CLIA: New Ships & Destinations Will Boost Travel Agent Sales

FORT LAUDERDALE, FLA.– At CLIA’s 11th annual cruise3sixty conference, the organization presented member travel agents with bold words about how expanded capacity and more diverse destinations will help members of the travel trade.

“50,000 agents make us the world’s largest travel agent association,” said Adam Goldstein, CLIA chairman and president of Royal Caribbean International, during an executive panel at the event’s first general session. “You guys are the spearhead of that.”

Twenty-three million vacationers are expected to cruise worldwide in 2015, and Goldstein is bullish that the industry will retain its 3% to 5% growth rate for the rest of the decade. This means that agents stand to benefit from an increased volume of first-time cruisers.

“The biggest opportunity we have collectively is bringing in new-to-cruise people,” said Goldstein.

Destination focus
CLIA presented agents at the conference with a vision focusing on the importance of destinations to cruisers, with less of an emphasis on the latest round of shipboard innovations the cruise lines are touting.

With 55 ships set to be delivered by 2020, more destinations than ever will be available to sell. The onus is on cruise lines—and agents—to get more people to cruise.

“The penetration of cruise in the North American market is still below 4%,” said Christine Duffy, former CLIA president and current Carnival Cruise Line, during the panel.

“All the marketing that comes with the new ships means there is a great opportunity to get more Americans to take that first cruise.”

Agents remain key to pairing the right potential cruiser with the suitable cruise experience, she said.

“How do we partner together to get the right person on the right brand?” Duffy asked. “Over time the brands have each distinguished themselves based on the customer they attract and the experience onboard.”

Cuban fusion
Agents should keep their eye on emerging developments involving cruising to Cuba, although headway is not likely to be made any time soon, according to the executives.

“We all believe there is a lot of pent up demand because Americans have not been able to travel to Cuba,” said Duffy. “This has been an ongoing conversation, but it seems it is much more serious and further along than it has ever been before.”

Cuba is likely to become a major draw for American consumers to consider cruising for their vacation, the executives said, and the accessibility of the island nation by sea could provide a unique experience for consumers.

“[Cuba] is going to be a huge engine for growth in the industry, if and when we are able to go,” said Andy Stuart, the new president of Norwegian Cruise Line.

The cruise lines are also poised to expand to new destinations in Asia.

“Asia is similar to Cuba in that its such a huge opportunity for the industry,” said Stuart. “We need to have proper places to deploy [all the industry’s] new ships; this is another huge engine for growth in this industry.”

Inclusive or custom?
The executives encouraged agents to sell all-inclusive to their clients, along with more customized vacations.

Norwegian Cruise Line announced earlier in the day that the Norwegian Sky will soon begin sailing short itineraries as an all-inclusive vessel.

The change is due to the changing tastes of cruisers, according to Stuart.

“We think this. . .  a very powerful differentiator in the three- and four-day market,” said Stuart. “It’s fantastic news for our travel partners because it really means an increased price up front and an increased earning opportunity for travel partners.”

More choices are a good thing for consumers, and great for agents who parse available packages and bundles for their clients.

“There are people who like an all-inclusive and will be willing to pay a bit more to have the package,” said Duffy. “The [decision between different packages] is less about all-inclusives, and more about the kind of choices that people have today when they choose a cruise as their vacation.”

Courting first-timers
Agents should strive to provide their clients with customized cruise vacations, especially those who have never cruised before, the executives said.

“Customization is the thing that resonates more and more for our brand, guests and travel partners,” said Lisa Lutoff-Perlo, president and CEO of Celebrity Cruises.

“We will keep playing with it until it resonates the right way . . . but we really need the help [of the travel agents] to get first-time cruisers.”

Groups, especially affinity groups, are another integral method of getting first-time cruisers on board, according to the executives.

“We don’t focus enough on groups,” said Duffy. “Affinity groups, for millennials or multigenerational, its a great way to get them onboard.

“The same thing for corporate meetings and incentives,” she added. “The niche has not been tapped as much as it can by travel agents.”