Top Reason to Cruise is Value for Money

 The top reason for choosing an ocean cruise is value for money, according to new trade research.

Clia’s first Travel Agent Research Panel Questionnaire found the value of a cruise was ranked first, ahead of itineraries and standards of services. More than 75% of respondents said customers spent more on ocean cruising in 2016.

High standards of dining and promotional offers were ranked fourth and fifth as key reasons in choosing an ocean cruise.

Clia surveyed just under 100 agencies from the high street and online, as well as homeworkers.

Almost 75% of agents said the industry had grown in the past year, the biggest increase being sales from couples, followed by families.

The survey’s results were released at Clia’s cruise forum in Windsor this week, where it also announced that Royal Caribbean’s vice-president of Europe, Middle East and Africa, Stuart Leven, will succeed Lynn Narraway, managing director of Holland America Line and Seabourn, as chairman of the association.

Andy Harmer, director of Clia UK and Ireland, said: “I don’t think it’s a surprise that customers are choosing cruise for value for money.

“People are more conscious of not only a holiday’s price, but what they spend during the trip.

“More people want to go all-inclusive. Cruise is the best value for money because so much is included.”

Phil Evans, managing director of agency Cruise Nation, said: “Consumers take everything into account including spending and activities. This is why families are a massive, growing market segment.”

The key factor in customers choosing a river cruise was destination, followed by standards of service and value for money.

Cruise industry must do more to boost numbers, Clia chairman says

Cruise industry must do more to boost numbers, Clia chairman saysThe cruise industry is not doing a good enough job to drive forward the number of Brits taking a cruise, Clia UK and Ireland chairman Jo Rzymowska has told cruise lines.

Speaking at the Clia UK and Ireland AGM on Friday, the Celebrity Cruises boss said the industry needed to get across the array of variety offered on cruise ships – compared to what is offered by land-based holidays.

She said that while the UK was leading the way in Europe in terms of the number of people taking a cruise, numbers hadn’t risen as much as hoped.

“Just under 22 million people every year are cruising with us (globally) – that has doubled over the last decade, which is significant,” she said.

“And in the UK we are still leading the way from a European point of view with 6 million cruises and just over 1.7 million of those from the UK. However, that has remained fairly static as we know for the last couple years.

“We are leading the way, but there is a country snapping at our heels – the Germans. It’s up to us collectively to not let that happen.”

Rzymowska said land-based holidays didn’t offer the same variety as cruises, and that ocean and river vessels offer great access to destinations, a better and more consistent level of customer service, and more choice to suit all needs.

She added: “Land-based holidays don’t offer these to the extent we do, but still only 1.7 million Brits take a cruise. Quite frankly, as an industry we are not doing a good enough job and we need to do a far better job than we are today.”

Clia UK and Ireland’s three working groups – PR, consumer engagement and trade engagement – have been coming up with great ideas on how to take the industry forward, according to Rzymowska.

Globally 95% of the cruise capacity is a member of Clia, with 61 cruise lines. In the UK, US and Australia, Clia works with more than 50,000 agents and Rzymowska said Andy Harmer’s team in the UK was leading the way.

“Our aim is to talk to agents even better and more effectively than we are today. The UK and Ireland, under Andy’s leadership, is leading the way in doing that.”

Preview 2013: Cruise

Preview 2013: Cruise

By Tom Stieghorst
Preview 2013As 2013 arrives, the cruise industry can only pray that there is no repeat of the signature event of 2012.

A year ago, travelers seemed ready to pay higher prices for cruises. Then the Costa Concordia accident happened, casting a pall over cruising that lasted for a good part of the year.

Looking at next year, Micky Arison, chairman of Carnival Corp., which owns Costa Cruises, said in September that prices are generally well positioned to reach parity with 2011 by Q2 2013.

However, for the Costa line in particular, “to climb back to where things were before will take a couple of years beyond 2013,” Arison said.

In some markets, there are signs that next year will be more normal. Starting in January, Norwegian Cruise Line is hiking prices 10% on its Pride of America ship in Hawaii.

Alaska will continue to regain capacity in 2013 that was lost to the ill-conceived passenger head tax several years ago. But trouble looms in 2015 with a tighter standard for low-sulfur fuel, though some breathing room remains for reaching a regulatory compromise.

The biggest unknown hanging over the industry for 2013 is Europe, both as a source of passengers and as a draw for North Americans faced with continued high airfares.

