Cruise Lines Reduce Mediterranean Presence

By ,   July 26, 2016 ,   Cruise Industry

Ongoing instability in the Mediterranean is prompting cruise companies to trim their capacity in the region, with the latest example coming from Celebrity Cruises summer 2017 sailings.

Celebrity said it will keep 2,850-passenger Celebrity Equinox in Miami next spring after it completes winter cruise schedule, instead of returning to the Mediterranean, where this summer it will operate cruises out of Athens and Barcelona.

The move will draw down Celebrity’s European deployment next summer from 5 ships to 4 and give it a year-round ship in the Caribbean for the first time since 2010.

Other companies also plan to move capacity out of the Mediterranean and into the Caribbean.

Carnival Corp. in a June 28 conference call said it expected a 10% capacity reduction in the Mediterranean region next year, and a 5% increase in Caribbean capacity.

The moves come as the Mediterranean was again rocked, this time by a failed coup attempt in Turkey and the truck massacre in Nice, the third major terrorist attack in France in the past nine months.

Cruise lines had already largely stopped calling in Istanbul after a series of terrorist attacks there this year. After the coup, many cruise lines also suspended calls elsewhere in Turkey, such as Kusadasi.

Most are in a wait-and-see mode, such as Carnival Cruise Line, which replaced the Carnival Vista’s calls in Kusadasi on July 17 and 20 with sea days and said it will evaluate future calls there “in the coming days.”

Prices have been softening for Europe, according to a survey by SunTrust Robinson Humphrey analyst Patrick Scholes, who said advertised prices for cruises in southern Europe in June fell 1.3% year over year, compared to a 7.4% increase in May.

In 2014, a mass migration of ships from Europe to the Caribbean led to a pricing bloodbath. Donald said that’s unlikely in 2017, when Carnival’s expected Caribbean capacity growth will be 5%. In 2014, it was 20%.