Impact of Declining Dollar on Regent Operations
#58533
03/02/08 03:12 AM
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Joined: Feb 2004
Posts: 6,351
Marc
OP
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OP
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Joined: Feb 2004
Posts: 6,351 |
We are acutely aware of the fall of the USD as it heads towards 100 Yen to USD. In addition, anticipated costs for B2B keep getting higher as the Euro is now worth more than $1.50. Although this continued fall in the USD is great for US exports (hit a record last year), what will be the impact on cruising and RSSC specifically. People talk about cruising being a great way to see Europe as most expenses are fixed in USD. There is a downside; either cruise line expenses are fixed in dollars (i.e., all salaries, food, supplies etc. are in USD) or they will start getting squeezed. I know that RSSC pays their staff in USD. In fact, a senior staffer on Mariner last fall said that he was getting squeezed as each paycheck was worth less when he made the conversion. If Regent continues to pay their staff in USD, will they be competitive in gaining quality staff; especially from Europe. count Florida and others decried the ending of European stewardesses sometime back. What would happen if we lost European Hotel Directors, Cruise Directors, Head Chefs, Maitre 'Ds, etc. What about other expenses? Can Voyager and Navigator spend six months of the year in Europe and not have their other expenses - port fees, fuel, food, etc. - increase in USD terms?
Of course, the other impact will be with respect to the new build. As the ship will be priced in Euros, will Regent have to cut corners to get the ship in within budget? For those going on MAYANS, hopefully you can find out.
Any thoughts?
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Re: Impact of Declining Dollar on Regent Operations
#58534
03/02/08 03:31 AM
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Joined: Feb 2004
Posts: 1,434
Dreps
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Posts: 1,434 |
I must say that when the Euro went over $1.50 recently, I think it hit a psychological barrier in my mind. I was sure glad we have pre-paid our post-CAMEL-cruise stay in Santorini and that we were given a special rate of $1.32 at the time. Nevertheless, I think you are right, Marc, something's gotta give, especially in terms of fares involving European itineraries. The "new build" also raises an interesting budgetary issue.
I guess we'll just have to wait and see.
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Eugene
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Re: Impact of Declining Dollar on Regent Operations
#58535
03/02/08 06:04 AM
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Joined: Feb 2004
Posts: 4,215
adrenn
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Posts: 4,215 |
Marc - thanks for bringing up a timely topic. I am ever so glad we did a lot of our traveing in the past five years. At current prices, a European land trip holds little appeal. With the exception of the Black Sea itinerary, we've taken most of the cruise itineraries which interest us.
We cut our usual June land trip to England to 3 days from 8. The incremental cost simply is not worth it to us.
Cheers, Anne
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Re: Impact of Declining Dollar on Regent Operations
#58536
03/02/08 06:43 AM
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Joined: Feb 2006
Posts: 724
D n A 3
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Posts: 724 |
We have just decieded to cancel our yearly 2 week trip to Italy this July. When we saw the euro hit 1.51 Friday, and the market drop over 300 points we feel enough is enough. Travel in the US is looking better and better. There are so many fabulous places to visit in our own country we have made the decision to explore here at home. Now I'm busy planning a new adventure :)
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Re: Impact of Declining Dollar on Regent Operations
#58537
03/02/08 06:47 AM
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Joined: Feb 2004
Posts: 11,641
joannapv
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Posts: 11,641 |
The allure of the B2B trip, for us, was 3 days in Venice as we have been to many of the other ports - BUT, as Marc mentioned anticipated costs are very pricey. After B2B feel we can say "been there done that" let's move on to more reasonable vacations - Joanna
Joanna
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Re: Impact of Declining Dollar on Regent Operations
#58538
03/02/08 07:27 AM
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Joined: Feb 2004
Posts: 3,407
Betty
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Posts: 3,407 |
Although there are several European itineraries I have my heart set on doing with Regent over the next few years, I also agree with the sentiments stated by others on this topic. I'm not planning to give up on Regent, even if this means only getting to sail back and forth on crossings or repositionings. Then I am one that loves seas days, which I know don't appeal to everyone. So I now look toward the other continents and feel there are other adventures to be had in some of those locations. I've seen most of the US, either through living there or travel. Maybe it was a mistake to see the US first, but whats done is done. Hopefully the Euro will drop by 2009, but if it doesn't - see you on the high seas or in Asia or the lands below the equator! :app: If only there was an easy way to fly to and from Funchal from Houston!!!!! :(
Betty
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Re: Impact of Declining Dollar on Regent Operations
#58539
03/02/08 07:47 AM
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Joined: Jul 2004
Posts: 637
Tom G
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Marc, I think all of your points are valid. A company like Regent is put in a difficult position. It's hard to raise prices when your customer base is mostly American and is not likely to pay more for a European vacation while the values of their homes and investments are declining in the US. Tom.
