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Thomas Cook reports fall in most 2015 selling prices on continued weak European economy

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 February 2015 11 February 2015

Thomas Cook, the London based listed tour operator, has reported a fall in selling prices and a mixture of rises and falls in volumes as Continental Europe continues to suffer from weak economy, the company said in a statement.

With the Winter season 85% sold, total tour operator bookings are in line with this time last year with average selling prices down 2%. "Bookings in our UK business have increased significantly, with volumes 6% higher than at this time last year (and average selling prices 1% lower) as we have expanded our Winter Sun offering to new destinations, including the Caribbean, Cuba and Cape Verde," the company said.

Continental Europe bookings are 4% lower than last year, reflecting the discontinuation of unprofitable routes in France and Russia and a later booking profile in Germany. Average selling prices are 3% lower than last year reflecting competitive market conditions. "However, the booking trend in the last four weeks has improved significantly," Thomas Cook noted.

Northern Europe bookings are 1% below last year, while prices are 3% higher. "Our Nordic business continues to perform well in Sweden and Denmark, while demand in Norway has been impacted by wider macroeconomic factors," the company pointed out.

The Summer 15 season is 41% sold for the Group as whole, 3% higher than this time last year. "Total bookings for our tour operator business are 2% lower than last year with a slight decrease in average selling prices," Thomas Cook continued. UK Summer bookings are 5% higher than last year with average selling prices 1% lower. "As part of our capacity management for the Summer season, we have increased the level of flight capacity allocated to dynamically packaged products and “seat only” business, reflecting customer demand for more flexible products."

"In addition, we have successfully launched new sales channels for our airline, including long haul flight destinations such as New York and Miami. This strategy has improved our operational flexibility to meet customer demand while ensuring that in-house flight capacity is managed in the most efficient manner. As a result, although average selling prices in total are 1% lower than last year, Charter Risk pricing has improved by 2%," it said

"In Continental Europe, with 29% of the programme sold, early Summer bookings are 6% lower than last year compared to a strong comparative, particularly in our German business, which has experienced a later booking profile. Average selling prices have been maintained at last year’s level," the company concluded.

Brits over 50 travel more often but avoid school holidays -- survey

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 February 2015 11 February 2015

Fifty-two percent of Britons over the age of 50 have changed their travel habits in the past decade, with two thirds of the respondents of a survey saying they travel more often than a decade ago, according to Saga, the over-50s lifestyle company in the UK.

“The over 50s have thirst for life and that adventurous spirit is evident in their growing importance to the holiday market where they now make up the majority of travel spend in the UK. This survey shows that, over the last decade, people have started travelling more often and further afield. The choices for today's intrepid 50 something is more likely to be Borneo, India or Africa and at a time of year that fits in with their lifestyle," said Saga Travel spokesman Louis Myers in a statement.

For those who have changed where they travel, 34% now travel to more exotic destinations than they did 10 years ago - highest among 50 – 59 year old respondents (39% of 50-59 year olds vs. 13% of 80-89 year olds). Almost a quarter now travel to destinations that do not involve long haul flights and 16% now only travel to destinations in the UK.

And when it comes to the time of year over 50s now travel, over half of those who said they go at a different time of the year say they now avoid travelling during school holidays (53%). "For some, (almost a fifth) travelling at times when there are less likely to be other people abroad is a key change to their travelling plans," Saga said.

Persons over the age of 50 account for more than half of all travel and tourism spending in the UK and they are also the biggest buyers of cruise holidays.

Norwegian Cruise Line bulks up North American sales team

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 February 2015 11 February 2015

Norwegian Cruise Line, the contemporary market unit in the Norwegian cruise Line Holdings group, has unveiled a substantial expansion to the company’s North American sales team, almost doubling the number of business development managers in the field, and increasing the overall sales group by more than 40%. "Building on Norwegian’s Partners First philosophy, this investment signifies the line‘s committment to having the most engaged, empowered and responsive sales team in the cruise industry in order to promote the long-term success of its valued travel partners," it said in a statement.

“With the recent addition of exciting and innovative capacity and significantly more to come, this expansion will allow us to build closer, more effective partnerships with our travel partners across North America,” said Drew Madsen, Norwegian Cruise Line’s president and chief operating officer. “By growing our sales team, we can reach more travel partners. Combine this increased reach with the significant investment we have made in marketing tools, booking automation, training, co-operative marketing dollars and the youngest fleet in the North American cruise industry and we believe we have a winning formula.”

As a part of the expansion, new field sales representatives will be added in regions throughout the United States and Canada, including multiple positions in California, as well as an expanded presence in New York, Texas, and the Midwest and Mid-Atlantic regions of the United States. The Norwegian field sales team will also add a new business development manager position and a director of sales for Canada, joining the four managers already fully dedicated to Canadian travel partners. Sales managers will also be added to the National Accounts, Key Accounts, Charters, Meetings & Incentives and Inside Sales teams based in Miami, to further boost the company’s industry leading world-class sales force.

