This article originally appeared in the August issue of AGENTatHOME magazine. Subscribe here to receive your free copy each month.
There’s a burgeoning trend underway in the cruise industry —
and it’s one that should be on every travel advisor’s radar. Clients are
spending more than ever on their cruise vacations, with demand rising for
luxury and ultra-luxury cruises, suite accommodations, ship-within-a-ship
concepts and exclusive experiences. Executives from Avoya Travel, Ensemble and
Nexion Travel Group discussed the "why" behind premiumization of the
cruise industry. Here’s what they had to say.
Beyond The Base Price
"Most travelers seem to regard the base price of a
cruise fare as just that: the start," said Jackie Friedman, president of
Nexion. "A vacation should be relaxing and fun, and if a shore excursion,
a specialty restaurant onboard or a beverage package make it that way, cruisers
are willing to spend."
Once clients see the value of a cruise, she adds, they are
often eager to add on activities and experiences that will make the trip even
better.
New Players and Record Growth
"Much of the increased spending we’re seeing is being
driven by the luxury and ultra-luxury cruise segments," said Rachel
Grogan, vice president of cruise for Ensemble. "Today’s affluent travelers
are placing a greater value on personalized service, exclusive access and
seamless travel experiences, and luxury cruise products are exceptionally
well-positioned to deliver on those expectations."
The market has also expanded significantly with the debut of
new luxury brands and concepts that "blur the lines between luxury hotels,
private yachts and traditional cruising," according to Grogan.
She adds that these new products appeal to travelers who are
willing to spend more for smaller ships, immersive itineraries, elevated
dining, larger accommodations and a higher staff-to-guest ratio.
Luxury Market Reaches New Heights
At Ensemble, the ultra-luxury and luxury sectors have grown
by 25% year over year, according to Grogan, which is reflected in strong demand
for partners such as Ritz-Carlton Yacht Collection, Aman at Sea, Ponant,
Silversea, Regent Seven Seas Cruises, Explora Journeys and Orient Express
Sailing Yachts.
"The real difference is that, over the last decade, new
luxury cruise lines have exploded — think about recent entrants to the market
such as Aman at Sea or Orient Express Sailing Yachts — and the classic luxury
cruise lines have responded by continuing to improve their ships and refine
their service," said Nexion’s Friedman. "I think success begets
success: The more luxury ships there are on the water, the more people see it
as an option."
Julie Howard, vice president of partnerships for Avoya,
meanwhile, stresses that high-end clients are looking at much more than cost
while planning their vacations.
"Luxury travelers continue to prioritize value over
price, seeking smaller ships, higher service levels, immersive destinations and
more inclusive experiences," she said.
Quality Over Quantity
Another trend on the luxury cruise front is less is more.
"We’re seeing a broader shift in traveler behavior,
particularly among affluent consumers, who are increasingly choosing to invest
more in fewer, higher-quality travel experiences," said Ensemble’s Grogan.
"Rather than taking multiple shorter trips, many are prioritizing one or
two exceptional journeys each year — making luxury cruising a natural
fit."
For her part, Howard of Avoya believes the larger story is
that consumers are intentionally choosing to upgrade their experience.
"Travelers today place a higher value on comfort,
personalization and exclusive access, and cruise lines have created more
opportunities to deliver on those expectations," she said, adding that
clients are intentionally choosing to upgrade their cruise vacation
experiences.
Demand for suites, private enclaves, ship-within-a-ship
concepts, premium dining and destination-rich itineraries continues to grow,
she adds, noting that travelers are also extending cruise vacations with pre-
and post-cruise stays, immersive shore experiences and specialized programs
that enhance the overall journey.
What Contemporary, Premium Guests Want
Clients sailing on ships in the contemporary and premium
sectors, meanwhile, are selectively elevating their experiences with upgraded
stateroom categories, ship-within-aship concepts, premium beverage and dining
packages, Wi-Fi connectivity and curated shore excursions, according to Grogan.
"Travelers continue to prioritize convenience and
value, and many are willing to pay more when those upgrades deliver a more
seamless, personalized or elevated vacation experience," she said.
The Multigenerational Crossover
Crossovers among luxury, premium and contemporary cruises
are not uncommon, particularly in the multigenerational market.
"You can have a couple who loves to sail on Regent or
Silversea who decides to take the kids and grandkids on Royal Caribbean or
Disney Cruise Line, and possibly do the ship-within-a-ship," Grogan said,
pointing out that even contemporary lines offer luxury products, such as Royal
Caribbean’s Ultimate Family Suite. "There is truly a cruise for everyone.
The trick is finding the right travel advisor to guide you."
The Advisor Perspective
Two advisors affiliated with Travel Experts weighed in on
the premiumization of the cruise industry, particularly as it relates to the
luxury market.
Christina Schlegel, owner of Bluetail Travel, says she is
seeing longtime and new clients opting for longer itineraries and
higher-category suites than in the past, which is resulting in higher revenue
per voyage.
"Newer brands such as Ritz-Carlton Yacht Collection and
Explora Journeys are appealing to affluent travelers who have never cruised
before, thereby expanding the market," she said. "This new category
of ships is especially attractive to a new generation of luxury travelers, many
in their 40s and 50s."
Elaine Smith, owner of E-Destinations, finds that luxury
travelers are willing to spend more on the things that make their vacation feel
effortless and memorable.
"They’re choosing larger suites and premium airfare,
and extending their trips with a few nights before or after the cruise so they
can really enjoy the destination," she said. "With so many new ships
and new cruise lines entering the market, the opportunities for travelers are
almost endless."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