At Royal Caribbean Cruises Ltd., capacity for 2013 is down 20% in the Western Mediterranean and 9% in the Eastern Mediterranean.

“The European market continues to be the most puzzling market we’re facing,” said RCCL Vice Chairman Brian Rice.

Closer to home, cruise lines continue to bring more ships to within driving distance of their customers. Princess Cruises in 2013 will operate a ship year-round from San Francisco, giving the Bay Area drive-market itineraries to Alaska, Hawaii and coastal California.

Disney Cruise Line will offer a full year of cruising from Galveston, Texas, another popular drive market, while Norwegian, Carnival Cruise Lines and Holland America Line will all operate additional cruises from Boston.

NCL BreakawayBut the port with the biggest potential increase in passengers next year is New York, which stands to gain 4,000 passengers a week starting in May with the introduction of the $840 million Norwegian Breakaway.

The Breakaway is staking its claim to New York-area loyalists with a ship that boasts Sabrett hot dog carts and Brooklyn Brewery beer among its food offerings. Five water slides, a two-story spa and Norwegian’s first seafood restaurant are some of the Breakaway’s other attractions.

Another big debut will take place across the pond next year with the delivery of the Royal Princess, the first new ship for Princess in nearly five years. The 3,600-passenger ship will do 12-day Mediterranean cruises before repositioning in October to the Caribbean. Among its noteworthy features will be a cantilevered, glass-enclosed skywalk that extends 28 feet beyond the ship’s edge.

MSC Cruises also has an entrant in the newbuild derby, the $742 million Preziosa, which will boast a 394-foot water slide, the world’s longest at sea.

Carnival Cruise Lines in 2013 will take the wraps off the largest ship makeover in its history when it refits the 17-year-old Carnival Destiny in a 49-day drydock. When it emerges in April, the vessel will sail under a new name, the Carnival Sunshine, and with a slew of new features.

The $155 million transformation will add part of a new deck and expand two others, giving the ship a new layout.

Another 182 cabins will be added to the ship, along with new restaurants, more sports activities and a three-story, adults-only Serenity space.

The Sunshine is emblematic of the trend toward reusing and upgrading older ships rather than ordering new ones. Cruise executives say they want to add new ships in a more measured way than in the past to avoid excess capacity, which dilutes cruise pricing.

They are putting capital into retrofitting older ships with features from newer ones to give them a contemporary feel.

Another example is the Royal Advantage program under way at Royal Caribbean International, which is spending $500 million to modernize 11 ships.

Due for a makeover in 2013 are the Legend, Brilliance, Independence, Vision and Navigator of the Seas, which range in age from 5 to 18 years old.

Prominent among the additional features will be specialty restaurants that boost onboard spending, but the whole package should enable Royal, and agents, to tout new amenities that command better prices.

Deployments in 2013 will feature more cruise segments that can be combined into longer voyages. Celebrity Cruises, for example, will offer more short cruises in Europe that can be paired with a second short cruise with a different set of port calls.

“We want to have more seven-day itineraries for that family or couple who can’t get away for a long time,” said Dondra Ritzenthaler, senior vice president of sales at Celebrity.

Luxury lines, as always, will be focused in 2013 on destination development. Azamara Club Cruises will offer a night excursion with each cruise after its two ships come out of drydock early next year.

Another trend is a tighter watch on rebating, which makes for an uneven playing field among agents. Silversea Cruises cracked down on client poaching by saying that agents who rebook a client more than 30 days after they have already booked with a different agent will not receive a commission.

Whatever actions cruise lines take to improve their prospects, some of the key ingredients to prosperity remain beyond their control.

The wild card factors of the economy, oil prices and geopolitical stability can upend any strategy the industry has conceived.

That said, economic trends seem favorable going into 2013.

The wealth effect from a rising stock market could drive a more robust Wave season early in the year. At about $90 a barrel, oil prices were off their March high of $110 a barrel. And U.S. unemployment fell to 7.7% in November, meaning more consumers would be getting a paycheck to spend on vacations.

Although the jobless rate remains high, travel agent Grace Dieleman, owner of Vellinga’s Travel Service in Chatham, Ontario, said that inverting the equation gives 2013 a rosier hue.

“You always hear about 10% unemployment,” Dieleman said, “but that also means that 90% of the population is still working.”