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With the cruise market currently seeinghuge growth,we need to ensure we maximise this opportunity to raise the profile of taking a cruise and attract more first-timers

Nick sharps

Cruising has seen unprecedented growth in the past few years.

In 1998, 8.2 million people worldwide took a cruise, 10% more than in 1997, double the capacity of 1990 and three times as many as 1985.

With over 50 ships before 2004, worldwide capacity is set to increase at over 50%, to over 12 million passengers.

The UK market is likely to exceed 1.2 million passengers by 2004 and as the second largest cruise market outside North America, it will be a target for future growth.

I’m always asked:”How do cruiselines intend to deal with this additional capacity? Will the market have to play catch-up with supply and will we see increased discounting, the erosion of margins and therefore profits? Or will cruiselines have to compromise on quality for the sake of lower prices?”

If that were the case, we should pack our bags now. Cruiselines and agents all have a part to play to ensure we take full advantage of this growth and maximise the opportunity to profitably increase our mutual share of the market.

Despite rapid growth, the penetration of the UK package-holiday market is only about 4%. Cruising has to broaden its appeal, change the language we use to talk to first-timers, but do so without isolating the traditional cruise passenger. The signs are that the number of first-time cruisers has dropped from 55% in 1996 to 45% last year. We need to be more successful at targeting first-timers to bridge the gap between supply and demand.

Since its inception, the basic cruise product hasn’t changed and lacks differentiation. Perhaps this is why the average cruiser is 54.4 years old compared to the average age of a UKpackage holidaymaker which is 36.8.

Perhaps people perceive cruising as not affording choice and freedom to do what they want.

In order to meet the needs of a more discerning and experienced customer, it is important we introduce a new range of exciting destinations outside the core Mediterranean and Caribbean markets.

Cruiselines have to provide higher service levels, enhanced dining options and offer innovative on-board lifestyle programmes, to exceed customer expectations and compete with land-based holidays.

Agents must invest time and money in cruising. Speak to cruiselines about marketing and promotions. Through training, they need to bridge the gap between the knowledge of the consultant and that of the client.

We think we’ve got the answer at Norwegian Cruise Line – it’s called Freestyle Cruising. If you would like to know more, give us a call.

“Perhaps people perceive cruising as not affording choice and freedom”