Smooth Selling in 2015
Predictions for the cruise market in the coming year

What’s in store for your cruise-selling business in 2015? Skyrocketing sales? Flat revenues? Rising NCFs and falling commissions? Your best year ever?
Of course, the health of your business performance depends on what happens in the cruise industry. So as we enter the New Year, we asked a number of cruise line executives to peer into their crystal balls and give us their best predictions and spotlight top trends for 2015. Here is what they told us.
Longer Vacations
While several lines are operating shorter cruises in hopes of attracting more first-time cruisers — a goal that will continue into 2015 — some executives are seeing increased demand for longer vacations.
“The trend in 2015 is toward longer vacations, not shorter. Thanks to the Baby Boomers, more and more people have disposable time,” says Hans Birkholz, president and CEO of Windstar Cruises, a growing, small-ship line. “There are opportunities for vacation providers to fill that time with interesting things for people to do. In the cruise industry, that means pre-, post-, and even mid-cruise land packages that are bundled into the price of the cruise fare. On our 18-day “Wonders of Arabia” itinerary, for example, we include an excursion to Luxor, right in the middle of the cruise. Guests tour the temples and Valley of the Kings, spend the night in a hotel, and then we bring them back to the yacht. It is tremendously popular.”
River Cruise Boom
It might seem obvious, but we’ll say it again: River cruising is exploding in popularity. And the growth shows no sign of stopping.
“Avalon expects 2015 to be another record year for passenger volume,” says Patrick Clark, managing director of Avalon Waterways. “The river cruise travel style continues to be one of the most popular vacation choices. Avalon is experiencing very good advance bookings in Europe, especially on our seven-night Rhine, Danube and South of France sailings. We are also seeing increased interest in the Moselle and lower Danube itineraries. Home-based agents should be promoting these itineraries to repeat river cruise travelers.”
Kristin Karst, executive vice president and co-founder of AmaWaterways, similarly expects a great year.
“AmaWaterways anticipates double-digit growth for 2015, with three new ships joining the AmaWaterways family, including AmaVista and AmaSerena in Europe and AmaDara on the Mekong, plus new themed cruises and itineraries,” she said.
Both Karst and Clark say home-based travel agents are vitally important to their companies, which offer product training and sales tools.
“Our fairly new travel agent portal continues to rise in popularity, and we are seeing a constant increase in the numbers of agents seeking new opportunities for continuing education,” Karst says. “This is important, and will continue to be, because in river cruising — and with AmaWaterways specifically — we are continuously innovating our product, adding new ships, new destinations, new themes and new opportunities for agent profitability.”
More Value-Added Pricing
This year saw a number of creative value-added pricing opportunities. Many were limited-time promotions that offered beverage packages, onboard credit and other perks. MSC Cruises, however, introduced a new permanent pricing plan that lets consumers choose the level of inclusiveness of their cruise. And this is a trend that likely will continue into the New Year.
“One of the biggest trends we’re seeing is value-add offers,” says Rick Sasso, president and CEO of MSC Cruises USA. “Many lines are experimenting with this model. MSC Cruises recently launched its Inclusive Experiences, which is a permanent program that allows consumers to choose a package based on the extra amenities they desire. For home-based travel agents, the value-add opportunities like Inclusive Experiences give them a chance to upsell their clients, resulting in higher commissions for them.”
Experiential Travel
We heard a lot about experiential travel in 2014, and that will continue into 2015, predicts Diane Moore, president of Paul Gauguin Cruises.
“The cruise industry will continue to grow in 2015 with a breadth of compelling options available,” she says. “Cruisers are seeking meaningful experiences that are life enriching, that connect them authentically with the people and culture of a destination. Exotic destinations, all-inclusive experiences and relaxed luxury are current trends in the marketplace along with trips to commemorate special occasions in a unique way.”
Luxury travelers especially are eager for unique experiences.
“The luxury consumer evolves more than the average consumer,” says Edie Rodriguez, president and COO of Crystal Cruises. “The luxury consumer’s buying decision goes beyond the brand name or its features. We’re seeing the luxury consumer willing to spend on higher-priced experiences that offer more options, whether it’s exclusive, adventurous or unique.”
Social Media
Of course, social media continues to grow as a vital part of your marketing, and cruise line executives urge you to take the utmost advantage.
“I would encourage home-based travel agents to adapt to the ever-growing changes by having a greater presence online as well as to become more social media savvy to associate themselves better with a digital audience,” Rodriguez says.
Shifting Luxury Segment
This year saw changes in the luxury cruise segments, most recently when Norwegian Cruise Line Holdings purchased Regent Seven Seas Cruises and Oceania Cruises.
“In the case of the luxury segment, the competitive environment has changed so rapidly that the real consequences are yet to actually materialize,” says Kristian Anderson, senior vice president and general manager-the Americas, for Silversea Cruises. “In addition to Carnival Corp.-owned Seabourn and shipping company Nippon Yusen Kaisha’s (NYK) of Japan-owned Crystal Cruises, the recent acquisition of Regent and Oceania by Norwegian Cruise Line adds yet another layer of unpredictability in the market. As a result of these changes, Silversea will be the sole remaining ultra-luxury cruise line of any significant size that is privately owned, and we view that as an advantage that presents a unique opportunity.
“Silversea has maintained its place as a market leader for more than 20 years by demonstrating an ability to remain flexible in an industry that continues a repetitive cycle of inflexibility and bureaucratic cumbersomeness at a time when travel agents and guests are pleading for the total opposite,” Anderson continues. “I’m not an advocate of overt speculation, as I’d rather focus such energy on consistently exceeding expectations, but at the end of the day, being bigger isn’t always better; but being the best always is.”
Crystal’s Rodriguez observes that the luxury traveler is evolving: “The luxury demographic is becoming younger and getting more international. Much like the cruise industry as a whole, Crystal guests are coming from all over the world to cruise. Our industry will continue to grow as the global audience becomes very bullish on cruising.”
Continuing Importance of Travel Agents
Despite concerns that some cruise lines are shifting their allegiance away from travel agents, several executives say trade is more important than ever going into 2015.
“With the variety of cruises available, travel agents will be more in demand by clients for their expertise in identifying the lines, itineraries and experiences that best fit the interests of the client,” Moore says. “And, with their deep travel knowledge and contacts, travel agents can design the entire cruise vacation and book all the elements of it utilizing tremendous value in addition to making it seamless for the client.”
And finally, here is an astute observation from Kunal S. Kamlani, president and COO of Prestige Cruise Holdings, parent of Oceania and Regent Seven Seas:
“I think the trend we will see is similar to what the wealth management industry saw about five years ago. The banks thought they could disintermediate the financial advisor and go straight to the client. The banks had a rude awakening when they realized that the client viewed the financial advisor as the owner of the relationship, not the banks.
“Drawing on my experience in that industry, I see the cruise industry realizing that the travel agent is no different than the financial advisor with respect to who owns the client. They are trusted advisors and key influencers to consumers during the vacation decision-making process.
“As the number of home-based travel agents continues to grow, I believe we’ll see cruise lines increase their efforts to develop more meaningful relationships with home-based agents and/or their host agencies.”
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