Offering cruises from Southampton was a “massive advantage” for P&O Cruises amid the media coverage of airport disruption this summer, according to the cruise line’s boss.
Paul Ludlow, president of P&O Cruises, told Travel Weekly’s Future of Travel 2022 conference that the national headlines about airport queues and axed flights bred “uncertainty” for customers.
However, he added: “Cruise probably did prosper because of the headlines about disruption. Southampton is a very attractive place to begin your holiday without hassle.
“Fly-cruise took a hit while there were headlines.
“Southampton is a massive advantage; it was stronger than our fly-cruise business.”
He said the summer season exceeded expectations, with ships being 85% full, when they had anticipated a rate of about 75%.
“It was a very robust market – our brand carries us through,” he told the delegates during the session about post-pandemic resilience and recovery.
“We were braced for challenges to create demand but it was very strong.
“New-to-cruise increased as a proportion of the business.”
He also said the cruise industry’s “value message” is resonating during the cost-of-living crisis and expects consumers to be committed to spending on holidays.
“Cruise lines do well in a recessionary environment, people see the value,” he said.
“But we are not immune to cost pressures in our business – we will have to push ticket prices significantly up but even with that, we will do well.”
He said the Russian invasion of Ukraine is a continuing concern, and capacity from Baltic itineraries – which in the past featured St Petersburg – is being moved elsewhere.
“We are watching [the war in Ukraine] very carefully, but otherwise we hope for better year ahead,” he said.
“We can prosper and go from strength to strength.”
