Tuesday, February 16, 2010

Financial Slump Produced Bargains on 2010 World Cruises

Sun Sentinel

While most cruise passengers today can save a few dollars on a seven-night cruise, a lucky few are sailing around the world on a luxury liner for thousands less than it cost a couple of years ago.

They're booked on world cruises, which depart this time of year on voyages that can span four months and touch seven continents.

The dismal global economy wreaked havoc on the luxury travel sector in 2008 and early 2009, forcing top lines such as Silversea Cruises, Regent Seven Sea Cruises and Yachts of Seabourn to discount fares on early bookings and offer freebies to lock in wealthy passengers for 2010 world cruise itineraries.

Although demand has recovered, cruise executives say they're still happy to throw in unlimited tour excursions and airfare to reel guests into making early arrangements. Those who wait to book pay a higher fare, they say. This strategy, combined with the personalized service they receive aboard the cruise, also helps keep passengers loyal to a specific line.

"World cruisers really create a base for us to go very exotic places," said Mark Conroy, president of Regent Seven Seas Cruises.

The company's 2010 world cruise drew about 300 people who will sail around the world, while the rest of the 700-person ship is filled with passengers who take one or more segments of the itinerary, Conroy said.

Of the 300 people sailing on Regent world cruises this year, Conroy said over half — maybe as many as two thirds — have been on every world cruise the company's offered.

Regent's world cruise left San Diego earlier this month and is scheduled to conclude in Fort Lauderdale in May.

Another Fort Lauderdale-based luxury line attracted Tony Sturiolo, 65, and wife Patricia, 62, of Mount Kisco, N.Y., who paid about $118,300 to sail on the Silver Spirit's maiden voyage around South America. Their 745-square-foot suite has a private veranda and dining area. And for the entire voyage, they will have a butler assigned to their stateroom.

"We're going to meet friends that were on the world cruise with us before," Sturiolo said. In 2007, the couple sailed with Silversea on a world tour, an experience he described as "126 days of absolute luxury."

"For the level of service that Silversea provides, the pricing is appropriate," Sturiolo said. And perks like free shipping for luggage take the hassle out of traveling, he said.

While sales of world cruises and long itineraries slowed in the wake of recession and economic uncertainty last year, experts say it was not because passengers lacked the funds.

"They saw what was happening … and there was a sort of melancholy empathy" that caused them to hold off on making vacation plans, said Matthew Upchurch, CEO of Virtuoso Travel, a group of more than 300 upscale travel agencies.

As passengers started watching their financial portfolios rebound, they began booking early to reserve their preferred cabin accommodations and take advantage of the perks offered, Upchurch said.

Travel agents agree that many potential world cruises are insulated from economic shocks.

"These people have no financial problems whatsoever," said Millie Schwartz, an Aventura-based travel agent for more than 50 years.

Schwartz said she once sailed a portion of a world cruise with one couple who had their own helicopter pad and another who had a 93-foot yacht.

"Even though they have a lot of money," Schwartz said, "they want value and service."

This year's crop of world cruises likely won't set any profit records. Incentives last year to perk up 2010 world cruise bookings included itineraries offered at 50 percent off and two-for-one specials. Cruise fares for these voyages start at about $20,000 at top-tier lines and include perks such as free air fare, free unlimited tour excursions, free baggage shipping and onboard spending credits.

"We're losing some on the per diem rate, but we're making up for that with the volume," said Stephen Tucker, vice president of field sales for Fort Lauderdale-based Silversea Cruises.

Next year, the line is offering a 119-day world cruise aboard the new 540-passenger Silver Spirit. The ship is about 30 percent sold for the voyage, with about 95 percent of the big suites sold out for all segments, company officials said. Last Thursday, the ship departed Port Everglades for a 91-day circumnavigation of South America, a trip designed to introduce the vessel to major United States markets before taking it around the world.