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| All photos by Ruthanne Terrero |
Travel agents are bullish about cruising for 2013. In a recent survey of 600 travel agents by Cruise Lines International Association (CLIA), 68 percent of travel advisors said bookings should be comparable or better this year, compared with their 2012 bookings.
In addition, agents said the booking window is getting shorter, customers are – and remain – very brand loyal, and home port, price and onboard facilities are the top three decision making factors for consumers who book a cruise.
More than 20 million passengers cruised on CLIA lines worldwide in 2012. More than 17 million of those cruised from North America, but only 11 million of those cruisers actually live in North America; the rest came from countries across the globe and cruised from North America so they're counted in the total.
CLIA says North American cruising will grow from 17.2 million passengers last year to a projected 17.6 million cruisers for 2013. Top growth opportunities for agency sales are ethnic groups, wedding parties and honeymooners.
These are just a few of the gleanings learned during CLIA's annual “State of the Industry” press conference Wednesday morning in New York.
The trend-focused program was hosted by Christine Duffy, CLIA’s president and CEO, and Jim Berra, CLIA marketing committee chair and chief marketing officer for Carnival Cruise Lines (www.goccl.com).
Growth and Globalization
Capacity growth in the industry continues. In the 1980s, there were 40 new ships launched, and in the 1990s, cruise lines introduced 80 new ships. Between 2000 and 2013, 167 new ships were launched.
But CLIA took one of its biggest expansion steps in December 2012 - extending its structural and management umbrella to cover multiple cruise industry organizations across the globe; all now operate under the CLIA banner.
CLIA had 26 member cruise lines in 2012, including members of a new Specialty Cruise Collection; that group includes niche, small ship and river lines. After December’s organizational expansion, however, today CLIA represents 55 member lines, more than double what it had just a year ago.
Recent consolidation means that the industry now speaks with “one voice” globally, a very positive factor according to Duffy. But she also reiterated her organization’s strong commitment to travel agents and to increasing the number of CLIA travel agents across the globe.
Duffy said 3,000 more travel agents are now affiliated with CLIA, based on the organizational expansion; that's in addition to the 14,000-plus members of CLIA in North America.
She noted that CLIA would be extending invitations to this year’s cruise3sixty conference to many global travel agents who are CLIA members in the U.K., Ireland and Australia.
Forty-five agents from Australia attended the show last year, and this year, with a West Coast conference venue in Vancouver, BC, she expects an even bigger turn-out.
Strong Support for North American Agents
But Duffy also tackled a misperception voiced recently by some agents who believe CLIA’s more global operational focus might diminish the role and focus for the trade organization with U.S. agents. “That couldn’t be further from our plans or attentions,” Duffy stressed.
She said not only will CLIA work to increase travel agent member ranks within the U.S., moving forward, “we will look at how to refresh the training.”
That might mean more online training options or new ways to learn that better reflect a changing lifestyle for agents. “The travel advisor continues to be critical and we need to assure that we’re really providing the education that these people need,” said Duffy.
CLIA will continue to stress to consumers about the importance of using a travel advisor given myriad choices. Duffy's belief is that choices in lines, ships, itineraries and onboard products are so prolific that a skilled travel advisor is critical to helping consumers pick the right cruise.
For example, the newest CLIA member line is Tauck (www.tauck.com), which will launch two new river vessels and debut four new itineraries in 2014.
New CLIA Resources
New resources for agents to use with consumers? CLIA will be launching Cruise Forward, a new communications initiative. A new website will aggregate information from all lines and talk about “vacations that make a difference.”
The new website will cover environmental best practices, the economic impact of cruising, community involvement, the work the cruise industry has done in investing in core infrastructure, the desire to create the best experience for cruise passengers and taking care of the communities in which the lines operate.
“This is an important and exciting way to tell the story of the global industry and our commitment around the world,” said Duffy.
In addition, CLIA will launch “Cruise TV” on You-Tube. This new channel will allow cruise lines, consumers and agents to access and post videos on a variety of topics including new destinations, ships, tips and more. “We’ve received a lot of good content from cruise line members and others,” said Duffy. “It’s something we can build upon."
Operational Safety
Duffy discussed the operational safety aspect of CLIA’s efforts, given that this month marks the first anniversary of the Costa Concordia tragedy.
She stressed that immediately after that accident, the industry quickly moved forward with a continuous improvement program for sharing best practices and creating 10 new policies that went beyond existing maritime legal requirements.
Duffy said that program continues - and goes far beyond International Maritime Organization standards.
“It’s important that we are communicating [this type of information] more often to the distribution channel, our travel agents,” she said.
Marketing Presentation
“The biggest trend in the industry is that it’s rapidly going global,” said Berra, noting that 20 new ships will launch in 2014, some $8 billion in investment by cruise companies. Of that, $2.3 billion is for 2013, and $5.7 billion for 2014. Cruising remains very hot with families, multi-generational travelers and groups.
“The growth is really a result of consumer demand, which is increasingly global,” he said. While the industry’s bread and butter business is the Caribbean, with 34 percent of all bookings, Berra said Asia has seen more than 300 percent growth in the last five years, and Australia more than 105 percent growth in a five-year period.
Berra described Asia’s appeal and growth for cruise passengers, both for ocean and river lines, “the biggest trend.”
China has the lines salivating, clearly. Berra said by 2020, China’s economy will be $7 trillion and will represent the largest middle class that has ever existed anywhere in the world.
"As people in China gain affluence, they want better housing, better education, better food and they want to see the world,” he said, noting that cruising’s value is something unmatched in other travel segments. “We’re very bullish long term on China and Asia as a whole.”
He cited entrée by such lines as Princess Cruises, which will sail from Japan this year with Sun Princess; Berra said the line will source primarily from the Japanese market, although the sailings will also attract some North Americans and Europeans.
He also mentioned Royal Caribbean’s Voyager-class ships in the Asian and Australian markets, as well as Celebrity’s positioning of a Solstice-class ship in Australia as clear-cut indicators that these markets are critical to the cruise lines’ growth.
Costa pioneered much cruise interest from Asian residents, and Berra noted that now the line is also doing shorter cruises – “allowing cruise rookies to get a flavor and taste for cruising” - from such markets as South Korea and Taiwan. In addition, Berra cited growth on the world’s rivers including China’s Yantzge, as another big trend.
The second biggest trend right now, he said is ship revitalization with Carnival’s Fun Ship 2.0, Royal Caribbean’s Royal Advantage program and revitalization efforts by Windstar Cruises and Celebrity Cruises, among other lines. The goal for the lines is consistent branding; for consumers it means that each experience will be fresh, even if they’re sailing on an older ship.
He also talked about the multitude of new destinations and ports of call the lines have worldwide, as well as a growth of big brand entertainment, specialty dining, and the importance of outdoor spaces. Berra cited wow features such as MSC Preziosa’s new world’s largest water slide at sea, as well as Norwegian Breakaway’s new, robust waterpark as ways that consumers are enticed onboard.
“Rapid innovation in technology” is another trend likely to continue, he said. And so is the need for a skilled travel advisor.
“The Web is fantastic and it creates a ton of information,” acknowledged Berra, but he added: “You need a trusted advisor to help you navigate.”