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Can Cruise Industry Raise Prices And Retain Record Bookings?

The "floating malls" also known as cruise ships are seeing an impressive rebound in bookings after an 18-month slump, Kelly Evans reports, but the hard part is yet to come. After offering bargain prices to lure passengers during the stormy economic climate, can operators raise prices now that the skies seem to be clearing?

Across-the-board price rises of about 5% took effect at Carnival on Monday and competitor Norwegian Cruise Line says it will raise fares as much as 7% beginning April 2.

The Cruise Lines International Association expects 2010 to set a new high for passenger volumes, with 14.3 million travelers this year, up 6.4% from 2009. But "even if consumers are looking more resilient," Evans writes, "many still are value-driven and so may be turned off by higher fares."

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