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While it will still be a long time before cruise fares return to 2007 levels, a handful of cruise lines have recently announced they will be increasing fares for this summer, and in some cases, for the remainder of the year.

These fare increases will only impact cruise bookings made after the increases take effect, which for the most part will be in late March or early April. So anyone who books before the increase kicks in will still benefit from the lower price.

The fare increases at the mainstream cruise lines will be modest. For example, Carnival will raise prices by up to 5% effective March 22, and NCL will hike fares by up to 7% effective April 2.  The rate of increase will vary according to itinerary, with the most popular regions getting the highest bump.

However, the rate of fare increase will be significantly larger at the luxury lines, many of which have been offering extraordinary bargains and incentives such as “two-for-one” fares, free air, generous onboard credits, and free or discounted shore excursions.

For example, Silversea Cruises is planning to increase fares and eliminate some incentives beginning March 18. Regent will be hiking fares on many of its cruises after March 31. And others cruise lines may soon follow their lead in the months ahead, depending on consumer demand.

That’s not to say fares on every cruise itinerary will go up, or increase by the same amount.

There are still some itineraries that are not selling well, or are getting too close to their departure dates for increases to kick in. For example, Princess Cruises recently announced fares starting at less than US$100 per person for a 32-day voyage from Singapore to Cape Town that departs April 2. And demand for cruises to the Mexican Riviera, as well as for three and four day voyages to the Caribbean, continues to be soft.

In addition, there will still be times of the year when bargain fares are still available on certain itineraries. For example, the fall for Caribbean cruises, May and September for Alaska sailings, and the winter for Mediterranean voyages.

But there’s no doubt that the price of some cruises – particularly those during peak periods to popular places like the Mediterranean, or those with decreased capacity like Alaska – are going up. And the reason is that cruise bookings for 2010 have been way up over last year, thanks to strong sales during the first two months of this year during the cruise industry’s primary marketing period known as “Wave Season.”

Each year, cruise lines use Wave Season – where more than 50% of the industry’s yearly cabin capacity can be sold — to gauge the level of consumer demand. If that demand is low (as it was in 2008 and 2009), cruise lines respond with lower fares and special incentives to encourage sales. If demand is strong (as it was in January and February of this year), the same cruise lines try to increase fares and remove incentives where possible for the remainder of the year.

So with this year’s strong, and for some cruise lines, record Wave Season, cruise fares will be going up on many itineraries. Whether cruise lines can maintain higher fares and continue to increase them in the future remains to be seen. After all, it was cheaper fares that drove this strong Wave Season to begin with.

However, for the time being, cruise lines are sending travel consumers a powerful and pointed message:  if you want to take a cruise vacation in 2010, book early before the higher prices kick in. Otherwise, you could be paying more than you need to.

 A lot of people, particularly those who are new to cruising, tend to place a higher value on a cruise that includes more ports of call. For example, they believe a 7-night cruise that visits six destinations is better than one with only four or five ports of call.

In my view, this philosophy sells the cruise experience short and can make for a less pleasant voyage. Why?

First, most cruise ships are loaded with tons of great facilities like hot tubs, health spas, mini-golf, swimming pools, water slides, retail shops, etc. that rival anything on land. In addition, there are organized activities from dawn until midnight that run the gamut from aerobic sessions, enrichment lectures, and dance classes to bingo, paddle tennis competitions and Wii tournaments. Enjoying these activities and facilities, which are part of the cruise vacation experience, often gets short-changed when a voyage offers no days at sea.

Second, a cruise that features too many destinations often has to arrive in port late or leave it early in order to rush to the next port of call. This can result in passengers having too little time in a port to see everything they want to, or to combine some shopping with sightseeing.

And third, getting up early everyday to go on a shore excursion can be very tiring. In fact, after just two or three consecutive days of touring, passengers can get so fatigued that they begin to regret having signed up for so many excursions. Or worse, they’re so tired they have to go to bed right after dinner and miss out on the evening’s fun and entertainment.  

But as experienced cruisers know, a voyage that combines a healthy balance of ports and sea days provides a far better vacation experience. For one, it gives passengers an opportunity to explore and enjoy their ship – which is hopefully one of the reasons they took a cruise instead of a land trip. And two, it gives them time to plan for and enjoy their shore excursion without wondering where they are each day as in the movie “If it’s Tuesday this must be Belgium.”

