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Catch the Cruise Wave
US News & World Report · February 7, 2003

At $1,500, a balcony cabin on Royal Caribbean's Grandeur of the Seas seven-night New Year's cruise was a steal last year. Even bargain-hunters like Jill Miller, a dental hygienist from Morrow, Ohio, didn't think rates could sink any lower.

But they did: The identical cabin on the 2003 New Year's itinerary is $240 less - a bargain she couldn't pass up. Miller and her dentist husband booked two cabins, one for themselves, another for their teenage daughters, Danielle and Jolie. "In all my years of cruising I've never seen prices like this," she says. "I don't think I ever will again."

The midwinter "wave" period in the cruise industry - the busiest time of the year for bookings - normally brings a predictable swell of bargains and discounts. This season, it's more of a tsunami. Prices are almost absurdly low, incentives unusually rich. New itineraries and themes are also on deck.

Surge deflectors. The reason for the deals is simple: too many ships, not enough passengers. Buoyed by optimistic growth projections in the late '90s, cruise lines ordered dozens of new vessels for the predicted cruising surge. But a recessionary economy and terrorism jitters have left companies with a surplus of cabins. Fear of Norwalk virus hasn't helped, either. Even after repositioning many ships to ports closer to urban centers - you can now sail from New York, Philadelphia, or Baltimore rather than flying to Miami or Los Angeles - cruise lines are still being forced to cut prices.

The average per-day price on a one-week cruise, based on double occupancy, has slipped from $154 in 2001 to $134 for the first part of this year, according to 02Cruise.com, an online cruise agency. Individual cruises may be even cheaper. A seven-night Western Caribbean trip from Houston on Norwegian's Sea next December starts at $379 (all rates cited are per person, double occupancy, with meals included) or about $108 a night for a couple. (The Sea, just in case you're wondering, is no tugboat. It has its own Internet cafe, a basketball court, two outdoor pools, and a two-story crystal fountain.) The cuts aren't limited to tropical itineraries. Viking River offers a 12-night sailing on the Spirit from Amsterdam to Vienna for $2,189, airfare from Boston or New York included. Purchase from February 15 to April 15 and it'll knock $350 off.

Booking in the next few weeks makes you eligible for sweet rebates. Break out your MasterCard when you buy a cruise on Travelocity by February 28 and you'll get up to $250 back. Bid on a Royal Caribbean seven-day cruise for sailings from now to March 9 on Priceline.com, and you'll get up to $200 back. But procrastinating could be even sweeter. By many accounts, cruises are filling up slowly, and that will very likely lead to even more price slashing.

Low prices aren't the only lure. If money's no object, consider the new Norwegian Dawn's $26,000-a-week Garden Villa suite with three bedrooms, a private butler, and sweeping ocean views. The ship sets sail with its own tapas bar, sushi spot, and steakhouse. At a top speed of 25 knots, the Dawn will serve the Bahamas and Florida from New York, carrying up to 2,224 passengers.

Activities are over the top, too. The new Coral Princess comes with its own kiln for an onboard art class. And the Carnival Paradise is hosting a new "stop smoking" cruise of the eastern Caribbean in April. Doug Payette, whose travel agency is organizing the theme cruise, says if a crew member catches a passenger lighting up, off the smoker goes at the next port. But with so many empty berths, the victim could probably hitch a ride on the next ship to sail by.

Christopher Elliott is a travel commentator based in Key Largo, Fla. All e-mailed questions may be edited, condensed or republished at the site's discretion.