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wcerto
Ahonui
USA
5052 Posts |
 Posted - 01/29/2008 : 04:06:34 AM
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From today's Star Bulletin:
Pride of Hawaii makes its last round
By Allison Schaefers
aschaefers @ starbulletin.com
Pride of Hawaii, Norwegian Cruise Line's newest U.S.-flagged ship, has set sail on its final Hawaii voyage. It will dock in Honolulu once more on Monday before departing.
Norwegian Cruise Line, which has blamed Hawaii operations for widening corporate losses, announced last year that it would stem financial bleeding by sending Pride of Hawaii to Europe. Company officials have said that they hope the change will bolster pricing in the Hawaii market, which saw dramatic downturns after it expanded its fleet to three ships.
Next up, Pride of Hawaii will begin sailing to Los Angeles on Monday where it will undergo brief servicing before being reflagged and renamed Norwegian Jade, said AnneMarie Matthews, a spokeswoman for NCL.
"The first cruise will be March 30 from Barcelona, Spain to Istanbul, Turkey," Matthews said, adding that the ship will later offer a variety of itineraries that also include Egypt and the Greek Isles.
High labor costs and increased competition from foreign-flagged ships entering the Hawaii market from the West Coast have contributed to the company's struggle in Hawaii, company officials said. Reducing Hawaii capacity by a third is expected to have a positive impact on pricing and revenues, they said.
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Me ke aloha
Malama pono,
Wanda |
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wcerto
Ahonui
USA
5052 Posts |
Posted - 02/29/2008 : 10:55:01 AM
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Further news on cruising in and around Hawai`i:
According to the provisions of the Passenger Vessel Services Act of 1886 (PVSA) and the Jones Act of 1920, cruise ships sailing wholly between U.S. ports (without stopping in at least one foreign port) must be owned and operated (crewed) by Americans and built in America.
These laws are similar to laws in other countries, put on the books to protect domestic cruise-ship-building industries. Unfortunately, they didn't work. It's been more than 50 years since a large cruise ship was successfully completed in an American shipyard, and no large cruise ships built in this country are still in operation.
In the summer of 2004, under a special exemption to the PVSA passed by Congress the year before, Norwegian Cruise Line was allowed to re-flag the Norwegian Sky into the U.S. registry and re-launch it as Pride of Aloha, sailing wholly within the Hawaiian Islands.
During the next couple of years, NCL tripled its commitment to Hawaii with the launch of the Pride of America in 2005 and the Pride of Hawaii in 2006. (Note: For the amazing background of the Pride of America, the only ship in history to cross the Atlantic and sink before it was launched, click here to read my newsletter from May, 2005.)
Congress granted the exemption with the understanding that it would create jobs and boost overall tourism to Hawaii, with passengers pumping money into local economies at every port call.
With the exemption in hand, it seemed that NCL had secured a monopoly on cruising in Hawaii, and they made a major investment with the hope that the market would prove to be big enough to support three ships.
Like any new venture, NCL's Hawaii initiative had its risks, the biggest due to the conditions imposed by Congress in order for the cruise line to gain the exemption.
First, the ships have to be staffed by American crews, subject to American labor laws, which means they are more expensive to operate. Crews make more money and work fewer hours than international crews on all other cruise ships. Second, these ships are not allowed to operate casinos, a profit center that contributes to the bottom line on other cruise ships.
Despite the excitement that accompanied the launch of these vessels, the immediate reviews of NCL's Hawaii cruises--especially on the Pride of Aloha--were not good. Passengers raved about the beauty of the islands and the time spent in port, but many found the onboard experience disappointing. There were complaints of long lines at restaurants and shortages of everything from plates to waiters and cabin stewards.
To be fair, many of the reported shortcomings were typical of those seen on inaugural cruises. But a new issue related to American crews emerged--a turnover rate much higher than usual. At one point, more than 750 crew members were replaced in a period of three months, a problem that caused the staffing shortage to drag on.
NCL worked hard to correct the onboard problems and within a few months, reviews indicated that the crews were performing adequately. Unfortunately, the negative reputation of these ships lingered, and the cruise line struggled in Hawaii, citing downward pricing pressures and aggressive competition from foreign-flagged ships as major issues.
Cruise lines operating foreign-flagged ships still sail roundtrip to Hawaii from West Coast ports like Los Angeles or San Diego and make a cursory stop in Mexico to satisfy the foreign port requirement. Click here for a list of Hawaii cruises sailing roundtrip from the U.S. mainland or Canada.
After incurring substantial losses, NCL was forced to reduce capacity in Hawaii. Earlier this month, the Pride of Hawaii entered wet dock to be fitted with a small casino and have its colorful hull redecorated. The vessel will be re-flagged into the Bahamas registry as the Norwegian Jade and will be repositioned to Europe, where it will receive a full casino then sail in the Mediterranean, Western Europe and the British Isles for the summer. For upcoming Norwegian Jade sailings, click here.
Two weeks ago, NCL announced that the Pride of Aloha would also leave Hawaii effective May 11, 2008. The vessel will be transferred to parent-company Star Cruises, renamed and redeployed in Asia in the summer of 2008.
Guests booked on Pride of Aloha sailings after May 11 may be accommodated on the one remaining ship, the Pride of America, or they may re-book on another NCL cruise or cancel their cruise for a full refund. Alternate arrangements must be made by March 7. Vacations To Go customers who are affected by this change have been contacted by our cruise counselors.
It has been estimated that the removal of the Pride of Aloha and the Pride of Hawaii from the Hawaii market will have a billion-dollar impact on Hawaii's economy, including the projected loss of almost 4,000 jobs in the islands. It will also make it harder to find availability on the Pride of America, which should sell out farther in advance than it used to.
For a list of NCL's 7-day Hawaii cruises on the Pride of America, and the remaining Hawaii sailings on the Pride of Aloha, click here. Please note that some of the sailings listed as Sold Out on the Pride of America are in fact just frozen to new bookings while people holding reservations on the Pride of Aloha decide whether to transfer or request a refund. If you save this newsletter and click the link again after March 7--or return to our site at that time and search for Hawaii cruises using our Find A Bargain tool--you may find some of these dates are once again available for booking.
I'm sorry to see the scale-back in inter-island Hawaii cruises. I've sailed there with my family and I don't believe there is a more beautiful cruise destination anywhere (though I am willing to keep looking). |
Me ke aloha
Malama pono,
Wanda |
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