Just Cruises Plus

Royal Caribbean reported weak 2nd quarter financial results.  According to Richard Fain, Royal Caribbean’s CEO, anemic European bookings was the primary culprit.  He indicated that the weak economy as well as the tragic capsizing of the Costa Concordia caused folks to avoid Europe.

At Just Cruises Plus, we also noticed that European bookings were much slower this year than last year.  Although we had many inquiries about Europe, the most common reason our clients decided not to travel to Europe was high airfare rates.  Last year, round trip airfare was in the range of $800 to $900 for a round trip ticket to major European cities.  This year, rates nearly doubled mainly due to higher fuel prices (although they are beginning to drop).

We had over 100 responses to our survey asking for your opinion of why Europe bookings were slow.  A large majority felt that the economy was primarily responsible.  Only 7 people agreed with Mr. Fain that the Concordia was a major factor.

There is one inconsistency in our survey results, theCEO’s conclusions and your opinions.  Last year, the economy was weaker by most objective measures (stock market lower and unemployment higher) but European bookings were stronger than this year.  Why?  Perhaps, because our politicians are utterly incapable of getting their act together and we are feeling uncertain about the future of the economy.

If you are a contrarian, now may be the best time to cruise Europe.  Cruise lines are offering big discounts and the Euro is lower than it has been in many years which means that you can buy more with your dollars.  For example, Royal Caribbean has some 7 day cruises leaving from Rome in October.  The price for a balcony is $599.

What’s the best time to visit Europe?  For the best chance of good weather, spring and fall in the Mediterranean and mid summer in Scandinavia.

The winner of this week’s $25 gift card drawing is Michele Nihen, of Chalfont, PA.  Michele’s name was randomly selected from all who responded with their opinion.