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July 2005

More Cruise Ships Heading To Africa

According to recently released CLIA research, itineraries to Africa and the Indian Ocean grew more than 250 percent between 2004 and 2005. The appeals of the Dark Continent are many and varied, but topping the list of attractions are photo safaris. Most lines offer optional safaris to Kenya, Tanzania or South Africa before or after voyages through the Indian Ocean. Although well known by French and Italian tourists, the islands of the Indian Ocean have been relatively undiscovered by Americans; these include the Seychelles, Maldives, Comoros, Sri Lanka, Mauritius, Reunion and Madagascar, among others.

Cruises also visit West Africa’s Ivory Coast, often in combination with European ports. Ports of call along the Ivory Coast include Casablanca in Morocco and various of the Canary Islands, just off the African mainland. According to Terry L. Dale, CLIA’s president and CEO, “The pristine isles of the Indian Ocean and all of Africa, are fascinating and can be culturally mind-boggling. A cruise in the region offers North American travelers a comfort factor when exploring such exotic parts of the world.”

Royal Caribbean Reports Record Second Quarter Earnings

Royal Caribbean Cruises Ltd. announced in July that net income for the second quarter of 2005 that ended June 30 was $154.5 million, or $0.71 per share. This compares to $122.2 million, or $0.58 per share, for the second quarter of 2004. Revenues for the second quarter of 2005 increased 5.3 percent to $1.2 billion from revenues of $1.1 billion in the second quarter of 2004. The increase in revenues was attributable to an increase in cruise-ticket prices and onboard revenues. Gross Yields and Net Yields for the second quarter of 2005 increased 5.6 percent and 6.3 percent from the second quarter of 2004, respectively. "Clearly we had an excellent quarter that exceeded our expectations," said Richard D. Fain, chairman and chief executive officer. "Despite the spike in fuel prices we are pleased to report a 26 percent increase in earnings with no increase in capacity."

The company estimates that lost revenue and costs associated with previously disclosed cancelled/modified voyages reduced second quarter 2005 earnings per share by approximately $0.05.

Outlook: Current consumer demand remains strong and the company continues to enjoy price increases over those experienced in the prior year. Assuming there are no external shocks and current booking trends continue, the company reaffirms its prior estimates for Net Yields to increase in the range of 6 to 7 percent in 2005 compared to the prior year. The company currently expects Net Yields for the third quarter of 2005 will increase by approximately 6 percent.

However, fuel costs remain unpredictable. If fuel prices for the remainder of the year remain at today's level, the company estimates that its fuel costs (net of hedging and fuel saving initiatives) will increase approximately $32 million and negatively impact earnings per share by $0.14 compared to the company's last guidance. Based on this fuel assumption, the company estimates that Net Cruise Costs per APCD for 2005 will increase in the range of 6 to 7 percent as compared to the prior year. Higher fuel costs account for approximately 4 percentage points of this increase. The company's expectations for Net Cruise Costs excluding fuel have not changed from previous guidance despite incurring costs associated with vessel incidents.

Based on the aforementioned fuel assumption, the company estimates that Net Cruise Costs per APCD for the third quarter of 2005 will increase approximately 9%, compared to the same quarter in 2004. Higher fuel costs account for approximately 5 percentage points of this increase. Depreciation and amortization is expected to be in the range of $405 to $415 million and net interest expense is expected to be in the range of $285 to $295 million.

For the full report, visit http://www.rclinvestor.com

Radisson Seven Seas Announces Enhanced Seven Seas Society Loyalty Program

Radisson Seven Seas Cruises®’ Seven Seas Society members will soon enjoy a series of enhancements in their past passenger program. The new, tiered loyalty program will feature exclusive experiences, savings, communications, offers and benefits. “Our goal is to make the Seven Seas Society more personalized and benefits-centered for our loyal guests,” said Kenneth Watson, executive vice president, marketing and sales for Radisson Seven Seas. “This program enhancement is a concerted effort to continue to recognize and reward our highly prized repeat customers.  In fact, the changes are the direct result of feedback we’ve received from them in the past year.”

After guests sail once with the luxury cruise line, they automatically become Seven Seas Society members.  Among its benefits, membership now includes savings of up to 10 percent on select sailings, instead of the previous uniform 5 percent discount. 

The new four-tiered program will recognize guests with benefits based on the number of nights they have sailed with the line.  Among the new program highlights: exclusive activities and events onboard and ashore; invitations to special Seven Seas Society cruises; stateroom/suite one-category upgrade certificates; complimentary onboard Internet access and laundry service; priority access to itineraries; early boarding; priority restaurant and spa reservations; spa certificates and more.

