Norwegian Cruise Line UK general manager Stephen Park talks to Juliet Dennis about his return to the cruise market after two years away and agents’ crucial role in selling NCL
You have returned to work for NCL after a two-year gap. What’s changed?
It’s a very different company to the one I left. We have 40% more capacity to sell into the UK market than last year. Since I left in 2005, there’s 90% more capacity to sell.
The US makes up significant numbers across the whole company but this year the UK will account for around 9% of the overall company’s business. Europe overall makes up between 35-50% of the business.
What differentiates NCL’s ships from its competitors in the cruise sector?
We operate the youngest fleet of ships in the world. Having a modern and young fleet is so important to attract new cruisers and families.
We think this is very important because cruise is growing so rapidly and more people are trying it for the first time. We have 11 ships and are also the world’s largest cruise company after Carnival and Royal Caribbean.
NCL is known for its Freestyle cruising concept. What does this aim to do?
The main barriers to cruising are that people think it’s for old people, too traditional, and very expensive. Freestyle cruising is about dismantling these barriers to make ourselves attractive to new cruisers.
We still have a loyal base of customers but we have to grow the business on the basis of new customers coming into the market. Freestyle provides more dining options than other ships, allowing people to do what they want when they want. We have up to 13 different dining options.
NCL’s destination strongholds are the Caribbean, Alaska, Hawaii and South America. Why has it chosen to operate three ships out of Europe this year?
The cruising centre of gravity is shifting to Europe. NCL has grown its European deployment dramatically and is increasingly focused on Europe.
This year will be the first time we will have three ships based in Europe; Norwegian Jewel arrives in Dover in May which will increase our capacity there by 35%, Norwegian Gem is in Barcelona from May, and Norwegian Jade will be in Southampton.
We are doing that because of the growth of the UK market. Jade will do 14 night trips out of Southampton to the Mediterranean. It’s a great chance for us to make an impact with new cruisers and the family market in the UK and have people who do not want the hassle of flying.
What is the cruiseline’s biggest challenge?
Awareness is the biggest challenge. We have some significant competitors who are much bigger than us and we have to work hard to drive our share of volume.
Our strategy is to work with travel agents: 97% of our UK business is through agents and operators. If we get agents to understand NCL’s product, that will build awareness with customers.
Most new customers will not know which ship to go on so unlike other parts of the holiday market, agents are critical to cruise sales.
What is NCL doing to work more closely with agents?
We have an online cruise academy where agents can earn points and prizes including fam trip places. We are revamping that to make it as cutting edge as possible.
We are also trying to make sure the work we do with agents is relevant, which means it’s simple. Lots of companies, including us, have been guilty of trying to do too much. Agents need to know the key things to sell a cruise.
Is the cruise market nearing saturation point?
Capacity is growing – to 1.5 million passengers this year – and there is not a shadow of a doubt it will be achieved. You don’t invest billions into ships without a clear business strategy. The cruise market has the determination to succeed.
I would strongly disagree it’s saturated. The UK market follows the US market; we lag five to eight years behind. The US market has seen huge growth in cruise and the UK is a tiny proportion of the US market.
The great thing about a competitive market is that it leads to creativity and sales campaigns; that has to be good for the trade selling it.
What’s next for NCL?
On March 31, 2010, we take delivery of our next generation of ships – called F3. We are currently rolling out Freestyle 2.0 and there will be new hardware developments with F3.
F3 ships will be larger – 150,000 tonnes instead of 95,000 tonnes and carry 3,600 passengers instead of 2,500. There will be two new ships in 2010 but we don’t know where they will be based yet.
Profile
- Lives: Chiswick
- Age: 50
- Education: Technicon RSA, South Africa; diploma in tourism management
Employment history
- First job: In the sales department of Cadbury Schwepps
- 1991-2003: Various roles at Disney, most recently sales and marketing director for Walt Disney Parks and Resorts
- 2003-2005: NCL head of UK business
- 2005-2007: Senior vice president of European sales and marketing for Kerzner International
- September 2007: Returned to NCL to work as UK general manager