Norwegian Cruise Lines announced that it was moving the Pride of Hawaii to Europe. People holding reservations on this boat can switch to one of the other two NCL Hawaii vessels for their future cruises (and get a $50 credit) or get a full refund. This is a huge blow to proponents of the Hawaii cruise industry. The Pride of Hawaii was the most luxurious of the three NCL boats and its departure bodes ill for the future of upscale cruising in the islands. NCL says its stil committed to Hawaii and that removing the boat, and its inventory, would boost prices and occupancy.

It does seem contradictory to pull out the most luxurious boat in order to raise prices. And, for reasons I outlined in an earlier post predicting this outcome, I'd say it may well struggle to become profitable with ships staffed by expensive U.S. citizens. On the one hand, this is a shame because cruise ships are arguably better than hotels as a means of increasing carrying capacity of the islands. On the other hand, the more exclusive Hawaii is, the better, and nothing lowers an exclusivity quotient faster than a big boat packed with tourists. And thanks goodness the state hasn't yet sunk big bucks into pier and infrastructure improvements solely designed for the cruise ship industry. Better to wait and see, no?

—Alex, 04/11/07