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Luxury Ships, Lower Prices
US News & World Report · October 31, 2004

The cruise industry must believe that loose lips sink ships. Otherwise, they'd share their secret with the world: This fall, prices on luxury cruises are better than ever--and they're not likely to plunge this low again for a while. It's "a price anomaly," says Daniel Kwoh, chief executive of cruise specialist 7 Blue Seas. "Major cruise lines are selling out and raising prices. But luxury cruise lines have inventory and are surreptitiously lowering prices."

Harold Lockwood discovered the luxury loophole when he was looking for an alternative to the buffet lines and predictable ports of a standard Caribbean cruise. He found a 12-night Viking River tour to China, with stops at the Great Wall, Tiananmen Square, and the Forbidden City. The price for the once-in-a-lifetime getaway: about $3,600 per person, double occupancy, all meals and airfare to and from China included. That's $300 a day. Considering that many luxury hotels charge more than $300 a night just for a room--and that a comparable cruise will cost about $1,000 more per person in 2005--the retiree from Melbourne, Fla., found a bargain.

Why are luxury cruises slicing prices? "Supply and demand," explains Shirley Linde, editor of smallshipcruises.com . "Bigger, cheaper ships are filling up. Smaller ones aren't, at least to the same extent." In addition, the newest cruise ships are bigger and more upscale than ever, with first-class spas and fine dining and deluxe cabins. That's cutting into the smaller lines' business. Politics may have something to do with it, too. "Typically, we see a slowdown before the presidential election," says John Nigro, a cruise expert with Vineyard Travel in Escondido, Calif. His well-to-do clients are awaiting the results before booking.

Grand scheme. The luxury bargains are still pricier than a discounted regular cruise (we're talking $100 a day or less). But higher-end ships typically treat their guests to white-glove service. A master chef prepares gourmet meals on the 98-passenger Celebrity Xpedition during its seven-night Galapagos cruise, and naturalists lead the daily tours. The price: $2,550 a person through Priceline.com in December. Book the same cruise a year later on Celebrity's website, and you'll pay an extra grand.

Indeed, luxury cruise prices are expected to jump in early 2005. But Bruce Nierenberg, president of Delta Queen Steamboat Co., thinks there will be deals next fall. Once summer's crowds are gone, the cruise industry automatically kicks into "sale" mode. "It's one of the best times to go anywhere," he says.

Still, it's hard to resist the tempting '04 offers. A big fan of Silversea's all-inclusive, upscale cruises, Ronald Goldstein, an Atlanta dentist, went online in search of a deal and found nine cruises in November and December marked down by 50 percent. He booked a cabin on the Silver Whisper's 10-day Caribbean sailing with ports of call in Tortola, Guadeloupe, and St. Bart's.

Goldstein even sprang for a suite at $5,250 per person, a savings of about $3,000 off the brochure price. That's hardly cheap, but consider what he gets: free golf clinics, wine seminars, and gourmet dinners that can be made to order. "Once I'm on board, I never see a bill. Someone isn't always holding his hand out, expecting a tip. Now that's what I call a deal."

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