Size matters... in the cruise sector

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A cruise holiday has traditionally been associated with the mature market but cruise lines’ propositions increasingly cater to younger guests.

With more ships sailing the Gulf, consumer interest in the cruise product is growing, but travel agents should be aware that one size does not fit all in this sector, says Kathi Everden.

Worldwide, the cruise industry is booming with more ships on order, a growing sophistication of product and a source market that is expanding both geographically and in terms of age profile.

And, while the Gulf represents a minor fraction of that global market, it is an area of potential that canny agents see as an antidote to zero commissions and online bookings.

The numbers travelling are still small, but the all-inclusive nature of the product and the bolt-ons such as flights, transfers and pre- and post-accommodation means a single cruise booking can provide a welcome substitute.

Two factors are helping boost the growth in cruise as a viable holiday option.

Firstly, the global nature of the product now as cruise lines seek out the new and the unusual, growing away from the traditional Caribbean and trans-Atlantic stamping grounds.

Secondly, the luxury element is creeping on board, with butler service, spa suites, celebrity chefs, private balconies and the expansion of entertainment beyond tea dances and napkin folding to include cookery lessons, wine tasting, golf simulators, bowling alleys, ice rinks and more.

Figures from the Cruise Lines International Association (CLIA) show that in 2007, 12.6 million people cruised, up 4.6% on the previous year, while research suggests that just 7% of these book online, compared to nearly 50% for land-based holidays and flights.

"Families and multi-generational travel are the biggest growth areas for the cruise industry, followed by the baby boomers (aged 43-62), which dispels the perception that cruises are strictly for seniors or couples" states a CLIA spokesperson.

But, as the number of cruise ships expands - some 36 are on order in European shipyards alone - the challenge in selling cruise as a vacation lies in knowing what ships can offer prospective customers.

Even the lines themselves are seeking to address this problem by launching niche products to capture all segments of the market.

Royal Caribbean, for example, which operates both Royal Caribbean and Celebrity ships, has a new Azamara brand with smaller ships offering luxury destination-driven itineraries and has also bought Pullmantur to expand the Spanish market.

For the trade, one solution is to touch and feel the product, an option increasingly available in the Gulf as more ships sail in for a winter season. Meanwhile, Costa and Aida are already in situ, back again next winter for their third season of cruises in the region, while Silversea has 10 cruises visiting the Middle East in 2008.

Dubai and often Muscat are playing host to ships such as the QM2 and Holland America's Rotterdam as well as Crystal, Hapag Lloyd, Radisson Seven Seas, Princess and Swan Hellenic vessels.

The world's largest sailing yacht Sea Cloud Hussar is the latest name to come to town with regional Gulf cruises out of Dubai launching in January 2010.

Costa has taken advantage of the publicity generated by its back-to-back sailings out of the Dubai hub to considerably boost awareness with product training, onboard dinners and additional fams, while Silversea has also brought the product to market.

"We have hosted ship visits on Silver Cloud and Silver Whisper in Dubai as well as individual visits in Muscat, Abu Dhabi and Jeddah," says Jacqueline Campbell, managing director of The Travel Collection, which is working with the cruise line to build its profile in the region.

"In total, we have showcased the product to 150 individuals this spring with a mix of travel agents, consumers and media contacts - and will also be offering agent training and promoting Silversea's online agent training programme too."

Among the visitors to the ships during their lay-over at the Dubai Cruise Terminal were representatives from Kanoo Holidays and Sharaf Travel, both of whom were appreciative of the opportunity to walk the decks and sample the service.

"The inspection tour was very information and an opportunity to see the sheer luxury of the product," says Aloke Day, manager at Sharaf Holidays.

Lalit Khemani, holidays manager at Kanoo adds: "With Costa and now Silversea activities, there is more awareness in the market and it was good to see the difference between the two products since Silversea is aimed more at the luxury traveller while Costa is family oriented."

Both note traditional market preferences that help define which cruise to recommend to a client. "Low spending Indians might prefer Asia with a two- to four-day cruise, while across the board, high spending Europeans, Arabs and Asians are opting for Europe and the Americas," says Dey.

Khemani adds: "More people are looking at the Far East as the issue for many is food - Asian itineraries tend to cater better for vegetarians - and the advent of more lines in that region means they can suit all tastes."

The comfort factor

For Costa, however, the debut in Dubai has permitted a massive boost in profile, one that is reaping rewards in terms of increased bookings.

Francesca Mugnari, sales manager for Costa at Alpha Holidays says the family-oriented facilities onboard were appealing to the market, while the new 2000m² spas with their dedicated cabins and restaurant were another plus point for travellers from the Gulf.

"Cruising is becoming an affordable luxury," she says. "By creating a presence here we have been able to ensure the trade is comfortable selling our product as we have ships in port every week (in the winter) to permit site inspections as well as agency nights and cruise specialist seminars onboard - and this year, we will be launching incentives to reward frontline staff with vouchers for each cabin they sell as well as dedicated online access to our system for selected agents."

In terms of destination trends, the Mediterranean is a big seller says Mugnari.

"We have eight ships there this summer with departures from Venice, Rome, Barcelona and Marseilles for instance, but this year I have noticed that there is more interest in Northern Europe and the Baltic," she says.

Royal Caribbean's executive director for the Middle East, Lakshmi Durai, concurs that the Med has been the hit of the season helping to drive a 20% bookings hike this year.

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