What do you think...

[JoeyandDavid]

Hoping for a serious discussion here....

The cruise Industry has in recent years been able to effectively raise prices and ensure more profits while sailing with full ships..

With the residents of the United States beginning to face tough economic problems…1)A housing market that is resetting as new -homes sales tumbled in August to the lowest level in seven years ..AND 2) with One of the lowest value of the US dollar which has fallen significantly with the USD dropping to a record low against the Euro and a 31 year low against the Canadian dollar.

Here is my question:

Do you think that these economic downturns will cause people to cruise less during the next few years as people re-prioritize where the spend disposable income resulting in cruise line lowering their fares in order to sail with full ships?

[CanadianCruiser]

The economic situation in the USA right now has no choice but to play a roll in the travel industry

whener it is by auto, plane, train or ship. The income isnt there as it has been in the last few years.

I expect the tavel industry in the United States to decrease by aproximately 30% while it should increase here in Canada by at least that same amount.

[JoeyandDavid]

that's an interesting observation.....so do you see a drop in prices as well or do you feel the Canadian upswing will be enough for the industry to continue at current fares?..

[SCIROCCO]

Hey Big Guy Ive missed you and so are others welcome back My friend, Hey your in Canada Okay to answer your Question, No people are always going to enjoy the one thing they love which is cruising, I myself budget around my bills and other things, I sacrfice Going out to eat, buying things I dont need cut down on Gas and my driving and my groceries as well! Hey Im going to cruise no matter the econmy! Pm me and tell me whats going on in your life!

[rogue]

I don't think that you realize just what a 30% decrease would do to the cruise industry. Probably, most companies would end up going out of business and the ones that were left would have to tighten their belts so much that none of us would want to cruise. 30% is an enormous number. that would be many many millions of dollars from the profit end that just isn't there.

The cruise industry is just like other industries. When there is a downturn in the economy, people will decide not to cruise. Eventually, the cruise companies will have to lower prices. When prices go down, cruisers will go back to cruising. How long it will take, I don't know. If you look at 9/11, cruising dropped pretty quickly, and prices went down quickly.

One other thing to realize is that the global economy is so tightly knitted, eventually the downturn will hit everywhere.

[elfed]

Good question with the possibility of many answers. My biggest fear is saturation of the cruise industry.(Too many ships). Cruising is already a cutthroat industry-the popular lines cutting prices and,cutting service in some cases etc. etc. People only have so much holiday money available each year and they look for the best deals. Last minute bookings are very popular as consumers won't pay the regular prices offered by the travel agents.

I can see further merging of the major cruise lines up ahead. Cruising is still a wonderful way to spend one's holiday-there is nothing like it. But it is not cheap by any means if one adds on airfare, ground transportation,taxes, shore excursions and spending on board. The industry needs a TRUE all inclusive rate but somehow I don't think that will ever occur.

Regards,

James.

[TheSkipper]

There are some great business minds running the major cruise lines and they have been throught this before.

Prices will east, a bit.

More promotions.

More advertising,

But a lot of people will keep cruising. Count us in that group.

[Gregswife]

We're with the Skipper - I can't see it affecting us at this point, but then we don't cruise as often as some of you do. At this point, we only take 1 cruise a year because Greg only has so much time off work and he likes to vacation in other ways also. Right now, the lines are sailing with full ships, but if that changes, I would assume they would offer lower prices or more perks to book those cabins.

[JoeyandDavid]

Interesting responses... Thanks to all that had and gave opinions...

I for one look for all "high" ticket / Durable Goods purchases to be affected this of course will include vacations both land and cruises in the coming months...I just don't see this current financial situation getting better anytime soon... i also don't think we will see or have seen the worse case scenarios as of yet....

I probably am incorrect.. after all i got my economic degree at Walmart... and you do get what you pay for...

[SCIROCCO]

Hey I got my degree at The Blue Light Special at K-Marts! I also just take one cruise a year right now, I do my own Booking and also I get a Military Discount through Carnival! I got my Cruise For Two People with Taxes and Gratuities for a Extended Balcony for $1,539.12, we only take $800.00 for onboard or offship buying, we know what we want and we budget for it for the Year, we cut out extra extravagant things we really dont need, we only do a cruise and Maybe a Camping trip for our Enjoyment and Relaxation, Ill always take my Cruise no matter the situation!