As Cruise Product Evolves, Agents Are Crucial, Says CLIA
by Andrew Sheivachman /NEW YORK--While CLIA is in transition as an organization following the departure of several top executives, the trade group presents a rosy picture of the global cruising industry overall.
“The state of the cruise industry is not only strong, but we've been growing relentlessly for 40 years,” said Adam Goldstein, current CLIA chairman and president and CEO of Royal Caribbean Cruises, at the group’s 2015 media marketplace event here yesterday.
CLIA projects that 22.1 million people cruised in 2014, continuing the trend of an annual 5% growth in cruisers. Strong international growth has helped to buoy cruise lines which have aggressively expanded their capacity.
“One of the critical elements for CLIA is that we have grown up,” said Goldstein. “We have gone global; Asia-Pacific is the fastest growing region of the cruise industry.”
Growth is good
In addition to expanded capacity, cruise lines have been improving their onboard amenities as well.
“You’re seeing lots of varying sizes of cruise ships coming online, but there is still a lot of interest developing the experience inside the ship,” said Maria Miller, senior vice president of marketing at Norwegian Cruise Line.
Cruise ship capacity grew by 18% from 2009 to 2013, and the growth continues unabated as large ships from lines like Royal Caribbean and small ships from lines like Viking continue to hit the seas.
“There are a total of 22 ships being introduced in 2015 for over $4 billion in investment,” said Miller. “The industry is planning smartly to build out capacity.”
More than 50 new ships are expected through 2020, the result of $25.65 billion in investment on the ocean vessels alone.
Agents: more important than ever
According to CLIA’s data, 70% of cruisers use a travel agent to book and plan their vacation.
“Having a knowledgeable professional to ferret through the choices and guide you to the right vacation is really critical; it doesn’t matter that consumers are all connected to the internet,” said Miller.
“At the end of the day, 70% of cruisers say they will continue to plan and book their cruise vacation through a travel agent.”
Eighty eight percent of cruisers are highly satisfied with their cruise vacation and 84% would recommend cruising to their friends.
While 36% of cruise capacity is located in the Caribbean right now, the Mediterranean and Asia are slowly increasing their share. Cruisers who want to visit new regions are especially reliant on the expertise of the travel agent community.
Why lines are specializing
In a panel discussion at the end of the event, cruise line execs weighed in on the trends that are shaping the cruise experience in 2015.
“In general, every cruise line wants to deliver an all-encompassing experience,” said Edie Rodriguez, president and CEO of Crystal Cruises. “It’s possible to have an incredible onboard experience, but its also paramount to have strong offship experiences.”
A new focus on excursions and land product, along with brand partnerships to appeal to a wide swath of vacationers, are part of a push to attract cruise rookies.
Finding first-timers
“Attracting first timers have led to lines partnering with well known brands,” said Ken Muskat, executive vice president of sales, public relations and guest services for MSC Cruises. “We’re depending on others to find these first timers we can't reach.”
MSC Cruises has partnered with Lego to attract families, for instance, while Royal Caribbean’s partnership with Starbucks was also mentioned.
By providing more of what cruisers are used to on land, the cruise lines are providing a more familiar environment for vacationers.
“We’ve been very thoughtful about how to differentiate our experiences,” said Jim Berra, chief marketing officer of Carnival Cruise Line.
“It starts with what types of destinations and experiences [cruisers want]; we're seeing more seniors, millennials and families sailing. We’ve been thoughtful about understanding consumers and different segments.”
Despite rampant specialization, the execs said itineraries are still the main attraction of cruising.
"The number one reason people are choosing to cruise is the itineraries,” said Rodriguez.