RCI braces for drop in demand

RCI braces for drop in demand
By admin


Royal Caribbean is bracing itself for a drop in North American and European passengers in Australia next summer as it prepares for another huge spike in capacity.

The cruise line reported a higher than expected share of Australians on its voyages this season with a similar pattern likely in 2012/13.

Commercial manager Adam Armstrong said sales have gone well for next season but admitted the fall off from key overseas markets is creating “uncertainty”.

Such uncertainty comes at a time when the cruise line has more inventory to shift than ever.
The 2012/13 season will see a 70% to 80% increase in capacity for Royal Caribbean with five ships based in local waters.

“We are off to a good start and are broadly ahead of the same time last year. We are seeing demand across all five vessels,” he said. “The only uncertainty in our minds is the willingness of overseas markets to travel to our region.

“Our biggest challenge will be persuading Americans to come to Australia. The exchange rate doesn’t work in their favour. Australia is an expensive place to visit. We are anticipating a larger share of local guests.”

He predicted a 5% slip in passengers from North America and continental Europe.

The economic uncertainties in long haul markets is also creating a last minute trend with passengers booking three months out, far less than the traditional 12 month period.

Despite the increase in ships from one to three in 2011/12, Armstrong said it managed to “absorb the capacity without impacting yield”.

“We took an additional 60,000 people on holiday, sourcing them from across the world, not just from the local market,” he said. “We also had the first year premium on Radiance of the Seas.”

Latest News

  • Aviation

Qantas August stats show almost three-quarters of its flights depart on time

Qantas has reported it was the most on-time major domestic airline in August, with almost three-quarters of flights departing on time. According to the latest government data, 74.7 per cent of Qantas flights (Qantas and QantasLink combined) departed on time last month. The result was a slight improvement on Qantas’ July performance and nearly three […]

  • Appointments
  • News
  • Tour Operators

TTC names Melissa DaSilva interim CEO of TTC Tour Brands

The Travel Corporation has announced the appointment of Melissa DaSilva as interim CEO of TTC Tour Brands, effective immediately. DaSilva, who most recently served as president of TTC Tour Brands North America and brings more than three decades of travel industry expertise to her new role, succeeds Gavin Tollman who will exit the business when […]

  • Attractions
  • Food & Beverage

il Mercato Centrale Melbourne launches with full lineup of artisanal food outlets

Melburnians can now be transported to Italy, thanks to il Mercato Centrale which has opened in Collins Street and is set to serve thousands of visitors in the heart of Melbourne’s CBD. There is a wide range of culinary offerings, all under one roof, as well as entertainment, free community events and monthly artisan masterclasses. […]

  • Events

Business Events Victoria encourages applications for regional business events funding

Business Events Victoria is encouraging conference and event organisers to apply and make the most of all regional Victoria has to offer. The funding is part of the Regional Business Events Program, which is being delivered by Business Events Victoria in partnership with Melbourne Convention Bureau. The program supports national and international businesses to host […]