Comment: Sector must hold its nerve to navigate lates

I spent a few days on a preview sailing of NCL’s newest ship Norwegian Aqua last week, along with a staggering 1,500 agents from the UK and Ireland.

The investment to lay on an event like this must be eye-watering, but all indications suggest it is likely to pay off.

Every agent I spoke to raved about the ship. And if those few days have managed to enthuse and overturn preconceptions among trade guests, it seems likely the glowing social media posts I saw as a result will win over a lot of customers too.

With this sort of investment in trade partners not uncommon in the cruise sector, it wasn’t surprising to hear Hays Travel reporting strong cruise sales this week.

However, there remains an element of caution within the trade about the amount of capacity still to shift for this summer, with Hays chief operating officer Jonathon Woodall-Johnston urging Independence Group members to reduce their reliance on major short-haul operators in favour of cruise and long-haul sales to boost margins.

The bosses of Jet2 and easyJet holidays this week insisted they were comfortable with their increased volumes amid steady demand, and Jet2 chief Steve Heapy urged the industry to focus on positive marketing and hold its nerve on pricing to maintain yields.

Other than the customer, nobody benefits from lates discounting and Heapy insists the demand is there to ensure the lates period can be a profitable one. Let’s hope he is right, and nobody loses their nerve and undermines themselves and others by slashing prices unnecessarily.