So what’s the right combination of sea and port days?

It really depends what part of the world you are cruising in and how intense the shore excursions are. For example, Caribbean ports tend to focus on water, fauna and beach tours that last just a few hours. So it’s relatively easy to tour an island, do some shopping, and still have three or four hours of daylight to relax on the ship.

In that case, four or five ports during a 7-day cruise should be just about right.

However, a cruise in the Mediterranean, the Baltic or South America is altogether a different story. Ports can often be located quite a distance away from the nearest major city (e.g. Civitavecchia for Rome, Piraeus for Athens, Livorno for Florence, etc.), which can often mean shore excursions of 7+ hours. Even worse, tours to nearby landmarks like Iguazu Falls in Brazil, the Galapagos Islands near Ecuador, or Moscow from St. Petersburg often involve 10 to 12-hour trips that depart before dawn and don’t return until late at night.

In these cruising regions, it really helps to have at least one sea day in between every two ports of call.  

The bottom line is that you want to have enough time to enjoy all the amenities your cruise ship has to offer, as well as to feel rested enough for each shore excursion on your itinerary. After all, you don’t want to return home from your cruise feeling you still need a vacation.

Every year cruise lines offer a handful of exotic itineraries that provide a rare opportunity for travelers to cross a special destination off their bucket list. These cruises are not part of a regular schedule, rarely get much publicity, and may not be repeated for many years.

In some cases, a cruise line will offer exotic cruises because they are trying to be the first to develop a new market for them. If the cruises sell out, additional cruises to the same destination may be added in future at higher prices. However, if these cruises don’t sell very well, the cruise line will change the itinerary or drop it entirely in favour of a new destination.

In addition, the need to reposition ships from one part of the world to another can often generate rare and extraordinary itineraries for a very limited period each year. This is particularly true when ships have to sail long distances between far-flung continents.

So what’s the best way to be among the first to identify, book and enjoy these special sailings?

1. Be the first to find the hidden gems of cruising by poring over cruise ship itineraries on websites like Tripharbour.ca or on the websites of individual cruise lines. Also, check out the various cruise line brochures and flyers that arrive in the mail. The problem with the latter is that by the time it arrives in your mailbox, the cruise you want may already be wait-listed or sold out.

2. Look for cruises that sail to ports of call that are not included in standard itineraries to the same region. For example, if sailing on a Northern European cruise, does it include more exotic destinations like Trondheim, Geiranger, Spitsbergen and Bergen? If sailing to the Eastern Mediterranean, will the ship call at ports like Yalta, Sevastopol and Odessa in the Black Sea? And if sailing around the Horn of South America, will the itinerary include Antarctica?

3. Be on the lookout for repositioning cruises that offer much more than the standard itinerary. For example, trans-Atlantic cruises that visit Iceland and Greenland. Trans-canal voyages that include South America. Cruises between Asia and Australia that include Bali, Indonesia and Vietnam. And sailings from South Africa that visit Zanzibar and the Maldives. 

4. Consider taking a segment of a world cruise. These longer voyages tend to visit more exotic locations and spend more time in port. But you don’t have to sign up for the entire 100-day voyage – most world cruises can be purchased in segments that typically range in length from 16 to 30 days.

5. Pay particular attention to the itineraries of small and medium-sized cruise ships. These ships tend to include visits to out-of-the-way ports that are too small for bigger ships to access. In addition, if a region like the Amazon River has been suffering from drought, larger ships may not even be able to call at ports that are advertised in their brochures. 

Once you’ve spotted your cruise, take at close look at what the fares break down to on a per diem basis versus travelling to the same destinations by airplane and staying in hotels.  In most cases, you’ll find your sea voyage represents a terrific value, and a very smart way to manage your travel bucket.

Some of the most beautiful health spas in the world are now found on cruise ships. In fact, some are even operated by or affiliated with the most prestigious land-based resorts in the world.

