You're watching...
Mark Murphy, Travalliance CEO, weighs in on Carnival's offer to uninjured passengers on the Costa Concordia, and what's ahead for the company.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
You can -- the cruise ship that ran aground off the coast of Italy now Carnival is offering.
Uninjured passengers on -- -- can party of 141500.
Dollars to compensate.
For lost baggage and quote psychological.
Trauma.
But will the cruise industry be able to recover from this disaster that was also big PR disaster -- joining me now for this week's on the is Mark Murphy he's the CEO travel alliance can -- recover from this fourteen grand theft what you get after your cruise ship nearly kills.
Yeah that's and the passengers to be franc because a -- contracts should take that money and run because unless they have damages.
Physical injuries something like that additional damage this can be very hard to get money out of the -- tripping you have to -- that someone wants to file suit against -- -- have to go to it to go to Italy you have to go to Italy because it's a subsidiary of corn which is actually located in Miami.
But because of the -- contract and the location of that ship when you signed on you said.
You're gonna take those terms but you probably -- And now you're gonna have to go to Italy to sue if you wanna -- initial losses even -- -- -- themselves was saying a hundred million dollars for the year the ship is out of service for Larry you're saying -- and now ridiculous hundred -- just start this the latest settlement that just came out some of the 46 million if we get to the crew.
You've got forty million dollars in deductibles.
And what else you got the losses from the injured and the dead so it's a it's a big financial hit to the to horrible.
Corporation.
But the fear that it was gonna affect everybody in the industry.
Not so much yields are actually holding up going into the summer you surveyed travel agents and ask them -- -- basically putting in you found that 34% of people that are booked on cruise lines are actually worried about safety -- a lot of producers said that's.
That's you well it's gotta be higher actually no because a lot of our cruisers are -- gas about 2824%.
Of Americans taken -- those people -- it's a great experience it's great value vacation they've done that they've enjoyed it they have no concerns in those is an isolated incident.
However on the other hand the people who have yet to cruise.
It's a barrier so the question is gonna be do not cruisers jump on board and that's where that happens on advisors not cruisers.
To give it a try it is a great vacation and this is an isolated so one thing also that you pointed out as while your researchers that -- I have to I mean I have to fly on -- you probably US based airline on American obviously.
To a port -- you've got sky high airline ticket prices are especially to Europe sell it you'll find that the fair on the airline for the seven hour flight to Europe is more in some cases double than the actual cruise -- -- a look at the pull out of pocket that's -- of the call home -- cruising is so big and you'll see cruise ships.
Up and down the East Coast.
Around to the golf and the West Coast -- literally within three hour drive roughly 67% of the US population within three are driving the cruise -- -- you -- -- basically -- -- flying and then hope it's a great way and get to the Caribbean right here from New York are right your favorite cruise line is well you know I have a lot of them seeking -- club is one of my favorites because I like the small ship.
You probably haven't heard of it 110 passengers five star.
And so I like the luxury -- being pampered when I cruise and I wanna get off the boat great most of the time I just -- hang out and you need to be jet ski ride behind -- are I was.
And C dream yeah I think dream yacht club -- -- passengers we're gonna sounds -- -- all right mark thank you very much interesting survey thanks for having Mark Murphy travel agency out.
-- are coming up --
