Cruise lines report rebound

Demand for cruises appears on the rebound six months after the Sept. 11 terror attacks knocked prices to their lowest level in decades.

At their annual gathering in Miami Beach last week, the industry’s top executives said they have had a good early wave of reservations for the year.

The association expected the number of North American cruisers to increase to 7.3 million in 2001, but the slump in travel after September slashed the actual number to 6.9 million, an increase of only 27,000 from the year before. This year, the forecast is for 7.5 million passengers.

The newfound demand may signal the end of rock-bottom prices for cruise travelers. Ryan, Beck & Co. analyst Peter McMullin said that a three-day cruise this spring is again selling for $249 per person, (without airfare), compared with $139 in the fourth quarter of last year and $199 in the fourth quarter of 2000.

Consolidation also may hit the industry. Royal Caribbean CEO Jack Williams, above, is one of several cruise line executives looking to merge with P&O Princess Cruises.

Motley Fool: Name that company

More than 30 years ago, my founder faced massive legal bills after a car accident. When he realized that people can protect themselves financially through insurance from all kinds of catastrophes (such as death, disease and natural disasters, but not from legal bills), he created me. For around $200 per year, my (more than a million) members are entitled to services such as will preparation, contract reviews, audit services, motor vehicle legal defense services, trial defense services and discounts on other legal services (some hourly limits apply). Based in Oklahoma, I rake in some $300 million per year. Who am I?

Economy: Trendsetters scaling back spending for rest of year

PriceWaterhouseCoopers found that several companies it dubbed “trendsetters” are scaling back their spending for much of the current fiscal year even though it’s becoming clear that the recession is ending.

Nearly half the chief executives of the nation’s fastest growing companies surveyed by PriceWaterhouse, or 47 percent, said it was more difficult to devise a budget for 2002, compared to the same time last year, because of “unsettled world events and economic volatility.”

Of that number, 23 percent said coming up with a realistic budget was much more difficult while 24 percent said it was a “little more” difficult.

Just 11 percent of the companies polled 405 of the fastest growing businesses in the United States in the last five years said it was less difficult. The remainder, or 40 percent, said things were about the same as last year. Two percent weren’t sure.