Cruise line consultant Bob Dickinson

Cruise line consultant Bob Dickinson

By Tom Stieghorst
Bob DickinsonFormer Carnival Cruise Lines CEO Bob Dickinson has spent the past year consulting for Carnival Corp.’s four North American brands. His assignment ends May 31. Dickinson took time out from a hiking trip in California’s Napa region to speak with cruise editor Tom Stieghorst about how cruises need to be marketed and how crucial agents are to capturing the first-time cruiser.

Q: What’s your overall opinion of the current state of cruise line marketing?

A: For the last number of years — six, seven, eight years — cruise lines have been undermarketed. When the fuel prices went up, the first thing to go was the TV advertising budget.

Social media is fine, but social media doesn’t reach first-time cruisers. It’s sort of like Al Gore’s inconvenient truth — or in this case, an inconvenient falsehood, that we can substitute one for the other.

Q: Is anyone doing better than the rest?

A: Look at Viking River Cruises and what they’ve been able to do with Masterpiece Theater.

It’s not a huge TV buy, but the visual of whatever it is that is in the commercial fully explains that riverboat experience, makes it aspirational, makes it achievable, makes it so that I see myself in that picture, certainly in the over-50 set, which is who they’re marketing to.

Q: What role do travel agents play in connecting the majority of people who have no experience with a cruise to the insiders who run the industry?

A: Travel agents are the biggest gateway to first-time cruisers, and the cruise industry in the last couple of years has not always been friendly to the travel agent — and in some cases tied their hands. When you’re selling three-, four-, five-day cruises where the noncommissionable fare is as much as the cruise ticket and you’re getting 15% of $149, why would they sell that? Let them sell Sandals, let them sell river cruises, things where there’s a lot of money.

Q: What changes should the cruise lines make?

A: I think some cruise lines have already changed back and have realized that the industry has overplayed its hand. In general, I think all of the brands, certainly the brands I worked with for the past year, are more agent-friendly this year than they were a year ago in terms of their policies and their procedures: pricing, co-op advertising. Every one of the four Carnival North America brands has better policies in place now than they did a year ago.

Q: Did you end your consulting agreement with Carnival or did management?

A: Very candidly, that was their choice. A consulting agreement is like a marriage; if one partner doesn’t want it, the other doesn’t either, if you know what I mean. If there is a willing audience at some point, I would like to do some [other] marketing or management consulting.

Q: Are you still working with the Camillus House homeless shelter in Miami? What else are you up to?

A: On Aug. 1, we’re going take another 100 of the most hard-core, chronic homeless in the city and start them on the process of getting their lives back together. [But] I’ve cut back my time commitment, from 30 to 40 hours a week after I retired to 10 to 20 hours a week now. [My wife] Jodi and I are kind of on a second honeymoon. [In Napa] we’re walking about two hours a day on average, enjoying the restaurants and just hanging out. On June 4, we’ll be going to [our] home in North Carolina. We’ll be there throughout the summer.

Two Holland America ships will move to P&O Australia

By Tom Stieghorst
Holland America's RyndamCarnival Corp. said it will transfer two of Holland America Line’s ships, the Ryndam and Statendam, to its P&O Australia subsidiary to capitalize on growth prospects in that country.

The ships will depart the HAL fleet in November 2015.

HAL is scheduled to take delivery of a 2,600-passenger newbuild in 2016, and that will more than replace the capacity of the two smaller, older ships.

Statendam and Ryndam, delivered in 1993 and 1994, respectively, each carry 1,260 passengers at double occupancy.

After the move and the delivery of the newbuild in 2016, HAL would have 14 ships in its fleet, and P&O Australia would have five.

The move fits a trend towards replacing a number of smaller ships with fewer, larger ones. Seabourn, a Carnival Corp.-owned luxury line, last year sold three of its 212 passenger ships to Windstar and is taking delivery of a 604-passenger ship in 2016.

Cruise industry capacity has been expanding rapidly in Australia. For Carnival Corp., growth has gone from two P&O ships 10 years ago to six full-time ships, including three from P&O, two from Princess Cruises and one from Carnival Cruise Lines.

The return of the Sun Princess full-time to Australia next year and the two additional P&O ships will increase that number to nine.

Other companies have made similar moves.

The number of Australians taking a cruise has grown 130% in five years, Carnival said. The total of 800,000 last year is projected to grow to 1 million by 2016.

“Our ability to work among our brands to make strategic deployment decisions is a great example of our focus on leveraging our scale and increased collaboration,” commented Carnival Corp. CEO Arnold Donald. “This is an exciting development on many levels.”

Carnival gets bigger in Texas

By Jerry Limone
Carnival FreedomCarnival Cruise Lines will have three ships based in Galveston when the Carnival Freedom joins the Magic and Triumph at the Texas port next February.

Carnival said no other cruise line has deployed three year-round ships in Texas.

“In partnership with the Port of Galveston and the local community, we have been able to increase our passenger counts fivefold since we first launched service from Galveston in 2000,” Carnival Cruise Lines CEO Gerry Cahill said. “Additionally, we are extremely grateful for the support of our travel agent partners who have played a key role in the growth of our Texas cruise program.”

Before arriving in Galveston, the 3,000-passenger Freedom will undergo a previously announced makeover that will add Fun Ship 2.0 product enhancements, including Guy’s Burger Joint, BlueIguana Cantina, RedFrog Pub and the Camp Ocean kids’ club.

Carnival Freedom will sail a 12-day repositioning cruise departing Fort Lauderdale on Feb. 2, arriving in Galveston on Feb. 14. The cruise will call in St. Kitts, St. Lucia, Curacao, Aruba and Grand Cayman.

The Freedom will kick off its new schedule from Galveston with a six-day Caribbean voyage to Costa Maya, Mexico; Belize; and Cozumel. Following the six-day voyage, the Freedom will sail seven-day Caribbean cruises year-round.