The cruise industry has started to feel the effects of the slowing economy, after months of claiming to be recession resistant.
One week, Royal Caribbean Cruises Ltd. eliminates 400 jobs; the next week, Crystal says that even the upscale cruise sector is feeling the pinch, as the line's revenue is down about 4% this year.
During Crystal's annual top-producers gala, held onboard the Crystal Serenity in the eastern Mediterranean, the 63 agents who qualified to attend (agencies qualified by selling at least $750,000 in 2007) were told that the drop-off was due to fewer ticket sales. Prices are up over 2007, but volume is down.
Crystal President Gregg Michel said the dip comes along with skyrocketing fuel costs, which have led to an overall increase in operational costs for the line.
The good news is that Crystal's top agents are still delivering. The agents at the gala had already booked $120 million in sales in 2008. To be invited to next year's gala cruise cruise, an agency needs to sell $750,000 this year; Crystal said that 66 agencies had already qualified.