Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Air
  • Training & Events
  • Who We Are
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle

Cruise Industry Execs Celebrate Positive Momentum, Debate Place of Sustainability in Messaging

by Dori Saltzman / March 29, 2023
2023 ceo panel at seatrade cruise global conference

The State of the Global Cruise Industry panel (from left): moderator Lucy Hockings, Carnival Corp.'s Josh Weinstein, MSC Cruises' Pierfrancesco Vago, Royal Caribbean Group's Jason Liberty, NCL Holdings' Frank Del Rio and CLIA's Kelly Craighead. 

"So far we've been here an hour and no one has mentioned the c-word," said Frank Del Rio, the outgoing president and CEO of Norwegian Cruise Line Holdings, Ltd., in a rare moment of contentiousness at the 2023 Seatrade Cruise Global conference being held in Fort Lauderdale this week.

Del Rio, referring to cruise customers, was responding to the fact that the first hour of the morning's general session had focused entirely on the industry's sustainability efforts, with virtually nothing said about what's new for the customer. 

"The industry is spending way too much time focusing on something we don't know much about… We're caught up in the narrative that the world wants to be green and blue – and so do I – but we don't talk about the customer anymore… the purpose of the cruise industry is to provide great vacations for customers and I don't think we talk enough about it because we've been carried away by this narrative of sustainability…"

When asked whether he thought the cruise customer, specifically millennials care about sustainability enough to want to know these things, he said he believes everybody cares about it to some degree, but he implied he doesn't believe they're making choices based on it.

Carnival Corp.'s president, CEO and Chief Climate Officer, Josh Weinstein agreed to a certain extent.

"When it comes to cruising, when it comes to holidays, the research that we've seen is that what people expect is for us to be good. They expect for us to do good, but they're not making their holiday decisions based on that because they're making an assumption. So, if we are not good, we are going to be off the list. But if we're seen as doing the right thing, then we satisfy a baseline level of expectation and they'll come with us."

But Weinstein added that he believes that will evolve over time, explaining that what the bar of what it means to be good will keep going up.

"What we have to do is stay ahead. We have to stay ahead of whatever that consumer definition of being good means and consistently improve."

While Del Rio may have voiced what many in the room were thinking, Pierfrancesco Vago, executive chairman, Cruise Division, MSC Group and global chairman of the Cruise Lines International Association (CLIA) provided one clear reason to keep sustainability a part of the conversation the cruise industry – and its partners, including travel advisors – are having with consumers.

"We continue to face opposition and unwarranted attacks from activist organizations and some NGOs based on outdated data and statistics. We must address community perceptions in sensitive destinations and if we don't, misinformation will distort the reality of the well-managed and responsible tourism that we stand for."

One thing the CEOs on the panel did agree on was the desire to narrow the gap between cruise pricing and comparably land-based alternatives.

"A lot of the industry challenge is that our prices, compared to land-based vacations are low, too low, and over the last few years that gap has actually increased," Del Rio said. "People will pay for whatever it is that is valuable to them. And it seems that the cruise industry has not kept up with those demands that consumers want because the land-based vacations are eating our lunch in terms of pricing.  

Jason Liberty, president and CEO of Royal Caribbean Group, agreed.

"There's a huge value gap between us and land-based vacations, which frustrates everybody," he said.

Weinstein also agreed but said part of narrowing the difference is educating the consumer.

"I agree with Frank in that we are – and we use this statistic – 25 to 50% cheaper than a land-based alternative. My belief is that we have to do a better job communicating the value proposition of what a cruise is to people who don't know cruising."

Forward Momentum is Tangible
As in previous years, this year's Seatrade brings together some thousand or so cruise industry executives, port and destination operators, cruise suppliers and media to learn about what's new, renew relationships, and begin planning for future cruise products.

The theme for the conference, "forward momentum," was a message, Travel Market Report heard time and again from destinations and cruise lines alike. Business is booming and the momentum is unlike anything anyone has ever seen before.

