The UK might be locked in a recession but cruiselines are adamant there has never been a better time for agents to increase cruise sales.
As soon as it became clear the credit crunch was going to turn into a recession, cruiselines cut prices, taking fares to a level we are unlikely ever to see again, to make sure consumers continue to think cruise and keep booking.
The tactic has worked. Holland America Line managing director UK Lynn Narraway said the operator is having its best year ever in the UK in terms of sales, while Royal Caribbean International, P&O Cruises, Fred Olsen Cruise Lines and Oceania Cruises are among a host of others who have reported record sales this year.
Oceania Cruises UK sales and marketing director Bernie Carter said: “Our bookings are up 25% in the UK and Europe on revenues that are matching the first quarter last year. That’s a good result, given some of our prices are half price.”
Oceania Cruises is offering up to 50% off selected Mediterranean cruises this summer, bringing prices down to $1,812 for a 12-night cruise from Rome to Venice in July. The operator has also cut single supplements from 100% to 25%.
Royal Caribbean Cruises associate vice-president and general manager UK and Ireland Jo Rzymowska said: “This is a great time for agents to focus on selling cruises, with prices more attractive than they have ever been. We are seeing a lot of first-timers drawn to cruising by the value.”
The value message is one the cruiselines have been pushing for years, urging agents to make sure clients understand the all-inclusive nature of the cruise price, which includes food and entertainment.
Some cruiselines also include gratuities, others still include gratuities and excursions. On ultra-luxury ships, there is nothing to pay for drinks or gratuities. Also, most cruiselines provide free tea, coffee and chilled water around the clock.
Rzymowska said: “Once clients have paid for their cruise, they can have their holiday and not spend any more.”
Although plenty of people are booking cruises, cruiselines admit agents are having to work harder to make a sale. Crystal Cruises vice-president sales and marketing Europe Philip Ordever said: “If one agent is not out seeking customers, another will be. It’s no good waiting for business. Agents have to convince people to buy a holiday.”
Princess Cruises head of brand marketing Pieter van der Schee said: “There are some excellent early-booking offers out for 2010, and cruiselines will be doing all they can to ensure these are the best prices available and are not discounted later, so agents should encourage clients to book early and benefit.”
As well as discounts, many cruiselines are offering incentives such as onboard credit, cabin upgrades, low deposit schemes and low single supplements to encourage people to book.
Princess Cruises, for instance, has early-booking savings of up to £500 per couple on cruises from Southampton next summer, while P&O Cruises has up to £125 per-person savings on Azura‘s 2009 season, as well as an average £50 per-person onboard credit.
Voyages of Discovery is offering passengers who book one of this winter’s Asia and Far East cruises at least £500 discount and a free cabin upgrade.
Cunard has up to £1,000 per-person early-bird savings on Queen Victoria‘s 2010 World Cruise and discounts of up to £300 per person on the ship’s 2010 summer season.
Top tips for selling in the recession
Price breakdown
Breaking the cruise price down to show the per-day cost and reminding clients what’s included makes cruising look even better value, said Royal Caribbean Cruises associate vice-president and general manager UK and Ireland Jo Rzymowska.
Seize the day
“Use every distribution avenue available, including email, direct mail and the internet, to get offers to your clients. Send staff to local clubs to win new business,” said Crystal Cruises vice-president sales and marketing Europe Philip Ordever.
Money talks
“Ask clients how much they spend on lunch and entertainment each day when they are on holiday and show them what they can save by taking a cruise,” said TUI director of cruise David Selby.
Escape the euro
A cruise means clients can ‘do’ Europe without having to buy euros. Most cruiselines use dollars on board, but there are quite a few – Thomson Cruises, P&O Cruises and Swan Hellenic included – that use sterling.
Seize the sale
Treat every client as a possible cruiser, and use the offers and discounts to get them to book early, said Princess Cruises head of brand marketing Pieter van der Schee.
Ask questions
It’s important to make a sale, but don’t just sell on price, said Association of Cruise Experts director Andy Harmer. “Agents still need to take time to match the client with the right ship.”
Quick cruise
Suggest a mini cruise for clients on a tight budget. They are great value and your client still gets to holiday at sea.
No-fly cruises
“We’ve got a great spread of ships sailing from the UK and offering easy access to all the popular destinations,” said Harmer. “As there are no flights, price-wise it makes sense for people trying to make savings.”
