Cruise Agents Upbeat About Sales Trends in 2013

Cruise-selling agents are upbeat about the trends so far this year. In addition to strong cruise sales overall, they report that clients are spending more on longer cruise vacations, upgrades and new experiences.

At the same time, low cruise fares and discounting are still challenging, and booking windows remain short, agents told Travel Market Report.

Dreams over money
“People are still planning in a shorter booking window, while they’re going for a bit longer and are willing to move up a category or two to get the cruise they want,” said Eric Goldring, owner of Goldring Travel in Colts Neck, N.J.

Many of Goldring’s clients are more willing to splurge on more costly upgrades and excursions than in previous years. “My clients seem to be much better about going after their desires instead of saving money.”

A top-selling Seabourn agent, Goldring is able to offer his clients preferred upgrades on the line. “It used to be that no one would take them. [Now], I’m seeing more people paying $5,000 to $7,000 extra for the upgrade. That’s not insignificant.”

While cruisers are spending more, they are not yet spending at pre-recession levels, according to agents.

“Cruisers are still value conscious; no one is throwing caution to the wind, even the customers doing 50- to 70-day world cruises,” said Goldring.

The river cruise effect
Nancy Yoffe, ECCS, of Cruise Planners in Spartanburg, S.C., said a boost in river cruise sales has helped her business.

“My business is definitely up, because river cruising has exploded. People are finally showing an interest in that product,” said Yoffe. “People over the age of 50 have now done a lot of cruising, so they’re looking for something different and unique.”

Shifting demographics in South Carolina also have helped Yoffe shift her sales into more upscale product, she said.

She’s also selling longer itineraries, she said.

Europe blues
As previously reported, Europe  is a soft spot for cruise. (See Cruise Lines Leave Europe, as Economy Worsens.)

“I have an international client base, and the economy in Europe is a disaster – that’s a problem,” said Goldring.

 “The other thing is that a lot of my clients are experienced cruisers and it is not appealing for them to go to the same place as usual.”

Carnival blues
For one Texas-based agent, the year started off strong despite the dramas surrounding Carnival’s Triumph.

“Wave Season was really good, but business is starting to slow down now at the end of the school year. I have a lot of clients with families and kids,” said JJ Kuykendall, owner of a Cruise Planners franchise in Conroe, Texas.

While some customers in drive markets for cruises expressed concern about Carnival’s troubles, most were still interested in booking the line, due to its low fares, she said.

“The biggest fallout I’ve seen is cruise fares going down. I have seen a few people who said they’re not going to cruise on Carnival when first inquiring about a vacation,” said Kuykendall.

More work for agents
Those low fares may drive bookings, but they’re tough on profit margins.

Rampant discounting also makes her work life more difficult overall, Kuykendall said. She recently had to rebook a cruise vacation eight times for one client.

“It is more work for us, and we make less in the end,” said Kuykendall. “But I still tell clients to jump in early and book. If the price goes down before their final payment, they’ll get a lower rate.”

Yoffe said she had to rebook a recent client twice in two weeks to keep up with falling prices.

“You just have to really accept that this is how it is now,” said Yoffe. “I don’t like everything that’s going on, but I still love the industry.”

Land vacations are up
Still, Yoffe is selling more land vacations this year. “When we first started out, we were cruise-only, because that’s where the money was.”

“I’m finding younger people like more land excursions and all-inclusive vacations,” said Yoffe. “They like to know that what they budgeted is what they’re going to spend.”