Seven Seas Society members will enjoy access to their own newly enhanced section of www.rssc.com. Membership will carry additional privileges, as participants will be privy to exclusive benefits unique to the Seven Seas Society, including enrollment in the luxury line’s new Signature Cellars wine club.

The enhanced Seven Seas Society program will be fully launched in the fall and will be in place for 2006. In the meantime, members can reap immediate benefits with a one-category stateroom/suite upgrade on all 2006 seven-night Baltic sailings, if booked by September 30, 2005.

Silversea's Terrace Café Restaurant Takes On Italian Accent For Dinner

Silversea guests sailing aboard ultra-luxury Silver Shadow this month will be the first to experience the transformation of the Terrace Café into La Terrazza, an innovative Italian restaurant that will be open exclusively for dinner.  The new dining concept and menu for La Terrazza, created under the guidance of Marco Betti, owner of the award-winning Antica Posta restaurants in Atlanta, Georgia, and Florence, Italy, are a further product enhancement designed to reflect the line's unique concept of luxury—one that arises from, and is shaped by, its Italian heritage. And it is only fitting that an Italian-owned company would offer a new dining experience that reflects one of the world's most luxurious culinary trends, the Slow Food Movement, launched in Italy 19 years ago and dedicated to preserving gastronomic traditions through the use of fresh—not processed— traditional foods. "For several years, Marco and his two chef brothers, Gianni and Alessandro, have been dazzling and delighting sophisticated diners in Atlanta and Florence with a taste of the Old World in their innovative Tuscan-style and regional Italian cuisine," said Erling Frydenberg, Silversea's chief operations officer. "This is a further step in our ongoing program of enhancements designed to give our concept of luxury a distinctly Italian touch."

La Terrazza will be rolled out aboard Silver Wind in September, while the line's other two ships, Silver Cloud and Silver Whisper, are set to offer the new dining venue later in the year.  The Terrace Café will remain each ship's casual alternative restaurant for breakfast and lunch during daytime hours.

Royal Caribbean and Celebrity Cruises Introduce Online Check-In

Royal Caribbean International and Celebrity Cruises are simultaneously launching online check-in for their guests, reducing the check- in process at the pier from minutes to seconds. Titled "SetSail" for Royal Caribbean International and "Xpress Pass" for Celebrity Cruises, online check-in is now available for guests booked on Royal Caribbean's Navigator of the Seas and for those on Celebrity's Zenith. The company expects online check-in to be available for both brands' entire fleets by September.

The new online check-in process allows guests to fill out all pertinent cruise documents before arriving at the pier. Boarding documents, immigration forms, onboard accounts and ticket contracts can be completed with just a click of the mouse. "This is a truly innovative development, basically making the web our 'virtual check-in agent,'" said Royal Caribbean Cruises Ltd. Associate Vice President Guest Port Services Juan Trescastro. "By averting the need to complete paperwork at the pier or while in line, we're reducing the time involved at the pier from an average of three to four minutes to an average of 30 seconds per guest."

To check in online, guests are asked to visit either http://www.celebrity.com  or http://www.royalcaribbean.com, and then click Before You Cruise on Celebrity's site, and Before You Board on Royal Caribbean's site, followed by Online Documentation where guests will be asked to provide their booking number, ship and sail date, and then follow four easy steps to complete the process. When the process is completed, guests will receive an e-mail confirmation stating that their documents have been processed. They can print the confirmation and provide it, along with identification, to agents at a special express counter at the pier.

Carnival Cruise Lines Launches New 110,000-Ton Carnival Liberty

Carnival Cruise Lines, a unit of Carnival Corporation launched its newest cruise ship, the 110,000- ton Carnival Liberty this month in Civitavecchia, Italy. Academy Award winning actress Mira Sovino served as godmother at the ship naming ceremonies on July 19. The 2,974-passenger ship—the 21st vessel in Carnival's "Fun Ship" fleet—also inaugurates the line's first-ever Mediterranean cruise program.

Carnival Liberty's seven-port, 12-day Med cruises from Civitavecchia include visits to Naples, Italy; Dubrovnik, Croatia; Venice, Italy; Messina, Sicily; Barcelona, Spain; Cannes, France; and Livorno, Italy. Following this program, Carnival Liberty will depart Civitavecchia on a 16-day transatlantic crossing Oct. 24 and arrive in Fort Lauderdale, Fla., November. 9, 2005, positioning the vessel for a one-of-a-kind program of six- and eight-day Bahamas/Caribbean voyages beginning November 12. She will return to Europe in May 2006 for another season of 12-day Mediterranean cruises.

