Cruise Ships Pull Out of California

[smurph]

Heard on the news this morning that CCL, NCL, and RCCL are pulling ships out of LA and southern Californina. The NCL ship being relocated to Tampa. Reasons cited was economic impact and unrest in Mexico. As Wonder heads west what does it mean for it's business? More cruisers because of lack of alternatives? Or suffer the same as the others?

http://www.latimes.com/business/la-fi-1014-mexico-cruise-ships-20110114,0,3995368.story

 

[JohnO]

Cant say I blame them with more than 30 thousand homicides in Mexico in less than two years.

 

[loveysbydesign]

Looks like DCL scared the rest of them away-lol!

 

[woody73]

I thought the Wonder is leaving the Port of Los Angeles in April for the Alaska cruises.

Woody

 

[HallsofVA]

I posted a related article yesterday.

Course it's all the way back on page 4, since last update was before noon yesterday!

http://www.disboards.com/showthread.php?t=2633014

 

[jkrislc]

On the radio news yesterday, they reported that half as many ships were sailing out of California this year as last year. One of the problems is the state is in an economic crisis and secondly the itineraries aren't very good. Honestly, how many times can you do the Mexican Riviera? I always wondered why they didn't head north and do a coastal cruise with Victoria as the foreign port stop. I'd love port stops in Santa Barbara, San Francisco, and Seattle or Portland. Probably not warm enough for winter months.

While I don't believe the cruise lines were losing money, they weren't getting what the could compared to other embarkation ports and were having to discount their cruises too much. That said, I think Disney will fare well given their reputation and they'll benefit from the reduced number of berths. Part of the problem was that there were just too many cruise ships sailing out of California. Not that long ago, you only had three ships doing the MR, then NCL, HAL, and others started doing them as well. In addition, Carnival and RCI started sailing shorter itineraries out of LA and San Diego, which ultimately flooded the market; they simply had too much supply and not enough demand.

Given the reduced number of berths, which will increase demand, and Disney's unique product, I think this is a win-win for DCL. In addition, it will help bolster Disneyland by attracting pre/post-cruise visits.

 

[smurph]

Wondering if ridership on the Wonder will similarly fall, and if so, what DCL might do with regards to itineraries if they feel the need to adjust. And how cruisers currently booked will respond to such changes.

 

[smurph]

On the radio news yesterday, they reported that half as many ships were sailing out of California this year as last year. One of the problems is the state is in an economic crisis and secondly the itineraries aren't very good. Honestly, how many times can you do the Mexican Riviera? I always wondered why they didn't head north and do a coastal cruise with Victoria as the foreign port stop. I'd love port stops in Santa Barbara, San Francisco, and Seattle or Portland. Probably not warm enough for winter months.

While I don't believe the cruise lines were losing money, they weren't getting what the could compared to other embarkation ports and were having to discount their cruises too much. That said, I think Disney will fare well given their reputation and they'll benefit from the reduced number of berths. Part of the problem was that there were just too many cruise ships sailing out of California. Not that long ago, you only had three ships doing the MR, then NCL, HAL, and others started doing them as well. In addition, Carnival and RCI started sailing shorter itineraries out of LA and San Diego, which ultimately flooded the market; they simply had too much supply and not enough demand.

Given the reduced number of berths, which will increase demand, and Disney's unique product, I think this is a win-win for DCL. In addition, it will help bolster Disneyland by attracting pre/post-cruise visits.

I think you may be right about DCL gaining due to attrition. On the other hand, the threat (however remote) of Mexican violence is the same regardless of the ship you are on. Apprehension isn't likely based on carrier.

 

[MCourtney]

Good news for Tampa however. We definitely need more variety here.

 

[mommy2allyandaveri]

Wondering if ridership on the Wonder will similarly fall, and if so, what DCL might do with regards to itineraries if they feel the need to adjust. And how cruisers currently booked will respond to such changes.

