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Demand for river cruises comes back

21:54, 18 февраля 2013

The tragedy on cruise ship Bulgaria in summer 2011 has been negatively influencing the cruise market for the last two years. In 2012 summer navigation, sales decreased significantly compared to 2011. In the new season, early bookings are much more active than last year – market players note a 10-15% increase in the demand; at some companies, numbers are even higher.

“When compared to the previous year, the demand for early booking has increased by 40%. A third part of all seats is already sold. Cruises lasting more than seven days are in great demand”, said the Director of the domestic tourism of Vodokhod Company Mr. Andrey Smolin. Regional tour operators present similar data.

Director General at Samara Travel Company of the Volga region Mr. Dmitry Voropayev notes the growth of sales. However, according to him, it happens due to regular customers who are used to book in advance. Mr. Voropaev recalled that after the Bulgaria accident, there was a serious revision of the Russian river fleet, and legislation of water transportation was changed dramatically. For example, since this year, GLONASS satellite system will trace all the vessel movements on the inner waters. “I believe it will improve the control and positively influence the sector”, noted Mr. Voropayev.

The Head of Infoflot Company Mr. Alexander Sakharov believes that the tension caused by the tragedy on Bulgaria has almost relaxed. According to him, for the first time in the last two years passengers don’t ask so many questions about technical condition of their ship, the crew which serves it and so on. Market players consider it to be a good sign.

However, yet tour operators don’t hurry to forecast the navigation-2013. “February and March are the indicative months as it's the main booking period of the upcoming season. Last year, it was a complete failure, which influenced all-year’s sales”, continued Mr. Sakharov.

Tourists were attracted by a 10% early booking discount available in the majority of travel companies before the New Year. Now it’s very difficult to find a cruise at a discounted rate. According to the market players, by today, the prices have increased by an average of 5-10% and are likely to continue growing. “The profitability of the river cruises is small, about 3-5%, and if we take in consideration that tour operators couldn’t make any profit and slowed the prices within the last two years, it’s rather natural that the effect of delayed price increase appeared”, believes Alexander Sakharov. His colleague from Samara Travel Company recalls that operators were not only spending money on security upgrades, prices for fuel, which takes 25% of a package, were going up within the period as well.

In this situation, some clients look for a way to make any type of vacation cheaper. According to Andery Smolin, Muscovites started going over to the regions last year. That is to say, citizens of the capital buy cruises setting up not in Moscow, but in, say, Nizhny Novgorod more and more often. In this case, a cruise turns out to be significantly cheaper.

On the other hand, Mostourflot Company notes that tourists’ interest towards 4-5* ships has increased. A cruise like this would cost from 5,000 to 8,000 roubles (€120-200) per night per person. Deputy Director General of Mostourflot Ms. Svetlana Goncharova said that a new luxury ship built in 2012 and named Alexander Green is to set out this May. 90% of cabins are already sold. However, Russians will be able to travel on Alexander Green only in spring and autumn, since for the peak summer season, the ship will be chartered by an Australian tour operator.

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