Cruiselines opt for discounts to avert spell in the doldrums

Cruiselines opt for discounts to avert spell in the doldrums

Report by Tanya Jefferies

CRUISELINES are offering discounts of 50%-70% in an effort to fill their ships this summer, according to cruise specialist agents.

Jeremy Scott, manager of Atlantis Travel in Chigwell, said:”Cruiseline discounts are far higher this year because companies have got problems on both sides of the Atlantic.”

He believes that the cruiselines are offering huge discounts in the UKbecause potential UScustomers are worried about a recession at home.

However, UK bookings are also likely to suffer as a result of the usual decline that occurs when a general election is imminent.

Scott said: “The deals we are seeing are just silly, such as 70% off the brochure price. Cruiselines are selling cruises very cheaply but they are still not filling ships. The cruising market hasn’t grown significantly this year, yet ship capacity is going up all the time.”

Frank Dullop, managing director of Bromley-based Cruise Club International, said there are plenty of two-for-the-price-of-one cruise deals in May and June.

He believes cruiselines are currently holding off heavy discounts during July and August, but the combination of the US recession and the UK general election will bring prices down.

“Our sales are the same as last year,” said Dullop. “We haven’t been expecting a rise since we heard last November that the Americans were going into a recession. They sneeze and we catch a cold.”

A Cunard Line and Seabourn Cruise Line spokesman said the companies had stuck to a new fluid pricing policy, introduced to coincide with the launch of their 2001 programmes last summer.

Customers can get discounts of 30% while there is plenty of space available, but the discounts diminish as ships fill up.

Meanwhile, Royal Olympic Cruises director of UK operations Vic Howlett said instead of cutting prices, he is trying to add value by changing existing cruise product.

He has switched some flights from daytime to night-time and struck a new deal with Olympic Airways in an effort to bring down fares.

In this way, customers can secure savings of 30%-40%, but they won’t be marketed as discounts, he said.

Early bonus: Dullop believes cruiselines are holding off from heavily discounting, while Cunard has adopted a fluid pricing policy that offers discounts of 30% while there is plenty of availability