Great question, as we are getting ready to book our March 2012 on the Wonder. That is a long time, a lot could change between now and then. If they change it to a port that is farther away I'm not sure we could afford the flights.

Also, do you think since there are fewer cruises available it will increase the demand for the Mex. Riviera on DCL and therefore increase the price?

 

[smurph]

Great question, as we are getting ready to book our March 2012 on the Wonder. That is a long time, a lot could change between now and then. If they change it to a port that is farther away I'm not sure we could afford the flights.

Also, do you think since there are fewer cruises available it will increase the demand for the Mex. Riviera on DCL and therefore increase the price?

I believe Disney will follow the "what the market will bear" method of pricing. All things being equal, if demand stays at current levels with fewer alternatives Disney should benefit and I would think pricing would rise. If the Mexican violence continues to get a lot of coverage in the main stream media or additional high profile events occur, demand might drop for all cruises with Mexican destinations. I would then expect that pricing would fall. Or they could alternatively modify itineraries. It all depends on what pricing model DCL can devise that maximizes their profit.

 

[woody73]

I always wondered why they didn't head north and do a coastal cruise with Victoria as the foreign port stop. I'd love port stops in Santa Barbara, San Francisco, and Seattle or Portland.

In 2009, during the swine flu epidemic, many cruises to the Mexican Riviera were diverted north.

After an Alaska cruise in June 2009, we happened to be across from the Canada Place port in Vancouver BC, and saw cruise ships from L.A.

Woody

 

[NancyIL]

I wanted to go on a 7-night cruise for my birthday last April, and I looked at all of Royal Caribbean's offerings. Mariner of the Seas out of Los Angeles was less expensive than any of RCI's 7-night Caribbean cruises out of Florida, so that's the cruise ship I booked. I spent my birthday week at WDW, then flew to CA and went on a Mexican Riviera cruise. When the cruise ended, I went to Disneyland for 2 days!

 

[woody73]

. . . Mariner of the Seas out of Los Angeles was less expensive than any of RCI's 7-night Caribbean cruises out of Florida

I really like the Mariner of the Seas. Sadly she is leaving the Port of L.A. for the last time this Sunday, January 16, on a repositioning cruise.

Woody

 

[smurph]

I'm really curious if anyone has either actually changed, considered changing, or not booked a MR cruise due to the unrest? And if DCL changed ports/itineraries or even pricing would that alter your plans or intentions?

 

[HallsofVA]

Wondering if ridership on the Wonder will similarly fall, and if so, what DCL might do with regards to itineraries if they feel the need to adjust. And how cruisers currently booked will respond to such changes.

We've seen them struggling to fill the MR cruises given the KSF offer that went out a few months ago. Even when the MR cruises first came available, we'd booked the 10nt sailing over Easter for what seemed like a reasonable price (other than the deposit required at the time) of under $5k for 4 people. So they've adjusted prices, and have since adapted through promotions and other offers to try to fill the ship.

 

[dorkeemn]

We were looking at the MR cruise for spring break of 12 - due to the fact that it fits with school break and flights to CA will probably be cheaper than flights at the same time to FL. My DD (13) said "I don't want to die in Mexico!" end of that discussion.

 

[mommy2allyandaveri]

The violence hasn't changed our vacation plans. We don't have to get off the ship. I do however, have reservations about traveling to anywhere in Mexico and spending a week there. It seems that the violence is moving into the touresty areas.

 

[kaseyC]

Didn't DCL already have to discount the MR cruises? Wasn't there a Kids Sail Free offer because the itinerary wasn't selling well? So maybe they will benefit from the other cruise lines pulling out.

 

[mkmommy]

I was surprised that DCL went with 7 day MR out of LA, thought 3/4 day land/ sea cruises would be an easier sell.

I would not be surprised if the rest of 2012 for the Wonder is different and think changing plans played a big part in only a portion of 2012 being released.