These ocean-going spas offer a full range of standard treatments such as facials, massage, hair and nails, as well as more unique treatments like cellulite reduction, acupuncture, teeth whitening and body wraps. They have fully equipped gymnasiums, many offering fitness classes and personal trainers. And they offer spa menus with light and healthy dining options. Some newer ships also have private outdoor “sanctuaries” where passengers can get have a massage under the sky or just get away from it all in a tranquil and peaceful setting.

So when it comes to staying fit, reducing stress and looking your best, there’s really no better place to be than on a cruise ship. However, there are so many spa options to choose from, and so little time to enjoy them, that many people miss out on the best treatments and services.

As a result, I recently asked the Spa Manager aboard the Golden Princess for some tips on how passengers can get the most from their sea-going spa experience. Here’s what Aletta Jansen van Vuuren of South Africa had to say:

1. A menu of spa services is usually available on the cruise line’s web site and most treatments (except those in the hair salon) can be booked online in advance. This is particularly useful for passengers with a busy shore excursion schedule who have limited windows of time where they will be available for treatments.

2. Spas usually have an open house on embarkation day when they offer tours, explain treatments, and make bookings. This is a great way to become familiar with what’s available at the spa, to meet the various staff members, and to make bookings before the best time slots disappear (and they will very quickly for the formal days).

3. Since boarding day is a slow time for a cruise ship spa, most of them offer embarkation day specials where various treatments are available at discounts until 10:00 pm that evening. So it pays to visit the spa and ask about these as soon as you board the vessel.

4. Some cruise lines offer discounts on spa services during port days. So if you don’t plan to be ashore for the entire day, ask about port day discounts and book yourself a treatment at a reduced price – at Princess, it’s 15%.

5. Many cruise ship spas now offer a body composition analysis which among other things can measure the toxins in your body, the amount of body fat and your metabolism rate. This analysis is then used to generate a tailor-made program that directs passengers to the best treatments and services for their particular situation and goals. This can help spa goers save money and get better results from their investment.

6. Most new ships now have outdoor areas sometimes called “sanctuaries” which are reserved for passengers taking spa services or who wish to pay a daily fee of about $20.  These areas are for adults only, provide reserved chaise lounges, and are usually located next to a small pool area. Aletta says these sanctuaries are becoming popular places, especially for passengers who don’t want to compete for a chair in the public pool area, particularly on busy days at sea.  

7. The best spas at sea are constantly adding new and unique services at competitive prices. For example, the Golden Princess recently added a Thai Poltise massage, an Oxydermy Facial Microderm Abrasion, and acupuncture treatments. Since these types of services may not be easy to find at home at competitive prices, Aletta suggests that passengers try them at sea.

8. There are usually a number of massage treatments for couples that they can take together. In fact, the spa aboard the Golden Princess offers them in the spa or outdoors in a private cabana in the Sanctuary. Aletta says this is a great way for couples to experience spa treatments together.

9. If you haven’t made a reservation at the spa during a sea day, Aletta says the best time to get a “walk in” appointment is early in the morning or late in the afternoon.

10. Watch you cruise ship program for notices of special spa promotions or programs. These will include complimentary fitness classes, discounted services and special educational seminars.

While the cruise industry enjoyed strong occupancy levels in 2009, many of those passengers were induced up the gangplank with discounts and incentives that brought cruise fares to historically low levels. That was great for the travelling public, but tough for cruise lines whose meager profits left shareholders looking for a life preserver.

Fast forward to the beginning of 2010. The economy is on the mend, interest rates are still low, there is pent up demand for travel, and this year’s Wave Season (the peak selling period for cruises from early January to mid-February) delivered strong sales for most cruise lines. In fact, several cruise lines reported that they enjoyed their best Wave Season ever this year.

As a result, some travel industry experts are now predicting that we’ve seen the end of the deep discounting in cruise fares that were available in 2009 and for the first two months of 2010. According to these experts, since sales for 2010 are off to a strong start and some cruises even have waiting lists why should they continue to discount their fares?

While there’s no question that 2010 sales have gotten off to a fast start, much of this demand has been fueled by discount and incentive programs put in place at the end of last year. For example, programs promising two-for one cruise fares, free cabin upgrades, generous shipboard credits, free air, incredibly low lead in prices, complimentary shore excursions, children cruise for free, and other incentives have continued to drive passengers up the gangplank.