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Re: Impact of Declining Dollar on Regent Operations
#58540
03/02/08 07:54 AM
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Joined: Feb 2004
Posts: 365
count Florida
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Posts: 365 |
Marc, I really think that, at least till very recently, the erosion in the value of the dollar and the increase in other costs has been more than covered by the rapid run-up in the prices of cruising with Regent. However, the near-explosion in the cost of oil and the nose-dive of the dollar vs. the euro in the past few months may have put a strain on their financial situation. We haven't even thought about a European vacation since experiencing a much milder variation of $ weakness in Spain and around the western Med in the Fall of '06, when we flew to Madrid for a few days en route to the Voyager at Civitavecchia (Rome) for the repositioning cruise to America. On that trip, the costs, particularly in Spain and Italy, were a real eye-opener!
[size=8]Too Many To List - 416� days & counting on Radisson/Regent, and 150+� days on 8 other lines, with one cruise booked next month on the Mariner, Miami to Honolulu 22 days
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Re: Impact of Declining Dollar on Regent Operations
#58541
03/02/08 08:30 AM
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Joined: Feb 2005
Posts: 672
FDV72
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Posts: 672 |
I agree with everyone, Carla and I had a week in Postiano planned for our 5th year anniversary in October, but as I look at the dollar get worse and worse I just do not know if I can deal with the mental torture. I have no problem spending our money, but I think you have to feel good about it and its worth so little these days I think it will aggravate me more than anything. The US has some great places to travel too: maybe we will do NAPA for a week or something. Its getting so bad that we all might have to start traveling with Platinum/Gold/Silver Bullion to get any respect in Europe!!!!
FV
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Re: Impact of Declining Dollar on Regent Operations
#58542
03/02/08 09:07 AM
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Joined: Feb 2006
Posts: 724
D n A 3
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Our Italy adventure was also a week in Postiano and then a week in Rome, and I am almost sure we are going to cancel. The weak dollar will be felt across Europe this spring and summer. Travel in the US is already being felt as my two children are both in tourist oriented businesses and they both see a drop in their bottom line as compared to the last few years. One business is in the Miami area and the other is in Asheville NC.
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Re: Impact of Declining Dollar on Regent Operations
#58543
03/02/08 09:16 AM
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Joined: Feb 2005
Posts: 672
FDV72
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Posts: 672 |
Its Just hard to swallow, I remember I was in Venice in November of 2006 and I think the Euro was at like $1.25 or something to the dollar, I remember saying I was going to load up on Euros for the next trip, but only got a small amount. My Mistake: When Warren Buffet makes an announcement that he is buying Euros, you know where in for a painful ride.
FV
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Re: Impact of Declining Dollar on Regent Operations
#58544
03/02/08 12:07 PM
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Joined: Jul 2004
Posts: 240
Island Cruiser
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Posts: 240 |
This topic is as important as it is depressing. Let me add that the cruise industry is likely to be squeezed from another direction if the downward cycle of investment returns continues. A lot of us travel on investment returns. I just rolled over a CD that was paying 5.35%. The bank offered me 3.1% I found another bank that would pay 3.92%. And the Fed chairman is hinting at another cut in rates later this month. That stings (at least for some of us)! I think a 2009 cruise we have already booked may bite the bullet.
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Re: Impact of Declining Dollar on Regent Operations
#58545
03/02/08 07:54 PM
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Joined: Sep 2004
Posts: 238
johnandjudy
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Joined: Sep 2004
Posts: 238 |
We spent more money that we ever would even consider on our PUBS ports of call. The extra week in London was a killer financially and we really felt the pound and euro is outrageous. The trip was wonderful but we do fell we wasted alot of hard earned dollars. We will be on ROAR 2 this year and reserved Dubai to India for 2009. I supposed it will depend on how the dollar is doing. We probably should just take the family and cruise Alaska. We were thinking of the B2B but have already been there and as much as we would like to go back; will wait. A taxi ride of about 15 mins in London turned out to cost $40. $16 for 2 on the tube (one way).
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