Monday, May 25, 2009

SeaDream - Predicting Rough Waters For 2010

SeaDream's Bob Lepisto has recently commented that it sees 2010 as a very challenging year.  The reason:  As I previously noted, SeaDream has historically depended on a very active charter business.  With the charter business suffering in all areas, SeaDream is having to find ways to make up a 30% hole in its business.

As with Seabourn and Regent, SeaDream has used significant discounting to fill it ships (claiming it is running at 97+% of capacity).  Candidly, SeaDream is now heavily discounting its Med sailings this summer.  (Last summer it was sold out.)

And it is finding that its normal 8 to 12 month booking window is now down to 1 to 5 months.  That makes planning, pricing and provisioning significantly more difficult.

With a booking window still looking at 2009 I wonder what 2010 will actually hold.  I remain cautious; not of the product, but the security of the cruise line.