GIFT
CARDS, an increasingly popular sales tool in response to
several lines new no-rebate policies, will be prohibited by Royal
Caribbean International and Celebrity Cruises. Effective May 1, the
lines will not permit agents to advertise or sell a value-add item,
such as a gift card, with a specific dollar value. Lisa Bauer,
Royal Caribbeans senior vice president of North America sales, said
she and Celebrity Vice President of sales Dondra Ritzenthaler
conducted several Webcasts with top retailers and the topic du jour
[is] gift cards and value-adds, she said. She added the lines new
policy is: No more Target $200 gift cards.
THE
GIFT-CARD POLICY is just one of several guidelines that
will be introduced by Royal Caribbean and Celebrity April 5 as they
move to tighten group policies and end the Key Account Fares
program. Effective May 1, the lines are limiting group blocks to 50
cabins, which can be held without a deposit; agents will be able to
hold the group for 90 days before the space is recalled -- although
agencies can request additional group cabins if they plan to
promote a true affinity, Bauer said. The line will begin a cabin
matching policy: for example, if an agency sells 20 of its allotted
50 cabins by the 90-day deadline it can continue to hold 20
additional cabins at the same rate. Key Account Fares will be
replaced with a 2% override for sales on select sailings. The
policies should help Royal Caribbean and Celebrity better manage
inventory, Bauer said; last year 80% of the lines blocked group
space was recalled because the agent didnt sell it, and agencies
held onto group blocks for, on average, 303 days.
ROYAL
CARIBBEAN ALSO finalized an order for a third Ultra
Voyager ship, a design now known as the Freedom class. The ship
will be delivered from Aker Yards in spring 2008.
THE
CRYSTAL HARMONY will leave the Crystal Cruises fleet in
December. The 15-year-old Harmony will move to NYK Cruises, a
sister company to Crystal that caters to the Japanese market.
Crystal President Gregg Michel told Travel Weekly it has begun
looking at newbuild possibilities -- but he added the line is in
the exploratory stages, and there is no timeline for an
order.
SILVERSEAS 2005 GOAL: To be profitable,
Vice President of Sales Marilyn Conroy told the cruise lines 30
top-producing retailers during the lines first awards gala, which
is being held this week onboard the Silver Shadow. Conroy also
detailed some internal changes, which include altering the sales
staff setup and amending its commission structure to make it less
confusing. In 2004, Conroy said, Silversea increased its passenger
count by 16% and its average rate by 23%. We have to focus on
occupancy, rates and lower acquisition costs, she said. Were on
pace [in] North America to achieve our 2005 goals.