More UK Passengers Booking Cruises in 2010

Even though the cruise industry has suffered from the economic impact in 2009, it may be recovering at a faster rate than the airline and travel industry in 2010. According to Bill Gibbon, Director of the Passenger Shipping Association, a record 1.65 million Britons are planning on a cruise holiday next year, which is actually an increase of 6.5 percent over last year.

The cruise industry has not been “recession proof” but it has been able to weather the storm relatively well and managed to attract new passengers using different incentive avenues:

* Attractive deals and travel packages
* Free flights, free upgrades and discounts on future bookings
* All-inclusive packages that allow passengers to enjoy meals and beverages throughout their trip at no additional cost

Gibbons stated that there are two main factors that are contributing to this upturn: value and variety. More passengers will be looking for the best deal on cruise packages, whether that’s through an all-inclusive package, free upgrades, discounted meals or discounted visits in the future. Many will also be looking for new experiences, so there may be a significant amount of bookings of “fun ship” packages that allow guests to try a variety of activities such as cultural activities, tours and unique watersports.

Experts point out that in many cases, it’s much cheaper to take a cruise for a week than it is to take a weeklong vacation to an exotic destination. Many people flying out from Great Britain will find it cheaper to fly directly to a port of call in Europe or the United States, and jump aboard a cruise ship for the rest of their itinerary. Doing some research can help them track down a budget-friendly destination and itinerary.

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American Express: Steady Increase in Air Travel

American Express Corporation reports that airfares and international business travel saw modest increases in the third quarter, which means there may be hope for more improvement in the upcoming year. The company culled purchase information to report that the average airfares paid by companies rose about 2 percent from the second quarter both in the United States and abroad. The price of airfare had decreased by up to 18 percent for the quarter, and hotel rates continued to weaken. Consumer data included prices for air, hotel, and car rental services by major cities and classes of service.

According to AmEx travel executive Christa Degnan Manning, “since hotels cannot reduce capacity as easily as air or ground transport providers, this drives rates down, and the effect will likely continue through the first half of 2010.”

AmEx also reports that car rental prices rose about 5 percent quarter to quarter, but have remained the same when compared to last year. (Source: CNN Money)

Overall, business and leisure travel is picking up only slightly for the 4th Quarter as holiday travel remains steady. Many individuals and companies have cut back on all travel for 2009 to save money and avoid extra fees and charges imposed by the airlines. Recently, extra charges for advance bookings for holiday travel was lifted so travelers could still enjoy attractively-priced flight and hotel packages. Previously, travelers were paying a premium for flights booked on days around the Christmas and New Year’s holiday weekends, but all US airlines have agreed to lift the extra fee requirement in hopes of stimulating demand and increasing bookings through the rest of the year.

Ms. Manning reports that the third-quarter figures are still “an encouraging sign for the business travel industry” because many travelers are willing to pay a premium for products and maintain their itineraries.

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