Going with the flow

[Photo: Jeff Greenberg] Operating in the dark: Cruise lines are being forced by domestic and international turmoil to make changes in pricing, itineraries, even where to base their ships.

Cruise lines respond to Americans' travel worries by broadening their appeal. They've lowered fares, rejected risky routes and become more sensitive to cruisers' fears.

By ARLINE AND SAM BLEECKER
© St. Petersburg Times
published March 23, 2003

In the face of war jitters, fears of terrorism and a slumping economy, cruise line executives are responding with more domestic departures, beefed-up security, new no-risk cancellation policies and lower prices.

"This will be a banner year for low fares," says Anne Campbell, editor of Cruisemates.com, a popular consumer Web site. "Due to the enormous influx of new ships (an expected 13) in 2003, cruisers will benefit from low prices in all categories of ships.

"This is especially true in regions where there already is a great deal of competition, such as the Caribbean, Alaska and Mexico."

On the flip side, Campbell says, "Passengers seeking a more exotic itinerary outside North America will find the world is a much smaller place these days. Terrorism and the threat of war have made Asia, the Eastern Mediterranean and the West Coast of Africa out of bounds for nearly all U.S. cruise ships."

Lines still committed to far-flung destinations are ready at a moment's notice to change direction, literally: Vessels would head to U.S. ports rather than sail to Europe and the Mediterranean for spring and summer itineraries.

Radisson, with ships in Europe and the Mediterranean, has a contingency plan: "If Europe goes south because of world events, we could put a second ship in Alaska if we can get the port capacity," CEO Mark Conroy says.

That sentiment is echoed by Silversea Cruises spokesman Brad Ball: "If there is a war in the Middle East and demand for the Mediterranean cruises decreases, we may consider moving another ship into the Baltic region this summer."

The post-9/11 environment of fear resulted in 2002 being a blockbuster year for the number of departures from North American ports. Though the Western Mediterranean still swells with berths, the Eastern Mediterranean and far-flung destinations languish, and more ships continue to crowd U.S, Mexican and Caribbean harbors.

For example, Celebrity Cruises' Century will continue to sail year-round in tranquil Caribbean waters rather than cruise about Europe, as originally planned.

Princess Cruises has altered the itinerary for its 2,600-passenger Grand Princess from the Mediterranean to the Caribbean after demand for Europe declined. The Grand will operate 22 seven-day Caribbean cruises between May 4 and Oct. 5 instead of 12-day Mediterranean cruises and two trans-Atlantic crossings.

Yet, panic has not set in, and some lines have higher bookings than anticipated.

Hedging its bets, Princess also will maintain three ships in Europe this season: the Golden Princess, Royal Princess and Regal Princess. And Silversea's Ball says, "In light of world events, we actually expect our Baltic cruises to sell better than other regions. Our Mediterranean cruises have been suffering as of late, but our Baltic cruises are selling at the same level as last year."

Packing North American ports

To allay potential passengers' fears, several lines have scrambled to offer more U.S. itineraries and domestic departures. In some cases, they have made it easier for passengers to board ships without having to fly to the departure port.

Travel agent Shirley Redd of Toby Travel Service in Baltimore told industry newsletter Cruise Week, "If it wasn't for booking cruises in which people don't have to fly, I would have closed my doors."

The so-called drive-cruise segment has become a growth industry.

Celebrity, for example, introduced its first series of California coastal and Mexican Riviera cruises and several Caribbean sailings from Baltimore and Charleston, S.C.

Likewise, Crystal Cruises will sail its first fall foliage itineraries between New York and Montreal since 1997. And Radisson's Seven Seas Navigator will use Manhattan as a home port for the line's first full season of Bermuda cruises.

Carnival Cruise Line ships will clock a record 50 New York City departures, including eight-day cruises to the Caribbean.

A host of other lines, including Norwegian Cruise Line and Royal Caribbean International, offers round-trip departures from Baltimore, Boston, New Orleans, Philadelphia, Seattle and Houston, in addition to busy ports Miami, Fort Lauderdale, Tampa and Port Canaveral.

Some lines are heading further afield of tried-and-true ports.

For instance, though Holland America's eight ships will rack up a record 144 cruises to Alaska on mostly familiar routes, the small-ship line Cruise West ventures into an Alaska backwater wilderness that almost all other lines bypass. Its ships explore coves and inlets around the perimeter of Admiralty Island National Monument, where bears outnumber humans.

Those charmed by Americana and river travel will be pleased that, after flirting with bankruptcy, Delta Queen's American Queen started churning its paddle wheel back in the Mississippi River for the first time in 15 months on Jan. 18.

And Europe-based Crown Blue Line plans to bring its popular self-drive vessels stateside, offering boats on the Chesapeake Bay this spring and Florida waterways in November.

No-risk cancellations

In rapid order recently, nearly a dozen lines that specialize in farther-flung itineraries have announced no-penalty cancellation policies. They hope this will create a worry-free environment and lure passengers to faltering itineraries.

Lines that offer the policies range from large mass-market operators such as Princess, Royal Caribbean and Costa Cruise Lines to boutique companies such as SeaDream Yacht Club.

The spectrum also includes river cruise specialist Uniworld; lines that might be less familiar to North American cruisers, such as Royal Olympia Cruises and First European Cruises; and one line that hasn't begun to sail, Oceania Cruises.

"We realize that in today's economy, a vacation is a serious financial commitment," says Serba Ilich, president and CEO of Uniworld, which is throwing in a free travel-protection plan for most of its Europe departures through May.

