News & Observer | newsobserver.com | Cruise lines change course to economize

Published: Sep 08, 2008 12:30 AM
Modified: Sep 08, 2008 05:45 AM

Cruise lines change course to economize

Decisions can mean big gains or losses for ports of call

 

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PORTLAND, MAINE - When the 1,020-foot Explorer of the Seas cruises through North Atlantic waters next year, it'll spend more time off the coast of New England and less time near Canadian shores, and it's not because of better vistas.

Royal Caribbean International and other cruise lines have begun charting a new course in search of routes that eat up less fuel. Already one of the industry's biggest costs, fuel prices have set a record and have cut heavily into the bottom line.

The impact of shifting itineraries will certainly have implications beyond the profits or losses of cruise operators, creating winners and losers in port towns all along the way.

When cruise ships pull into Maine's Bar Harbor, passengers spend an average of $105 each while ashore, according to a 2002 University of Maine study.

Explorer of the Seas can carry more than 3,000 passengers.

A ship even half that size could mean nearly $160,000 per visit. That means big money in Portland, which expects more than 30 visits next year from ships that can carry between 1,000 and 3,000 passengers.

While Portland stands to reap big rewards from the itinerary changes, port cities along Canada's Atlantic coast could be on the losing end.

"It's disappointing to be losing a bit of business, but we realize that cruise lines have to make decisions based on best business practices," said Betty MacMillan, vice chairwoman of Atlantic Canada Cruise Association.

Royal Caribbean International changed the fall itinerary for the Explorer of the Seas along its northern route next year, shortening the distance between ports. Rather than sail from New Jersey to Quebec City, the ship added stops in New England and turns back at Halifax, Nova Scotia.

Fuel consumption was the main reason, said Vice President Diana Block.

"You have to look at where the biggest benefit is financially with the least impact on the guests," she said.

Annual fuel bills for cruise lines can add up to hundreds of millions of dollars. Ships can gobble up tens of thousands of gallons of fuel on any given cruise.

Many cruise lines have added fuel surcharges to passenger bills, but energy costs continue to cut into profits and squeeze margins.

Cruise lines have also begun using energy-efficient light bulbs and new window coatings that reflect the heat from the sun to keep rooms cooler.

And increasingly, cruise lines are altering itineraries so ships can slow down and reduce their travel distances, said Lanie Fagan, spokeswoman for the Cruise Line International Association.

"While it is paramount to offer a cruise itinerary that a guest wants to sail, the design and sequence of that itinerary can be evaluated to minimize the distance between ports of call and the speed necessary to accomplish that itinerary," Fagan said.

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