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ruben.maritime

The first web2.0 spanish blog about Maritime Affairs. El primer blog web2.0 español sobre el sector marítimo.

Caribbean cruises falter further

MIAMI 19 December – Pricing for cruising’s "bread and butter" Caribbean itineraries continues to fall, according to a new survey by AG Edwards analyst Tim Conder. The survey – which independently monitors forward rates offered by Carnival and Royal Caribbean – found that Caribbean pricing for both 1Q07 and 2Q07 is “still eroding” and “continues to modestly weaken”. Meanwhile, 2Q07 Alaskan pricing is “flattish”, while rates for European and other non-Caribbean itineraries “remain solid”. The analyst noted that Caribbean weakness is persisting in spite of the mild 2006 hurricane season and the delayed implementation of new US passport requirements. “Our data indicates weakness is more skewed toward the shorter Caribbean and entry-level cruise brands,” he said, implying that the problem is “likely related to mortgage interest rates impacting consumers’ share of spending available for cruises”. Conder added that a mild Northeast winter could dampen “escape-to-the-Caribbean cabin-fever demand” and that early indications for the 2007 Wave Season were “not positive”. On the plus side, Conder noted that fuel prices have fallen 3-5% since the last quarterly guidance from Carnival and Royal Caribbean. As a result, 2007 results could show positive year-on-year cost comparisons.

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