Every year, itinerary planners process data from a wide range of sources to arrive at cruise calendars for the coming seasons. Taking into account factors as disparate as the cost of fuel, port availability, customer preferences and world political events, they create the voyages that draw guests onto the ships.
Cruise ship owners and operators are increasingly making itinerary decisions based on a need to reduce fuel costs, in particular in Emission Control Areas (ECAs). “Itinerary planning for deployment in 2014 and 2015 is all about balancing the need to offer attractive itineraries while dealing with significant increases in fuel cost,” says Terry Thornton, SVP, revenue management and deployment for Carnival Cruise Lines. “Fuel cost increases are being driven by general price increases as well as the impact of the 2012 and 2015 ECA requirements.”
Carnival, along with the rest of the cruise industry, has been working on itinerary strategies to reduce fuel consumption over the last several years without any significant impact to the guest experience, says Thornton. “The actions have included efforts to reduce ship speeds, modification of port sequences, home port changes and other minor adjustments. In addition, new onboard technology and ship design are helping to reduce our consumption.”
Going forward, the fuel cost implications related to ECA requirements will become more significant and will result in even more innovative itinerary strategies to further reduce consumption, predicts Thornton. “These will include capacity shifts to new markets, development of new destinations in strategic locations, working closely with homeports that provide efficient access to attractive itineraries and other new initiatives.”
The development of bigger and better homeport facilities is a trend that is allowing cruise operators great control over the crucial embarkation and disembarkation components of their guests’ holidays. Thornton says Carnival has been working with many of its key homeports to develop new facilities that will allow the company to operate more efficiently while delivering a great embark/debark experience for guests. “The Port of Miami is completing a significant expansion of our terminals to accommodate the new Carnival Breeze this November; and Port Canaveral just opened a brand new state-of-the-art terminal that we are utilising for our three-ship year-round operation.” There will be more than 225 annual departures from the new facility, which cost US$26.66 million and serves the line’s three ships sailing year-round from Port Canaveral to the Bahamas and the Caribbean.
Disney, with its first Miami departure this year and a strengthened presence in the Port of Galveston for easy access to the Western Caribbean, is paying particular attention to the benefits to be gained from deepening relationships with key ports. Tom Wolber, chief operating officer and SVP, Disney Cruise Line, explains: “With the addition of two new ships – the Disney Dream and the Disney Fantasy – in two years, we have more than doubled our capacity. Our expanded fleet offers us the flexibility to set sail from multiple ports, making it more convenient for our guests to cruise with Disney from a port closer to their own backyard.”
Increasing the number of ports visited is also a key element of luxury cruise line Silversea’s itinerary strategy, with its six vessels scheduled to visit more than 450 destinations on seven continents in the upcoming seasons. “The programme includes 32 new ports of call, which include 21 ports for Silver Explorer alone,” says Mike Bonner, general manager, Silversea – UK, Ireland and Middle East. Collectively, the line’s other ships will offer 11 new destinations in regions as diverse as southern and eastern Europe, Indonesia, Australia, the UK and Japan. “Highlighting the programme is Silver Whisper’s 115-day World Cruise, Silver Spirit’s inaugural calls in Hawaii (last visited by Silversea in 2010), and Silver Explorer’s new expedition cruises to Canada’s Hudson Bay,” adds Bonner.
Regional consolidation is another emerging trend, with several lines taking new decisions to commit ships to regular itineraries in key regions. Royal Caribbean International achieved the distinction of placing the largest ever cruise ship on year-round duty in the Asia Pacific region this year when Voyager of the Seas arrived in Singapore in May. President and CEO of the company Adam Goldstein explains: “We’ve had Legend of the Seas there for several years, and a very high percentage of her customers when she is in China are Chinese – easily in excess of 70-80 per cent, so we’ve rapidly gained experience of catering to the needs of our Chinese customers.”
Other deployment changes include plans to double the company’s presence in the United Kingdom from 2013 with the arrival of Adventurer of the Seas, and a general scaling back of winter voyages. “Having Advantage of the Seas in the UK alongside Independence of the Seas for the spring/summer/fall season is a pretty strong statement of the importance of the UK market to the brand and to the company and of our faith in the ongoing growth of that market,” comments Goldstein.
Costa Cruises currently will increase its fleet in China from one ship to two from summer 2013, when Costa Atlantica will be joined by Costa Victoria. “Costa as a brand within the Carnival group is seen as most appropriate to go to China because of our skills with regard to different cultures,” says Norbert Stiekema, VP, sales and marketing for Costa. “We are very used to working with a huge number of different nationalities, unlike many of the other brands, which are very focused on one or two source markets. This is a 12-months-per-year market, with summer in Shanghai and winter in Singapore, where the weather is better.” Costa will also increase its capacity in the United Arab Emirates by positioning a second ship in the region. From November this year, Costa Classica, originally scheduled to sail the Mediterranean, will join Costa Atlantica to offer week-long regional cruises from Dubai.
River cruise company Avalon Waterways is another line that has opted to commit more vessels to itineraries in the Asian region. The company recently announced a rise in sales of nearly 90 per cent for its China voyages for 2013 on the 650-mile Yangtze River and says it will partner with Century Cruises in 2013 for cruises on the Yangtze, gaining the use of two new ships to add to its fleet for these cruises. Demand for the line’s cruises on the Mekong River in Vietnam and Cambodia has also risen dramatically, by more than 150 per cent. “As more travellers adopt river cruising as their preferred travel style, they want to broaden their experiences,” says Patrick Clark, managing director of Avalon Waterways. “Our new ships and itineraries on the Mekong and Yangtze Rivers give them the luxury they’re looking for, coupled with the exotic and enriching experiences they desire.”
In another regional first, Princess Cruises has devised a range of new itineraries following the establishment in March this year of parent company Carnival’s Japanese subsidiary in Tokyo. The company says that more than 18,000 passengers are expected to cruise with Sun Princess in the April to July 2013 season. There will be an 87-day programme featuring a total of nine cruises of nine to 12 days on seven different itineraries departing from Yokohama and Kobe. The itineraries are customised to suit the specific requirements of the Japanese vacation market.
“Our new Japan deployment is three times larger than that of any competitive international cruise program, with superior itineraries specifically designed for the Japanese market,” says Alan Buckelew, Princess Cruises president and chief executive officer. “It’s the very first time a global cruise line is offering a full season of cruises from April to July designed specifically for passengers from Japan. We believe that our unique itineraries and onboard experience will prove extremely popular and will help to introduce cruise vacations to a growing number of Japanese vacationers.”
This is an abridged version of an article that appeared in the Autumn/ Winter 2012 edition of International Cruise & Ferry Review. To read the full article, you can subscribe to the magazine in printed or digital formats.