Friday, June 1, 2012

Luxury cruising has become more affordable ...

June 2012 Travel Report "The time to book travel is now"... A review
by Joe Rochemont
Owner, Cruise Holidays of Clarkson
Joe, Zaneta, Mairead, Tal, Vctoria



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Cruise Holidays of Clarkson: “The Time to Book Travel is Now!”

As Zaneta and I look back at our respective work careers, Zaneta in education and Joe in management consulting, we have come to realize the rich experience the travel industry provides. It was in Dubrovnik last year on a Galijun ship – a replica on a 16th century galleon – when our guide for the evening expressed the benefits of working in the industry best. She said, “You get to stay at top hotels, eat at the best restaurants, visit amazing places, learn about the cultures and history of the world, meet interesting people who enrich your life ... but don't expect to retire on your earnings”. We had this conversation sailing back to port after an enchanting concert onboard by the Dubrovnik Chamber Orchestra. The galleon had dropped anchor next to a straight-up rock face – a spellbinding stage for the performance.
In this newsletter we would like to update you on our recent events, and ask you with some urgency to consider recent value propositions from suppliers of travel. These value propositions are significant, are about to expire, meaning lost savings on 2013 travel. There are many, virtually covering the globe.

Recent Events

We had a group departure in May; the Enchanting Rhine from Amsterdam to Basel, Lucerne and Zurich with a visit to Floriade. Our Russian Waterways group departs later this month as they travel from St. Petersburg to Moscow.
And we had a magnificent turnout for the Classical Music Delights on the Danube reunion so graciously hosted by Joan and Herb Williams at their magnificent home. The reunion lasted over six hours and several traveled considerable distances to attend. Wonderful people and an enjoyable time together!

Trends in travel – time limited value opportunities

Each year, around October, we hold a presentation at our store where we compare various cruise lines (“suppliers”) one to the other. Last year, we announced that the aggregate passenger capacity of the river cruise lines had virtually doubled in five years. This dramatic growth is also evident with the ocean cruise lines as new ships are built and older ones refurbished.
Suppliers in this industry invest hugely with the bet that their onboard amenities will attract their target markets. The variables they manipulate to attract and sustain passengers are: destination / voyages, onboard experience, price, and what we term the “total cost of travel”. The suppliers’ common objective at the end of the day is to maximize vessel utilization. In the following, we will attempt to illustrate how this heightened competition translates into value for you, the traveler. We will present this as “Issue”, followed by a paired “Traveler Opportunity”.

Issue 1: Destination / Voyages

A cruise line’s freedom to act is limited by the number of ships in its fleet.  Essentially, how many simultaneous geographical presences can the cruiseline accommodate? Climate is also an important consideration in this differentiating factor; specifically, winter in the northern hemisphere, summer in the southern. There are “best times” to travel; “white nights” in June in Russia, avoiding the monsoon months in Cambodia (“Riches of the Mekong” voyage), “cooler” months in North Africa, etc.

Traveler Opportunity 1: Destination / Voyages

 “Repositioning” cruises have existed from the beginning of time as the ship’s operations move from one geographical region to the other. Many take advantage of the lower fares associated with repositioning voyages.
Cruise lines have become more adept at planning “back to back” voyages. Here, the first and second legs of the voyage stop at different ports of call and provides a continuing learning experience to the traveler. Purchasing both segments together saves. Back to backs can have a duration ranging from two weeks to several months. The same concept applies to “Grand Voyages” or “World Cruises” where consecutive segments of the Grand Voyage can be purchased together at savings.

Issue 2: Onboard experience

Onboard experience is directly related to target market segment and is the key determinant of the size and design of the ship, the onboard activities and amenities, number and experience of crew members, ship capacity in terms of number of passengers, onboard entertainment, lectures, dining experience, cabin outfitting and more.
In European river cruising, competition amongst cruise lines has resulted in even more luxurious ships, the introduction of balconies, and the “stretching” of ships to the maximum length allowed on these rivers. The “stretching” was necessary to counteract the loss of cabin space the balconies required. All (river) cruiselines now include wine with dinner, the already excellent gourmet cuisine experience has been dramatically enhanced, and theme cruises (such as wine, culinary, etc.) abound with well known and established sommeliers and chefs. Passenger capacity per ship remains fairly constant on European rivers due to size limitations.
Target markets are more clearly delineated in the ocean cruise line arena. There are a handful operating in the “luxury” market, others in the “premium” market and yet others in the “mass” market (these are terms the industry uses to define market segments). Excluding “Expedition” ships, designed typically to icebreaker specifications and carrying generally around 150 passengers, the passenger capacity of ships operating in these markets vary significantly from segment to segment. Luxury cruise lines range in passenger capacity from 200 to 700; premium from 700 to almost 3,000, and mass up to 5,000 (all numbers being approximate). More and more, we see intense competition in all markets; however, in the luxury segment we see the main points of differentiation as gourmet dining, going the extra mile to satisfy passengers, exquisite shore excursions conceived with limitless imagination, etc. (Amenities in this class have already been established as uniformly superb.)

