Like the nations that supply their tourism dollars, the Caribbean islands were bowing under the weight of the global recession at press time, though officials were still expressing a measure of optimism and forging ahead with renovations or other projects, thinking of the long term.
In Jamaica, William Tatham, vice president of cruise shipping and marina operations, said that as a result of discounting, passengers may not be as affluent as in the past. “We’re anticipating a potential decline in on-land revenues,” he said. “We’re monitoring the onshore spending and anticipate that it won’t be as good as it has been in the past.”
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"The Celebrity Solstice has been transformational for the brand," said Dan Hanrahan, president and CEO of Celebrity Cruises.
What sets the brand apart is its service, crew and hardware. Not only is the new Solstice getting rave reviews, the Millennium- and Century-classes of ships are also doing well, according to Hanrahan. He noted that Celebrity had been named "Best Cruise Line" by British newspapers and travel publications and is consistently rated among the top 10 large-ship cruise lines in North America.
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There are 38 cruise ships on order and under construction (including one option) for deliveries in 2009 through 2012. With a building value of more than $20 billion, the ships will bring 85,480 new beds into the market for an estimated additional annual passenger capacity of about 4.2 million passengers by 2012. At press time, there were no ship orders for deliveries beyond 2012.
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“We are filling the ships, although not quite with the yields we would like. But consumers are recognizing the value, and we are doing OK,” said Vicki Freed, senior vice president of sales and trade support for Royal Caribbean International.
The ships are going out full, agreed Steve Hattem, vice president of marketing for CruiseOne and Cruises Inc., which claims to be the largest seller of cruises in North America, with a market share of 5 percent. “We are seeing a lot more transactions, but at lower average cost per booking, so our agents are making it up in volume,” he said.
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The cruise industry has been driving more development than any other area of the hospitality or transportation industries. There are new technologies and systems being applied today that did not even exist a few years ago.
We have talked to executives in marine and hotel operations who have shared their initiatives and insight with us, ranging from energy counters that track the usage of power down to the last consumer, to software applications that measure and compare performance and help minimize waste, which in turn means saved dollars.
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The cruise lines continue to raise the bar on product delivery, supported by crew training and motivation, and advanced software applications. The focus is on raising product standards for dining, with open seating and alternative restaurants; entertainment and programming; guest accommodations, disembarkation procedures, and more, while also driving onboard revenue, containing costs and protecting the environment. Every aspect is being looked at and evaluated and the appropriate action taken, according to executives surveyed by Cruise Industry News.
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Holland America Line has been focused on North America for a long time. But as the industry has taken on a more global proportion, it is inevitable that Holland America with 14 ships is also leaving a worldwide footprint, said Stein Kruse, CEO and president. “We have a brand with universal appeal,” he said. “We have this very unique atmosphere onboard that makes people feel comfortable. It transcends borders. While most of our passengers are from the United States, we also attract passengers from Canada, the UK, Europe and Australia. We are gravitating toward more international passenger sourcing, but our brand is still Americentric.”
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In marine operations, the focus continues to be on fuel and energy savings, in addition to the environment, recruitment and training, according to executives surveyed by Cruise Industry News. Cruise lines are continuously evaluating and testing new technologies, systems and procedures to meet their objectives. The new ships incorporate the tried and true, but also new concepts that did not even exist for ships built five years ago.
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