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?
20 July
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