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Thursday 1 November 2012

ALL THE CRUISE NEWS Today’s trade issue of CW features fivepages jam packed with all the latest news.

Trade winner of Costa prize CONGRATULATIONS to Jessica Southgatefrom Cruise Travel Centre, who was selected asthe travel industry winner of our recent CostaCruises competition. The competition asked readers to nominatewhy they would like to win, with Jessica’swinning answer being:It would be a privilege if I had the opportunity

to cruise on your magnificent cruise liners. Ihave always dreamed of going to Asia but have

not yet had an opportunity to travel there. Icould not think of a better way to experience

this magnificent destination than doing itwhilst on a Costa cruise ship.

Jessica’s prize includes a seven night voyageon board Costa Victoria from Singapore toMalaysia and Thailand in an ocean-viewpremium twin cabin, valued at over $4000.

The Carnival response to theplanned Travel IndustryTransition Plan warns of a moredirect sales approach. CRUISE giant Carnival Australia has built itsbusiness on strong relationships with the travelindustry, but according to a submission to thegovernment’s inquiry into the proposed

Carnival concern about transition planconsumer protection reforms, it may consideralternative methods of distribution. The submission shows that Carnival isconcerned about the removal of the TravelCompensation Fund as well as travel agencylicensing requirements - as already agreed onby government ministers in jurisdictions fromacross the country. The Carnival submission to the Policy andResearch Advisory Committee of CAANZ saysthat of the 190,000 bookings made throughCarnival Australia in 2011, more than 81%were made by licensed travel agents who arecurrently covered by the TCF. However it claims that if the changes that arein the process of being implemented arefinalised, in the case of an agent collapse“there will be significant pressure on theoperator to honour the booking even if thefault lies with the travel agent. “This will inevitably mean operators such asus will need to reassess the ways in which weuse agents as a distribution channel,” thesubmission warns. And it spells out exactly what that means,stating that “without a collective approach toensuring the financial stability of agents, wemay find it more attractive to drive direct sales”. Other possible actions foreshadowed includefollowing the example of “certain UKoperators” who insist that customers payCarnival directly for their bookings when theyuse an agent, and “this might in turn have aneffect on the usage of travel agents”. Other mitigation against the risk of dealingwith insolvent agents “might mean smalleragents are not given the opportunity to sell anoperator’s products if they cannot meetwhatever criteria the operator puts in place”. Asked to comment, Carnival told CW itbelieved it was “essential for the regulators tounderstand the importance of maintainingappropriate safeguards for consumers,” addingthat it believes its relationship with agents will“continue to grow and prosper”.

Head North for Christmas NORTH Star Cruises is offering a series offour day cruises from Sydney to help celebratethe upcoming festive season. The first voyage departs at 5pm on Christmasday, allowing passengers to “fulfil their familyobligations” before slipping away for a treat. The four day itinerary will travel from SydneyHarbour along the northern beaches, intoPittwater and onwards to the HawkesburyRiver and then return. A second departure will take place on 30December, allowing guests to enjoy New Year’sEve in style. The 150-foot True North, which is more oftenfound cruising the Kimberley, has just 18cabins and is “appointed with all the comfortsand space of a five star hotel” plus anextensive program of optional excursions. For details of the itinerary and moreinformation see www.northstarcruises.com.au.

Royal Caribbean willsoon raise the curtain on Australia’s Premiership Voyager of the Seas®

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Call 1300 727 998 wendywutours.com.au

PURE YANGTZE – VICTORIA CRUISES4 night Yangtze River Cruise – Yichang to Chongqing Cruise along one of the world’s largest inland waterways and discover an everchanging mix of ancient and modern cultures.

From $420p.p twin share land only. Based on upstream itinerary.

Prices are per person twin share based on low season upstream itinerary. Prices and availability correct as at 31 Oct 2012 and are subject to change. Tour based on independent travel. Tour details and booking conditions as per Wendy Wu Tours 2013/14 China brochure. Wendy Wu Tours Lic No 2TA4792. 9068K.

