Royal Caribbean: Mobile Devices Driving Onboard Spending

Serenade of the Seas leaving the Port of Vancouver photo credit Spacejunkie2 Flickr Account.

More and more guests are prebooking onboard experiences and spending money on their mobile devices on Royal Caribbean Group ships, said Jason Liberty, president and CEO.

“The outsized increase in our onboard revenue over the past couple of years has been fueled by new capabilities introduced to make it easier for guests to pre book onboard experiences. We will continue to enhance those capabilities in 2024,” said Liberty.

Approximately 70 percent of guests book at least one activity pre-cruise, he said.

“About a third of onboard purchases are now coming through the mobile app and we already have about 40 percent more pre-cruise revenue booked in 2024 as compared to 2023,” he continued.

“As a reminder, customers who purchase onboard experiences before their cruise, spend about two and a half times more than those who do not buy pre-cruise.”

Phocuswright: Mobile is key battleground, but it’s not all about apps

By Travolution

By Travolution
Image: Phocuswright’s Marcello Gasdia

Mobile is now firmly established as the key battleground as the world’s biggest online travel firms fight for dominance.

At last week’s Phocuswright conference in Los Angeles, global giants Booking.com, TripAdvisor, Expedia and Kayak all highlighted mobile as vital to success.

Central to this for online agents and metasearch sites is how they use the mass of data available to personalise the mobile experience to tailor results for customers.

In emerging markets such as China and India the channel is essential as consumers are getting online through mobile first rather than via desktop.

Sam Shank, founder of HotelTonight, the mobile-only last minute hotel booking app, said the OTA role was evolving so that they were becoming more like personal travel assistants.

And Darren Huston, chief executive of Booking.com, the commercial engine of the world’s most valuable online travel firm Priceline, said: “Mobile is critical as a new platform to drive transaction but, more importantly, it’s offered everyone a computer in their pocket.

“People now book the first thing they need in a destination and then wander around with a phone.

“Mobile’s transforming the ability to create really cool end-to-end experiences for our customers.”

Dara Khosrowshahi, chief executive of Expedia, said the OTA was benefiting from a growing travel industry and, in particular, the fast-expanding mobile sector.

Kayak founder Steve Hafner said the Priceline-owned metasearch site’s focus was on improving its app and a “very different experience” would emerge in the next six months.

Facebook global head of travel strategy, Lee McCabe, said travel was trailing other online sectors in terms of the app experience.

“The most important thing is convenience: do not make me work too hard; if it’s a transaction app, let me transact quickly and easily.”

A major open question for travel firms remains whether to favour apps or the mobile web, and Phocuswright produced research among US users suggesting the jury remains out.

Marcello Gasdia, Phocuswright senior analyst, said high level of use of mobile apps suggests they are dominant, but firms should not be too quick to discount the mobile web.

Gasdia said most app use involved three activities: checking emails, social media and gaming, with the amount of time spent in Facebook accounting for half an hour a day on average.

“Travellers are doing very few things in apps, creating the illusion they are taking over the mobile web,” said Gasdia.

Travel app usage, whether it involves a metasearch site, an OTA or a hotel or accommodation review or airline site, accounted for just 1% of daily app use.

TripAdvisor was found to be used by 30% of smartphone owners. Of these, 30% used the app and 18% the mobile website. Only 38% of visitors were app-only.

For OTAs, the research found there were nearly twice as many mobile web users as app users, the former averaging seven page visits per session while apps saw five sessions a month on average.

“App users were not opening these OTA apps every single day. Reach was not as high as we anticipated,” said Gasdia.

The Phocuswright research found even among people known to be actively planning a trip in June, OTA app engagement was low at just one in 10.

More than four in 10 did use an airline app, suggesting a “sweet spot” that was driving app adoption for airlines, said Gasdia.

– See more at: http://www.travolution.com/articles/2014/11/19/9043/phocuswright-mobile-is-key-battleground-but-it%e2%80%99s-not-all-about-apps.html#sthash.KT4ElfON.dpuf

RCCL’s new Cruise Planner replaces outdated module

By Tom Stieghorst

Going on a cruise used to be as simple as booking a ticket and making a few choices about what to do. Guests often waited until they boarded to book shore excursions and spa treatments.

But the menu of cruise activities has expanded, as have the number of things that can be prearranged from shore.

Today, cruise lines are trying to make it as easy as possible to plan and book onboard activities in advance of departure. The proliferation of options has grown hand-in-hand with the technological capabilities that make selecting cruise activities easy.

The latest example comes from Royal Caribbean Cruises Ltd. (RCCL), which has retooled its planning function so guests can book everything from specialty dining reservations to beverage packages from the comfort of their couch.

RCCL New Cruise Planner

“We been focused on letting our guests hit the ground running on day one, whereas in the past, sometimes day one was spent figuring out what you were going to do,” said Jeff DeKorte, vice president for Web and digital media at RCCL.

RCCL’s new tool, Cruise Planner, replaces an 8-year-old pre-cruise planning module that was increasingly outdated.

The old system had none of the new e-commerce functions, such as shopping carts and wish lists, things that consumers increasingly take for granted when buying things online.

“Every time you bought a new product during the session, you had to enter your credit card again,” DeKorte said. “It was very difficult.”

One of the big improvements in Cruise Planner is the ability to migrate between digital platforms without losing data. So, for example, someone might start researching shore excursions in the morning on their mobile phone, continue at lunch on their desktop PC, and finish after dinner on a tablet while watching TV.

Tablet functionality, which barely existed on the old platform, is now robust, DeKorte said. He hopes that moms that typically do a lot of the cruise planning can now share the load.

“Our vision was to create a product where … the family could lean back on the couch and literally she could hand the tablet to the kids and say, ‘You guys figure out what you want to do, watch the videos, look at the shore excursions, [select] swim with the dolphins and add it to the calendar or the wish list.’

“And then mom can come back later and she can organize,” DeKorte said.

Travel agents can use the tool to the extent that they do pre-cruise planning for clients, either as a service or for a fee.

“It really depends on the agency and the level of service they’re providing to their guests,” DeKorte said. “For those agents who choose not to provide that service to the guests, there’s a much easier tool for them to direct the guest to use.”

As the list of things to prearrange before a cruise grows longer, it threatens to take some of the serendipity out of a cruise vacation. Simply showing up at the ship without a sheet of activities selected in advance seems like a throwback to a simpler time.

But DeKorte said tools like Cruise Planner are meant to provide options, not become a burdensome requirement. “The beautiful thing is for guests who want to take their vacation one day at a time like that, they certainly can,” he said.

At least one other line is also making moves to make pre-cruise planning easier.

Norwegian Cruise Line recently opened its specialty restaurants to reservations 90 days before departure, up from 45 days previously. Guests can also book entertainment options such as Blue Man Group or Cirque Dreams on the Norwegian Epic, Breakaway and Getaway through their MyNCL accounts.

Spa treatments on the Norwegian Epic can now also be booked in advance. Vanessa Picariello, a spokeswoman for Norwegian, said the spa preregistration may be extended to other ships, but that Norwegian still doesn’t have a timetable for when that might happen.