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Moscow tour operators are scaling down the sales of sea cruises departing from St Petersburg.

08:07, 22 июня 2012

Russian tour operators are scaling down or seriously reducing the volume of sales of sea cruises departing from St Petersburg. According to them, this segment of the market is not capable of growth, while the cost of tour programs remains at the present level. The main competition to the Baltic cruises departing from the Northern Capital comes from the tours available to the Mediterranean Sea, which have significantly dropped in price due to the financial crisis in Europe.

 

According to the general director of the company “Breeze Line” Maxim Radionovsky, in the past year or two cruises to the Mediterranean have dropped in price drastically, becoming nearly 4 times cheaper, while the tour product of St Petersburg continues to rise steadily in price: “Even when you take into consideration the flight fares to and from the place of departure, the price of a two week cruise around the Mediterranean will cost around 1200 euro. That’s significantly cheaper than a trip to St Petersburg and an analogical cruise around the Baltic region, which will cost up to 2000 euro”. There is no doubt that this difference in price pulls the demand towards the benefit of the more southern direction. Mr Rodionovsky remembers a similar situation which occurred only a year prior, in result of which “Breeze Line” cut down on the offers of cruises available around the Baltic.

 

The director of marketing of the company “Via Maris” Elena Karmanova also believes that the price of cruises departing from St Petersburg has ceased to be competitive: “This kind of trip is only relevant for those people who don’t want to waste time on flights (getting to and from the point of departure) The demand is there, but there’s really no reason to expect any growth in the near future”. At the same time, in Ms Karmanova’s opinion, the conditions of contract which the cruise companies sign, where whole blocks of cabins are booked and purchased in advance, and for a whole chain of cruises, get in the way of tour operators adapting their price policies to the realities of the current market.

 

The general director of the company “Neptune” Olga Eliseeva, also supports her colleagues from the travel sector: “We’ve stopped selling cruises in this direction two years ago, when it became obvious that the market had had enough of this offer. Tourists had had plenty of time to study the Baltic area through and through. There might be more interest in a cruise around the Norwegian Fjords, but it doesn’t necessarily have to start in St Petersburg. For example, a flight from Moscow to Copenhagen can cost the same as to St Petersburg”.

 

Nowadays there are a couple ferry transport lines working in St Petersburg - Tallink and Silja Line, and also а few cruise companies - MSC, Costa Cruises and Princess Cruises. Two years ago a native ferry operator came on to the market, the company St. Peter Line, which carries out cruises on two ferry ships “Princess Maria” and “Princess Anastasia”. In this way, the city is in constant communication with Finland, Sweden, Estonia, Norway, Denmark and Germany. The United States owned company Norwegian Cruise line has also recently demonstrated an interest in St Petersburg, announcing the launch on the 27th of June,  of a new cruise line departing from the Northern capital with visits to Helsinki, Stockholm, Copenhagen, the German city Warnemunde and Tallinn.

 

It’s interesting that tour operators in St Petersburg don’t completely agree with the opinions of their colleagues from Moscow, regarding cruises from the Northern capital. The president of the St Peter Line Company Igor Glukhov recognizes the relative drop in demand, but mostly from the side of Finnish tourists, who react to the financial crisis with in the Euro zone more noticeably. “After all we are selling a tour product, which is specifically adapted to the Russian public, with Russian speaking services, traditional food and so on. So the processes which are happening now in the Southern European Cruise market really don’t affect us that much at all. Vessels usually depart filled to around 80% of total capacity” tells Mr Glukhnov.

 

Andrei Mushkarev, the general director of the Inflot Cruise and Ferry company, the official representative and agent of the St Peter Line in St Petersburg, has brought forward the following statistics, according to which the number of people on board the ferry line route St Petersburg – Helsinki has risen 60% in the current year, and the demand for cruises around the Baltic capitals with visits to Stockholm and Tallinn up 40%. “The prices have definitely increased when compared to the previous year. But this happened mainly because of the fact that we have introduced additional services – an increase in the number of recreational activities on board, the opening of extra bars and restaurants”, explains Mr Mushkarev.

 

The general director of the St Petersburg company “Expo-tour” Igor Riurikov, also believes that the constant demand in that direction is guaranteed by the ultra-convenient location of St Petersburg itself: “I haven’t noticed that the demand for cruises to the Mediterranean grew proportionally to the fall in popularity of cruises departing from St Petersburg. Yes, tour programs around the Mediterranean Sea can cost 400 euro and are of course cheaper than the Baltic cruises. But on the other hand, any tour product should be looked upon and examined as a total package. Taking into consideration the flight tickets for those residents of St Petersburg, the total price of a cruise trip around the Mediterranean Sea can actually end up being significantly higher”.

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