Seadream Yacht Club Introduces Stylish New Brochure

Stylish and top-rated SeaDream Yacht Club has published a new brochure this month that will be available on a complimentary basis worldwide to travel professionals and the general public. The full-color compendium features dramatic photos of life aboard SeaDream I and II, the company’s twin, ultra-luxury mega-yachts, as well as colorful schematic, deck-by-deck renditions of SeaDream I and II to orient the viewer, and a page for Terms and Conditions of sailing with SeaDream.

Designed with an insert sheet detailing current Caribbean and European schedules and itineraries., the brochure’s inserts will be updated regularly and made available to travel agents and the public. It should be noted that the insert sheets do not include pricing. “In the real world prices change, increasing or even decreasing as availability fluctuates,” said Larry Pimentel, CTC, SeaDream’s President and CEO. “The most up-to-date pricing information will always be found on our website [ www.seadreamyachtclub.com] and is easily accessed.”

At 21 pages (12 inches by 8.5 inches) the new SeaDream brochure is light-weight and compact.

Radisson Seven Seas Announces Launch Of “The Travel Concierge,”

In a new luxury cruising initiative, Radisson Seven Seas® today announced the launch of “The Travel Concierge,” a multifaceted tour and hotel program that expands upon the line’s distinctive roster of destination offerings with the addition of exclusive, more highly customizable land options. Concierge Choice, Concierge à La Carte, Concierge Collection and Hotels à La Carte options are available fleet wide. Whether it’s a helicopter ride over the Amalfi Coast, renting a vintage sports car with a private villa in Tuscany, dining by candlelight in the Cisterns of Istanbul, or any number of other imaginative options, the new “Travel Concierge” program gives guests the freedom to go beyond traditional land and city tours to explore each destination in greater depth - imparting a more personal, experiential touch in every locale.

As luxury goes exploring, guests will now be able to choose from an exciting array of optional services including intimate group tours and the opportunity - via personalized one-on-one consultations - to tailor their time ashore to their own interests, resulting in fully customized, individually designed experiences in ports of call.  A dedicated toll free phone line is now open for guests to discuss and set up their own customized programs with the Concierge department. “The destination experience lies at the heart of luxury cruising, and the launch of our Travel Concierge program will further enhance how our guests go exploring the many intriguing places we call,” said Mark Conroy, president of Radisson Seven Seas. “We’ve created a program that reflects the direct feedback of our guests - and what they’ve told us they want is more intimate, more uniquely personalized and - in some cases - tailor-made experiences when they step ashore. (More details in Cruise Itinerary News/Offers)

Carnival Corp. Orders Third 68,500-Ton Cruise Ship for AIDA Cruises Brand

Carnival Corporation & plc has ordered a 68,500-ton cruise ship for its AIDA Cruises brand, which caters exclusively to the German-speaking market, marking the third new ship order placed for its German cruise line in the past nine months. The 2,030-passenger vessel, which will be constructed by Germany's Meyer Werft shipyard at an all-in cost of euro 315 million, is scheduled to enter service in April 2008. It will be a sister ship to AIDA's two previously announced 68,500-ton cruise ships which will be built at Meyer Werft and are expected to enter service in April 2007 and April 2009.

Like its sister ships, the new vessel will operate under AIDA's informal "club resort" cruise concept which is aimed at younger, more active vacationers and offers a host of on-board amenities and facilities. "With an expected passenger base of approximately one million by 2010, the German market is expanding at a very rapid pace. Ordering a third 68,500-ton 'club resort' newbuild for AIDA continues our European strategy of developing this fast-growing market by offering cruises with the most exciting, modern ships available for German vacationers," said Micky Arison, Carnival Corporation & plc chairman and CEO.

AIDA Cruises revolutionized the German cruise market with the introduction of its first club ships in 1996. By 2009, a total of seven club ships will be in service, operating voyages to the Mediterranean, the Canaries, North Sea, the Baltic, the Caribbean and Central America.

