Royal Caribbean’s increase in on-board revenue attributed to cruise ship revitalizations

Royal Caribbean’s increase in on-board revenue attributed to cruise ship revitalizations

Royal Caribbean reported third quarter financial results today and the big “star” of the results was the onboard spending, with a 7% increase overall.  So what is Royal Caribbean’s secret?  They think it’s all about the revitalization program.

During the financial results conference call, Royal Caribbean Chief Financial Officer Jason Liberty pointed to a few key factors that are part of the fleet-wide renovations to why the company is seeing better guest spending onboard their ships.

  • Specialty Restaurants
  • Casino
  • Internet
  • Unlimited alcohol packages
  • Shore excursions

“We benefited from new onboard venues introduced as a result of our revitalizations, and we saw further strength in spending from our U.S. customers, which helped generate improvement in gaming, beverage, specialty dining and shore excursions,” Liberty said during the conference call.Royal Caribbean CEO Adam Goldstein elaborated on how the company is looking to get more onboard spending, “So as I believe we mentioned earlier, gaming, beverage, shore excursions, retail and also some of the smaller revenue streams, internet has been doing well for us, which we wanted to see because we made a significant investment in, I think, 7 or 8x more bandwidth to the ships this year, and that seems to be paying off.

So a number of the investments that we have already made, we would expect to continue to pay dividends and revenue growth into 2014 and beyond. And we continue to look under every stone for onboard revenue opportunities that don’t conflict with the satisfaction of the product offering.”Basically, guests are spending more money in all these aspects and most of these venues are areas of the cruise ships that get upgraded or added as part of the revitalization program.  When each ship is refurbished, more restaurants are added and wifi is spread out to more areas across the ship. Add to that the new drink packages and Royal Caribbean is offering its guests more opportunities to spend money.

Cruise holiday searches see 66% upsurge, finds study

Cruise holiday searches see 66% upsurge, finds study

By Travolution
By Travolution
Online searches for cruise holidays in August soared by 66% over levels in May, new research reveals.

Consumers made a total of 2.5 million searches on Google UK for cruises in August, compared to 1.5 million in May.

Cruises to specific destinations made up 12% (289,890) of overall queries.

Independent cruise agent Iglucruise.com was the most visible site for destination-specific queries, attaining a 45% share of visibility in the organic listings, through ranking for 419 keywords. Thomascook.com took second place with 44%.

Vivavoyage.co.uk was the most visible advertiser in the paid listings, achieving a 51% share of voice. Virginholidayscruises.co.uk followed with 37%.

For cruise-related searches overall, Iglucruise.com was also the most visible site in natural search, capturing a 62% share of visibility. In paid listings, cruisecritic.co.uk dominated with 50%.

The cruise sector report by digital marketing agency Greenlight found queries for tourist excursions on the River Thames saw the biggest increase compared to the Caribbean, Mediterranean and the Nile.

Queries for cruises on the Thames totalled 9,900, with searches rising 71% on May’s level, compared to 42% for the Nile and 37% for both the Caribbean and Mediterranean.

At 19,200, cumulative searches for cruises to the Caribbean accounted for the majority of destination-related queries (7%), with the term ‘caribbean cruises’ being the most popular.

The Mediterranean followed at 17,500 (6%), with the terms ‘mediterranean cruise’, and ‘med cruises’ featuring prominently.

In third place was the Nile. Collectively, ‘nile cruise’ and ‘nile cruises’ pulled in 16,500 queries.

– See more at: http://www.travolution.com/articles/2013/10/16/7182/cruise-holiday-searches-see-66-upsurge-finds-study.html#sthash.x3PfBFla.dpuf

Brand plans in the Caribbean

Brand plans in the Caribbean

By Tom Stieghorst

*InsightAs cruising grows globally, the Caribbean finds itself competing with rich destinations that have plenty of capital. How do Caribbean countries find the resources to keep their edge in the battle for passengers?

One solution appears to be to tap into the power of established local brands, as some cruise lines and tour operators are doing in Jamaica.

Royal Caribbean International has struck a branding partnership with Red Stripe, the well-known beer brewed on the island by Desnoes & Geddes. The beer’s squat brown bottle and painted label are a Jamaican icon, and it is distributed in a number of foreign countries by Diageo, the worldwide liquor marketer.*TomStieghorst

Another example is support by Appleton Rum for tours of the 2,000 acre Good Hope estate, a plantation near Falmouth where Royal’s giant Oasis and Allure of the Seas ships dock.

Tour operator Chukka Caribbean Adventures offers the culturally-focused tours. This year it developed excursions for guests to the estate based on coffee, spices and rum, all which were once produced at the historical attraction.

Visitors can take a step back in time to when plantation culture was in its prime, and then purchase products before returning to their ship.

In addition to Appleton, sponsors include Jablum Coffee and Walkerswood Jerk Seasoning.

The use of international brands leverages the earning power of local Caribbean businesses beyond what they might otherwise yield. Some of that money can be returned to marketing local tourist sites to international travelers, fueling a virtuous cycle.

The possibility for rum and beer sponsorships across the Caribbean seems especially promising, with nearly every island producing its own version of rum, from Cruzan in the Virgin Islands to Mount Gay in Barbados and Betancourt in Haiti.

Beyond Red Stripe, beer exports with international followings include Presidente and Bohemia in the Dominican Republic and Kalik in the Bahamas.

Branded partnerships represent the kind of creative financial thinking that Caribbean destinations will have to employ to compete with rich destinations like Singapore and Hong Kong for cruise passengers.

Home-grown brands are a not-so-hidden Caribbean asset, and the time is ripe to put them to good use.