2021 cruise bookings a bright spot for travel sellers, lines

Lindblad Expeditions’ National Geographic Endurance. “There’s not a mass exodus by any stretch of the imagination,” said CEO Sven Lindblad.

The strength of 2021 cruise bookings have been widely discussed by both Wall Street and the consumer media as a barometer of the industry's ability to bounce back.

Several industry executives and large travel sellers have suggested that those future bookings are evidence of a level of strength and resiliency.

The media's coverage of ships with Covid-19 outbreaks has left cruising arguably the hardest hit of any travel product. It was the first industry to shut down completely, and its resumption will depend on the easing of regulatory and port restrictions. Strength or weakness in future cruise bookings might be the best way to gauge how deep a hit cruise has taken and how quickly it can recover.

Even if a large percentage of 2021 cruise bookings are future cruise credit (FCC) redemptions, the fact that they are being chosen over a refund indicates "resilience in a desire to book a cruise," said UBS analyst Robin Farley.

Citing data from what she called one of the largest cruise sellers, Farley said in a note to investors this month that "booking volume in the last 30 days for 2021 is actually up 9% versus the same time last year."

Farley's source reported that 76% of those who cancelled their cruises this year are taking the option for an FCC.

Some of the largest cruise sellers, including Cruise Planners and Cruise.com, also reported positive 2021 booking trends.

Cruise Planners CEO Michelle Fee said the company is "experiencing a strong 2021," with many FCC bookings but also clients who are pushing summer and fall bookings ahead and brand new bookings.

"A large volume is not necessarily FCCs," she said.

Anthony Hamawy, President of Cruise.com, said the company is seeing what he describes as a continuation of strength in 2021 bookings that started at the beginning of this year and has been boosted by clients using FCCs mostly in 2021.

Several cruise line executives said they are also seeing some 2021 strength.

"I can assure you we are also getting new bookings from customers who are not necessarily using an FCC," said Carnival Cruise Line's senior vice president of global sales and trade marketing Adolfo Perez.

Carnival Corp. CEO Arnold Donald said during an interview on CNBC's "Closing Bell" on April 14 that 2021 bookings were "strong."

"People are booking," Donald said during a subsequent media call. "They're booking for '21, in '20 -- people are booking this summer still. So there is demand."

Sven Lindblad, CEO of Lindblad Expeditions, said that clients are holding onto their bookings.

"A lot of people who were not able to travel now are simply rebooking for next year," Lindblad said. "Not all, obviously, and some are saying, 'We want to rethink it.' But we certainly aren't getting a lot of cancellations beyond the summer and into 2021. The new activity is not as robust as it would be normally; we all lost the Wave season, but there's not a mass exodus by any stretch of the imagination."

Lindblad said that even bookings on trips in the "relative near term" are holding up.

"We're getting some cancellations, but it's amazing how few compared to what it could be," he said.

Viking said in a statement that as of mid-April, its 2021 bookings are 20% ahead of 2020 bookings at the same point in time: "As a result, we have also opened additional inventory on our 2022 river and ocean itineraries. Our new Mississippi River cruises, which launched less than a month ago are selling well for the inaugural 2022 season, and there are several sailing dates that are already sold out. These bookings are driven largely by the hard work of our travel partners, and it is a testament to the resilience of our industry."

The stock market hit a factor for cruisers

Mark Conroy, Silversea Cruises' managing director of the Americas, said it's been a "mixed bag."

Members of the line's loyalty program and past passengers "are taking the FCC"; some who already had 2021 cruises booked are even pushing them into 2022.

Clients who are newer to cruising "have been more nervous, and they're the ones that have cancelled and want the refund because they don't know the company very well and they're not sure they want to travel again," he said. "That will wear off over time."

As of now, he said, many remaining 2020 cruises are well booked.

"The good news is before all this happened, 2020 looked like it was probably going to be the best year in our history," he said. "We still have our third- and fourth-quarter cruises that are booked well enough that we'd want to operate them if we're allowed to."