‘Queen Mary 2's 'Route to Rio' Cruise Launches Cunard's 2006 Historic South American 'Path of Magellan' Voyages

When Queen Mary 2 departs New York on January 15, 2006, her guests will be embarking on an historic voyage to the bottom of the world on the largest ship to ever cruise around Cape Horn. Queen Mary 2's New York to Rio sailing is the first leg of the 38- or 36-day adventure, and will offer guests a colorful blend of the Caribbean and Brazil on the ship's journey southward. Alternatively, guests have the option of departing from this dazzling South America city on the last leg of the 38- or 36-day eastbound reverse itinerary, departing Rio on April 3, and arriving in Ft. Lauderdale on April 13 and in New York on April 15. "Cunard's 2006 South American liner voyages are the pinnacle of civilized adventure, offering a mesmerizing glimpse into the experiences of history's greatest explorers, while guests enjoy the Cunard hallmarks of opulent surroundings, fine dining, and renowned White Star Service(TM)," says Jan Swartz, senior vice president of customer service and sales for Cunard Line. "'Route to Rio' is an exciting kick-off to Queen Mary 2's maiden foray into the rich history and traditions of South America."

(More details in Cruise Itinerary News/Offers)

Celebrity Orders New Cruise Ship And Launches Innovative New Class

Celebrity Cruises will build a new cruise ship and launch a new class of landmark ships, Royal Caribbean Cruises Ltd. and German shipbuilder Meyer Werft announced in July after signing a letter of intent. Celebrity also has an option for a second ship. The agreement is subject to customary conditions being satisfactorily met.  

The new ship, Celebrity’s first wide-body construction, has a volume of 117,000 gross registered tons, and length and width of 1,033 feet by 121 feet, making it a post-Panamax vessel. The 1,425-stateroom ship accommodates 2,850 guests (double occupancy) and 1,250 crew. The average standard stateroom on Celebrity’s new ship will be 215 square feet.  “We are excited to be collaborating with Celebrity on this new, breakthrough design and its market-leading innovations,” said Meyer Werft Managing Partner Bernard Meyer. “It has taken us many months to develop a strong, working prototype and this next-generation of ships is truly extraordinary.”      

Celebrity expects delivery of the new ship in fall 2008 and estimates the all-in cost of the ship to be approximately $225,000 per berth.  The exercise date for the second ship is March 15, 2006, subject to certain conditions.

       With today’s new ship and current ship orders, the company predicts fleet capacity to increase by 2.8 percent in 2006, 7.4 percent in 2007, and 7.2 percent in 2008.

Radisson Seven Seas Cancels Dolphin Encounter Tours

Advocating for responsible ecological practices—and taking a stand against the wanton capture and use of marine mammals for the amusement of travelers—Radisson Seven Seas Cruises® announced it will no longer offer dolphin encounter programs in any of its ports of call. The luxury cruise line supports the World Society for the Protection of Animals’ worldwide campaign to halt dolphin encounter operations, and, through its onboard environmental education programs in partnership with Jean-Michel Cousteau’s Ocean Futures Society, encourages guests to become responsible environmental citizens. “Sadly, under the guise of communing with nature or advancing our scientific understanding, dolphin encounter programs too often overlook the way dolphins actually exist and interact with each other in the wild, rather than respecting their natural place in the marine ecosystem,” said Darius Mehta, director of land programs for Radisson Seven Seas.  “While some parks may obtain dolphins legally, many use illegal and cruel means to capture these magnificent animals.  While we will continue to employ programs that allow our guests the wonderful experience of observing dolphins in the wild, we’re opposed to those that interfere with dolphins’ natural behavior.”

Radisson Seven Seas and its partner the Ocean Futures Society have a shared commitment to inspire deeper knowledge of the world’s oceans and to work to end cruelty to marine life with its adverse impact on the environment. “We should enjoy the abundant variety of marine life as it moves about and inhabits its own environment - without imposing artificial means on sea creatures to make them interact or ‘perform’ for people,” Cousteau said.  “Capturing marine mammals for the purpose of orchestrating structured encounters with humans or to display them in unnatural circumstances is unethical, puts them at risk and interferes with their natural and appropriate life cycles.”

Cousteau said he supports and commends Radisson Seven Seas for “making a vital and forceful statement to the travel and tourism industry that these encounter programs should be avoided at all costs.”

The mission of Ocean Futures Society is to explore the global ocean, inspiring and educating people throughout the world to act responsibly for its protection, documenting the critical connection between humanity and nature, and celebrating the ocean's vital importance to the survival of all life. In French Polynesia, Radisson Seven Sea’s ambitious “Ambassadors of the Environment” program with the Ocean Futures Society promotes ocean responsibility and engages youngsters aboard the Paul Gauguin® with fun learning activities.  The partnership is enhanced with an engaging, fleet-wide lecture series featuring Ocean Futures Society experts, personal appearances by Jean-Michel Cousteau on select sailings, original in-suite TV programming, plus live TV uplinks from dives conducted by Cousteau and his team during select Radisson Seven Seas cruises.

Website: http://www.oceanfutures.org