CLIA Commits to Agents, Expects Strong Growth in 2014
by Andrew Sheivachman /After a year of major growth and unexpected challenges, Cruise Lines International Association (CLIA) stated its commitment to travel agents as it looks to continue its expansion with growing cruise supply around the world.
Having grown to encompass 63 global cruise line members, along with 13,500 travel agency members and more than 50,000 total agents, the organization is bullish on 2014.
“Our goal is to grow that channel of agents and agency members,” said CLIA president Christine Duffy speaking at the groups’ State of the Industry event yesterday in New York City.
Agents are key
“Travel agents are the most important distribution channel for cruise,” said Duffy. “It is more important than ever that we encourage consumers to use a CLIA certified travel counselor who knows how to find the right cruise for them.”
Duffy said agents are primed to take advantage of the shifting demographics behind cruising, which are tilting toward multigenerational and group travel in 2014.
“Today more than half our bookings are multiple cabins,” said Jim Berra, chief marketing officer for Carnival and chair of CLIA’s marketing committee.
“And when we look at age dispersion, it’s become more pronounced—more seniors and more kids.”
While CLIA predicts a strong Wave Season, there are concerns about early bookings for the new year.
“I think that first week of January may have been a little slower [than last year],” said Duffy. “But with the U.S. experiencing an earlier winter, people started thinking about how to get on a cruise this winter.”
Agents’ cruise business
According to a recent survey of CLIA agents, 87% of agents reported seeing similar or increased sales to new cruisers.
More than 60% of agents said their 2013 sales ranged from good to excellent, marking the best year ever for them. More than 70% expect 2014 sales to be good or excellent. Ninety-five percent see an improving economy.
New product, like Royal Caribbean’s Quantum of the Seas, will give agents a wider variety of offerings to sell in 2014, according to CLIA.
“We are putting a ton of effort into understanding our consumers in order to introduce new and relevant products,” said Berra.
The Caribbean leads
The Caribbean remains the top cruise market in the world, with the Mediterranean slipping in popularity, according to CLIA’s data.
Overall, 16 new ships—representing more than 20,000 new beds—are set to launch this year. Another 20 ships are slated to launch between 2015 and 2018.
Germany is projected to soon become the number two cruise market in the world behind the U.S., hinting at the shifting global marketplace for cruising.
Growth area
River cruising was cited as a major growth sector for cruising, especially for experienced cruisers looking for a different experience.
“We see the river cruising segment of the industry growing quite well,” said Duffy.
“People who have experienced ocean cruising will find this an interesting experience to try, since there are opportunities that are non-luxury for people who want to experience a variety of destinations.”
Current issues
Environmental concerns were also mentioned, as consumers have become more aware of the environmental effects of the cruise products they buy.
Duffy admitted it is important for CLIA’s member lines to be proactive in becoming more environmentally friendly.
“Given that millennial people especially do care more about what companies they are supporting, we make it clear the cruise industry is committed to these [corporate social responsibility] initiatives,” said Duffy.
Asked about the implementation of the Cruise Vessel Security and Safety Act, Duffy declared that steps taken toward crime reporting have been robust.
“Crime is not an issue on cruise ships,” she said.