SHORT HAUL: Cruising
MEDITERRANEAN CRUISING
A `perfect storm’ of negative events made 2012 a nightmare year for cruise operators in the Mediterranean. Maria Harding reports on the region’s prospects
T
he Costa Concordia disaster, `Arab Spring’ and economic turmoil in Europe sent Med
cruise prices plunging and cruise lines scrabbling to fi ll capacity at virtually any cost in 2012. As a result, Royal Caribbean
International has redeployed some of its Mediterranean tonnage to other regions (notably the Far East and the Caribbean) for summer 2013, and MSC Cruises’ Managing Director Domenico Pellegrino has estimated that cruise capacity in the Western Med will reduce by around six per cent this summer and remain depressed for some time. But this – he told delegates at the December 2012 `Seatrade Med’ Conference in Marseilles – could provide a prime opportunity for cruise lines to recover lost ground on pricing, reduce discounting and restore stability to cruise markets including the UK. “We see no growth in
Mediterranean capacity over the next few years, so let’s use that to increase
prices, “ Pellegrino said. “We are focused on increasing penetration of our established markets; it’s time for consolidation, to be profi table.” Costa Cruises President Gianni Onorato agreed that price stabilisation should be a top priority. “Growth is not just about the number of passengers you attract to cruise. Even in 2012, ships were sailing full despite Concordia and the economic crisis in Europe. But we need to put the proper value on the product. It is healthy to grow the markets while selling cruises for the right value.”
What’s new Onorato called for improvements in the way cruises are sold saying: “We have been obliged in the last few months to do things we don’t want to be doing – that is, discounting. Cruising offers value for money and excitement and is usually the sexiest product in a travel agency, but often it is also the cheapest. We cannot have the best and sell it at the worst price.”
Attention was also given at the Seatrade Med’ Conference to the challenges that larger cruise ships in the Med present. Some Western Mediterranean
ports can handle Royal Caribbean International’s gigantic 225,000-ton, 6,400-passenger Oasis -class vessels, RCCL’s VP of Commercial and New Business Development John Tercek told the Seatrade Med conference. “The Western Mediterranean ports of
Barcelona, Civitavecchia and Marseille are growing fast and we have put some of our biggest ships in there,” he said. There are enough ports which could accommodate them.” However, there are challenges for
megaship operators looking to expand in other parts of the Mediterranean. “The Eastern Med is more diffi cult as there are several tender ports like Santorini which don’t handle big ships too well,” added Tercek.
Another problem is overcrowding in
many ports, particularly in Italy, and in Venice there is growing opposition to big-ship calls by anti-cruise lobbyists. “Venice is the main home port for
the Adriatic,” Tercek said, ”so if big ships can’t operate out of Venice they will probably not go to the Adriatic.” Costa Cruises CEO Michael Thamm
said: “Venice is a place where the cruise industry is clearly not welcome,” Thamm told the conference. “All those who benefi t from our industry being in Venice need to stand alongside us. “We want the majority to do a much
better job in communicating their support and what we do for Venice, otherwise we will leave the city.”
Industry update Response to cuts in UK agents’ commission by some leading cruise lines has been mixed, but many believe this is essential to stabilising
“So can we see the strong growth pattern for the Mediterranean being restored? Yes we can”
DAVID DINGLE, CEO, CARNIVAL UK
www.sellinglonghaul.com • February 2013 57
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