Thursday 1 November 2012

Maturation of ourCruising Market

Whilst we are experiencing the best growthphase in our regions cruising history, weshould be mindful that natural cyclical ebbsand flows may eventually provide challengesto these record figures. But they ARE challenges we can overcome! Cons: With new fuel laws regulatingincrementally by 2020, higher operationalcosts in our waters may eventually have animpact on pricing, as will newly proposed porttaxes for some local ports. Therefore thispotential increase in cruise fares in years tocome when coupled with our inability toprovide new itineraries due to our limiteddomestic port infrastructure (in global terms),our current local inventory will be tested toremain as strong as it is. Pros: Our current 2.7% penetration market(second highest in the world) means we nowhave a LOT of Australians cruising. Whilethere is a chance we may not continue infuture years to have 68% of them cruisinglocally, current cruise passenger satisfactionratings of 94%+ (which is extremely high)indicate our young cruising market will startto repeat. And much like the US when their marketfirst matured, our current market will ventureinto new areas such as Asia (which ispredicted to grow strongly), and Europe, whowill have greater deployment once worldeconomic stability returns, not to forget rivercruising which is on the precipice of recordbooms. Therefore to overcome stagnation, retailgrowth is dependent on nurturing clients fromclose to home experiences to further afarcruises, while it is now up to our governmentsto keep our domestic appeal strong withinfrastructural support.

CruiseNews &Views

Peter Kollar, ICCA Training and Development Manager

Book your clients’ flights and cruise in one easy package;

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ChoiceAir takes flight

Classic International season may sinkClassic International Cruises hasbeen placed into administration,with significant uncertainty aboutwhether its planned Australianseason will operate. IT was to have been the ninth consecutiveyear of cruising operations from Australia byClassic International Cruises, but the 2012-13Australian cruise program by MV Athena hasbeen placed under a cloud of uncertainty dueto financial problems in Europe. The appointment of Lawler Partners asvoluntary administrators of the company (CWbreaking news yesterday) follows a franticscramble to source an alternative vessel tooperate the local season, after an issue withbankers led to Athena being detained in aFrench port for non-payment of bills. As revealed in Tuesday’s Cruise Weekly,Classic International Cruises Australia (whichwas not associated with the bad debt) had justdays ago confirmed that the season would goahead, utilising the German vessel MS Delphinwhich had been chartered to replace Athena. However it now appears that was a vainhope, with Lawler Partners appointedyesterday after an apparent hiccup in theavailability of the Delphin. According to a statement, CIC Australia hadbeen working with the owners of Athena toconfirm its availability for the 2012-13 voyages,and had also “been in negotiations to sourcean alternate vessel to back up Athena in theevent that it remains unavailable. “A backup was found, however CIC Australiawas notified on 30 October 2012 that a finalagreement may not be reached because ofdelays prior to the scheduled departure of thecruise from Marseille, France on 12 November2012,” Lawler Partners said. Once they received this news, themanagement of CIC Australia soughtimmediate advice and this led to the companybeing placed into administration. The company said that although “future

bookings have now been placed on hold,” theadministrators intend to continue to try tosource a suitable vessel for the season which isbelieved to have as many as 7,000 bookings. Consumers are being urged to contact travelagents in relation to their future travelarrangements, while those wishing to registera claim with the administrators can completean “Informal Proof of Debt Form” which isavailable on the Lawler Partners website atwww.lawlerpartners.com.au (CLICK HERE).

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Thursday 1 November 2012

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Cruise industry colleagues canlook forward to more shipwalkarounds, famils andfunctions this season. CONSUMERS are not the only people tobenefit from the unprecedented number ofcruising options in Australia and New Zealandin 2012-13, as thousands of travel agents andsuppliers will also be invited to experience thelatest offerings. “With our cruises visiting most of Australia’smajor cities, plus two new ships joining us thissummer, we expect to host a record number oftravel agents onboard through our walkaroundprogram, special onboard events andfamiliarisation cruises,” Adam Armstrong,commercial director Australia, Royal CaribbeanCruises, told CW. “With Voyager of the Seas and CelebritySolstice being new to the market, weparticularly want to ensure that our industrypartners know first-hand what sets those shipsapart.” Armstrong said another main focus would beshowing off the improvements on Rhapsody ofthe Seas, which has returned for a sixthseason. “Already an Australian favourite, she is sailinghere for the first time after her $54-millionrevitalisation and I know that many of heragent fans are very keen to take a look at herimpressive new amenities,” he said. Carnival Australia is looking forward tohosting close to 4,000 agents at around 60different onboard events during its biggestever program across a range of brands

Record number of industry eventsincluding P&O Australia, Princess, Cunard andmany others. With 19 ships from the company’s variousfleets in Australians waters, director of salesDon Clark said there would be lots ofopportunities for agents to jump onboardduring January, February and March. “The summer cruise season gives us a greatchance to show off our fleet and let agents geta firsthand experience of the product so theycan really understand the points of difference,”Clark said. About 2000 agents have already had a tasteof the booming cruise season, having enjoyedthe hospitality of Carnival Cruise Line’sCarnival Spirit during her maiden one-nightAustralian voyage (Cruise Weekly last Thu). And there’s lots more to come, because thecruise lines which are based here for theseason like Holland America’s Oosterdam willalso be complemented by many other vesselsmaking stops in Australia during their worldcruise voyages - providing uniqueopportunities for local agents to see exactlywhat they are selling to their clients.

