Thursday, April 30, 2009

The Shifting Dynamics of Vancouver's Cruise Industry


First it was Royal Caribbean pulling Serenade of the Sea out of the Alaska market in 2010, because of the high cost of business in Alaska. This amounts to a loss of 19 sailings, with an economic impact estimated to be $55 million. Then came Carnival Cruise Line's decision to move nine of its sailings from Vancouver to Seattle in 2010, for an estimated loss of $18 million. The reason is that 75-80% of Alaska cruise passengers are from the United States, and it's cheaper for these passengers to fly to Seattle than Vancouver. Holland America is replacing 20 seven-day sailings between Vancouver and Seward, with 10 14-day sailings between Seattle and Anchorage. And most recently, Norwegian Cruise Line announced the redeployment of its Norwegian Sun for the summer of 2010, moving the ship from Alaska to Europe. It will be sailing a 12-day Baltic Capitals itinerary from London (Dover) beginning May 11th, 2010. By the time the dust settles, there will be 62 fewer return sailings from Vancouver in 2010, resulting in a loss of 260,000 passengers and $120 million in economic impact to the local economy. Ouch.

However, the good news is that the 2010 Olympic Games will bring millions of Americans to the area, spotlighting the charm of Vancouver for all to see. Also, Cruise Lines International Association is holding its 2010 annual tradeshow bringing travel agents to Vancouver from all over the world.

As for Vancouverites, 2009 presents a tremendous buying opportunity with cruise fares at record lows, a wide variety of sailings to choose from, and itineraries departing from your home port. You may never have a better chance to see Alaska for so little, so hop on a cruise ship if you possibly can!

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