One can make an argument that the slowdown, over the long term, may actually help the cruise industry. Hear me out.
Yes, in recent weeks there has been a decline in bookings and some price drops as a response. Declines have also been noted here in our CruiseSearch and Cruise Price indexes.
Once the initial panic to the stock market fall stabilizes, vacationers will begin to feel less stressed, adjusted to their current economic circumstances and more comfortable to begin booking again. This will happen soon.
Over the longer period of a recession, I believe vacations (perhaps considered a luxury to previous generations) are now considered a necessity. Even in this economic slowdown, people will still be looking for something to do – just searching for a better vacation value.
This will mean:
- Families who were thinking 7 day cruises will now be booking 4 or 5 day cruises (shorter cruises in-fact, might prompt higher per-day per passenger on-board spending).
- But most importantly, non-cruisers who were considering a different type (more expensive/less value) of vacation may now consider a cruise.
Where else can you find for as little as $100 per person per night?
- Breakfast, lunch and a lobster tail sit down dinner – every day
- Water-park
- Nightly Vegas style entertainment
- Hotel room accommodations
- Travel to exotic destinations
- Casino, shopping etc. etc.,
No doubt, the oncoming recession is serious. Cruise lines earnings per share will be impacted. To keep prices low and cabins filled cruise lines will make:
- additional expansions to local ports of call (further reducing consumer's travel costs)
- more pricing segregation on ships – meaning less access to fewer included amenities for lower priced berths.
- fewer all-inclusive amenities overall and more charges for on-board services.
My point is the recession may actually stimulate some non-cruisers to try one for the first time due to the value. Over the long term, this would further expand the market and positioning cruise lines for even more success in the future. To make this happen during these rough economic times, cruise lines must not back-off promotions, advertising the worry free escapism and value cruises offer.
Related articles
- A Yen For Sushi, Sake & Sun Princess In Japan (cruisediva.blogspot.com)
