The ramp-up for cruising in Asia is a long one.
But it will eventually change the industry. 12
IN OTHER NEWS:
DOT is taking comments on Norwegian Air plan 6
Cruise Holidays becomes part of V-com 7
Virtuoso expands its lead-gen program 8
I’m new to lucid dreaming, but it seems
like a good way to envision a trip. 48
[ DESPITE TENSIONS IN EASTERN EUROPE AND THE MIDDLE EAST ]
Unexpected drop in fuel prices
helps cruise lines’ bottom lines
By Tom Stieghorst
One of the things that has quietly
gone right in the cruise industry
in 2014 has been the cost of fuel,
which has dropped despite rising
tensions in several key oil-produc-ing regions, most notably the Middle East and Russia/Ukraine.
How long that price reprieve can last remains a pivotal factor in the profit picture
for the major cruise companies.
Active fighting between Israeli forces and
Hamas and the downing of a passenger jet
in the ongoing conflict along the Russia-Ukraine border might normally be expected
to raise fuel costs.
The continuing civil war in Syria and expansion of the radical Islamic State group in
Iraq are also potential risks for oil production in the Middle East.
Yet, in the second quarter, fuel was the
only major expense to decline at Carnival
Corp., the world’s largest cruise company.
Carnival reported $527 million in fuel costs,
down from $555 million a year ago.
On average, fuel cost Carnival $657 per
metric ton in the 2014 second quarter. That
was down 3.7% from the same quarter in
What has changed the oil price picture
in recent months has been the glut of domestic oil flowing from fields in West Texas
and North Dakota. Surging output in both
those areas has reduced the dependence on
oil from foreign sources, making geopolitical
San Diego State U. grad program pulls
surfers from beaches to classrooms
By Kate Rice
It might seem hard to picture a wave-chasing
surfer dude in a classroom, particularly a
postgraduate classroom. But 20% of the students in the three-year-old L. Robert Payne
School of Hospitality and Tour Management’s master’s program at San Diego State
University (SDSU) are surfers.
And many of the elements of the program
that appeal to surfers also appeal to travel
industry professionals who are looking for
a postgraduate program that can accommodate an often itinerant and globetrotting
It’s a hybrid program whose designers
decided to “break the mold” by creating an
18-month curriculum with just two weeks
in the classroom. The rest is virtual, with in-
structors posting class lectures every Sunday.
Reading and assignments are due the follow-
“The whole Earth is shifting under our
feet in the way education is getting delivered,” said Jeff Campbell, director of the program and former CEO of Burger King. He
added that the program is aimed at working
professionals five to 15 years into their career
who need flexibility and tools that they can
immediately apply to their careers.
It appears to work for surfers like Sean
Brody, who swore he was done with school
forever after he got his undergraduate degree. Now he’s using what he learned to operate Kwepunha Retreat, a sustainable surf
See GRAD SCHOOL on Page 50
See FUEL on Page 50
THE TRAVEL INDUSTRY’S TRUSTED VOICE
WWW.TRAVELWEEKLY.COM AUGUST 18, 2014
Founder and COO Mike Morisi on the chal-
Larger ships and new technologies have enabled cruise lines to
lenges of resurrecting PeoplExpress. 4
Sunny Land Tours is offering 3 Oct., Nov.
departures on a 4-night trip to Guyana. 45
A golf tour wholesaler offers advice on ways
to make more green from the greens. 40
With apologies to Stephen Colbert, our own
Tip of the Hat/Wag of the Finger Awards. 48
move entertainment from boas and high-steppers to onboard
extravaganzas. How long can the shows remain free?
BY TOM STIEGHORST PAGE 28