Will CroisiEurope’s pricing, diversity resonate with U.S. passengers?

By Michelle Baran

InsightFrench river cruise line CroisiEurope is making a run at an already pretty crowded U.S. market with a simple concept: low-cost river cruises with a multicultural mix of passengers.

“The founder of the company had the philosophy to make this product available for the mass market,” said Michel Grimm, international sales director for CroisiEurope, which after 38 years in business recently unveiled a new website and call center devoted to the U.S. source market.

“Our pricing is very aggressive,” Grimm said, adding that an eight-day CroisiEurope river cruise including meals, open bar and excursions won’t run more than $2,400 per person.

“With these kinds of prices, we come with an offer that is very interesting,” he said.

For anyone who knows the river cruising market, that’s actually quite a deal.MichelleBaran
As a European river cruise operator, CroisiEurope hosts a mix of nationalities onboard, but the company’s executives said that for the right customer, that should be seen as an asset, not a drawback.

“This is not for people who want the safety of being with all other English speakers,” said John McGlade, director of CroisiEurope’s U.S. reservation center. “For people who want the international experience, it’s the perfect marriage.”

CroisiEurope, which is still run by the founder’s children, builds all its vessels in the same shipyard in Belgium. Building, owning and operating all its own vessels is how the company claims it can keep its pricing so competitive, a concept it is bringing to the canal barge market, as well.

CroisiEurope is also building up its own fleet of barge vessels that have a capacity of 24 guests, in contrast with many of the existing canal barges that can often only host six to 12 passengers onboard, rendering them an expensive vacation option.

One other differentiator? Building ships of different sizes that can navigate lesser-sailed inland waterways, including the Guadalquivir and Guadiana rivers in Spain, the Tisza River in Hungary and some of the smaller estuaries off of the Danube and Rhine rivers.

CroisiEurope is based in Strasbourg, France, and has a fleet of 30 ships, including several barges and coastal cruisers, which sail in France, Italy, Spain, Portugal, Germany, Belgium, Eastern Europe, the Mediterranean, Vietnam and Cambodia.

French river cruise line CroisiEurope pursues U.S. customers

French river cruise line CroisiEurope pursues U.S. customers

By Michelle Baran
 
European river cruise operator CroisiEurope is expanding into the U.S. market with a website and call center devoted to U.S. retailers and clientele. 

The 38-year-old CroisiEurope is based in Strasbourg, France, and has a fleet of 30 ships, including several barges and coastal cruisers, which sail in France, Italy, Spain, Portugal, Germany, Belgium, Eastern Europe, the Mediterranean, Vietnam and Cambodia. 

In 2014, the French company is introducing an open bar onboard its ships, except on Christmas and New Year’s cruises. CroisiEurope is also adding itineraries in Cyprus and Israel, as part of its coastal cruises division, as well as throughout Europe. 

In 2015, the company will be adding a fourth vessel on Portugal’s Douro River and will be exploring more development possibilities in Asia. 

CroisiEurope is a family-run business and employs a multilingual crew. 

Tui claims to have outperformed the market in January

Tui claims to have outperformed the market in January

Tui Travel claims to have “significantly outperformed” the market in the peak January selling period for summer holidays.

Sales volumes are now ahead of the company’s 9% capacity reduction, and is 35% sold to date, described as in line with the previous year.

Capacity has been cut for North Africa and the Eastern Mediterranean, with some of this reduction offset by increased capacity in the Canary Islands.

“Turn of year trading has been ahead of expectations and we are particularly pleased with our online performance,” Tui said.

The average selling price is up 8%, reflecting cost base inflation of approximately 5% and the continued increase in differentiated content.

“We have continued to increase the proportion of holidays sold online with 42% booked online for summer 2012, up six percentage points versus the prior year.”

All inclusive bookings are up by seven percentage points to make up 55% of bookings to date for the first summer that First Choice becomes exclusively all inclusive.

The ‘all in’ holiday concept is proving attractive, particularly in the current economic environment.

“As we continue to expand our differentiated offering, which traditionally books earlier, these products have accounted for 64% of bookings to date, up seven percentage points on the prior year,” Tui said.

UK bookings for this winter have improved since early December, with volumes continuing to move towards a capacity reduction of 9% and there is less left to sell against this time last year.

The booked load factor is currently 71%, described as being broadly in line with last year.

“We are pleased with our price performance, with average selling prices up 5% in light of inflationary cost increases and increased differentiated sales,” Tui said.

“Demand for differentiated products continues to be strong with volumes up 15%. These products now account for 62% of our sales, up 12 percentage points on prior year.

“As anticipated, North Africa remains challenging with volumes down 23%. Across our programme strong demand in the lates booking period has resulted in improved load factors for November, December and January.”