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Cruise Lines Cut Prices to Boost Business

By Dan Schlossberg
ConsumerAffairs.com

January 5, 2007

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The cruise industry is trying to make waves with consumers: it's cutting prices on Caribbean cruises, hoping to offset disappointing sales.

Prices have reached their lowest levels in five years, when the entire travel industry was suffering post-traumatic syndrome from the terrorist attacks of Sept. 11, 2001. But they may not stay down long.

According to industry analysts, cruise lines will keep fares low until they fill inventory to reasonable levels, then return pricing to normal levels.

The exceptionally mild winter, coupled with confusion over new passport regulations, have hampered bookings for Caribbean cruises. An abundance of big ships, a dearth of new itineraries, and weather worries provoked by Hurricane Katrina are other concerns.

Although January, February, and March are traditionally big months for booking cruises to the Caribbean islands, the number of reservations often accelerates when snow, ice, and freezing conditions grip major northern cities.

That hasn't happened so far this year, thanks to the record winter warmth prompted by El Nino.

At the same time, rules requiring all Americans to carry passports -- and the long waits to get them -- prompted many potential travelers to jettison plans to cruise to the Caribbean. Even though those rules have since been relaxed for cruise passengers, many had already made travel plans that did not include cruises.

Depending on cruise line and stateroom selection, bargains can be found on Caribbean itineraries -- under $400 for a week in February -- and even in Hawaii, with some prices below $500.

For the most part, prices remain at 2006 levels for summer cruises to Alaska and Europe.

Bargain-hunting season won't last long, experts insist. Some passengers book 8-12 months ahead and have the best chance at finding the ships, staterooms, and itineraries they want.

With careful searching, they should also be able to find prices that won't break the bank.

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