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Carnival prices set to rise

This is a story I never thought I'd write - at least not while the economy is still teetering on the brink. Or is that really still only here in the UK?

From March 22, Carnival Cruise Lines will be increasing prices for all summer sailings by up to 5%. The move has been prompted by what Carnival president and CEO Gerry Cahill called "unprecedented levels" of bookings between January 1 and February 22, the Wave period.

He says that's all to do with the strong support Carnival has received from agents, targeted marketing and Carnival's strategy of basing ships in a multitude of ports around the US, in easy driving distance of large swathes of the population.

The laws of supply and demand say that he is right to put up prices. Or they would if it was just Carnival in the market. But there are plenty of other cruise lines out there still offering good deals that Carnival customers can turn to if they don't like the price hike.

I imagine those lines will be looking on with interest to see if the Carnival tactic works.

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