Agents should capitalise on the value offered by “high seas and low prices” in the cruise sector, according to the former boss of Azamara.
Speaking on a Travel Weekly webcast, Larry Pimentel said: “These high seas will bring low prices and extraordinary value; it’s coming your way.”
While admitting that rates would eventually rise to more sustainable levels, Pimentel insisted: “Why focus on will it last? Why don’t you focus on what you have at that moment? Do I want to spend my time talking about will it last or on getting out there and telling the clients about what an extraordinary value they have? I’d rather do the latter.”
He said: “I think you’re going to get better prices until we get an equilibrium of the ships being filled at the right rates, because I can tell you the math. At some of the prices, if the lines were full at that rate, it’s not sustainable in the long-term. So the rates have to go up.”
But he also pointed out that higher rates were good news for agents.
“Agents want the rates to go up as it’s about their own incomes as well and they deserve to be paid for what they do. But you have to have a magnet to somehow get people back in the pipeline,” he added.
Pimentel urged retailers to concentrate initially on existing customers who were committed to cruising.
“The data is very strong about the fact that they’re going to come back and I’ve looked at six or seven reports that say, up to 50% of the guests, even in the second half of this year, as long as they can feel we can articulate the position of safety and trust, that they’ll go back,” he said.
“So let’s start with that small number at first, not focus on the glass half-empty. Focus on the serious upside of the potential of guests who already love our industry.”
Pimentel said he had always been an advocate of agents being “value interpreters” – explaining to customers all the benefits they are going to get from a holiday, and said a “key value” now would be health and safety.
But he acknowledged that conversations would be hard until cruise lines could fully explain the new protocols they are introducing.
“How can the retailer articulate that if the lines don’t know what they are putting in place yet, because the countries haven’t defined it? So it’s a very odd and awkward time but in the end, the rudder will turn and it’ll move in another direction,” he said.
Pimentel said research also showed that people would be looking for more “privatised, secluded” travel, and shorter durations initially.
“They will be looking for places in the world that by their very nature are not as crowded. So privatised travel is a definitive trend, and the other thing the data points to is weekend or shorter travel. How do we get away for two, three or four days to do a little test?
“There are great resorts in the UK and great places to go on the continent that might be a weekend or as a sampler to see how they feel about travelling. I went, I enjoyed, I came back, I’m safe. Now I’m going to do it a little longer. So this is in steps and retailers need to be prepared for localised travel.”
Finally, Pimentel predicted a trend towards “conscious consumerism” and towards more e-commerce.
“One of the most interesting things from my perspective, is the fact that there is going to be a conscious consumerism by travellers. It’s an interesting concept. Do the brands support locals? Do the brands support proper causes and endorse the right things? Are the brands relevant to receive my money not only to serve me, but to serve the communities that they’re in? There is a consciousness that will arise that will be very, very significant,” he said.
“Consumers will also accept this very significant transition in e-commerce. You’re going to get a lot of data online and we’re finding new ways to connect. We’re going to do a lot more consulting just like this. So you better understand how to use technology.”