Cruise industry supersizing

Cruise lines saw more people at the 30 ports of embarkation in America last year due to deep discounts. As a result, the cruise industry is supersizing while other industries are downsizing. In 2009, cruise companies built 14 new ships and 12 new vessels are in the pipeline for 2010.

According to the Cruise Lines International Association, 13.4 million people took a cruise in 2009, up from 12.6 million in 2007. But the discounts didn’t translate into earnings. Revenues were down more than 10 percent in 2009 than in 2008 for the biggest cruise line, Carnival Corporation.

Still the cruise line industry is doing better than other segments of the travel industry, like hotels and airlines. For many travelers, cruises offer an easy option. Cruises appeal to budget-conscious consumers by touting themselves as all-inclusive.

Carnival Corp. recently announced plans that suggest the supersizing will continue. The Miami-based company signed an agreement with Italian shipbuilder Fincantieri to construct two $762 million cruise ships, which are scheduled to debut in spring 2013 and spring 2014, for its Princess Cruise brand. At 139,000 tons, the 3,600-person cruise ships will be the largest ships in the Princess fleet. The agreement is contingent on a definitive contract, financing and other customary conditions.

According to a recent New York Times article, industry experts are predicting “steals” will be harder to find in 2010 and will require advanced planning, research and flexibility. In fact, in comparison to last year, some rates are noticeably rising regardless of departure date.

For example, in 2010 Disney Cruise Line will not offer its Kids Sail Free package and Norwegian Cruise Line (NCL) will no longer offer its universal $250 onboard credit as it did last year. Instead, NCL plans to offer up to $300 of onboard credit only for those suites reserved nine months prior to departure. The reservations must be made by April 1.