By VERONICA GOULD STODDART
USA Today
When Ginny and Elroy Schoenfeld of Downingtown , Pa., booked a week-long Caribbean cruise recently, they paid only $2,050 for their family of four. Had they paid the full brochure price, it would have cost them $5,300.
How did they do it?
"With a lot of on-line research," says Ginny Schoenfeld, who spent hours searching the Internet for the best deal. "There are so many different discounts out there it's overwhelming, but I finally found one I just couldn't turn down."
She's not alone. Due to an unprecedented number of new ships, more aggressive marketing and a growing sea of information on line, cruises have never been cheaper -- or more confusing -- to buy.
Bottom line: Only a chump pays full fare.
But you have to know how to navigate the shoals of cruise shopping to come out ahead.
"The consumer couldn't find a better time to cruise," says Spencer Frazier of The Travel Company, the world's largest cruise seller, with nearly 10% of total sales. "The expanding market overall, plus the building of new ships, signals terrific value for travelers."
Indeed, 34 new ships -- more than one-quarter of the current North American fleet -- will be sliding down the ways within the next five years. Cruise officials are taking an if-you-build-it, they-will-come attitude about attracting new passengers.
"That type of growth leads to a softening of prices, particularly among high-end providers," says Mike Driscoll, editor of Cruise Week. "Blame it on glob al warming and the huge capacity increase, 11% this year alone."
Cruise prices have always been heavily discounted, especially with advance purchase deductions of 35% to 45%. "Brochure prices are like the sticker price on a car," says America Online Cruise Critic Anne Campbell. But now there are more last-minute savings than ever, as cruise lines scramble to fill empty cabins.
"I recently saw a listing for a week-long winter cruise to the southern Caribbean on the Carnival Fascination for only $350," Campbell says. "That's unbelievable!"
With 26 different brands competing with each other, everyone is caught in the spiral of discounting. Holland America is touting savings of up to 50% on selected sailings, 10% more than usual. Norwegian Cruise Line is offering a half-price companion fare, plus a two-category upgrade for virtually all 1999 cruises booked through Feb. 28. That's an unprecedented sale on its entire year-long inventory.
Even though cruise giant Carnival Corp., which accounts for one-third of the market, is looking at strong bookings this year, it's expecting a lower revenue yield growth compared with last year due to a capacity rise of 14%. "But the good news for the consumer is that the newer, larger vessels have been re-engineered for better efficiencies," says Carnival president Bob Dickinson. "This means lower prices for passengers."
In addition to more discounts, some lines are also simplifying their fare structures. Cunard, which like Holland America is now owned by Carnival, is switching to "simplicity pricing" this year -- an across-the-board discount of 45% to 55% off the brochure rate.
"Cunard had 5,000 different promotional codes when it was bought by Carnival last year," says Cunard executive Bill Leiber. "The consumer had to go on a scavenger hunt to find the best price. You shouldn't have to be Einstein to buy a cruise."
This change, undoubtedly driven by parent Carnival, reflects the effects of industry-wide consolidation. Cruising's big three -- Carnival, Royal Caribbean and Princess -- now own a whopping 75% of the market, the result of aggressive acquisitions and shipbuilding.
"Consolidation is the biggest factor in keeping prices competitive," says Bob Falcone of the Syracuse, N.Y., mega-agency Cruises Inc. "It gives the lines greater purchasing power and enables them to amortize their costs over many more berths."
"In real terms, today it costs less than half what it cost to cruise 15 years ago," Falcone says.
And still the booking incentives keep growing full speed ahead. To remove the client's biggest stumbling block, Princess pioneered a cruise loan program in 1997 that has been copied by others. Such loans are similar to fixed-term car loans. A caveat: Interest rates can be as high as 27%.
Carnival also is revolutionizing the selling of cruises by creating cruise dealerships that sell only the Carnival product. The company trains at-home dedicated agents -- in effect, cheerleaders -- to push the brand. The new format, however, doesn't necessarily lead to a lower price.
The unbundling of sea/air packages signals yet another sea change in marketing. In an attempt to eliminate sticker shock, lines are offering more cruise-only rates.
"It makes the brochure price look better," Campbell says. Plus, it allows passengers to book their own air so they can use their frequent-flyer miles and control their routing.
With so many more options, it's easy to drown in the tidal wave of information, especially on the Internet. "People are really price shopping on line, especially since last-minute discounts are more readily available there," Campbell says.
Consider Laurie Cunningham, of Little Rock, Ark.-based Skyscraper Tours, who sold the Schoenfelds their cruise. Since starting her Web site two years ago, Cunningham says that 95% of her business is now generated on line. "People don't necessarily buy their cruise over the Internet, but they use it to find the best deal and then book by phone," she says.
Carnival, however, is betting that on-line cruise buying will eventually take off. This year, it becomes the first cruise line to offer its own Internet booking site.
Still, it's a buyer-beware market. With so many reduced fares, cruise lines are increasingly turning to expensive extras to maintain profits.
"The lines aren't getting anywhere near what they need at the front end, so they're making up the money elsewhere," Falcone says. And Cruise Week's Driscoll calls it a "paradigm swing away from the all-inclusive concept of cruising."
Hence, there's now an oceanful of ways to spend money on board. A single passenger can easily shell out $1,000 per week for such extras as shore excursions, drinks, shopping, gambling, spa services, photos, tips -- even art auctions.
"People are up in arms about Princess' charging for Haagen-Dazs ice cream," Campbell says.
"And although cruise lines have introduced great new features like on-board rock climbing and golf, they cost extra."
But as long as the buyer's market holds and you control your shipboard spending, taking to the seas this year could be almost cheaper than staying home.
