Luxury Cruise ledgers Strong Despite Economy

[StanandJim]

According to the Hotel & Travel News:

 

While foreign travel was declining at the close of 2007, domestic travel spiked. Some 89 percent of luxury consumers reported some luxury travel stateside in the fourth quarter 2007, the highest level seen throughout 2007 and 2006.

 

Luxury cruises are the one notable exception to the trend toward less foreign travel. More luxury consumers will look to the cruise lines as their primary foreign travel opportunity in 2008, owing to the fact that cruise experiences are paid in advance, and thus are a hedge against further inflation. They also are paid in U.S. currency so people won't feel the pain at the exchange counter

 

**Note from Stan & Jim** The ROA of Oceania and Regent have remained steady throughout this downturn, which makes them a very bright spot in the Apollo (or PCH) portfolio and demonstrates that Apollo invested wisely in the first place.

If Apollo wants to dump anything, right now, it's Norwegian.

[Paulchili]

According to the Hotel & Travel News:

 

While foreign travel was declining at the close of 2007, domestic travel spiked. Some 89 percent of luxury consumers reported some luxury travel stateside in the fourth quarter 2007, the highest level seen throughout 2007 and 2006.

 

Luxury cruises are the one notable exception to the trend toward less foreign travel. More luxury consumers will look to the cruise lines as their primary foreign travel opportunity in 2008, owing to the fact that cruise experiences are paid in advance, and thus are a hedge against further inflation. They also are paid in U.S. currency so people won't feel the pain at the exchange counter

 

**Note from Stan & Jim** The ROA of Oceania and Regent have remained steady throughout this downturn, which makes them a very bright spot in the Apollo (or PCH) portfolio and demonstrates that Apollo invested wisely in the first place.

If Apollo wants to dump anything, right now, it's Norwegian.

 

With all due respect StanandJim this is sort of "old news". These statistics refer to latter part of 2007 and earlier 2008 when most cruise lines were not really feeling the pinch yet (maybe Azamara was). The decrease in foreign travel in favour of cruises was more due to the weak $ in relation to Euro.

The proof of the pudding will be in their performance from now on - in view of the current catastrophic situation (which is really only days old).

If indeed Oceania (& Regent) will continue to book strongly in the future, then I will agree with you and "hats off" to Apollo & Oceania.

[cruiseyguy]

I agree that it is the bookings from this point forward that count, not those already paid for (although some that are simply deposited may be cancelled). As a private company, Apollo keeps it's financial status closely held but I would be surprised if it is exempt from the effects of the current economic carnage.

[wripro]

I think from this point on everything will change, especially when final payments on expensive trips come due. This is such a tsunami that no one can predict what the effect will be on cruising or anything else.