Cruise Lines Tightening Belts, Still Growing Though
September 12, 2005
Pain at the pump is certainly requiring everyone to dig a little deeper and make some sacrifices. Perhaps you had to cancel or shorten your Labor Day travel plans (No matter how you put it to them, telling the kids that they're going to the Flea Market instead of the beach is never news well received.) Or, maybe you find that you're having to cut down on movies, dining out, or other outings that you once took for granted.
Well, you're not the only one who has to do some belt tightening; the cruise lines are affected as well. Rising oil prices and a tumultuous hurricane season have cut deep into cruise lines' profits; still, many of the cruise lines expect stronger earnings than the previous year. That's because passengers are still lining up to get aboard, lured by the chance to experience the onboard activities, great dining, and bend-over-backwards service (not to mention a huge list of destinations and ports of call that they can visit without having to fill up the gas guzzler).
The cruise lines' fuel costs rose as much as 37%, and the increases have continued. Crude oil futures hit $70 a barrel recently as Gulf of Mexico rigs and refineries were damaged or closed, but have since slipped back.
Of course, cruise lines are also hurting because of the fact that Katrina shut down the Port of New Orleans, most likely for several months at least. Now, instead of cruise ships laden with onboard pools and inviting restaurants, an aircraft carrier rests in the dock, its deck laden with artillery bristling like porcupine quills.
While the Port of New Orleans is among nearly a dozen Gulf ports in Louisiana, Mississippi and Alabama affected by Katrina, hands down, New Orleans is "or was" the top cruise port in the Gulf region. One reason was that New Orleans was such a great port of at which to begin or end a cruise; countless diversions awaited someone who made it a point to spend some time there.
And, cruise lines like Royal Caribbean and Carnival Cruise Line were able to offer a wide variety of itinerary options, sending ships out to the Caribbean and Mexico from the Big Easy. And even though ships have moved their operations to other cities such as Galveston, TX, it's definitely putting a strain on the industry.
Of course, it isn't only cruise lines that come into the Port of New Orleans. Being one of the biggest ports of call in the world, New Orleans is the top importer of coffee, natural rubber, and steel, some of which comes from Japan, Brazil, Russia and Mexico. So, it's only natural that the consumer can expect to feel the effects of the rising costs from those industries, as well.
There's no doubt that lots of people are pinching pennies now. But, when it comes to a jam-packed vacation, there's still no more price-friendly way to go than what the cruise lines can offer. Maybe you can car pool to the port.