"The outlook for our industry is extremely positive," said Kelly Craighead, president and CEO of Cruise Lines International Association (CLIA). This year alone, there are 14 spectacular new ships that are set to launch in the CLIA fleet. The order book through 2028 shows 62 new CLIA ships, representing more than $40 billion worth of investment.

Passenger forecasts and sentiments are also high.

"2023 passenger forecast shows that we will likely exceed 2019 guest volumes, putting us back on a positive trajectory," said Pierfrancesco Vago, speaking in his role as global chairman of CLIA. "We expect between 27 and 30 million cruise passengers worldwide this year. This is an incredible achievement. By 2026, we will reach nearly 39 million passengers, so we're talking about 30% higher than 2019."

And, he added, more people are considering taking a cruise than ever before.

"CLIA's latest research shows that 85% of those who have cruised in the past are likely to cruise again… Even among those who have never cruised before, the numbers who say they are interested or considering a cruise are higher than it was back in 2018 and 2019."

  6
  0
Related Articles
Carnival Corp.'s Weinstein Credits Travel Advisors for Helping Cruise Giant Bounce Back
Korea Tourism Organization Celebrates Successful Seatrade Convention
Live from Seatrade: Resiliency, Partnerships & Unity Are Silver Linings of Pandemic
Innovation Takes The Stage At Seatrade

MOST VIEWED

  1. U.S. State Department Updates Jamaica Travel Warning to Level 3
  2. First Hand Look at the Soon-to-Open Sam Lord's Castle Barbados, A Wyndham Grand Resort
  3. Vantage Travel Website Down, Cruises Canceled Last Minute
  4. TSA Will Now Allow Teens to Access PreCheck with Parents or Guardians
  5. Tips for Delivering Bad News to Your Clients
  6. 25 Qualifying Questions to Help You Nail Your Clients' Vacation Plans

MOST EMAILED

  1. 5 Reasons You Need to Use a Travel Advisor Now More Than Ever
  2. First Hand Look at the Soon-to-Open Sam Lord's Castle Barbados, A Wyndham Grand Resort
  3. U.S. State Department Updates Jamaica Travel Warning to Level 3
  4. Vantage Travel Website Down, Cruises Canceled Last Minute
  5. U.S. to End COVID-19 Vaccination Requirement for International Travelers
  6. 25 Qualifying Questions to Help You Nail Your Clients' Vacation Plans
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Silversea Cruises Unveils 140-Day World Cruise for 2026
Silversea Cruises Unveils 140-Day World Cruise for 2026

The 140-day journey will call at the highest number of destinations in the line's history.

Read...
Here Are the New Cruise Ships Debuting in 2024
Here Are the New Cruise Ships Debuting in 2024

All the new ocean cruise ships coming out in 2024. 

Read...
Atlas Ocean Voyages Adds Third Ship, Launches New Loyalty Program
Atlas Ocean Voyages Adds Third Ship, Launches New Loyalty Program

The expansion to a three-ship fleet is a year ahead of schedule. 

Read...
Lindblad Is Latest Cruise Line to Add Starlink Wi-Fi
Lindblad Is Latest Cruise Line to Add Starlink Wi-Fi

Seven ships in the Lindblad fleet already have the super-fast Internet service. 

Read...
Riviera River Cruises Extends At-Par Pricing for Canadian Travel Advisors
Riviera River Cruises Extends At-Par Pricing for Canadian Travel Advisors

Canadian advisors can save their clients hundreds of dollars on 2023 European river cruises. 

Read...
Viking Extends Europe River Season with New Rhine Itinerary & More Christmas Market Sailings
Viking Extends Europe River Season with New Rhine Itinerary & More Christmas Market Sailings

For the first time in its history, Viking will offer river cruising in Europe all year long. 

Read...
TMR OUTLOOKS & WHITE PAPERS
Cruise Trend Outlook 2023
river cruise 2022
group outlook 2022
View All
Advertiser's Voice
https://img.youtube.com/vi/TIZwKLcPwbg/0.jpg
We Appreciate our Travel Advisors
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Air |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy