I was working on our Newsletter to our subscriber base this weekend and regrettably had to give them a heads up that cruise “fuel supplements” may be back for another round in the months ahead. When gas prices went through the roof in 2008, cruise lines implemented a fuel surcharge to passengers to cover the rising price of crude oil. A typical charge would be anywhere from an additional $3 to $6 per person – per day to help these large ships stay afloat.

We’ve all noticed the prices at the pump. In January, I saw news about fuel surcharges returning in Europe. Then, last week, Cunard announced that they will be increasing its fuel surcharge from $6 a day to $9 per day for cruises booked after February 28th here in the States.

The cruise industry has held a very special place for me from the moment I first stepped into the Grand Atrium of the Imagination more than twelve years ago. After our first cruise experience I had been telling anyone who was willing to listen that “a cruise is the best vacation money could buy”. The value is one of the best in the industry, with pampering and service that’s hard to match. The reintroduction of fuel surcharges however, could very well put a damper on the value and allure cruising.

While some will focus on higher fuel costs being the problem – frankly, I see an opportunity here to change for the better.

And maybe – just maybe – we’ll find a cruise line that will make it happen.

Back in 2007 Royal Caribbean had an opportunity to become the outright leader in the cruise industry surrounding environmental impact with alternative fuels. RCCL not only had a 7% stake with a company called Imperium Renewables, but agreed to purchase 18 million gallons of biodiesel from the company starting in 2008. Less than a year later however, Royal Caribbean not only pulled the plug on its contract, but sold its 7% share of the plant. Besides completely dropping the ball on this, I can’t help but wonder if the $13 million in sales the company threw overboard by cutting off a Top 50 Host Agency could have made a difference.

Typical of Royal Caribbean at the time – they were more concerned with perception rather than being bold or doing what was right.

Fortunately, there are smarter companies who are willing to invest in our Nation’s future and the need for renewable fuels. Today, Imperium Renewables refinery in Grays Harbor produces 100 million gallons of renewable fuel annually with an emphasis on aviation – not cruise ships.

Which begs the question (for me at least) that if we have the capability to produce 100 million gallons of biofuel for aviation – bunker oil for cruise ships would be a walk in the park – right? Bunker fuel after all, is a waste product. The dredge that remains after all of the refining processes and the high octane fuels have been produced and the diesel products have been extracted from the crude oil.

Which brings me back oddly enough to algae. Algae are not only naturally occurring in many oceans, but they happen to be the main reason we have the fossil fuels we’ve been burning over the last 100 years. Many think it was dinosaurs, but the truth is, it was algae that created this black gold millions of years ago. It not only multiplies at a very rapid pace, it’s capable of producing in excess of 30 times more oil per acre than corn and soybean crops. (On land or water not suitable for crops no less.)

Two companies that have caught my eye in the last year have been Solazyme and Sapphire Energy. Both have been working with the Department of Defense and last month Solazyme provided biofuel for the Navy for field test. According to the report, the Navy couldn’t tell a difference between the biofuel mix and the normal fuel. Within the next ten years, the Navy has plans to power its fleet using 50% biofuel. That means big money is dropping into companies like Solazyme and Saphirre Energy and with the help of Government backing from the DoD, these companies are well on their way.

Now imagine a cruise line that’s environmentally conscious. One Cruise Line who has stepped up to the plate in reducing our overall carbon footprint is Holland America. The cruise line won the 2010 Readers’ Choice Awards as Best Eco-Friendly Cruise Line. The Lines commitment to responsible environmental practices include, waste reduction and recycling, use of cleaner-burning propulsion technology and cutting-edge cleaning solutions. Holland America Line also has a history of embracing new environmental technologies such as shore power while ships are in port which not only saves fuel, but is far cleaner for the surrounding port.

A true Eco-Friendly leader such as Holland America could (or maybe should) jump at the chance to pick up were Royal Caribbean dropped the ball. What I also like about Holland America is they happen to be part of Carnival Corporation, which form the largest fleet of cruise ships out on our oceans today. If a green initiative with Holland America is successful using biofuels, it could spread rapidly to Princess, Carnival, Costa, and Cunard – which in turn will help the entire industry get off bunker crude oil to a much cleaner – renewable form of fuel.

But there’s still the problem of price with biofuels as it stands today. While Sapphire Energy would like to get the price down between $60 and $80 per barrel, the mass production to create a viable replacement isn’t there, and therefore the price is still not as cheap as fossil fuel. But what if a company like Holland America decides to increase its overall edge in Eco-Friendly cruising and uses the impending fuel supplement charges to change over to bio fuels instead of fossil fuel? Even if it’s going to cost more than an average of $3 to $6 per day per person per day?

Obviously, I can’t speak for anyone but myself on this issue, but the idea of paying a fuel supplement when I’m actually helping the advancement of biofuels and helping our environment at the same time brings the meaning of value and allure back to where it should be in an industry I love. The current situation of fuel surcharges actually creates a window of opportunity for a company that’s committed to being more responsible and eco-friendly.

I’ve always liked people and companies that take problems and turn them into solutions. It’s just the way I roll. Anyone committed to making this solution happen would certainly get my business. What about you?

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By the time you read this, our family will be in Ocho Rios, Jamaica. I’ve come equiped with my  “What part of NO do you not understand?” T-shirt which I purchased the last time we were in port here. (For those of you who have been here, you know why we need a shirt like this.) We’ll spend a relaxing day at Bamboo Beach Club since the kids wanted some beach time. (And still too young for Dunn’s River Falls)

Tomorrow is a big day in Grand Cayman. We’ll do a couple of excursions including swashbuckling on a Cayman Pirate Adventure in the morning and then spend the afternoon at Dolphin Discovery and the Cayman Turtle Farm.

Later that evening, we will dine and celebrate my daughters 8th (going on 18) birthday aboard Carnival Destiny.

This particular ship has been the top pick for a number of our clients since it was refurbished and started sailing it’s 4 and 5 day itineraries to the Caribbean from Miami. When Ronda and I were awarded Team MVP by our Directors at Convention and given a Carnival Gift Certificate as a way to say thanks for all we do, I pretty much immediately knew when and were we wanted to go.

Of course, you can’t have a proper birthday party without family involved. So we invited extended family to come along for the party on the World’s Most Popular Cruise Line. (They know a really good Travel Agent who got them one heck of a deal.)

So while you enjoy RPM and Red Carpet Day, we’ll be stuck down here in the Caribbean – thousands of miles away. (And lovin’ every minute of it.)

I’ll probably hit the internet cafe a time or two, but don’t be looking for any posts during the week. Like our newsletter that went out yesterday, this was written and scheduled last week before we left.

To keep you entertained – check out our favorite cruise tune this trip. I’m a classic rock and roller, but Michael Franti and Spearhead’s new tune “Say Hey (I love you)” gave me happy feet the first time I heard it. It’s got a create Caribbean beat and will certainly give you the itch.

So until I get back around the way – Enjoy!

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A couple weeks ago, I warned about how bad Royal Caribbeans 4th quarter numbers would be. The morning I wrote it, the financials had not been out yet, but later that day we came to find out fourth-quarter earnings tumbled 98 percent. No big surprise as the entire industry is struggling in this economy, but when you combine it with poor business decisions it’s clear that those decisions are starting to catch up with them. Terminating entire agencies, upping commission thresholds for others who they’re suppose to be supporting, combined with the mega ships they’re building and can’t afford has the company cutting back in other areas that has many either concerned or just downright upset.

Having someone like me miffed is one thing, but when you get an entire state upset over how you conduct your business is another. The 49th state in the Union, who happens to be celebrating it’s 50th Anniversary of Statehood this year is now “worried” over Royal Caribbeans decission to take an entire ship out of circulation starting 2010. Serenade’s removal next year will decrease tourists by 42,000 passengers, and is estimated to drop revenue by some $55 million.

I can’t think of another destination that is more pristine than Alaska. Every client I have ever booked for Alaska has come back with comments of breathtaking views and once in a lifetime experiences. Other than the Caribbean it’s the most popular destination we sell at BandBVacations.com. With Alaska’s 50th anniversary this year there are more folks than ever looking at this destination for their family, even with the drastic time change (here on the east coast) and the higher cost of this cruise experience.

So why would Royal Caribbean drop Alaska?

Taxes. (A $50 per passenger tax that was put into effect back in 2006.)

One company’s loss is another company’s gain. Princess is the cruise line of choice not only passengers, but it’s been voted Best Cruise Line in Alaska by the readers of Travel Weekly magazine. (The last 5 years no less.) Princess has introduced a special new lineup of cruisetours that offer passengers the extra convenience of roundtrip travel from Seattle and due to the economy, unprecedented low fares. These new options make planning an Alaska land/sea vacation easier than ever by including all travel once the passenger gets to Seattle, including airfare between Seattle and Anchorage, as well as a free stateroom upgrade.

