Princess Cruises sales director Nick Hughes says there remains untapped earning potential in a cost-conscious market
The array of all-inclusive packages on offer when booking a cruise are proving a real winner with customers. Our own research indicates, alongside feedback from the trade, that packages give great value must-haves, tempting extras and overall help make a holiday at sea even more memorable.
Packages can include items such as drinks, speciality meals, fitness classes, on-board spend, excursions and Wi-Fi. Agents just need to look at the drinks deals that are available to see the impressive variety: from a full range of wines, beers and spirits; to soft drinks and smoothies; to speciality coffees and hot drinks.
More: Princess Cruises reports rise in all-inclusive bookings [February 23]
Princess Cruises sweetens its deal for add-on packages [December 22]
After working for and alongside tour operators prior to joining the cruise sector, all-inclusive or full-board options increased in both popularity and conversion, especially when compared to basic room-only alternatives. Customers want a better value proposition, not just best price, with an understanding of how far their budget will stretch once they are on their well-earned holiday.
I’d highly recommend cruise agents adopt this approach and offer a package on every booking they make as standard. If not, they’re in danger of under-servicing and potentially missing out on some of that all-important additional commission. In fact, everyone benefits.
The customer wins, as not only do the packages offer fantastic value for money, but they can fully budget for their holiday, offsetting the need to set cash aside to spend when travelling. With the cost-of-living crisis impacting everyone, the need to know the up-front costs of a whole holiday, at the time of booking, is greater than ever.
It’s a double-win for agents. Most cruise suppliers pay full commission on any packages booked in advance. So, more money hits the bottom line, plus when presented with all the options, the customer feels looked-after and the beneficiary of the agent’s expertise – which could ultimately lead to repeat business.
And it’s also a win for the cruise line, as not only does the average cost of each booking increase, but onboard guest satisfaction is higher, leading to greater brand loyalty from the passenger.
Packages ‘evolving’
To add to this, due to their popularity, the packages themselves are evolving. As an example, last year Princess added premium desserts, fitness classes, and reserved theatre seating to their offering. The innovation seen within the cruise space is phenomenal; it means the product on offer is exciting and ever-changing, and the pre-booked packages available will continue in their upward trajectory to reflect this.
Princess recently conducted research which demonstrates the rise in popularity of the all-inclusive packages when booking a cruise, which – from speaking more widely to the market – we know is reflective of the cruise industry as a whole. More people than ever before are choosing to book all-inclusive, and that number will only continue to rise.
In fact, there has been an 18% increase in the number of all-inclusive Princess packages taken by UK guests sailing in 2023, compared to 2022. And this demand shows no sign of slowing, as the total number of guests taking advantage of the packages for 2024 currently matches 2023. We’re expecting this interest to grow across 2023 and into next year.
And of course, cruises themselves offer fantastic value-for-money in the first instance. Fares regularly cover meals, top class entertainment, childrens’ clubs across a range of ages and the onboard leisure facilities. This means customers’ money goes a long, long way, just from booking alone.
This value is frequently referred to. But, if you consider only 3% of the UK population will be going on a getaway at sea this year, the opportunity to increase sales becomes clear. When agents shout about the amazing value a holiday onboard can offer, they should equally talk up the wide-ranging benefits of going all-inclusive.
More: Princess Cruises reports rise in all-inclusive bookings [February 23]
Princess Cruises sweetens its deal for add-on packages [December 22]