Easy Cruise may still have had it right

Sir Stelios Haji-Iannou, the Anglo-Greek serial entrepreneur whose claim for fame mainly comes from the budget airline Easy Jet, seems not to have struck gold with Easy Cruise, a company he founded in 2005. A report on CruyiseCritic.com says that Hellenic Seaways that bought the one ship operation from Sir Stelios last year has not confirmed any itineraries for 2010 and refunds are offered for bookings already made.

The venture attracted enormous publicity, which was fuelled by the celebrity status of Sir Stelios himself, both before and after it commenced operations. The initial 4,000 gross ton ship was replaced by one three times that size last year and Gwyn Hughes that had been managing director of P&O Cruises, the British line, had been hired to run the business. However, it seems that the company has not prospered.

Originally, Easy Cruise offered an option to buy as many nights as you wished on the seven-night Western Mediterranean circuit of its original ship. Over time, this was abandoned and last year, Easy Cruise Life, the 12,000 gross ton newcomer, operated three and four bight cruises in the Greek islands. Prior to the launch of the venture, Sir Stelios highlighted the fact that cruising remained the most tightly packaged form of holiday, which he intended to change.

Assuming that Easy Cruise does not resume trading, its tumbling block was possibly the fact that fairly low prices and one, rather small ship are factors that struggle to result in a good financial outcome. Established lines, such as Costa Crociere and MSC Cruises, cater for the contemporary market in Europe with large ships of which both of them have many.

Still, Sir Stelios may have been right in that the tight packaging of cruise holidays is a concept that has exceeded its shelf life. A ship operating a seven-night Western Mediterranean rotation, as an example, has several ports where to board and disembark passengers. Instead of selling a package, a line selling its product on per-night basis would have to look at its business from the point of view of a hotel: they do not force you to stay a week if that is not what you want.

The future success of cruising depends to a great extent on its ability to innovate.