I had this scheduled for Friday, but with so much attention on our good friend Andy Cauthen, I decided to bump this back until today.

That being said, this may not be “news” for many who follow the industry closely, but I still wanted to offer up how I perceive this news. For those of you who know poeple who always look at things in a negative light, you might consider making a push to contact these people now, before Carnival’s 5% price increase goes into effect on March 22nd.

According to Carnival’s Press Release:

Carnival Cruise Lines is reporting record wave season bookings, with strong reservations activity for 2010 departures.  As a result of the strong booking volumes, a general price increase will be implemented effective March 22 for all summer sailings in June, July and August.

For the period of Jan. 1 through Feb. 21, 2010, bookings were at unprecedented levels for the line’s 22 ships which operate three- to 15-day voyages from a variety of convenient North American home ports.

Carnival President and CEO Gerry Cahill said, “We’re seeing significantly increased volume as consumers are taking advantage of the incredible value that a Carnival cruise provides. And while pricing hasn’t fully recovered to 2008 levels, we are increasing prices and will implement an across-the-board increase effective March 22.”

He said that the price increases will vary by departure date but will be up to 5 percent.

Cahill attributed the record booking activity to a wide range of factors, including strong travel agent partner support, targeted marketing initiatives, itinerary enhancements and the wide variety of close-to-home departure points.

Wave season typically runs from about mid-January through early spring and is traditionally the busiest, most important booking period in the cruise industry.

Carnival Cruise Lines is the largest and most popular cruise line in the world, with 22 “Fun Ships” operating voyages ranging from three to 15 days in length to The Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Panama Canal, Canada, New England and Europe.

Carnival also has two new ships on order — the 130,000-ton Carnival Magic, which is scheduled for delivery in 2011, and a sister ship set to debut in 2012.

For additional information on the Carnival vacation experience, contact any travel agent, call 1-800-CARNIVAL or visit carnival.com.

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If by chance you’re thinking to yourself that I’ve lost my marbles over a price increase being “good news” you’ve missed some very key components to Carnival’s message.

Bookings are not only up, but at unprecedented levels. Yes, Carnival made many moves over the last year that helped attract customers, and I don’t want to discount how that played a major role. Cruise customers have seen some very attractive prices in the industry over the last year to 18 months, which some say they’ve not seen in over a decade. Now that the economy is turning around, travelers are once again booking vacations for the upcoming summer season. Because demand is high, the prices therefore go up.

To me, this is another sign that the travel industry is on the mend and it’s good for everyone who works in this industry.

I remember talking with George Dooley this summer before the Convention and the interview we had together. We were talking about how it took one and a half to two bookings to make the same amount of commission in years past because of the lower prices to attract customers. Our total number of booking was in fact up in 2009, but we didn’t reach the same level in commissions from years past due to the lower prices. We worked harder for less money.

It’s good to see prices on the rise again in that regard.

Could the price increase backfire on Carnival? Possibly – but even with a 5% increase, the lines pricing is still below other cruise lines who offer the same itineraries. What’s going to be interesting – or something to look for – is if other lines follow suit. I’m sure Cruise Industry is at least considering a similar move, and those that are showing the same unprecedented levels certainly will announce a price increase in the near future. Those that do, will be the ones to watch as the industry leaders showing the strongest bookings thus far in 2010.

For those that want the bargain basement prices, still have time over the next couple of weeks. If you have some loose ends and quotes out there now, as we do with Carnival, you’ll want to follow up with those people before March 22nd. That is, if you want to offer value to them as an Agent.

Take this as a sign that the industry is following right along with the economic recovery we’re seeing in other sectors – and recovery certainly is good news. Demand is up, and people are looking to take vacations this year.

It’s a much needed “wave” of revenue the industry needs right now.

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Tags: Carnival Cruise Lines, Travel Agent Commission, Travel Agent Issues

This entry was posted on Monday, March 1st, 2010 at 7:00 am and is filed under Carnival, Gerry Cahill, Home Based Travel Agent, Online Travel, Travel Agent, Travel Agent Commission, Travel Agent Issues, Travel Bookings, YTB, YTB Travel Network. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.