The question is whether the travelling public will continue to snap up cabins once these incentives disappear, and whether there is anyone in the cruise industry willing to take that chance before the end of 2010. In my view, the answer is “no.”

I expect we may see a small increase in prices for cruises at the bottom of the market that have been selling for ridiculously low prices like $35 to $40 per day. These types of lead-in prices are difficult to sustain for long, do not build brand loyalty, and usually represent a last-minute response to slow bookings.

However, I think it is unlikely we will see much in the way of price increases for premium and luxury cruise lines for the remainder of this year. In fact, I’m still receiving cruise line flyers promoting various incentives – the latest this week from Crystal, Regent, Princess, Seabourn, MSC, Cunard and Costa.

The reasons for the continuing soft cruise market are as follows:

- Cruise ship capacity will continue to increase in 2010 as new ships are launched, yet the pace of passenger growth has slowed considerably, particularly in the US.

- Airline capacity has decreased, making it more expensive and difficult for passengers to take advantage of last-minute discounts that cruise lines once used to fill empty ships. As a result, passengers have to be sold on taking the cruise much earlier.

- In order to generate reasonable returns, cruise lines need to fill their ships to at least 115% occupancy (100% occupancy is two people in each cabin). So demand needs to increase significantly before cruise lines can increase fares or drop incentives.

- Some cruise lines have already announced and locked in deeply discounted fares and generous incentives for the entire 2010 season in order to get their share of passengers.

- People are now used to getting some kind of discount fare or incentive in order to book a cruise well in advance of sailing.  That’s not going to change overnight. In fact, it’s been years since it was necessary for anyone to pay the brochure rate for a cruise.

As a result, I think it’s premature to predict cruise line fares will return to normal anytime soon. However, I do think we have reached the absolute bottom of the market when it comes to pricing, and that there is only one direction for fares to go in 2011 – up. So if do you have a special cruise in mind, it may pay to start looking for it soon.

There’s a new trend taking place in the cruise industry that few people would have thought was possible just a few years ago when the recession began. It’s called “trading up” and it occurs when people who would have normally sailed on a contemporary cruise line trade up to a higher-end luxury line.

How can this be happening in these tough economic times?

It’s simple. With ultra-luxury cruise lines offering humongous fare discounts and very attractive incentives on some cruises, more and more people are seizing what could be a once-in-a-lifetime opportunity. And if these people are used to paying for higher-category cabins like mini-suites and balcony cabins on contemporary lines, they can usually get an inside or even an outside cabin on a luxury line for just a little bit more money than they are used to paying.

For example, Crystal Cruises is offering every one of its 2010 departures at two-for-one prices for all categories of cabin. In addition, the ultra-luxury line is including up to $2,000 per cabin shipboard credits, free air on most itineraries, additional discounts of 3.5% for paying the full fare at least six months in advance, and a guarantee that passengers will get the best applicable fare.  

Other luxury lines including Silversea, Seabourn and Regent are offering comparable savings. For example, Regent is offering two-for-one fares, free air and free shore excursions. The latter can be a tremendous savings, especially in places like Alaska, Europe and Asia where the cost of shore excursions over a two-week period can easily exceed a thousand dollars a person. In addition, these lines also include tips and alcohol in their fares.

So what kind of pricing differential are we talking about when it comes to regular pricing on contemporary cruise lines versus discounted fares on luxury lines? Let’s look at my recent South American/Panama Canal cruise from Valparaiso, Chile to Miami, Florida with Crystal.

We paid US$3,620 per person for an outside cabin with a large picture window, and received a US$1,000 per person shipboard credit, which effectively reduced each fare to US$2,620. For a 15-day cruise, that price works out to US$174.66 per day, per person for accommodations, entertainment, transportation, and all meals (including free alternative restaurants) aboard one of the highest-rated luxury cruise ships afloat.

Now let’s compare that cost to a similar cruise on a contemporary line, and to the regular price of sailing on a luxury line without these types of discounts.

The current fare for a comparable 14-night cruise with a contemporary line like Celebrity ranges from C$1,599 for an outside cabin, to C$2,569 for a balcony, and C$3,679 for a suite. That works out to $114.21 per day for an outside cabin, or about $60 a day less than what I paid on Crystal for my cruise. And the price of a balcony cabin on Celebrity is effectively the same as I paid for an outside cabin. For my money, the Crystal fares are a much better value.

