The Cruise Industry's All Smiles
February 28, 2005
Several factors in the global economy have injected the cruise industry with newfound life. The low value of the U.S. dollar, as well as a high demand for cruises, spells good news for the unique brand of travel. However, the current state of affairs puts the consumer in a unique and somewhat precarious position; costs for cruises are on the rise, but ironically, it is the low value of the U.S. dollar that spells relief for some.
Right now would be the perfect time to book that trip to Europe that you've always wanted to take. Why? Because of the low value of the U.S. dollar compared to the euro and the pound. Roughly, the U.S. dollar is worth about 75% the value of the euro and a little more than half the value of a British pound. That disparity results in some interesting features when it comes to cruising and travel in general.
When it comes specifically to cruises, North Americans who buy a ticket to Europe in U.S. currency don't have to worry about putting their dollars through the "exchange wringer." By booking a European cruise with U.S. currency, a person will save more money than if he or she traveled across the Atlantic on their own and exchanged their dollars for euros or pounds. With the all-inclusive price of a cruise, your meals, lodging, transportation, and entertainment are basically paid for before you even board the ship.
There's another side to that coin, less related to cruising and more to general travel. Europeans are finding that their currency is worth more inside our borders, and as such have been visiting our country in record numbers.
Generally, though, cruising has become more expensive than it has been within the past few years, and there are a number of reasons why this is so. One fact is that consumer confidence has risen dramatically since the first few years after the September 11th attacks that rocked the travel industry and forced them to drastically cut their prices. With more people showing confidence in the economy---even with the dollar so low---the cruise lines have raised their prices, often to costs higher than pre-9/11 standards.
Another reason for the increase in prices is that there are not many new ships being released this year. Without new ships to fill the growing list of people who want to cruise, it simply breaks down to simple supply and demand. Everyday, more people choose cruising as their form of vacation, but with no significant increase in the supply of new ships this year, prices for a cabin have risen.
If all this sounds as if it doesn't bode well for you, the consumer, you can take heart in the fact that ship building is sharply on the rise. Companies like Carnival, Princess, Norwegian Cruise Line, Mediterranean Shipping Company, Disney, and more are likely to introduce many new ships within the next few years. And, even with the increases in prices, consumers are getting a better value out of a cruise vacation than a land-based vacation in which they must pay separately for accommodations, transportation, and three meals a day.
The ebb and flow of the global economy is much like that of the ocean, albeit much less predictable. It probably would be safe to say, however, that the low prices in the days after September 11th have vanished. Still, it is evident that even with an increase in costs, people are not being deterred from getting onboard a cruise ship.
By Michael GlossBook your cruise online