“Since 2009 is the 50th anniversary of Alaska’s statehood, this is the perfect year to visit the 49th state,” said Charlie Ball, president of Princess Tours. “And with these special cruisetour packages, we’re making a visit to the heart of Alaska more convenient than ever. All our passengers need to do is plan their travel to and from Seattle. We take it from there, so visitors can simply enjoy this incredible opportunity to visit Alaska’s top attractions, including Glacier Bay and Denali National Park.”

The new Alaska Wilderness Sale cruisetours include the line’s famed Voyage of the Glaciers sailings between Vancouver and Whittier — featuring calls at Ketchikan, Juneau and Skagway with daylight cruising of Glacier Bay National Park and the 16 glaciers of College Fjord. Passengers can choose departures on either the 2,670-passenger Diamond Princess and Sapphire Princess or the 1,970-passenger Coral Princess and Island Princess.

In addition, passengers will enjoy Direct to the Wilderness rail transportation right from their ship to the Denali area, giving them extra time in the heart of Alaska’s wilderness. Cruisetour options include two nights at Mt. McKinley Princess Wilderness Lodge and one or two nights at Denali Princess Wilderness Lodge. The packages also include an overnight stay in Seattle.

Princess’ 2009 Alaska season runs from May 9 to September 14, and features a total of 130 Alaska sailings — including the signature Voyage of the Glaciers sailings, Inside Passage routes from Seattle and San Francisco, and a small ship experience on 14-day Connoisseur voyages to some of the state’s less-visited ports. In addition, Princess will again take more passengers to the ice-filled wonder of Glacier Bay National Park than any other line, with 81 cruises scheduled for this season.

I can’t think of a better time or way to visit Alaska. The low fairs, combined with the states 50th anniversary makes it a win win for anyone looking for a trip of lifetime.

As a side note, I’ll be somewhat out of touch with this blog the next two days. I’ve been invited up to the YTB Home Office for a Directors Meeting Tuesday and Wednesday and from the looks of the schedule, along with flying up and back, I don’t know how much time I’ll have to dedicate here. (In other words, don’t look for comments to be posted until late in the evening.)

You can be assured that most of what will be discussed will be found in this weekends Newsletter. Of course, I’ll update what I can here for everyone, but as you know, most of what myself or YTB puts out is taken out of context and twisted into something it’s not, so be sure to check here or via our newsletter to get the facts from someone who was actually there. (Remember one of my favorite quotes: “Don’t believe a word you hear unless you can verify it on your own to be true”.)

It will be good to see and be around so many friends again, some whom I’ve not seen since the National Convention this past summer.

Hope to see you Thursday!

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There has been much debate and confusion about the Western Hemisphere Travel Initiative and requirements for Passports when traveling outside of the US. So much so, many of the trade magazines that I subscribe to (Agent at Home, Travel Weekly, and Vacation Agent) have dedicated entire articles to keep us informed in an effort to keep our clients informed about what’s going on. Confusion about the program’s deadlines caused panicked travelers to swamp passport offices, which quickly became overwhelmed by a volume of passport applications for which officials were unprepared. Eventually relenting to all the backlash from both business travelers and those that would have to cancel personal vacations, a proposal was adopted and passed to let U.S. residents and citizens arriving at airports from travel in Canada, Mexico, Bermuda or the Caribbean region re-enter the United States if they could show they had simply applied for passports.

Initially, the drop dead date was January 1st, 2007, but when both the cruise industry, and US Government realized that literally millions of Americans still did not possess the proper Passport for travel outside of the US, our current Administration postponed the date until today, October 1st, 2007. If you are planning a trip outside of the country past today via air travel, you need to have a passport in hand in order to get back into this country if traveling outside of the US.

I have to admit, what they feared was true due to many of our clients applying for and waiting anywhere from 6 to 9 weeks, sometimes even longer for their passports to be processed and in the hands of our clients. The US Department of State experienced a backlog of some 18 Million applications being processed over the last several months and times have been very stressful both for us as Agents, and our clients who were traveling abroad.

If you find yourself stuck without realizing that you need a passport or yours has not arrived due to the backlog with everyone else scrambling you can have your Passports Expedited for a nominal charge.

As a Travel Agent I know there are still some loopholes when traveling outside of the US via land and sea ports right now, but that will soon change and as your travel agent, you should have one anyway, so do yourself a favor, put this whole mess behind you and get a passport for yourself and your family so that when you do have a chance to travel outside of the US, you’re ready.

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