Heartland Agents Are ‘On Board’ With Cruise Rookie Strategy

The cruise lines’ longtime strategy of targeting first-time cruisers has created rewarding growth opportunities for travel agents in the middle of the country.

Cruise market penetration in mid-America is significantly lower than in coastal regions, so cruise line promotions aimed at first-timers tend to be concentrated in the nation’s interior.

This strategic focus presents significant opportunities for mid-America travel sellers to grow their business, agents told Travel Market Report.

Travel sellers in mid-America said most of their first-time cruisers are actually new clients, with repeat business potential, including for higher-priced cruises and high-earning land-based vacations.

“The first-time cruiser is enormously important to us, just like a first-time patient would be to a medical practice,” said Mary Ann Strasheim, ACC, owner of Custom Cruises & Travel, an Ensemble agency in Omaha, Neb.

Existing clients, particularly retiring Baby Boomers, also have potential to be first-time cruisers, travel sellers said.

Cruise lines on board as well
Agents, especially those in the Midwest, who are game for jumping into the first-time cruise market will find plenty of encouragement from the cruise lines.

Because the lines have less market penetration in mid-America than along port-dotted coastlines, much of their “call” for first-time cruisers is aimed at agencies in that region. With few exceptions, agency owners are happy to comply.

New cruisers are often new clients
Strasheim is far from alone in her enthusiasm for first-time cruisers, particularly because first-time cruisers are frequently new clients.

Where are these new clients coming from?

Many turn to travel agents for guidance because they are confused by the excess of cruise information online, according to John R. Schmitt, Jr. CTC, vice president and director of sales and marketing for Superior Travel Service and Frankenmuth Travel Service.

“With time being precious and too much information online, we see a lot of first-time cruisers in our offices,” said Schmidt, whose Michigan-based agencies are TRAVELSAVERS members.

First-time buyers are an essential part of an agency’s business mix, noted Kay South, co-owner of The Travel Center in Des Moines, a MAST member agency.

Take a long-term view
The fact that many first-timers buy entry-level staterooms on contemporary cruise lines, thus generating only small commissions for an agency, should not be discouraging, according to Greg Spears, CEO of Spears Travel/Travel Leaders in Tulsa, Okla.

Much more important considerations are the long-term opportunities for repeat business, he said. Other agents agreed.

“The short-term sacrifice on commission, which can be supplemented with consultation fees and excursions, will bring you long-term loyalty and a chance for other big-ticket trips in the long-term when times are better,” said Matthew Oldenburg of Dodgeville (Wisc.) Travel, Inc, a MAST-member agency.

‘They will come back’
One agent who has experienced long-term benefits from first-timers is Bonnie Hedges, CTC, CTS, vice president of sales and marketing for Bentley Hedges Travel, a Travel Leaders agency in Oklahoma City.

“Our theory is if we can get them introduced to travel in general, then they will come back,” she said, adding that the repeat business can become more lucrative.

“So maybe the first time we offer them a Royal Caribbean or Carnival cruise. But as we get to know them, and they have a special anniversary or birthday, we can suggest an Oceania or Regent cruise, where our commissions are more generous.”

Success with land vacations too
Once agents have converted first-time cruising prospects into loyal customers, they can also market more lucrative land-based vacations to them, agents said.

“Once they have cruised and come back to the office, we can ask them, ‘Would you consider an all-inclusive?” said Schmitt.

Custom Cruises & Travel’s Strasheim agreed. “If we can get first-time cruisers, we can convert them into land clients.”

Plus, repeat clients frequently refer others, and word-of-mouth business is good news for any agency, Hedges noted.

Past clients also potential cruisers
Not all travel agents said the bulk of their first-time cruisers are new prospects. Many are previous clients who had only taken land-based vacations.

Some are just testing the waters, curious to see how a cruise compares to an all-inclusive. But for others, the jump to cruising represents upward movement in their travel choices.

In particular, newly retired Baby Boomer clients who now have time for longer vacations are likely first-time cruisers. Many are willing to spend more for a better experience, cruise sellers said.

Seeking fulfillment
“Baby boomers are beginning to retire and are seeking fulfillment in their new lifestyle,” said Oldenburg of Dodgeville Travel.

“The bulk of our customers in this category have become accustomed to affordable winter getaways to all-inclusive resorts in Mexico and the Caribbean. But now, as they’re coming into retirement, they want to splurge and spend more time and money on a cruise.”

Agents are quite literally missing the boat if they don’t encourage these clients to book higher-end cruises, according to Hedges.

“Baby Boomers come in, and they are ready to retire, and they have money. Put them on an Oceania, a Regent or an Azamara cruise. Don’t give them a Princess or a Carnival.”