Similarly, Royal Olympia is bestowing its policy on summer cruises on all its Aegean and Baltic routes. Expedition line Canodros S.A.'s policy covers cruises on the Galapagos Explorer II and optional visits to a remote jungle outpost. Even ultraluxury line SeaDream introduced a no-penalty, cancel-for-any-reason policy on all itineraries of Sea Dream I and II.

Though all the policies are similar, specific terms can vary in important ways. For example, under most policies, the entire fare will be refunded -- either in cash, credit for a future cruise or a combination of those -- but some restrictions apply. And though many of them let you cancel up until the departure day, others allow cancellations only up to three days before the sail date.

Uniworld's Gold Plan, for instance, guarantees that passengers can cancel in writing for any reason until the day of departure and receive a 100 percent refund in cash or travel certificates. With Uniworld (toll-free 1-800-733-7820; www.uniworld.com) there are no forms to fill out, no doctor's notes to request, no adjusters with whom to deal.

Uniworld's guarantee applies to spring European sailings on almost 60 itineraries. For cruises in March, April and May, the coverage is provided at no cost, the equivalent value of at least $200.

The cancellation policy offered by SeaDream Yacht Club (toll-free 1-800-707-4911; www.seadreamyachtclub.com) doesn't offer cash refunds. Vacationers can change or postpone travel plans for any reason up to the date of departure and receive 100 percent credit of the fare, including government fees and handling and service charges. All money paid for a canceled cruise will be credited to the passenger for use within two years on another cruise.

Other major lines that have greatly changed their cancellation/refund policies include: Crystal (toll-free 1-800-820-6663; www.crystalcruises.com); Radisson Seven Seas Cruises (toll-free 1-866-314-3212; www.rssc.com); Seabourn Cruise Line (1-800-929- 9391; www.seabourn.com); and Celebrity (1-800-437-3111; www.celebritycruises.com).

Nickel-and-dimed

For years, cruise lines have attempted to persuade cruisers that the best deals were to be had by booking early. Now, waiting for last-minute bargains may be the way to go. As disconcerting as that is for the lines, nearly everyone wants to wait.

There's "still a preponderance of last-minute bookings," says Conroy, the Radisson CEO.

Carnival Corp.'s Micky Arison tells Travel Weekly that this trend puts the pressure on pricing: "We have always tried to get the right pricing from the outset (early) and then, based on demand, push prices up closer to departures; but after 9/11, we had to throw that out the window."

Other factors are sending cruise fares south, too. Agents report trouble regarding pricing in the Caribbean. Carnival sent e-mail promotions for its February Triumph and Victory cruises with prices as low as $299 for seven days. For cruises in March to the Caribbean, Celebrity promoted ocean-view staterooms on seven-night voyages for as little as $700, about half the usual fare.

"Cruise lines are giving unprecedented discounts (likely to) prevail well into 2003-2004," says Tara Rogers, vice president of World Wide Cruises, the largest American Express cruise specialist in the country.

Though cheaper cruises sound terrific to passengers, there's a downside: higher onboard costs.

With fares squeezed by the overbuilding of vessels the past few years, cruise lines have sought to compensate by jacking up charges for selected onboard services. No line now calls its cruises "all-inclusive," one of the big sales points in the past decade.

Passengers are not pleased. Listen to Campbell, whose Cruisemates.com operates a popular bulletin board:

"The largest number of complaints I see in CruiseMates is a result of the cruise lines' attempts to generate more revenue aboard ships. While food and entertainment are still included in the price of a cruise, optional items like shore excursions and photos have doubled in price.

"On some ships, there are charges for some exercise classes, and (there is) daily pressure to purchase at the art auction and the ship's shops. Passengers feel nickel-and-dimed."

On most ships, you not only pay from $5 to $25 to dine in alternative restaurants, you also might pay extra for certain featured menu items.

The added price tags extend beyond bottled water and specialty coffee, for which lines have charged for years. Cabin stewards on Princess might leave a little disposable camera on a pillow, but if a passenger unwraps it to snap pictures, it'll set them back $20 or so.

Even bingo is getting a makeover. Increasingly, cards are being placed in staterooms, encouraging passengers to play by eliminating the time spent in line waiting to buy cards before the games.

New security policies

[Photo: courtesy of Royal Caribbean International]	Reboarding cruise ship passengers must now present a ship-issued ID card that flashes on a monitor a photo of the passenger taken when he or she embarked on the cruise.

Since Sept. 11, all cruise lines have beefed up security. Some of it has been obvious: more uniformed personnel at the gangways and onboard; Coast Guard or police harbor patrol boats creating a zone around the vessels at the dock and as they enter and leave ports; stricter requirements, including government-issued photo IDs, to board the ship each time; X-rays or hand searches of everything passengers carry onboard.

Less noticeable: the elimination of tours to the bridge while ships are in port; placement of closed-circuit TV cameras in all corridors leading to the bridge and engine rooms; inspections of ships' hulls by divers when the vessels are docked.

Federal offices require passenger manifests within 15 minutes of a ship's departure.

There is also routine use of dogs at the docks, sniffing luggage for every sort of contraband. One security company, American Detection Technologies, opened a Palm Beach Gardens headquarters to be closer to its burgeoning South Florida port and cruise ship clients.

With the big bucks that cruise lines are laying out for increased security, pass-along fees may sometimes be built into the fares to defray costs. In December, Royal Olympia introduced a $3 per person, per day security surcharge, but the line quickly withdrew it this year when passengers voiced outrage that the charges were levied after the basic passage had been bought. Perhaps cautious of that reaction, other lines have made no announcements about adding such fees.

- Freelance writers Arline and Sam Bleecker specialize in covering the cruise industry.

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