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Cruise Lines Look To Europe, Not Caribbean

Europe is slated to host a record number of cruise ships and passengers this year, even as the Caribbean suffers from weak prices amid a glut of capacity. Indeed, the 2,974-passenger Carnival Freedom sailed on her maiden voyage from Venice on Monday with plans to spend her splashy first season plying the Mediterranean instead of the Caribbean.

Not so many years ago, Europe was largely relegated to the tired, older cruise vessels, no longer hot enough for the Caribbean. This year's build-up in Europe comes on top of a 12% increase in berths there last year. "Europe has great cachet in the consumer's mind," says Greg Johnson, associate vice president for investor relations at Royal Caribbean Cruises in Miami.

Cruise lines--known for their well-honed marketing savvy--are also trotting out shorter cruises in Europe to cast a broader net.

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