Page 40: of Marine News Magazine (January 2011)

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40 MN January 2011 tems, out-of-the-water lifesaving and more extensive log book requirements. PVA has signed a Memorandum of

Understanding with the Coast Guard to develop the

Flagship program, a safety management system especially for the passenger vessel industry.

It remains to be seen whether the new Health Care Act will produce affordable coverage for most individuals, as its promoters claim, but the “small business” exemption may relieve a number of passenger vessel operators from having to comply with the law’s employer mandate.

Important new federal rules will become effective in 2011, and that will impact passenger vessel operators. In

December, passenger vessels must demonstrate that they can comply with stability rules that assume an average passenger weight of 185 pounds. Also, new rules on serv- ice to passengers with disabilities become effective in the first quarter of the year. The Department of

Transportation rule covers an entity operating a vessel transporting a passenger from point A to point B. The related Department of Justice rule will apply to all other passenger vessel operators. PVA has prepared a guide for its members explaining the ADA rules in detail.

Darrell Bryan, President & CEO of Clipper

Navigation, on Pricing

Darrell Bryan is President and CEO of Clipper

Navigation, Inc., which operates ferries between Seattle,

Wash. and Victoria, BC. “We’re expecting little growth in 2011,” Bryan said. “We’ve budgeted a three percent increase for the year, however Clipper does foresee stronger results in the economy going into the 4th quar- ter.” Bryan works closely with the hotel industry and has found that packaging allows for greater flexibility in pric- ing. The customer does not know what is being charged by the hotel or Clipper. “It seems that people have become conditioned to deals and packages, so by packaging our ferry service with leading hotels, we’re able offer competi- tive pricing that appeals to consumers. In addition, our discounted rate is not naked which will make it easier for us to maintain a higher retail rate.” “Since July, we’ve experienced double-digit growth by being flexible and aggressive with our package pricing. We currently have a package with a four-star hotel by offering a rate of $115 that includes the ferry ride and a night’s stay at the hotel. That’s great for the customer. However it

Market Report

Darrell Bryan “We’re expecting little growth in 2011.

We’ve budgeted a three percent increase for the year, however Clipper does foresee stronger results in the economy going into the 4th quarter.”