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Gabe Saglie, Travelzoo's senior editor, breaks down how the tragedy of the Costa Concordia cruise ship sinking will impact travelers' future plans, an...
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Dollars that these companies could keep getting hit as travelers think twice about their plans.
To vacation on the high -- -- Galley travels he is senior editor joins me now.
Given -- pronounced.
Seek seek me sadly AA -- by -- earlier but you know I I sometimes I apologize that RX and this is a rather cruise line industry thirty billion dollar industry you have this.
Horrible disaster you have two days now worldwide footage of this deadly accident so what's your take on a direct impact how much is gonna hurt the industry.
Well I think you know part of what's devastating about this obvious the obvious tragedies there but also the bigness of all of this I think.
We're talking about 4200.
Passengers were talking about it a ship that weighed.
A 100000 tons I think that bigness of this and the and the fact that something so -- as so horrifying happen -- -- it should be so routine.
I certainly drives the point hold for even the most seasoned crews -- -- got to take pause.
And remind themselves that there are safety and preparedness issues that we can expect from.
Any cruise and that we sale -- I -- I think that any avid cruiser decided -- flyer.
In -- in in that situation that would involve an airplane for example.
If they may take pause but they're gonna keep on cruising for what we hear from the -- cruisers.
I think there's -- gonna go ahead with plans to to what -- cruises later on in the year but it's that occasional cruiser it's that perhaps that individual who thought about was for the first time in Tony twelve.
That where they could industries really got to take could be cut -- chances -- -- caution is that because -- business probably that at least in the short term.
They're expecting lose.
So -- -- -- you -- travels do you guys said these Mediterranean cruises were among the best deals for and this has -- peak season for signing up for some of these crews.
Going to get into the spring and summer season so what are you hearing what's what's the word on travels -- about the future here.
Well certainly -- easy as you mentioned where in the midst of wave season January through march is when most to have cruisers will book their vacations especially vacations and cruises that are.
Six to twelve months out.
And -- could in this your response to some pretty good sales and we seen that now.
And as you mentioned we did put the Mediterranean for cruisers as a major value destination for 2012 -- because all the major cruise lines -- Caribbean Carnival.
-- -- the big one celebrity are putting more ships out there for rats this year than they ever had before so the value fact it was already there.
I think that as time goes on over the next couple weeks over the next couple of months before -- -- season is over probably in March.
We'll start to see some pretty dramatic marketing opportunities here translating not only to price breaks.
But into a more value -- deals for the consumer we're talking about things like -- -- gratuities being offered to the consumer.
Free upgrades.
Bigger credits in your -- I think that this they deal inevitably will be -- one for people who may be on the verge of but I -- considering.
-- -- certain ethnic groups.
How profitable is a cruise line industry these days we've heard reports here -- different cruise line.
Operators actually cutting staff Cutting Crew members because they're not maximum capacity with passenger so how the industry doing as a whole even outside of this disaster.
Haven't -- yeah and any other comparable all inclusive type vacations.
Yet -- -- because in this are definitely is dealing with some of the same fuel cost issues that.
The airline industry has been dealing with and there has been.
Attrition as far as as as -- bars availability is concerned it's still a thirty affect them right before this disaster the value that was put out there -- a potential.
Revenue for the cruise in the streets when -- -- -- thirty point two billion dollars it's generally a thirty to 34 billion dollar a year industry.
Obviously sensitive to the kinds of calamities that would cause any sort of softening in demand.
But it is still a rather healthy industry its stated it's been showing signs of picking up in in Europe particularly thanks to some of the competition expect in the Mediterranean.
I think it'll be again a couple of weeks maybe a couple of months before we see -- the longer term effects of our consumer reaction to this event.
Alright -- sagged -- EA it.
Travels -- thank you so much for your time in an actual analysis funny industry pre.
