Friday, August 1, 2008

Captain's Log......8/1/08

Ah, the dog days of Summer are barking and we're scratching off the fleas of July. Remember my motto, "Today is the first day of the rest of this week". Words to live by, truly.

A customer called in saying there don't appear to be any deals for Feb. 2009 on the internet. There are reasons for that (although deals DO exist.....you just have to know where they are). 10 years ago you could find discounted fares listed on the internet, but cruise lines realized they were allowing the secondary market to undercut the value of their product, so they removed the ability to discount - which is why you see the same prices wherever you look for the most part. Also, when it's the middle of winter, EVERYBODY wants to go someplace warm. With airlines cutting back on flights to the Caribbean, Mexico, etc. the best way to get there is on a cruise! Keep in mind this industry is just like any commodity, governed by supply-and-demand. Mid-winter, when people haven't seen the sun for 3 or 4 months, demand is super-high, which affects pricing adversely. So that's why deals "appear" to be few during winter months.

One of the best ways to save money is to deal with a large supplier, such as the Company where I work. Large, well-established agencies with deep pockets will often have blocks of space on various ships and various dates, so flexibility on your part is key (nobody has space on every ship, every sailing). Just yesterday, I sold someone a 7-day Caribbean cruise on the Carnival Glory on Feb. 21, 2009 and the cruise rate was only $390 per person!! Of course you have to add the government taxes, port charges and fuel supplement which combined add almost another $300 to the reservation, but you're still talking about less than $100 per day for all your meals, entertainment, and a glorious week-long cruise during the middle of the winter. So YES, Viriginia, there are deals if you do it right.

++++++++ MYTHOLOGY ALERT!!!++++++++++

At least once a week, I get a call from someone wanting to go away this week or next, and they think 1) cruise lines are giving away space last-minute, and 2) someone out there has a block of space they're still selling. As to the first point, cruise lines price their product in such a way as to try to be 100% SOLD OUT about 2-3 weeks prior to any departure. That means if you call late, and they happen to have a couple of cabins left, it's a Howie Mandel NO DEAL!! You're going to be paying through the nose, as it's supply-and-demand backwards. Virtually no supply, and still a demand. No soup for you! On the 2nd point, cruise lines are not stupid, and neither are agencies. They allow us to purchase blocks of space, but when it reaches 2 1/2 - 3 months prior to departure they give you a choice -- either pay the balance on the cabins you're still holding un-sold (and good luck trying to sell them), or turn them back in to the cruise line without penalty. That way, the cruise lines have a handle on their inventory, but it would be ludicrous for agencies to hold space on the chance they might sell it. If they don't sell it, they eat it! So the notion of getting a great deal last-minute is just that....a notion. It was true back when the lines were privately owned 20 years ago, but now they're publicly-traded companies with scads of accountants and consultants. They figured out how to do it correctly and profitably. So my advice to all travelers is PLAN AHEAD and use a major agency to find the best values!

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