Agents Say Cruise Line ‘Value Adds’ Spur Brisk Business

Though cruise sellers agree that “value” continues to be the main message imparted by cruise line marketing and advertising, the way in which value is defined – and how it’s packaged – varies.

“The value of cruising always seems to have a place in most ads,” said Ralph Santisteban of a Miami CruiseOne. “This is the same as years back.”

Michelle Fee, co-founder and CEO of Cruise Planners, agreed that value continues to be the main message cruise lines are using to sell cruises to consumers. “But some added a ‘kicker.’”

This is especially true of the new mega ships – Royal Caribbean’s Oasis and Allure of the Seas, and Norwegian Cruise Line’s Epic.

“They tout all the amazing bells and whistles,” Fee said. “Being unique brings additional focus to those cruise lines – using headliners like Blue Man Group or Broadway Musical Hair Spray sends another message to the consumer: ‘It’s not like your grandmother’s cruise anymore,’ but more exciting with alternative dining and activities like water parks, zip lining and surfing.”

Barbara Osman of 4 Seasons Tours agreed that all the extras are a big part of the marketing messages being delivered by cruise lines. “Specialty restaurants – they all seem to do that. Royal Caribean and NCL keep adding things to do aboard their ships.”

For lines and ships that can’t boast the value of extraordinary bells and whistles, the value message is pushed through promotional offers.

“This year cruise lines have enhanced the value message by adding promotional offers to an already value oriented product,” Santisteban said. “Many lines have added a plethora of shipboard credits or dollars off to summer sailings. These types of ads have assisted in keeping the market moving at a brisk pace. They get the phone to ring and spark interest for the product.”

Fee agreed that value-adds are the hook that consumers often need. “I think value-adds draw attention to the consumer – and unfortunately, coming off a bad year (2009), consumers are still looking for ‘more’… if we can offer a low deposit and some type of ship board credit, we can sell cruises.”

Consumers, Fee added, are still leery about laying out money eight or so months in advance of a vacation. “However, if we only require a 50% deposit – BAM – it’s sold! People want to travel, they just don’t want to have to spend the money before they have it.”

Targeted Audience

Not all travel sellers Travel Market Report spoke with cited value as a main cruise line marketing message. Instead Rusty Pickett, ECC, of Shellback Cruises told TMR the emphasis in the Charleston marketplace has been portraying cruises as a fun family vacation.

Jackie Johnson, CTC, executive vice president of Cruise Express, stressed that price should not be the primary message and price reduction is not the same as value. “Selling value implies that the selling agent understands the values of their customers. Many believe the world lives and dies by price, whether it is service, special amenities or dining. Value is not bells and whistles.  Even if you’re talking mass market, value is only meaningful if it meets the need of the consumer.  If you sell by price, you live by price, and can lose a customer due to price.”

Johnson emphasized that what buyers really want is an experience meets their need. “For example, if dining is really a large part of a client’s lifestyle, then it’s important to offer a ship with a variety of alternative restaurants or a ship whose dining experience is known for its’ excellence.”

For some, lifestyle seminars and enrichment speakers can be a reason to choose a particular sailing, she said. “For example, in the luxury category, Silversea has enrichment sailings featuring Ted Koppel. For some clients, that is a reason to take that sailing, that cruise and that brand over others.”
 
Most of the pricing fear is not on the side of the consumer, but the seller, she said. “Sometimes we fear upselling, but that is what will make the trip for the client.”

There are a few clients who may be happy with an inside stateroom; most will not. Johnson said. “They have windows on their bedrooms at home. They just need someone to convince them it’s worth the price for an outside or balcony stateroom. They expect to pay a fair price. What they really want is an experience that meets their need.”