Travel Weekly's Cruise E-Letter: March 18, 2003: Travel Weekly

Travel Weekly's Cruise E-Letter: March 18, 2003

THE FATE OF THE P&O Princess Cruises/Carnival Corp. merger should be known within a month: P&O Princess shareholders are slated to meet on April 16 to vote on the deal. A timetable for the completion of the dual-listed company structured merger, set out Monday by P&O Princess, said the deal should be completed by April 22, when the consolidated shares of both companies begin trading on the New York and London stock exchanges. P&O Princess will be renamed Carnival plc. Carnival shareholders, meanwhile, are scheduled to vote on the combination April 14 in New York.

CUNARD LINE showed off its partially completed flagship, the Queen Mary 2, still resting in its drydock basin at Chantiers de l'Atlantique shipyard in St. Nazaire, France. The QM2 is to be delivered to Cunard in December; yard CEO Patrick Boissier said the ship is on schedule despite some problems with its propulsion pods. Guests donned hard hats and were invited to tour the unfurnished interiors of the 150,000-ton ship, ending up on the top deck of the ship where Boissier, Carnival Corp. CEO Micky Arison and Cunard president Pamela Conover greeted guests. "The birth of this ship marks the beginning of a new Cunard," Conover told the crowd. "In what seems to be a short period of time, thousands of tons of uninspiring steel [have been turned into] what will be the most spectacular ship in the world."

THE SLUGGISH TRAVEL ENVIRONMENT continues to affect Carnival Corp.'s second-quarter bookings: Uncertainty regarding a war with Iraq is causing "further deterioration in pricing," the company said in an SEC filing. Booking levels for the second half of 2003 remain ahead of last year's levels but they do not jive with the company's expected capacity increases, and prices on those bookings remain "slightly below" 2002 levels, Carnival said. The company -- citing close-in booking patterns and geopolitical uncertainty -- didn't forecast its second-quarter yields other than to say they would be "less than last year."

THE CARNIVAL LIBERTY will be the name of Carnival Cruise Lines' fourth Conquest-class ship. The Liberty is Carnival's final ship on order and is scheduled to enter service in fall 2005. The 2,974-passenger vessel will be constructed at the Fincantieri shipyard in Italy. Itineraries have not yet been set.

OCEANIA CRUISES shifted the first two sailings of their ship the Insignia away from Istanbul and Kusadasi, Turkey. The inaugural sailing of the Insignia on Oct. 4 will now be roundtrip from Barcelona, rather than a cruise between Barcelona and Istanbul. The Oct. 18 cruise will now sail between Barcelona and Rome. A spokesman said, based on demand levels for Mediterranean sailings of its other ship the Regatta, "it made sense: Let's swing the Insignia; keep her in the western Med."

NORWEGIAN CRUISE LINE said it continues to work closely with the U.S. Coast Guard as the agency investigates a passenger report that glass bottles and aluminum cans were discharged from the Norwegian Wind. The ship was about 200 miles off the coast of Hawaii when the incident occurred. NCL maintained it did not break any laws but said the reported discharge was a violation of its own corporate policy that solid waste be crushed and recycled through licensed disposal companies -- the line said it was taking "strong disciplinary action against the individuals involved."

RESIDENSEA will incorporate meal and beverage prices into cruise fares for its apartment rental program on board its ship the World. Previously, the option of "free" meals and drinks was available only to passengers in the ship's studio residence cabins, i.e. the cabins without kitchens. The change is part of an expanded rental fare program, which offers five price categories instead of only two.

HOLLAND AMERICA LINE cancelled the first two sailings -- slated for July 10 and July 22 -- for the Oosterdam, the line's second Vista- class ship. The cancellations mean the Oosterdam's maiden voyage will depart London (Harwich) on Aug. 3 on a Baltic itinerary. HAL attributed the nixed voyages to the need to "showcase the ship to the European market and ensure that the crew and ship enter service at the highest possible standard." Guests booked on the July 10 and July 22 sailings will be able to choose alternate sailings and are eligible for cabin upgrades and shipboard credits. Agents will earn a $500 re-booking fee per cabin.

CANCELLATION POLICY UPDATE:
• Royal Caribbean Int'l and Celebrity Cruises amended cancellation policies for Mediterranean sailings: Guests who cancel their cruise prior to May 1 will receive a cruise credit equal to 90% of the cancellation fee.
• Star Clippers said passengers booked on a Mediterranean cruise on one of the line's three ships between May 17 and September 27 can cancel up to 72 hours prior to departure and receive a cruise credit. A $100 per person administration fee will be applied to the credit if it is issued.
• Silversea reduced the cost of its Reassurance Program cancellation option to $100 per person when purchased with Silversea's travel insurance and $250 when purchased separately and changed the way cruisers can redeem their cruise credit.

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