.   Royal Caribbean sails year-round from Bayonne, NJ and Cunard Line and Princess Cruises home port in Red Hook, Brooklyn.   Add to this ships sailing year-round from Baltimore, Charleston, New Orleans, Mobile and Jackson, Miss.     So millions of Americans have the option of parking their car for days as they run away to sea.

3.  During the last decade families have taken to cruising by the millions because it gives the biggest bang for the buck in travel.   Cruise lines go overboard building kid-friendly attractions (water slides on deck are ubiquitous) and incredible separate programs for children ranging from tots to teens.   The big news is none of this costs a nickel more; there is no charge for rock climbing on the New Norwegian Epic or zip line on Oasis/Allure of the Seas.  Kids can spend most of the day with children their own age in supervised activities while teens make new friends in private clubs that exclude adults.

What I learned after September 11 is that the cruise industry is the most resilient segment of the travel industry.    People won’t cruise from Istanbul?  No problem, we’ll just move the ship to the U.S.   So I know that however long the economy is in trouble you’ll continue to have the option of boarding a cruise ship.

Have your travel plans altered because of the economic downturn?

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While we think violence, political strife and terrorism in countries thousands of miles away don’t affect us personally, it’s not always true.    Especially those booked booked on a luxury Eastern Mediterranean cruise this year.

ISRAEL: Princess Cruises canceled the Pacific Princess‘ scheduled port call in Haifa, Israel today after an international incident erupted this week.  Israeli commandos rappelled onto the deck of a Turkish cruise ship, the Mavi Marmara, sailing between Istanbul and Gaza with humanitarian supplies.    The result was the death of 11 passengers, scores of of injuries.  According to USA Today, other cruise ships also have planned port calls in Israel this week, but none have announced plans to bypass the country.

GREECE: A strike by Greek seaman went off as scheduled, resulting in some ships cancelling port calls and others being stuck in port unable to leave.  According to Reuters, “Only three out of five cruise ships expected at Piraeus arrived on Monday morning. Passengers disembarked normally, but dozens of protesting seamen and members of the Communist labour group PAME blocked the gates of the port preventing other tourists from boarding the cruise ships.”

JAMAICA:  Riots in Kingston, Jamaica which resulted in the death of 44 people still haven’t driven cruise ships away.  Ships carrying passengers only dock in Montego Bay and Ocho Rios located in other ports of the island.  However, if the violence and rioting grows outside the capitol, the cruise industry will rethink stopping in Jamaica

We have our own terrible crisis, the BP oil spill in the Gulf of Mexico, which won’t directly affect ships sailing from Mobile, Alabama and New Orleans.   However these ships attract passengers who live within driving distance of the port.  And if the local economy tanks and the cruise lines can’t get enough passengers to justify staying in the region, the ships will be moved to other cruise ports.

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According to Reuters, a planned strike in the port of Piraeus, Greece, this Monday  threatens to cause major problems a half dozen vessels scheduled to call in the port.   Piraeus is the main port for Athens and the point of embarkation and disembarkation for many ships sailing in Turkey and the Greek Isles.

If the seamen do strike as scheduled, ships will be unable to dock in the port;  if a ship is already in the port, it won’t be able to leave until the strike is over. Seamen are required to tie up the ship in port and operate gangways.   At least five cruise ships are expected to be in Piraeus on Monday.

Seamen are protesting the government’s plans to permit non-EU-flagged ships with non-Greek crew to moor at its ports and travel between Greek islands, in order to boost tourism.

Earlier this year cruise ships canceled port calls in Athens because a proposed strike would prevent passengers from embarking and disembarking.

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