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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.

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