Traveler Opportunity 2: Onboard Experience

Matching a cruise line, a ship, and itinerary compatible with your lifestyle, and very importantly, with the intent of the voyage (i.e. a family outing, a sorority, a bridge club, meetings at sea, a romantic anniversary, or satisfying a destination item (or “bucket-list”)) is critical to the success of the travel experience, and should not be taken lightly. This is where we come in; use our services, consult us, the topic is complex and ever changing; our consulting services remain free and oftentimes the scale of the Cruise Holidays franchise (within the Travel Leaders consortium) provides amenities that are not available to the general public. You win, we win!

Issue 3: Price and “Total Cost of Travel”

Europe has been by far the favoured destination of us Canadians, but we have been experiencing some soft demand in this region. Naturally, most of us have roots there and wish to trace our past, or learn and appreciate Europe’s rich history. This soft demand and (now) excess passenger capacity in this region has led cruiselines to extend their competition well beyond “onboard experience”. They now compete on early booking discounts, and this is working for many, as 2013 voyages fill up.

Travel Opportunity 3: Price and “Total Cost of Travel”

As a matter of course, we continuously survey the market in order to position ourselves to serve you better. We use this information to create our “Travel Picks” (a full list is on our website, www.clarksontours.ca). Our “Travel Picks” represent significant value offers on voyages for which you have stated interest. Here they are in general:
1.       BOOK NOW (by June 30th 2012) to save significantly on 2013 voyages. Crystal Cruises, Regent Seven Seas Cruises, Oceania Cruises, Silversea Cruises and Avalon Waterways all have significant early booking discounts for 2013 voyages that cover the world and vary in amount depending on destination.  We invite you to access our website at www.clarksontours.cato view our selection, many of which we have added value such as added concerts, opera, and tours to places that will interest you. We include a sampling of these value-added voyages at the end of this newsletter.
2.       Book by June 8th for AMA Waterways’Riches of the Mekong” – several 2012 departures. See our “Current Promotions” page on our website.
3.       Book by July 31st 2012 for AMA Waterways’ discounts on specific 2013 voyages. See our River Cruises and Land page.
4.       In our own customized tours, our prices are all-inclusive and include gratuities, taxes and international air disregarding an upward trend in air fares. We refer to these as “Value-added voyages”. Ask us about these or view them on www.clarksontours.ca.
5.       BREAKING NEWS! We have limited space on the ONE and ONLY sailing to South America AND Antarctica in December of 2013 on Crystal Cruises! AND we offer $600 per person shipboard credit. But you HAVE to book by June 30 to take advantage of the space AND save $1,000 per person. Watch the video -- this will fill quickly! CLICK HERE FOR VIDEO OF XMAS / NEW YEAR CRUISE -- SOUTH AMERICA AND ANTARCTIC

An invitation to join Zaneta and Joe on two upcoming voyages.

As you can see, booking travel before June 30th promises to provide significant value.
Zaneta and I have had the pleasure of travelling with many of you, and we have selected two voyages that we will escort together -- by far our preferred way of travel. We describe these voyages below and invite you to join us:
1.       The Deluxe Orient Experience” departing Toronto November 2nd 2012 forEastern and Oriental Express Bangkok. This is a land tour, filled with activity designed to provide an understanding of ancient culture at our places of visit, and experience then influence of this past on today’s lifestyles. And music, art, stunning landscapes and architectural wonders all form part of the total experience.  There are a total of twelve hotel nights – Bangkok, Singapore, Bali and Hong Kong and with three nights on board the Eastern and Oriental Express.
2.       Crystal Cruises’ “Canary Island Classic” departing Toronto April 9th 2013. Alexa Petrenko of the New Classical 96.3FM radio station will join us on this voyage, and will be available to meet, socialize with you, and share her experience with 96.3 and her vast exposure to the world of classical music. Alexa hosts “Oasis” that airs weekdays from 3:00 PM to 7:00 PM and “Sunday Night at the Opera”. This voyage visits the powers of the Old World, Portugal and Spain, the steamy kingdom of Morocco, and the revered Canary Islands. There is much to see, learn, experience and do on board and on shore. We invite you to come with us. Note we are in the process of adding concerts etc. however don't wait to book! Bookings before June 30th 2012 carry a savings of $1,000 per person. It does not hurt to know that Crystal Cruises’ has been voted # 1 by Conde Nast for 17 years running.
We thank you for your business and we stand ready to review and discuss how you can achieve your travel plans or dreams and advantage of existing value offers. Please call us at 905 855 1700 or email info@clarksontravel.ca for more information. Our address is 1739 Lakeshore Road West, Mississauga ON L5J 1J4 and there is ample free parking at the rear of our store.
Zaneta Rochemont
President,
Cruise Holidays of Clarkson
1739 Lakeshore Road West
Mississauga ON L5J 1J4


T: 905 855 1700 | F: 905 855 1701 e: info@clarksontravel.ca| w: www.clarksontours.ca