Sandy slams Disney Fantasy HURRICANE Sandy has caused minor damageto Disney Cruise Line’s Disney Fantasy duringits return to Port Canaveral in Florida lastweekend. According to internet posts by passengers onboard, doors were shattered and crockery wassmashed due to a “violent tossing of the ship,”with the ship’s captain advising those on boardto remain in their staterooms. Disney Cruise Line said that “overall the shipis fine,” with some cracked windows andfurniture damage, and is continuing its currentitinerary, a seven night voyage in the WesternCaribbean. MEANWHILE ports on the US east coast aremopping up after the huge storm, with thePort of New York and New Jersey expected toreopen today or tomorrow. ‘Frankenstorm’ caused major ructions,interrupting power and causing flood and winddamage, while the closure of the port meantthat some vessels including Norwegian Gemand Crystal Symphony were diverted.

Gold Coast cruise battle THE cruise industry will receive someunwelcome attention on the Gold Coast thisweekend, with a number of protests againstproposed cruise terminals set to take place, Gold Coast City Council has backed plans fora cruise ship dock at Southport Spit, while a $2billion private terminal proposal for Billinga bybusinessman Bob Ell is also underconsideration. A coalition of diverse groups including divers,surfers, fishers and environmentalists havereportedly joined forces to oppose theexpansion of cruise ship facilities on the GoldCoast - despite a recent Gold Coast Tourismreport which found that the terminals couldinject as much as $180 million into the localeconomy as well as creating thousands of jobs. The protesters don’t agree with theeconomic benefits, and are worried about thepotential to damage the marine environmentas well as privatise public land. According to the Gold Coast Bulletin anumber of high profile protesters include 11time surfing world champion Kelly Slater. The Save Our Spit Alliance says it’s expectingthousands to attend a rally this Sunday, whileanother protest organised by the Save OurSouthern Beaches Alliance is planned fortomorrow against the Ell proposal. A spokesperson for the protesters said theywould “prefer Brisbane to be the majordestination for a cruise ship terminal”.

Meet Shackleton and Scott QUARK Expeditions has announced thatdescendants of two famous polar adventurerswill be “Experts-in-Residence” on a Feb 2013voyage aboard Ocean Diamond. Jonathan Shackleton (cousin of Sir ErnestShackleton) and Falcon Scott (grandson ofRobert Scott) will be guest lecturers on the 11-day Antarctic Explorer voyage which departs09 Feb 2013 from Ushuaia. Quark is offering a 50% off second pax dealon the trip - see quarkexpeditions.com.

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Thursday 1 November 2012

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Travel agents can now self-nominate for three cruisepromotion awards in theannual Australasian event. SUBMISSIONS opened yesterday for theICCA’s Cruise Industry Awards, with agentsurged to indulge in some self-promotion. The awards available to agents include 2012

Time to enter 2012 Industry AwardsAgency Promotion of the Year in Australia andNew Zealand and the 2012 NetworkPromotion of the Year Australasia. “This is a great way for agents to celebratetheir creativity and let their clients know thattheir ideas have been recognised by theindustry,” said ICCA general manager BrettJardine. The Network Promotion of the YearAustralasia award is open to multiple outletsinvolved in one promotion and has beensponsored by travel jobs specialist InPlaceRecruitment. The Agency Promotion of the Year awardrecognises single store promotions - Vacations& Travel magazine has sponsored theAustralian award, while APT is sponsoring theNew Zealand award. A further 12 prizes are up for grabs acrossseven different categories in the gala event,which will be held at the Hilton Sydney onSaturday 9 Feb 2013. Nomination forms for awards can bedownloaded from www.cruising.org.au. Entries must be submitted before 21December. Bookings for the awards night, sponsored byEmirates, can also be made via the website.