Conroy said that at the luxury level, clients are concerned about their stock portfolios, which might have suffered significantly during the crisis.

Deborah Deming of Frosch Classic Cruise & Travel in Woodland Hills, Calif., said that is a major concern with her upscale clientele.

"If you're 60 to 75 years old and $40,000 in the game with [a luxury line] and someone says you can have your money back, and you just saw your portfolio go down by $200,000, you want that money," she said.

Another factor, Deming said, is clients' concern about the cruise lines' viability and whether it's wise to leave such large amounts of money with them, something Conroy is also aware of. "That's why it's important that people know we're part of [Royal Caribbean Cruises Ltd.]," he said.

Tom Baker, president of CruiseCenter, said that many clients moving cruises into 2021 are doing so with suppliers that aren't offering a refund, so it's a "forced move."

"The biggest piece that is moving over now is the river cruise market, more than anything else because they are not offering refunds," he said. "[Clients] don't have a choice."

Among clients who do, he said, about half have picked departures for the following year, and some are waiting to see what happens. Indicating some 2021 strength, Baker said he's had to tell clients to book certain itineraries now.

"If you don't pick something and you're late to the game, you might miss out," he said, citing Viking as one of the companies that seem to be very well booked next year, in part because they are only offering refunds on cruises that are cancelled. For future dates, if the client doesn't want to go, they have to move the money to the following year.

Baker said that no matter what, he puts his clients first, even it means telling them not to use an FCC.

"I'm not going to talk anyone into taking a trip," he said. "If they want to cancel and a vendor is willing to give the money back, take the money. There will be tomorrow and there will be beautiful trips to plan once we're past this. And I will be here to help them."

Europe Bookings Leading the Way for 2021 According to Cruise Planners

"While the numbers are changing daily and being closely monitored, right now, cruise departures for 2021 are leading with Europe as a top destination at 38% of the mix with a large focus on European River cruising, followed by the Caribbean making up 23% of the mix and Alaska trending with 15% according to the company’s latest revenue reports," said Michelle Fee, Cruise Planners CEO and Founder.

Cruise Planners has a nationwide network of travel agents that are already used to working from home, Fee said.

The company also shifted its marketing approach, according to a statement, shifting to a primarily digital approach of sending heartfelt messages providing hope for the future of travel, exploration and discovery and human connection on behalf of its travel advisor network.

Cruise Planners is also offering advice, tools and support to its travel advisor network to protect client investments and help maintain agent commissions by arming them with the latest supplier cancellation policy updates as well as providing direct access to travel supplier executives. In the last three weeks, advisors have heard from executives at Royal Caribbean International, Celebrity Cruises, Norwegian Cruise Line, Princess Cruises, Holland America Line, Globus Family of Brands and Apple Leisure Group with more to come. They have been sharing what is happening with their brands and what trends they are experiencing.

“There are thousands of people holding on to future travel credits that still need to be rebooked. We are hearing straight from the experts how to adjust travellers' itineraries and take advantage of the rebooking offers available to them,” added Vicky Garcia, COO and co-owner. “It is a win/win for clients and agents when a client rebooks a future vacation since many suppliers are offering value adds and perks to those who apply their future cruise credit towards an upcoming vacation.”

Cruise Planners did undergo what Fee called a small round of layoffs while maintaining 90 per cent of its workforce. Salaries were reduced on a sliding scale across all departments including executives who are taking the highest pay cut. Fee and co-owner and COO, Vicky Garcia, volunteered to forgo 100% of their salaries and are working hard to lead the company through a full recovery eventually.

Celebrity Cruises reveals details about the Apex

SAINT-NAZAIRE, France -- Celebrity Cruises revealed new menus, entertainment and spa/wellness programs for the Celebrity Apex during a hard-hat tour at Chantiers de l’Atlantique on Tuesday.

Celebrity Edge first floated in 2018, has been a wildly successful ship, according to Vicky Garcia, COO and co-owner of Cruise Planners. But, for this second in the series, Celebrity didn’t rest on its Edge laurels.

