A decade ago I was complaining that the big new cruise ships, that were so commonplace in North American waters, rarely visited our shores. For Brits, our choices were limited to a number of smaller/older vessels. I must admit that this situation made me feel a little jealous about the variety of ships available to the North American market.
Now, don’t get me wrong, I’m not anti-smaller/older ships, in fact I love them, but I also enjoy the range of facilities and choices that the new ultra-ships offer. Luckily for us, since then a lot has changed and the UK market now has a larger choice of big new ships than ever.
To top it off, Royal Caribbean has just made a very exciting announced, which is quite a milestone for ex-UK cruising. They are going to base ‘Independence of the Saes’ (currently one of the world’s three largest ships) year-round in the UK. The 4,000-berth vessel will sail its first ex-UK winter season out of Southampton in 2010. It will offer two itineraries: 11-night Canaries cruises and 18-night trips to the Mediterranean.
Robin Shaw, Royal Caribbean’s managing director said he was “confident” there was pent-up demand for an ex-UK winter programme. “This reflects our confidence in the underlying strength of the UK market, which I’m convinced, could double or treble in the near future.”
This news is in sharp contrast to NCL who will no longer be offering any ex-UK cruises in 2010. I must admit that filling such a very big ship as IOS with passengers, every two weeks, or so, sounds like a big challenge. After all our island only has 60 million people, compared to North America with 300 million. However, the UK is now the worlds second biggest cruise market behind North America, which is quite impressive for such a small country. For example, nearly 1.5 million Brits took a cruise in 2008.
Some industry observers feel that the Caribbean is becoming oversaturated. RCI probably don’t agree as ‘Oasis of the Seas’, their up and coming world beater, will be based there in late 2009. So will NCL’s ‘Norwegian Epic’, another new leviathan.
I suspect that we Brits are prepared to pay more for our cruises than our American friends. In fact we seem to pay more for just about everything. We certainly have not had a tradition of the very low cruise fares that the ships operating in American waters sometimes offer. Fares of around £100+ ($150 approx) per person, per night, for an inside cabin, has not been unusual for ex-UK cruises. Brits also have quite a passion for cruises longer than a week; often 12-14 night durations are very popular.
Southampton will be the battle ground for the war between Carnival (P&O/Cunard) and Royal Caribbean. I think P&O cruises in particular, should be worried. IOS will be directly competing with P&O’s biggest ship dedicated to Brits. P&O’s ‘Ventura’ is based at Southampton where IOS will arrive next year.
P&O’s forthcoming ‘Azura’ will be an adults only vessel, unlike IOS which is family orientated, so it may not be directly in the firing line. In addition IOS will compete for the mass market with Thomson’s fly-cruises. Thomson may be able to match or undercut RCI fares, but RCI win in terms of their big state-of-the-art ship.
Cunard (also based at Southampton) are more upscale than RCI, so again, they may not be in direct competition. Fred Olsen and Saga appeal to a more mature British passenger.
Despite these differences, however all the above may all feel the pinch a little as RCI ramps up its search for passengers. This is because there is a breed of cruise passengers that are not particularly loyal to any one cruise line, and jump from ship to ship, chasing the lowest fares. I would be quite surprised if all the lines emerge from the upcoming battle completely unscathed. I expect there will be some blood spilt.
In the end though, competition will be good for the UK consumer and should drive UK cruise fares down. However as UK cruising increasingly becomes more mass-market, some observers fear that the lower fares will begin attracting a lower class of passenger with lower standards of behaviour which could affect the cruise experience of more traditionally minded fellow passengers.
Additionally, general onboard quality and standard service could fall as the cruise lines penny-pinch, in order to become more competitive. This could also be coupled with the loss of many of the traditional aspects of cruising. For some it might not matter if there is no chocolate on the pillow each night or no Gala midnight buffet. However, to others it would represent a dramatic slip in standards. Only time will tell.