2010 is going to be the year of economic recovery and travel prices are on the upswing. In the last couple of weeks, 2 cruise lines, Carnival and Norwegian Cruiseline, have announced price increases of 5 and 7% respectively. Was this a marketing ploy on their part to pump up first quarter sales? Some think so but, in my opinion, this is a sign of supply and demand. If they can get the higher prices because people are willing to pay it, they will be successful with their strategy and other cruise lines will follow suit.
Let’s compare 2009 and today:
Last year, I was reducing cruise prices on Mediterranean sailings by 50% or more. This year, for the cruises that I have currently booked, the prices have remained steady or even increased.
Last year, I was reducing Alaska cruise and cruise tour prices by up to $1000 per cabin. This year, the cruise and cruise tours that I have booked, in peak season, are holding steady.
Last year, we couldn’t give away Caribbean cruises cheap enough. This year, prices on some have decreased by as much as $300 per person in October (hurricane season) while others have increased.
Last year, clients were booking very close to the departure date- even honeymoons! One cruise line representative told me that the average booking window had dropped from 10 months to less than 6 months out. This year, I am booking well into the 2nd half of 2010 and already into 2011. Yes, I’m still getting the clients who are booking last minute but the greater majority seem to be planning further out.
If I had a crystal ball and could predict travel industry sales for 2010, what would it be?
1. Less price reductions
2. Continuation of special value add promotions, like free nights, free breakfast, spa credits and on board credit
3. Prices holding steady or increasing in many destinations as demand increases
4. Higher interest in travel
5. Earlier bookings
My suggestion is to book early to get the best availability. In many cases, if prices drop, My Vacation Lady can work to get the prices reduced.
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