Throughout 2022, the cruise industry has been in transition—continually recovering from the COVID-19 pandemic, but not quite at full capacity.
Just a few weeks ago, for example, Carnival Cruise Line’s parent company Carnival Corporation released third-quarter results showing that occupancy levels among its brands averaged just 84 percent during June, July and August. Summer ticket revenue was also disappointing. And perhaps most importantly as the year draws to a close, bookings for the fourth quarter are “below historical ranges and at lower prices.”
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Between these types of reports, the industry has been doing all kinds of deals, discounts and special promotions to help fill booths and strengthen relationships. It is a practice that continues even in autumn and winter.
“Cruise lines are running strong deals and promotions right now to bring travelers back,” says John Mast, senior director of marketing, Expedia Cruises.
Here’s a closer look at what’s on the table for those interested in a cruise getaway.
Buy now, pay later
The buy-now-pay-later (BNPL) approach to shopping that has swept the online shopping world over the past few years is now also becoming more prominent in the cruise booking process.
This approach, of course, allows people to book a cruise now and pay for it later through installment payments made over time — similar to an installment loan. At a time when empty cabins continue to be a challenge and consumers may be worried about spending money amid inflation and a looming recession, the option to book a cruise without having to come up with the cash right away is certainly a draw. .
“Cruise lines seem to be really focused on the buy now, pay later trend, using companies like Uplift to get people to book,” explains Jesse Morris, owner of We Book Travel, an independent travel agency. on the Avoya Network. “It’s one of those things that’s been in the background for a while, and I think it’s helping to move the needle a little bit in the mass market space.”
At this point, it is possible to book through BNPL on almost all the major cruise lines that consumers are familiar with, including Royal Caribbean, Celebrity, Viking, Princess Cruises, Holland America and many more.
“There are a lot of options out there. All the major travel leaders are on it,” Morris continues. “You’re going to see a lot more things like this to help people who want to book.”
Air ticket deals
Air travel is hardly a bargain these days. According to the US Bureau of Labor Statistics’ Consumer Price Index, airline ticket costs rose 42.9 percent between September 2021 and September 2022.
Making airfare less of a barrier to booking a cruise is another tactic that has become increasingly popular in the cruise industry, experts say. “Airfare is a huge pain point right now, and some airlines offer free or discounted airfare,” says Morris. “This is most prevalent with river cruise lines, but also occurs on many ocean lines.”
At Norwegian Cruise Lines, for example, if cruises don’t necessarily generate as many bookings as expected, the cruise line will offer two-for-one deals on airfare to get travelers on the ship, says Corey Hargarther, a second generation. travel consultant, working for a family owned franchise Dream Vacations.
“I have clients who have just returned from a cruise. This was the craziest booking I’ve ever sold. They got two-for-one air from Orlando, Florida to Athens, Greece for $899 total,” Hargarther said. “This is for two round-trip tickets. And then when you add the cabin and dining for seven nights, the total cost was $3,201. That’s two plane tickets and a cruise. I probably wouldn’t have booked it if it wasn’t for the airfare promo. But with the promotion, it was ridiculously cheap.”
To be clear, however, these types of deals may not always be the bargains they appear to be at first. Cruise lines, Morris explains, are often still making the money they’re spending on airfare — one way or another.
“To be honest, they’re building it into the price. It’s all marketing at the end of the day.”
Free land programs
One of the more notable offers Morris has seen recently from cruise lines is the AmaWaterways complimentary pre- or post-river cruise land packages.
For travelers who might be flying to a far-flung European destination to join a cruise, this freebie is a big draw. It allows travelers to spend two, three or four extra nights in a destination before or after a cruise, and the cruise line picks up the tab for costs such as hotel and tours. “You can come four days early or stay three or four days late and the cruise line will take care of it,” says Morris.
Quitting solo supplements
For solo travelers, having to pay a single surcharge when booking land tours or cruises has long been an annoying experience. But the industry has slowly acknowledged the issue and waived such fees. And it seems now more than ever, cruise lines are waiving the solo supplement to ensure it doesn’t hold back travelers when ships aren’t full to capacity.
“It’s not entirely new, but we’re looking at it more as an incentive to get out there and navigate,” Morris explains. “It’s being used as a way to fill ships. I don’t think anyone is doing anything really new to attract people. In many ways cruise lines are going back to their tried and true processes to fill ships.”
Florida resident rates
Florida is a popular departure point for cruises, and for residents of the Sunshine State, you’re more likely to take a last-minute cruise. It’s a point not exactly lost on cruise lines looking to fill cabins. Many are increasing their deals with Florida residents, including Disney Cruises.
“With the Florida resident discount, I sold a balcony cabin on a five-day Disney cruise for three people for $2,000. Total,” says Hargarther. “This is the cheapest Disney cruise I’ve ever been quoted.”
By comparison, the same cruise, which sailed to the Bahamas, would cost more than $600 more for a non-Florida resident, or about $2,600, Hargarther says.
“For Florida residents, it’s very easy to get to the cruise and if these discounts are available it’s even more attractive,” adds Hargarther.
While the kinds of in-state deals Hargarther talks about have been prevalent in previous years, he says they’re being offered much more regularly these days. And they are still currently available for grabs on cruises that aren’t performing well.
“Virgin has come up with a Florida resident fare promotion on cruises,” Hargarther explains. In Virgin’s case, it’s for every Caribbean cruise and to qualify you must have proof of residency when you arrive in port.
Prices at rock bottom
One last point worth noting – discounted cruise fares abound at the moment. In another real-life example from Hargarther, two of his clients were just booked on a four-night Royal Caribbean cruise departing on Halloween that cost just $503 in total.
This award was for an ocean view cabin on a cruise to CocoCay and Nassau, Bahamas. As should be clear by this point, that hard-to-pass deal is certainly not unique at the moment.
But what you won’t find, however, says Hargarther, are low prices on newer ships.
“On ships like Norwegian Prima and Celebrity Beyond, they still have high prices,” says Hargarther. “It will be more difficult to get these deals for new ships. Disney Wish is another example. You won’t get a deal on this or Mardi Gras from Carnival.
Benefits for travel advisors
It’s not just the average consumer or traveler that cruise lines are going the extra mile to reach. In some cases, there are also special offers and attention paid to the travel advisor community.
“There is a renewed focus on the travel advisor as a valuable partner,” Jackie Friedman, president of Nexion Travel Group. “Many cruise lines are offering incentives like extra commissions and gift cards, as well as giving them the opportunity to experience a ship for themselves, in the hope that they can translate that experience into bigger sales.”
When it comes to cruise lines and travel professionals, the effort also includes working harder to strengthen long-term relationships.
“Cruise line executives have worked hard to build communities for travel advisors to keep them close to their cruise lines,” Friedman said.
How long will this all take?
The million dollar question at this point, of course, is how long travelers can expect to see all kinds of deals and incentives. The answer to this question remains unclear.
“Everything is fluid, we really never know,” says Hargarther. “You never know what will happen and what tomorrow will bring.”
At least for now, though, if you’re interested in a last-minute cruise vacation and it’s during the off-peak season, there are certainly deals to be had.
“Cruise vacations have always been a great value and now more than ever,” says Pam Young, executive vice president, partner relations for Internova Travel Group. “With high consumer demand for travel, we have seen an increase in airline and accommodation prices [costs]which makes a cruise vacation an even greater value…Cruise lines have done a nice job of building inclusive pricing options, including air, that give the customer even greater value and an enhanced experience vacation.”
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