As for Crystal’s regular fares without discounts, my South American/Panama Canal cruise normally sells for US$7,240 per person. Without any shipboard credits, that amounts to US$482.66 per day – a full US$308 per day more than the discounted fare I received and that Crystal is offering for 2010.

Of course, many people are completely happy sailing on a contemporary cruise line like Princess, Celebrity and Royal Caribbean, and have no desire to trade up. But for those who do, there may never be a better time to cruise with a luxury line than during 2010.

My love affair with cruising started when I took my first cruise in 1980 aboard the MV Jupiter of Epirotiki Line. It was a seven-day voyage through the Greek Islands and Turkey roundtrip from Athens, and while the ship was tired and old, the experience was spectacular.

Almost three decades later, I just completed my 50^th cruise – this one roundtrip from Los Angeles to the beautiful islands of Hawaii. And in those 29 years, I’ve spent more than 400 days at sea, cruised with just about every major cruise line in the world, and sailed to some of the most beautiful destinations on the planet.

So to mark my 50^th voyage, I thought it was time to look back over the decades and put together a list of my top ten cruises:

1. Greek Islands & Turkey: It’s the perfect combination of history, architecture, and culture set in the picture-perfect waters of the Aegean Sea. Try starting or ending in Athens, Rome, Venice, Barcelona or Istanbul if you want to include an interesting land portion to the trip.

2. French Polynesia: If you want to see South Pacific islands in a natural setting, try cruising to the Society and Marquesas islands. You’ll find coral-fringed lagoons, swaying palms, out-rigger canoes, lush vegetation and some of the most beautiful beaches in the world.  End or begin your trip by staying in an over-water bungalow on the island of Moorea just across the channel from  Tahiti.

3. South America: The scenery around the coast of South America between Buenos Aires, Argentina and Valparaiso, Chile is incredibly diverse and beautiful. You’ll see fjords, snow-capped mountains, glaciers, emerald lakes, volcanoes, penguins and whales as well as European-style cities, jet-set resorts, fishing towns and pristine beaches. And you’ll get to make the once-in-a-lifetime sail around the infamous Cape Horn at the end of the continent. 

4. Scandinavia/Baltic: This itinerary includes lots of interesting ports like Stockholm, Copenhagen, Helsinki, and Estonia, but the reason everyone takes this trip is to see St. Petersburg. The city and surrounding area is a treasure-trove of palaces, historic buildings, art and museums including the spectacular Hermitage. Pick a cruise ship that stays at least two nights in St. Petersburg, as you’ll need at least that long to see most of the highlights. Going ashore on your own requires a special permit, so take the ship’s shore excursions – they’re good value.

5. Panama Canal: If you’re intrigued by feats of engineering bravado, you’ll love seeing the gigantic locks at both ends of the canal and the spectacular cut though the continental divide that connects them. You can do a partial transit from Florida that goes through the Gatun Locks and then returns to the Caribbean, or you can do a full transit through the canal between the Atlantic and Pacific oceans. Either way, you’ll get to see one of the greatest engineering marvels of the modern world.

6. Caribbean: There’s no better place to escape for sun and sand, especially when temperatures dip below freezing. The Southern Caribbean is my favourite itinerary in this region because it calls at islands like Barbados, Dominica, Grenada, St. Lucia, Antigua, Martinique, and St. Barts that I find the most interesting and beautiful. They’re also better protected in winter against the arrival of cold fronts. However, there are a lot more Eastern and Western Caribbean departures to choose from, and they don’t take as long to get to.  

7. Hawaii: From verdant valleys to thundering waterfalls, the islands of Oahu, Kauai, Maui and Hawaii offer some of the most stunning scenery in the world. NCL offers 7-day inter-island cruises roundtrip from Honolulu, which provide a good overview of the major islands and plenty of time to see them. Several cruise lines offer 14-day cruises roundtrip from Los Angeles and Vancouver, which are great if you don’t like long flights over the ocean.

