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

  • Tour Operators
  • Travel Weekly TV

What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV

Join Hilary and Nancy on the couch in the weeks episode and learn a little more about why Hilary loves ‘the Mother Continent’ so much and why she thinks the expedition cruise space is one of the most exciting to watch in 2024. Hilary is an absolute Africa specialist who has found a home in […]

  • Destinations
  • Tourism

Surge in Australians visiting Japan

The number of Australians visiting Japan in the first quarter of 2024 increased by 46.3% compared to the same period in 2019, new data released by Japan National Tourism Organization (JNTO) shows. Visitor numbers in March alone were up a staggering 87.4% compared to March 2019. “These figures are fantastic to see and confirm what […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]