Group bookings, called “special departures” by some cruiselines, come with a selection of exclusive benefits that agents can pass on to clients to help boost cruise sales.
But if one agent’s confusion when told to sell more groups at the UK Cruise Convention is anything to go by, then many agents are not aware what the term means, let alone how they can profit from it.
According to the last Group Travel Report, published in 2006, the UK group travel market was then worth £180 million, while demand for cruises from groups was up 31%, at just more than half (56%) of the 400 group travel organisers questioned. This report referred to ready-made groups.
Norwegian Cruise Line (NCL) hosted a round-table discussion on groups this month in a bid to explain the different types of group business, and encourage more agents to switch to this type of selling.
The panel, above right: Gills Cruise Centre managing director Steve Philippou; Viking River Cruises chairman Graham Clubb; Princess Cruises head of brand marketing Pieter van der Schee; and, seated, Norwegian Cruise Line sales director Nick Wilkinson
Why groups?
One of the first things agents have to understand regarding selling groups is that, in the majority of cases, they are not being asked to gather together a group of travellers with a particular hobby or interest.
Rather, it is about committing to selling an agreed number of cabins on a particular cruise to clients who visit the agency.
In return for taking out that allocation, agents get various benefits from the cruiseline that they can pass on to clients, giving added value and making the cruise look more attractive.
Those benefits could be a free transfer to the port or airport, a welcome bottle of Champagne in the cabin, a spa treatment or a meal in one of the speciality restaurants.
Princess Cruises head of brand marketing Pieter van der Schee said: “Special departures are an opportunity for agents to get exclusivity on certain cruises by offering clients their own benefits.”
He said half of Princess cruises were booked through ‘special departures’ – when agents take out an allocation of cabins. “Cruise agents understand the importance of this business, but other retailers don’t.”
Viking River Cruises chairman Graham Clubb said groups accounted for about 15% of business – on smaller ships – and is a mix of charters and special departures.
For NCL, the figure is 20%-22%, and mainly ready-made groups, said sales director Nick Wilkinson.
The benefits
NCL operates a points system for group bookings. The number of points earned determines the benefits agents can choose. They include cocktail parties, airport transfers, spa treatments and extra cabins.
Other cruiselines allocate benefits in different ways, but the offering is similar.
Gills Cruise Centre managing director Steve Philippou said special departures accounted for a huge percentage of business. “The benefits, such as onboard credit and upgrades, help to differentiate us. They also give our internal sales team a focus, and when you are selling something regularly, it improves conversions,” Philippou said.
An additional bonus is that group business is booked early. Clubb said: “Next year is already full. We would be more receptive to discuss groups with agents for 2011.”
Wilkinson said: “Groups were good for cruiselines as they book so far in advance, and also for agents, as they were getting early business.”
Beware of the pitfalls
Philippou said special departures were a fantastic sales tool, but there are pitfalls. Agents must ensure the cruise is competitively priced and be aware that groups business takes a lot of looking after.
“If you are going to sell to ready-made groups, you need the resources and manpower to deal with it,” he said.
“We have done several wedding parties, one for about 70 people, and we had a group of deaf people, which was more than 100 passengers. It takes a lot of work to look after those numbers.”
Philippou said: “It’s pointless taking out an allocation if you are not going to use it, and they take a lot of work. Cruiselines will cut agents’ allocation or take away benefits if they don’t perform.”
Van der Schee said Princess would take special departures from agents if they were not working. “Agents have to chase the business.”
Wilkinson added: “Agents have to be proactive or they are wasting our time and theirs. We are constantly reviewing their sales and will start to pull rooms if they are not selling. We usually close our group bookings 90 days out.”
The role of the agent
Social clubs and celebrities are good feeding grounds for agents looking to get into the groups market.
Clubb said: “Get a name on a cruise and you get the Pied Piper effect. People will book because of that person.”
Van der Schee advised agents to look in magazines to find special interest groups that they could try to work with.
“Many groups see a cruise as a social event, but you could also organise themed holidays. Music and bridge go well with cruising.”
He said Princess had booked groups of spa lovers and casino players.
The only way forward with ready-made groups is word of mouth, said Philippou. “Working with social clubs sounds easy, but it’s hard to get a group of people together.”
Wilkinson said that with so much demand from group travel organisers, agents should be talking to them, but warned it takes time and effort.
“Group organisers will want you to present to their members. It might take two or three presentations. But if you land a booking for 80 people, it’s worth it,” Wilkinson said.
Agents should also be pre-pared to organise ship visits for group organisers. “They have to come on board and you have to match the group to the right ship,” Wilkinson said.
What’s in a name?
The term ‘group’ can mean one of three different things when it comes to selling cruises.
It could be a ready-made group of people, maybe ballroom dancers or bridge players, who want to go on a cruise together. Some will want to use the opportunity to indulge in their favourite pastime; for others, it is a chance to holiday with friends and like-minded people.
NCL and Carnival Cruise Lines also use the term ‘group’ when agents take out an allocation of cabins, say 20 or 30, that they sell to a random selection of people. In this instance, Princess Cruises and Viking River Cruises use the term ‘special departures’.
A third category is escorted groups, where agents put together a group of people and then send a member of staff on the cruise to look after all the clients.
NCL director of sales Nick Wilkinson said: “Some agents still escort cruises and that’s probably where the term ‘group’ came from. However, now it is more likely to mean ‘allocation’,” he said.
- Keep up with the sector on Cruise Lines, Jane Archer’s blog