Taking Their Battle to Consumers, Princess, Holland America Throw Off Gloves

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BY FRAN GOLDEN

SEATTLE -- Princess Cruises is extending to consumers its controversial campaign comparing its Alaska operations directly with those of its main competitor, Holland America Line-Westours. And officials from Holland America say they are not going to take it anymore.

In its 1998 Alaska brochures, Princess implored consumers to look at "which itinerary gives you more." Princess did not name Holland America but pictured its competitor's ships and hotels against its own offerings.

Having seen early copies of the Princess brochures, Holland America is adding inserts in its own 1998 brochures to answer Princess directly. Holland America officials said the premise of the Princess campaign is "very misleading and deceptive" because it compares a Princess 12-day cruise--tour with seven days on a ship, to a Holland America 12-day cruise-tour with three days on a ship. Both firms offer both options.

Last year, Princess made the same claims of superiority in its sales tools for agents. Jack Anderson, sales and marketing vice president for Holland America, said the comparison campaign moves Princess "from class to crass," and he said the move reeks of "desperation."

He said that last year, Holland America turned a blind eye to the comparisons "preferring not to sink to their level." This year, however, with Princess moving the comparison into its widely distributed consumer collaterals, "they've gone too far," Anderson said.

"In our brochure and collateral material and in our agent seminars this fall, we are really reluctantly forced to respond to try to state the facts honestly and clearly," he said. They've forced us to respond on a competitive basis." He added that competitive product bashing "causes confusion and doubt about the destination and vacation choice, and that's not good for anybody." Anderson said he would rather talk up his line's attributes than criticize his competitor, and he urged agents "to remember who started it" and to respond with their bookings.

For his part, Rick James, senior vice president of sales and corporate relations for Princess, said his line's brochures were simply an attempt to show the difference between the main tour options offered in Alaska and to express how the 12-day Gulf of Alaska experience is better. "It comes down to product differentiation, pure and simple," James said. "We're [Princess and Holland America] the Nos. 1 and 2 in Alaska. People consider both. We want some understanding as to what each program offers and [to show] that there are differences. We're not trying to show anything from a disparaging standpoint."

James said that making such comparisons is an option to competing on price, about which he said everyone in the industry likes to complain. "If we allowed this industry to become 'everybody has the best,' then it should not surprise a soul that it's going to be sold on price," James said. "Ultimately, you have to differentiate your product."

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