“They tweaked things to be even better and different,” Garcia said during a walk-through of Celebrity Apex, which is scheduled to debut in Europe in March. 

Celebrity president and CEO Lisa Lutoff-Perlo said that as the company builds ships, “We make a lot of changes along the way. We do it because we want it perfect.”

The biggest changes with Apex, she said, involve the entertainment. 

Three new stage shows are set for The Theatre, along with new technology such as towering LED screens that curve around the stage to make the performances more immersive and exciting. 

The new productions include “Crystalize,” Which Celebrity’s new vice president for entertainment Lisa Lehr called “our eye-candy tech show.” It employs lasers, video, aerial acrobats and an underwater ballet sequence made possible by one of those new tech marvels: a towering scrim with eight 20K laser projectors that create a 360-degree, wraparound picture for the audience. 

 

“Rockumentary” stars classic rock moments from Wembley Stadium to Woodstock. In a twist, audiences get to decide the finale by voting in advance using the Celebrity app.

And “Tree of Life,” a “feel-good show,” in Lehr’s words, features a 20-foot tall “tree” with more than 3,000 LED leaves. 

Meanwhile, Eden, the triple-deck, glass-walled lounge in the aft of the ship, will have a theme that changes daily, with daytime activities that are carried through in the nighttime entertainment. For example, a daytime guided meditation will be followed by a “Night of Chill” ultra-lounge concept with acoustic music. 

Another day, interactive art experiences will lead into “Night of the Arts,” with interactive performances. 

“Eden is beautiful, one of the most stunning spaces I’ve seen on a ship,” said Tawnee Sons, a Cruise Planners agent. When Edge came out, Eden had a “unique, artsy concept” that enthralled some but put off others, she said. Sons think the revamped programming there should appeal to a wider range of people. 

The ship’s nightclub, The Club, will provide more intimate, cabaret-style entertainment such as new takes on classic circus acts with aerial acrobatics. During the day, The Club will host all kinds of activities, from live-band karaoke to archery and dance classes. 

When it comes to dining changes, new and expanded menu offerings are planned in many Apex venues. 

Cornelius Gallagher, vice president of food and beverage at Celebrity created fresh signature dishes for each of the four main dinings rooms: Cosmopolitan (new American with international influences), Cyprus (Mediterranean), Normandie (French) and Tuscan (Italian). An enlarged galley enables expanded offerings in Raw on 5 and the Magic Carpet, the movable, a cantilevered platform that is the hallmark of the Edge series.

 

The Fine Cut Steakhouse, which Gallagher said is Edge’s busiest speciality dining venue, will be getting upgraded proteins. And items will be added at the Rooftop Garden Grill, as well. (There, additional canopy coverings and screens will calm the wind.)

Gallagher also revamped the Eden menu, with an emphasis on flavour and local sourcing. For example, when the ship is in Spain, one dish could be fresh-caught, blazing-red carabiniero jumbo prawns.

A new storyline for Le Petit Chef, the 3-D digital animation in Le Grand Bistro, is also coming. Plus, Celebrity Apex will be adding the Craft Social Bar, which debuted on Celebrity Equinox. This casual spot offers draft cocktails, wines on tap and more than 50 craft beers served by a cicerone (a certified beer sommelier). Celebrity-style comfort food will be available  --  think mac and brie or Kobe beef sliders.

When it comes to the spa, a new collaboration with OneSpaWorld is creating broader wellness programming. Apex will offer F45 training, popularized by the actor Mark Wahlberg. The 45-minute sessions involve cardiovascular, strength and interval training. 

A new Women in Wellness program will highlight practices by noted influencers like Katie Brauer, yoga master and founder and CEO of The Yoga Professional, and Ruth Zukerman, co-founder of Soul Cycle and Flywheel Sports.

Local ingredients from visited destinations will be incorporated into a new Destination Wellness program. 

Joyce Landry, CEO of Landry & Kling Global Cruise Events, a meetings specialist, liked what she saw on Apex. 

