Oasis of the Seas Still Not Sold Out

(MoneyWatch)  Royal Caribbean Cruises Ltd. is fielding questions and criticism about not selling out its more than 2,700 staterooms on its gargantuan Oasis of the Seas, slated for a Dec. 5 inaugural cruise. When asked in a conference call, Royal Caribbean executives pooh-poohed the idea that they didn't discount rates enough.

"We would not want to be sold out -- in fact, I think there's been some news that says that the upper category cabinets are unavailable far into the future and that does mean that we sold those cabinets too cheaply. We should have held them longer," Richard D. Fain, chief executive with Royal Caribbean said during its third-quarter conference call.

I'm not sure those comments instilled confidence in investors, especially for a company that seemed to imply that the Oasis of the Seas would bring prosperity to the company in the fourth quarter and 2010. Add to the fact that a worker's strike in Finland is causing delays in building the Allure of the Seas, the West Coast sister ship of the Oasis, and there are doubts that the Oasis and its public relations machine can power through the end of the year with a profit. Royal Caribbean execs seem to think that the publicity alone, including a gig on "Good Morning America" Nov. 20, will speed up bookings.

Since there is little interest in discounting berths on the $1.5 billion ship, I don't see the ship quickly being sold out. Newness and wow factor aside, the Oasis of the Seas' 37 bars and restaurants have surcharges ranging from $10 to $35 per person -- the days of the all-inclusive cruise are gone. As someone in the Los Angeles Times wrote, "On Oasis, you'll even have to pay for cupcakes."

So a week-long cruise will not only be pricey, it will also have out-of-pocket costs that make it less attractive to the average consumer. Why wouldn't travelers spend the money instead on an all-inclusive vacation? I think soon Royal Caribbean will have to acknowledge the market and discount berths on the Oasis.