Royal Caribbean pulls ship from Alaska for 2010

[mercedes]

Industry giant Royal Caribbean will reduce the number of ships it deploys in Alaska in 2010 as it reportedly struggles with lower revenue and higher costs in the region.

The Juneau Empire today reports the 2,100-passenger Serenade of the Seas -- one of three Royal Caribbean ships in Alaska this year -- will not return in 2010.

Royal Caribbean spokesman Don Habeger tells several publications including the Empire and the Associated Press the growing cost of doing business in Alaska was a major factor in the move. He cites a state ballot initiative in 2006 that added a $50 per person tax on Alaska cruises -- a significant amount for a line that charge as little as $500 a week for voyages.

The Empire also noted bookings to Alaska are down this year -- a downturn that has forced lines to lower prices to fill ships.

"Pricing is the lowest I've seen in 10 years," Alaska watcher Fran Golden, co-author of Frommer's Alaska Cruises & Ports of Call 2009, tells USA TODAY.

Indeed, early season Alaska sailing on the Radiance of the Seas are selling for as little as $499 per person this week at online travel agency sites such as expedia.com. Alaska sailings on Rhapsody of the Seas are going for as little as $549.

Golden notes that Royal Caribbean is outgunned in Alaska by Princess Cruises and Holland America, which dominate the market, and has less invested in the region.