“Edge is a beautiful ship, but when you create something new, you can have these little adjustments that elevate it to the next level.” she said. “Celebrity has done that with Apex.”

So close yet so far: Disappointment on the Norwegian Sun

Lori Osgood's clients were eager to visit Cuba for the first time this week when they were to cruise into Havana aboard the Norwegian Sun. The group had been planning their family cruise since last November.

It was not to be. 

The Trump administration's new regulations implemented on Tuesday forced cruise lines to immediately remove Cuba from all itineraries.

"They were excited to soak in all that Havana had to offer -- the sights, sounds, people and culture," said Osgood, a Cruise Planners travel advisor in Jacksonville, Fla. "They are disappointed that they missed their chance."

Instead of Havana, the Norwegian Sun's passengers headed to Nassau, Bahamas. Norwegian informed passengers with an announcement on the ship. 

"I sell a fair amount of Cuba and am saddened that many of my clients who were planning to travel there will not have the opportunity to do so, at least not in the foreseeable future," she said. 

As for cruise travellers already booked for Cuba, she will spend "a few extra hours to make sure our clients who were supposed to go to Cuba are well taken care of."

Carnival makes higher commission levels easier to reach

By Tom Stieghorst 

Carnival Cruise Line said it will lower the number of cruises agents have to sell to reach a higher tier in its commission structure.

The move will make it easier for agents to earn more selling Carnival and reverses a move the line made three years ago in the opposite direction.

Adolfo Perez, vice president of trade sales and marketing, said the move was his top priority since being promoted to his new job in June.

"Essentially what we’re doing is reducing each of the thresholds for each of the commission levels, so anywhere from the 11% to the 15% commission level we’ve reduced the number of sailed cabins required to hit that tier,” Perez said.

For example, agents who previously had to sell 400 cabins to earn the 15% level will now have to sell 250. To earn 14%, the threshold goes from 300 to 175.

The 13% level is now reached at 125 cabins, down from 200, while the 12% level is reached at 50 cabins, down from 100.

Small or beginning agents will need to sell 40 cabins, down from 50, to boost their commission rate to 11% from the starting rate of 10%.

Agencies already earning the top rate of 16% are unaffected. Perez said he feels the structure for those commission levels is already adequate.

In a statement, Vicky Garcia, chief operating officer of Cruise Planners of Coral Springs, Fla., said Carnival’s moves to recognize the value agents bring to the bottom line is a step in the right direction for the competitive landscape.

"It is obvious the company has reprioritized travel agent relationships and this trend should continue to keep the brand top of mind for travel agents,” she said.

AmaWaterways christens AmaSerena in Germany

From left: AmaWaterways' Kristin Karst and Rudi Schreiner; Cruise Planners' Michelle Fee; Vilshofen Mayor Florian Gams; and 2nd County Commissioner Rainmund Kneidinger.

By Michelle Baran

Michelle Fee, co-founder and CEO of Cruise Planners, served as the godmother for the christening of AmaWaterways’ newest 164-passenger vessel AmaSerena, which took place this week in Vilshofen, Germany.

Fee was joined by Ama co-founders Rudi Schreiner and Kristin Karst.

The launch of AmaSerena brings the company’s 2015 fleet size to 16 vessels, with two additional launches planned for next year — the 158-passenger sister ships AmaViola and AmaStella.

The AmaSerena features the line’s first-ever connecting staterooms, designed to better accommodate families and groups traveling together. The majority of the staterooms on the vessel’s upper two decks have been outfitted with Ama’s signature twin balcony concept (an adjoining indoor and outdoor balcony). The AmaSerena also features salon and spa services; a sun deck; multiple dining venues, including The Chef’s Table restaurant; an intimate wine room; a fitness room; and a heated swimming pool with swim-up bar on the sun deck.

Future itineraries for the AmaSerena include the Enchanting Rhine, Magnificent Europe and the Romantic Danube.

