Fred Olsen marketing boss Nigel Lingard has predicted that cruise prices will need to rise by at least seven or eight per cent next year if the industry wants to continue investing in itself.
Speaking at the launch of Fred Olsen’s new 2011/12 brochure, he said cruise lines had already managed to claw back some of the rock-bottom pricing of last year by hiking rates by around five per cent, but he stressed that more was needed.
“It’s very easy to drop prices, but murder to get them back up again,†said Lingard.
“I think we will get back to 2008 levels, because we have to.
“It’s in all the cruise lines’ interests to achieve it and with no UK dedicated new-builds due next year, there is a window of opportunity in 2011 to improve price levels because there will not be so much of a capacity war.â€
The marketing director also claimed more customers were booking further ahead after getting their fingers burnt last year by gambling on late deals that did not work out.
In 2009, the lead time between bookings and departures jumped by 25%, but Lingard estimated that this had virtually reversed this year.
He claimed 2010 had marked the start of the recovery for Fred Olsen and the wider industry after prices hit rock bottom in 2009.
“Forward bookings for 2011 are very good and ahead of where we were this time last year,†he added.
*Fred Olsen’s new Worldwide brochure has been designed to be more user-friendly and features more longer cruises from the UK, notably it’s first ex-UK sailing to the Red Sea. The 28-night voyage, departing on October 4, 2011, is already more than 60% sold.
