Finding the Silver Linings as the Cruise Industry Heads Into 2021

By Susan J. Young Dec 21, 2020 11:23am

Certainly, 2020 was a tough year in cruising, but there were some positives. Let's celebrate the spirit of the holiday season by looking at seven "silver linings"—those positive developments that could spell better times ahead in 2021, both for cruise lines and cruise-selling advisors.

1. Vaccine Approvals

Certainly, the biggest mood booster is this month's approvals of Pfizer's and Moderna's COVID-19 vaccines by the U.S. Food & Drug Administration. Doses of the vaccine are now flowing, with frontline healthcare workers and nursing home residents being vaccinated.

While the vaccination process for all Americans could still take many months, the good news is that the process has started.

2. New Health/Safety Protocols

Last summer, an unprecedented collaborative effort was undertaken by Royal Caribbean Group and Norwegian Cruise Line Holdings. The big cruise companies set competition aside to form the Healthy Sail Panel, a group of top medical, scientific, operational and hospitality experts who dug deep into the latest research and best health/safety practices. The result was the Healthy Sail Panel's 65-page document with 74 recommendations filed in late September with the United States Centers for Disease Control and Prevention (CDC). It created a clear path for resumption of cruising—by outlining the best new health/safety protocols to protect guests, crew and the communities that cruise ships visit.

Those recommendations, along with input from other lines' programs including that of Carnival Corporation's Global Science Summit (in partnership with the World Travel & Tourism Council) and MSC Cruises' efforts, formed the basis for a framework of health/safety elements accepted by Cruise Lines International Association (CLIA) lines and presented the CDC. Those protocols have created a good foundation for the safe resumption of cruising. MSC Cruises has successfully carried 30,000 passengers on big-ship cruises in Europe by reducing ship capacity, requiring 100 percent testing and implementing other health/safety protocols.

3. Lifting of the "No Sail Order"

It was a dark period for the cruise industry between mid-March and late October, when the CDC had a "No Sail Order" in place. No cruise ships sailed from U.S. ports. But, at the end of October, that order expired and the CDC issued a "Framework for Conditional Sailing Order," an extensive set of procedures and elements required for cruise lines to begin sailing again from U.S. ports.

As a result, the process to resume cruising has begun. Some cruise ships are returning to their home ports or anchoring just offshore. Yes, simulated voyages, a slew of onboard changes and CDC approval are still required prior to any resumption of cruising from U.S. ports, but hope for the resumption of cruising is on the horizon.

4. Modernization of the Muster Drill

For veteran cruisers and cruise advisors, the typical cruise line muster drill—required by international law and undertaken prior to a ship's departure on embarkation day—has been "stuck in ancient times" for too long. Cruisers board, are told when they must report for the mandatory safety drill, gather in a large venue or theater with hundreds or thousands of other guests, listen to crew call names of guests who are late to arrive, then wait and wait some more before the drill begins.

While it's important for passengers to know what to do and where to go if an emergency occurs at sea, it's also a process that hasn't changed much over the years. So, guests put their embarkation day fun on hold. The ship's bars and other services are closed during the drill. It's also a delay to the start of the passenger's vacation.

But no more—at least on some cruise lines, given the development earlier this year of ""Muster 2.0," a proprietary technology product created by Royal Caribbean Group, which has filed for a U.S. patent. Guests listen and watch the muster drill and familiarize themselves with the safety process on their in-stateroom entertainment system or on their mobile phone. Then, at their convenience, at any time prior to the ship's departure, they must go to their muster station (so they know where it is), can ask any questions and are checked off by crew. It's quicker and easier. So, guests can kick back with a piña colada and start their vacation sooner.

5. Starting the "Commission" Talk

Cruise cancellations in 2020 put a negative spotlight on the historical timeline for commission payments. Instituted decades ago, that system doesn't recognize that travel advisors do much of their work in selling a cruise upfront—prior to and up through the booking of the cruise. Yet, unlike the cruise line, which gets immediate revenue via a deposit from guests, the advisor does not earn any revenue until the cruise departs and the guest sails. That could be six months, a year or even longer.

But, this year, ASTA and other agency groups have discussed the need for adjustment in commission timing, with the goal of assuring that a portion of the advisor's compensation comes earlier in the process. Avoya Travel also noted the need for a split commission model.

Some lines have created gift card rewards to give advisors some monetary reward value after they've booked a cruise. Separately, Seabourn is one line now paying commission at the time the booking is paid in full, even if that's a year prior to sailing. But trade groups say more is needed across the industry and it's likely the "commission" discussion between agency groups and cruise lines will continue in 2021.

6. Elevating Advisor Expertise

With cruise travel suspended across the globe as borders were closed and a "No Sail Order" in effect for U.S. ports, many advisors tapped into their "down time" to enhance their skills and product expertise. They participated in training programs, cruise line briefings, product sessions, specialist programs and virtual conferences.

In addition, early in the year, the reality was that many travel advisors, cruise line employees and host/franchise/consortia staffers had never used such high-tech virtual options as Zoom or GoToMeeting for training, conferences, meetings, supplier discussions and client communications. But, after months of working remotely, social distancing and virtual communications, the cruise selling community became familiar with new techno-tools and gained new virtual skills, a plus when the market rebounds.

7. Building a Stronger Community

The challenges of "weathering the storm" during the 2020 pandemic created plenty of stress within the cruise industry but the situation also created positive bonding experiences between cruise advisors, their clients, cruise line BDMs, consortia/host/franchise employees, local businesses and the travel community as a whole. The result? Look for new business opportunities and partnerships in the coming year, and advisors to "be ready" for strong sales when cruising reaches top speed.