Norwegian profit up 9% NORWEGIAN Cruise Line has seen a strongthird quarter, overnight reporting an 8.8%increase in operating income for the threemonths to 30 Sep, to US$174.1 million. The improvement was attributed to anincrease in net yield, with upticks in both ticketprices as well as onboard and other revenue. On the other side, net cruise cost percapacity day declined because of reduced shipoperating expenses, timing of repair andmaintenance costs and “efficiencies frombusiness improvement initiatives”. The result was particularly pleasing given the13.5% increase in the cost of fuel compared tothe previous corresponding period. “Posting these great results, despite thechallenging economic environment in Europewhere we had a record deployment, is atestament to the discipline and rigour instilledat Norwegian to continuously improve quarterafter quarter,” said ceo Kevin Sheehan. Highlights of the quarter included theannouncement of enhancements to Pride ofAmerica which operates in Hawai’i, with 24new suites and four new studio staterooms tobe added, lifting capacity to about 2200.

Antarctic presentation A NEW PowerPoint presentation to helptravellers understand how climate change isaffecting Antarctica has been made availableby the International Association of AntarcticaTour Operators. It’s expected that IAATO members will usethe material for shipboard lectures duringvoyages to Antarctica, the information is alsoan ideal asset for travel agents wanting tospark interest in or answer questions aboutcruises to Antarctica. It’s online now at www.iaato.org.

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Thursday 1 November 2012

COSTA COMPCOSTA COMP

Cruise Weekly is Australia’s favourite online cruising publication.In production since 2007, Cruise Weekly is published each Tuesday,with a further travel industry update each Thursday.Cruise Weekly is free and is sent to subscribers via email as an AdobeAcrobat PDF document.Sign up for a free subscription at www.cruiseweekly.com.au.PO Box 1010, Epping, NSW 1710Phone: 1300 799 220 Fax: 1300 799 221

Cruise Weekly is a publication of Cruise Weekly Pty Ltd. All content fully protected by copyright. Please obtain written permission to reproduce any material. While every care has been taken in the preparation ofCruise Weekly no liability can be accepted for errors or omissions. Information is published in good faith to stimulate independent investigation of the matters canvassed. Responsibility for editorial comment is taken by Bruce Piper.

Publisher/Managing Editor: Bruce PiperEditor: Louise GoldsburyAssistant Editor: Amanda CollinsContributors: Roderick Eime, ChantelLong and Guy DundasEmail: info@cruiseweekly.com.au

Advertising and Marketing: Christie-LeeLachance, Lisa Martin and Magda HerdzikEmail: advertising@cruiseweekly.com.auBusiness Manager: Jenny PiperEmail: accounts@traveldaily.com.au

Cruise Weekly is part of theTravel Daily Group:

ICCA’s masters all at sea

INTERNATIONAL Cruise Council Australasiageneral manager Brett Jardine recentlyescorted ICCA’s 2012 Masters Conference,which was held onboard a TransAtlantic voyagefor the first time. Agents and their partners were treated to aweek of luxury and informative cruise sessionsfrom onboard Cunard’s Queen Mary 2. Australian and NZ agents were the recipientsof high praise from US-based ICCA facilitatorScott Koepf, who was himself on his 14th

Masters Conference, saying the knowledge oncruising by agents down-under was of anextremely high calibre. Jardine praised the journey as a whole,labelling it a “resounding success” particularlyreferencing the white-gloved afternoon teaexperience, held in the grand ballroom duringbreaks between training sessions. The 2012 ICCA Masters conferenceparticipants are pictured above in the QueenMary 2’s grand lobby.

CRUISE lines operating in the Caribbean arecounting the cost of Hurricane Sandy - andit’s more than how the massive stormaffected their ships and itineraries. The tempest has also caused significantdamage to shoreside facilities, including theprivate island destinations operated by manyof the cruise companies. One of the affected resorts is PrincessCruises’ Princess Cays which has experienced“extensive beach erosion, some downedtrees and roof damage. “The end of the observation pier was alsolost,” said a spokesperson for the operator. Also hit was Norwegian Cruise Line’s GreatStirrup Cay, which was set to be visited thisweek by Norwegian Jewel, Norwegian Skyand Norwegian Pearl. All the visits have been cancelled while thedamage is assessed, with the hurricaneunfortunately coming not long after therecent completion of a $30 million upgrade. Minor damage was also reported at RoyalCaribbean’s CocoCay in the Bahamas as wellas Holland America’s Half Moon Cay and thepopular Castaway Cay destination operatedby Disney Cruise Line.

HOW about this for a shore excursion? A 27 year old UK man is close to completinghis quest to lick every cathedral in Britain. A friend apparently dared LawrenceEdmonds to complete the daunting taskwithin two years - and if he fails he will haveto run naked around York Mister. Edmonds commenced his unusual activitiesearlier this year by licking Norwich Cathedraland now says his tongue has tasted 60 of the64 cathedrals across the country. He described the experience of licking theancient buildings as a “little gritty”.