“Our aggressive and sizable investment into our sales force will not only allow us to personally reach more travel professionals, but will also allow us to deepen the relationships we have with our travel partners,” said Andy Stuart, Norwegian’s executive vice president of sales. “I am immensely proud of our sales team and what they’ve accomplished over the years. It’s now time to build on that success and continue to put our Partners First.”

Leading the expanded sales force are three seasoned industry professionals: Nathan Hickman, who recently joined Norwegian from Oceania Cruises as vice president of field sales and national accounts; Alex Pinelo, a long time veteran of Norwegian, who was recently appointed vice president of key accounts, and Katina Athanasiou, vice president of charters, meetings and incentives for Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises.
In April of 2011, Norwegian Cruise Line introduced Partners First, the company’s corporate philosophy of putting its travel partners first, including a $16 million investment towards new customizable marketing tools with Marketing Headquarters; a complete focus on being easy to do business with; the streamlining of the booking processes and technology; and a commitment on direct business. Norwegian has consistently strengthened its commitment to the long term success of its travel partners by unveiling additional new and improved efforts.

This expansion comes as the Norwegian Sales Team is in the midst of series of events that brings the Norwegian sales leadership team face-to-face with travel partners and individual agents in 21 cities across the United States and Canada, including Atlanta, Boston, New York, Montreal, Dallas, Los Angeles and more. Each of the exclusive Norwegian hosted events provides travel partners with a detailed insider look at Norwegian Escape, the line’s largest and most innovative ship to-date, launching this November.

CEOs of four largest cruise groups to discuss State of the Industry in Miami

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 February 2015 11 February 2015

State of the Industry session, which sets the course of the cruise industry's premier annual event, will feature the chief executives of the world's largest cruise companies in a wide-ranging discussion of the health and future of the global cruise business. Cruise Shipping Miami 2015 is set for March 16-19 at the Miami Beach Convention Center, the organisers said in a statement.

This year's opening plenary session features CNN's Richard Quest as the panel moderator. Quest is CNN's foremost international business correspondent and presenter of "Quest Means Business" and the monthly "CNN Business Traveller" programs. Based in New York, he is one of the most recognizable members of the CNN team.

"Recently, we have seen significant changes in the cruise industry, with brand consolidations and new faces at the C-suite level," said Christopher Dauer, director of UBM Connect's Cruise Events Portfolio. "These four executives will provide a top-level overview of where the global cruise industry is today and what they foresee going forward."

The State of the Industry panel includes Arnold Donald, president and CEO of Carnival Corporation & plc; Richard Fain, chairman and CEO of Royal Caribbean Cruises Ltd.; Frank J. Del Rio, president and CEO of Norwegian Cruise Line Holdings Ltd.; and Pierfrancesco Vago, executive
chairman of MSC Cruises.

First steel cut for first Star Cruises' newbuilding

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 10 February 2015 10 February 2015

First steel has been cut for the first one of two newbuildings of Star Cruises as Meyer Werft in Germany, the Hong Kong based cruise line said in a statement.

"This marks the beginning of the first of two new mega cruise ships that will be delivered in fall 2016 and fall 2017 respectively, to be homeported in Asia," Star Cruises said.

Upon completion, the new mega cruise ships will have a gross tonnage of more than 151,000 and rhey will have more than 1,600 cabins, accommodating approximately 4,500 passengers and 2,000 crew members.

"The 21-deck luxury cruise ships will be the new flagships under the Star Cruises brand, offering a wide array of itineraries, leisure and entertainment options for all cruise travelers. With these new offerings, coupled with Star Cruises’ renowned world-class Asian hospitality, travelers can expect the ultimate freestyle cruising experience with best-in-class facilities and services," Star said.

The new ship design will allow our guests greater choice with a wide-range of onboard activities, amenities and stateroom options with the latest features, including villas, on the open seas. In addition, the mega cruise ships will offer over 30 Food and Beverage outlets such as gourmet restaurants, bars and cafes specializing in international and Asian cuisines.

One of the highlights includes a special street night market with hawker stalls, serving famous Asian delicacies from various countries. In addition, there is a state-of-the-art modern theatre, world-class recreation, health and fitness and MICE facilities. For the families, there is an array of aqua slides and a kids’ waterpark. The newly built ship will also dedicate around 1,000 square meters of floor area for the ultimate retail experience at sea with a variety of international luxury brands.

With the expected arrival of the newly commissioned mega cruise ships in 2016 and 2017, Star Cruises is set to bring the standard of luxury cruising to the next level in Asia.