8. European River/Barge Cruise: There are a number of small river boats and barges that cruise the main inland waterways and canals of Europe. My trip was along the Burgundy Canal from Dijon aboard a 22-person barge called the Lafayette. We had our own private chef who went to the market each day and prepared gourmet meals three times daily. During the day we visited the major wine producing towns, toured wineries, cycled along the canal’s tow path, and watched our barge navigate the extensive series of locks.

9. Alaska: The weather can be unpredictable, the ports are small, but the scenery is always spectacular.  You’ll see beautiful fjords, colossal glaciers giving birth to giant ice bergs, and lots of wildlife including bald eagles, black bears, seals and whales. Some of the shore excursions are fabulous, including a helicopter ride to the top of a glacier.  If you have the time, take a one-way cruise and extend your trip with a land trip into the interior of Alaska.

10. New England/Canada: Pretty seaside towns like Newport, Bar Harbor and Portland are bookended between fabulous big cities like New York, Boston, Quebec City and Montreal. Most people like to take this cruise during the fall when the leaves turn into a kaleidoscope of yellow, orange and red, but some lines offer the itinerary all summer long. If you like lobster, lighthouses, French bistros, and great shopping, you’ll love this itinerary.

While that’s my list of top ten cruise destinations, I have to admit that I’ve yet to cruise in Australia, Asia, India and the Middle East. However, there’s always next year!

Summer is not usually the time when people think about taking a Caribbean cruise. After all, it’s hot and beautiful back home, versus the sweltering heat of the tropics where there’s the additional risk of getting hit with a tropical storm or hurricane between June and October.

As a result, it shouldn’t surprise you to learn that cruise fares usually sink lower than Davey Jones’s Locker during the summer. But what might surprise you is that summer cruising in the Caribbean has become so popular that a growing number of cruise lines are positioning ships there on a year-round basis. And not only are they putting ships in the Caribbean year-round, they are moving some of the their newest and biggest ships to service the market.

For example, Celebrity Cruises recently announced that it will move the new Celebrity Solstice to the Caribbean this fall on a full-time basis. In addition, next year Carnival, Royal Caribbean and NCL will have their biggest ships ever in the Caribbean on a year-round basis. Overall, the full year capacity for seven-day cruises out of Florida will increase by double digits.

So what’s driving the increase in year-round capacity in the Caribbean?

One reason is the current recession which is causing people to cut back on travel to more distant destinations like Asia, Australia, Europe and even Alaska. When times get tough, a lot of people look for destinations that are cheaper to reach by air, or that they can drive to. And ports like Baltimore, Miami, Ft. Lauderdale, Tampa, Port Canaveral, New Orleans, New York, Mobile, and Galveston fit the bill for a large percentage of people living near the east or gulf coasts of North America.

Another reason is the vacation schedules of families who still have kids in school. If they want to cruise together, the windows of opportunity basically come down to Christmas, March Break and summer. And if they want to stay at a first-class resort where they can enjoy the pool, ocean and beach with all their meals and entertainment included, it’s become increasingly difficult to beat the value of a Caribbean cruise in summer.

For example, earlier this year a number of cruise lines were offering deeply discounted fares for cruises in the Caribbean this summer, including free or deeply reduced rates for kids. Even now, there are still attractive fares left on Caribbean cruises departing in July, August and September that start as low as US$599 per person for a seven-night voyage, with kids sailing in the same cabin for just US$349 per person. And with full-time cruise tonnage increasing in the Caribbean by double digits for next year, rates should be as good or even better in the summer of 2010.

The facilities on the big ships sailing the Caribbean and the plethora of activity-oriented excursions they offer ashore also present lots of opportunity for family-style fun. For example, many of the ships have large swimming pools with movie screens, water slides, games arcades, basketball and paddle tennis courts, mini-golf courses and in some cases, rock-climbing walls, ice skating rinks and even a water surfing pool. Shore excursions run the gamut from a day at the beach to snorkeling, sailing, jet-skiing, parasailing, kayaking and scuba diving. And since there are a lot more kids onboard the ship during the summer, most of the cruise lines operate a full range of organized programs for children of all ages and offer babysitting (for a fee).

The bottom line is that while most people equate Caribbean cruises with the winter, a large and growing number of ships are making the region their permanent home. For families looking for a fun, easy-to-get to, and value-priced vacation, that has to be music to their pocket books.

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