In A Banner Year, Insiders Note Four Cruise Industry Trends
by Daniel McCarthy /The river cruise and luxury panel at Cruise360. Photo: CLIA.
It’s just six months into 2016—and already the cruise lines and executives at CLIA Cruise360 in Vancouver last week proclaimed it a banner year for the industry.
In total, CLIA member cruise lines will put 27 new ships in the water in 2016. And that’s just the beginning of an industry evolution that will see CLIA’s 30,000 agent members become even more vital than they already are, executives said.
Here are four industry trends to keep an eye on, as noted by the executives who attended.
Cruise lines are coming together.
The cruise industry is stronger than ever, as evidenced by the fact that it generated nearly $120 billion for the global economy in 2015. And with emerging markets bringing in more travelers, one might expect competition within the industry to be on the rise. But insiders say that’s just not the case.
“I think you’ll hear this from every single one of us cruise line executives, but there really is a cruise line for everyone and we shouldn’t compete against each other,” said Holland America Line vice president of North American sales Eva Jenner. “We’re really competing against land based vacations.”
“Our goal is to introduce more people to the great value and great experience of a cruise vacation,” agreed Carnival Corporation president and CEO Arnold Donald. “We see our competition as land-based vacations, not other cruise lines.”
Innovation takes the helm.
Cruise companies are planning on winning that competition through constant innovation. Carnival vice president of trade sales and marketing Adolfo Perez, for example, called Vista the “biggest, most innovative, most exciting ship we’ve ever built.”
Jenner called Holland America’s latest ship, the Koningsdam, “gorgeous,” and said that even though it is “definitely a Holland America ship” it has a “classic twist” with the additions of the Culinary Arts Center, a farm-to-table restaurant, and new music venues, including BB King’s Blues Club and Lincoln Center Stage.
Princess Cruises vice president of North American sales John Chernesky said innovations like luxury beds and entertainment options are “elevating the product so it’s interesting for someone who may be a little unsure about cruising.”
And Royal Caribbean’s new mammoth Oasis, which debuted last month, is counting on the Flowrider, rock-climbing wall, and kids clubs to demonstrate “the kind of quality we have” and drive business, said director of trade sales and national training Laurie Bohn.
Ships are charting new waters.
The cruise lines are distinguishing themselves not only through their ships, but also through their itineraries.
Seabourn, for example, has a new focus on Antarctica. “Luxury sailing in Antarctica is amazing. It’s all included and you are actually getting off the ship, going to Zodiacs, seeing the penguins up close and personal,” Jenner said.
Celebrity Cruises, meanwhile, is headed for the Pacific.
“We had the Celebrity Expedition down in the Galapagos but we purchased two additional ships, as well,” said senior vice president of sales Dondra Ritzenthaler. In all, Celebrity will have three ships in the area–one small ship with 8 staterooms, one medium with 23, and a large one with 46—ready to prove Celebrity has “the best and the most down in Galapagos.”
Crystal Cruises is looking not only at the water, but to the skies, with a new Bombardier Global Express and a Boeing 777.
And MSC Cruises, after spending most of its history in Europe, has a new focus on the Caribbean.
Emphasis on travel agents.
With the market exploding, cruise executives made it clear that expansion can’t be successful without the help of agents.
“Travel agents are super, super important,” said MSC executive vice president of sales and guests services Ken Muskat. “We need your help.”
“If I think back to when I first started at Carnival, we would not be where we are today if not for the support of travel agents,” said Carnival’s Perez. “It was the hard work, the faith that the travel agents had in the cruise business that really propelled us.”
“We can’t do it without you,” Royal’s Bohn said.