18 Viking ships named this week

By Rebecca Tobin

ONBOARD THE VIKING HEIMDAL — Viking River Cruises is christening 18 ships in four days — and 18 ships means 18 godmothers, including seven representing the travel industry.

Nine ships were named Monday in Amsterdam, and seven were christened on Tuesday: three in Avignon and four in Rostock, Germany.

“I think it’s quite a week for some of us,” Viking Cruises Chairman Torstein Hagen said at the start of the ceremony in Avignon, where he was flanked onstage on the top deck of the Heimdal by seven godmothers and the captains of their ships.

A giant screen behind them displayed video of the four ships in Germany, and as the godmothers blessed their vessels by pressing red buttons on either side of the stage, mechanical arms holding bottles of Veuve Cliquot swung down and smashed them against each ship (windy conditions at the yard in Germany caused a little trouble with two of the bottles, but the bottles broke without incident under sunny skies in Avignon).

In the audience on the Heimdal were godmothers for seven of the nine Viking ships named in Amsterdam: Vicky Garcia, COO of Cruise Planners; Sarah Henshall, vice president of travel and branch operations for AAA Carolinas; Kathryn Mazza-Burney, executive vice president of Travelsavers; Geraldine Ree, senior vice president of sales and marketing for Expedia CruiseShipCenters; Anne Morgan Scully, president of McCabe World Travel; Pam Young, vice president of industry relations for Travel Leaders Franchise Group; and Hanh Haley, the partner of Travel Leaders Group Chairman Michael Batt.
Two ships, the Viking Hemming and the Viking Torgil, will be christened in Portugal on Friday.

The total includes 14 of Viking's 190-passenger Longships delivered this year. Two delivered last year are being christened this week, as well. The two ships sailing in Portugal are 106-passenger vessels built to operate on the Duoro River.

The ship introductions means that Viking will operate 52 vessels in 2014.

Optimism in the cruise market

By Tom Stieghorst

Is the cruise business in the process of turning a corner? 

There’s no objective proof that it is, but as with improvements in the general economy, turning points are often discernable only in retrospect.

Subjectively, it feels like something is happening. Business feels like it is getting better. People feel primed to spend again, and travel is one of the areas they want to spend more money on.

Some travel executives have been saying this for awhile. “I do feel like travel is back,” said Michelle Fee, CEO of Cruise Planners, who noted her company is having a record year for both franchise and travel sales. 

The legs for a turnaround are in place.  The stock market is consistently hitting new highs. Equally important, home prices have been resurgent for some time now. Unemployment remains a drag, but the jobless rate is several points below its peak of a couple years ago. Driven by a potential easing of tensions with Iran, oil prices have fallen for the past four months, which should give cruise lines leeway to offer better fares without destroying the bottom line.

The prevalence of fare sales and promotions suggest that the bedrock seven-night domestic cruise market is still in recovery. But cruise lines continue to make impressive gains in cost reduction, leaving room to fill ships profitably at somewhat lower prices.

Individual agents who are having good years are not hard to find. “Personally, my business has been fabulous,” said Muffett Grubb, a Cruise Holidays franchisee in Knoxville, Tenn., who said travelers are loosening their wallets to take cruises in Europe rather than the five-to-seven-day Caribbean trips of 2011-12.

Likewise, Rose Stevenson, who owns a Cruise Holidays franchise in Charles Town, W. Va., said she’s doing well and that clients have a comfort level with Alaska and Hawaii cruises they didn’t have before.

Kevin Weisner, president of Cruise Holidays, said that in the big picture, success depends on market segment. Once you take the first-time cruiser out of the equation, “business is very, very healthy,” he said.

Those consumers that have never been on a cruise became tougher to persuade after the Carnival Triumph incident in February. But memories of that incident are fading, and barring some sort of lightning strike for the third year in a row, the cruise industry could finally be on its way to the smooth sailing it used to enjoy routinely during a good economy.

If November turns out to be a tipping point, that’s something everyone in the cruise industry could be thankful for.