MIAMI — Recovery was the theme during the annual Seatrade Cruise Shipping Convention, which kicked off here this week.
"What a difference a year makes," said Norwegian Cruise Line CEO Kevin Sheehan while speaking on the show’s state-of the-industry panel. "The prospect of an economic turnaround is alive and growing.
"We’re all very thankful for that," he added. "A year later, we are seeing solid signs of a recovery, albeit one that will play out over next few years."
That optimism was also cautious, as executives noted that the U.S. and world economies are not out of the woods yet, and cruise yields had fallen precipitously.
"It will
take time," Sheehan said. "The industry got whacked in the recession."
"Consumers are still in a precarious position," added Adam Goldstein, CEO of Royal Caribbean International. "Recovery is not guaranteed, and it could be a bumpy ride."
Gerry Cahill, CEO of Carnival Cruise Lines, said that cruise ticket prices had fallen 10-20% in 2009. He recalled that one year ago, the industry was wondering how it would fill ships while the consumer waited on the sidelines.
"Business came back in the fall," he said. "It gave us the ability to change our mentality this year. If the consumer is waiting until the last minute for prices to go down, they’ve got the wrong story this year."
Goldstein said it was important for the industry to "keep the laser focus" on cost control that it developed during the recession and to not "forget those lessons and apply them every day."
During the "Cruising for the Upscale Consumer" panel, the sentiment was similar.
"This is certainly a brighter year to be on this panel," said Gregg Michel, president of Crystal Cruises. "We are glad to put 2009 behind us."
