Mediterranean, Europe and Luxury Cruising Market is Booming.

"The Mediterranean and Europe are the Caribbean of 10 years ago," said Carnival President and CEO Bob Dickinson. He also noted that home based travel agents continue to sell more cruises than ever and makeing lots of money doing so. "That is a trend that will continue for many many years to come," he said

"Overall, the trends continue to be terrific," said Richard Fain, chairman and CEO of Royal Caribbean Cruises Ltd. Added Rick Sasso, president of MSC Cruises USA: "European cruising is not doing well, it's doing phenomenally well. Columbus came here in 1492 and now we're all going back to Europe." Sasso noted that cruising still only penetrates 1 percent of the European vacation market, but that more growth is expected as the traditional summer season is expanding, with some ships even operating in the Mediterranean year-round.

"The pent-up demand for luxury cruises is staggering." Silversea's new president, Amerigo Perasso, echoed Del Rio. He said 2006 was a record year for his four-ship line in net revenues, load factors and other areas. "2007 is expected to surpass 2006 in all areas," Perasso said. "We definitely see a lot of room for growth." The orders announced by Oceania and Silversea follow plans announced last year by Seabourn Cruise Line to build two 32,000-ton, 450-passenger ships for delivery in spring 2009 and 2010.

While Crystal Cruises hasn't announced any plans to build new ships, the line's executives have said in the past that a design committee is evaluating what a new luxury ship would include. "The growth trends are positive for the next 10 years," said Crystal President Gregg Michel, citing an increasing number of empty-nester households as the Baby Boomers mature. "The Boomers have already acquired the trappings of wealth and are looking for luxury experiences," he said. Michel added that 68 percent of Crystal's cruisers have moved up from premium and mass-market lines -- something for cruise-selling agents to keep in mind.

Seabourn President Pam Conover said the luxury clientele is a profitable one for travel agents to cultivate. "They are a desirable clientele, especially for travel agents, because they are used to paying for service but still expect value," she said.