Metamorphosis - Cruise Ship Portal

2010 may be stronger than many had
predicted in 2009.
We ended last year on a positive note with
the introduction of the Oasis of the Seas. Its
inaugurals went well and customer
satisfaction during the first cruises reached
new highs. We are equally excited about the
arrival of its sister ship, the Allure of the Seas,
later this year. The unprecedented level of
variety and range of options for guests to
choose from, coupled with Royal Caribbean’s
Gold Anchor Service, have made the Oasis
class of ships truly amazing. Celebrity Cruises
will be growing significantly over the next
three years and the success of the Solstice
class is exceptional. We are looking forward
to the introduction of the Celebrity Eclipse,
our first ship dedicated to the UK market, in
the spring. We are also excited about
advancing the Azamara Club Cruise brand,
especially in our international markets.
One of Royal Caribbean’s long-term
strategies continues to be centred on
growing brands globally. Cruise holidays
have been increasing in popularity over the
past 40 years. At first, the focus was on
building the North American market, but the
last decade has seen a shift towards the
European market, which has been expanding
by about 10% annually for the last 12 years.
When it comes to choosing holidays,
Europeans are recognising the value
proposition, quality and variety of choices a
cruise can offer.
Looking at the fundamentals, it is clear that
Europe’s full potential has not been reached:
it has a population of approximately 500
million compared with 300 million in the US,
and most Europeans have more holiday time
than their US counterparts. There are also
excellent and easily accessible cruise
destinations. Europe remains a key area of
expansion and I would expect the European
industry to grow at a similar rate to the North
American market, which would take the total
number of European cruisers to about ten
million by 2020.
Developing markets such as Asia and Latin
America offer excellent long-term growth
potential and it’s impressive to witness the
emerging economies and individual wealth
being generated there. As investments in
infrastructure are made these markets will
become significant destinations in the future.
Pierfrancesco Vago,
chief executive, MSC Cruises
The industry is well positioned to come
through the downturn and while some
companies have looked at the economies
of streamlining, MSC Cruises is on a
different level. We are a young company
and still expanding.
In 2009, we took delivery of the MSC
Fantasia and MSC Splendida, and we look
forward to the arrival of the MSC Magnifica in
March this year.
Over the last five years, MSC has had an
average annual growth rate of 36%. Last year
we carried over a million passengers and this
year we hope to carry more than 1.2 million.
With such anticipated growth, it’s crucial to
invest in marketing in order to communicate
to our customers and project our brand to the
right market.
Using our 42 offices, we are marketing our
fleets and destinations throughout the world
in line with their different seasonalities and
cruising requirements.
MSC Cruises is targeting all
holidaymakers, not just regular or repeat
cruisers. It is clear that the investment in
marketing is working as more people
become familiar with cruising and the
number of booked cruises increases. People
of all demographics are reviewing their
holiday budgets and discovering the value
for money that cruises offer: passengers are
offered meals five times a day, and there is a
huge range of entertainment, as well as
spas, gyms and other activities to enjoy
on board. What’s more, as many of MSC
Cruises itineraries visit a different port
every day, cruising is the ideal way to see
many destinations while staying in luxury
and comfort.
MSC has the most modern fleet in the
world with many amenities and facilities for
people of all ages to enjoy. We cater for
families by allowing children and young
people up to the age of 18 to sail for free, with
costs only for flights, transfers and port taxes.
The economic downturn has given the
industry an opportunity to encourage firsttime
cruisers because cruising is good value
for money, and it is my belief that if we
deliver an excellent product, these first timers
will become repeaters.
We have seen a definite change in
booking trends over the past 18 months,
depending on the region and the season.
For example, in the US, there have been a
number of cancellations due to passengers’
insecurities about money. This has created
a trend to book much closer to the
departure date, eliminating the midbooking
trend. Generally, people are still
taking holidays.
Market intelligence > Industry outlook
Although the economic crisis appears to
have peaked, it doesn’t necessarily mean
that the market will recover at a fast pace,
although it is possible that we will see an
upswing by the end of 2010.
Carolyn Spencer Brown,
editor-in-chief, cruisecritic.com
While everyone felt the negative effects
of the downturn, it has produced some
benefits for consumers. Lines have been
aggressive in their deals, with great
discounts for solo travellers, who would
normally pay double-occupancy prices,
and for people considering luxury cruises.
Unusually, the economy has impacted
the top-tier earners, so they’ve not been
travelling so much. While still more
expensive than the ‘big ship’ voyages,
luxury deals are so good that people who
previously thought they could not afford
them are finding that they can. This
sector has been stagnant for a long time:
you could go on a luxury cruise and pay
upwards of $1,000 and still not get a
balcony because the ships were so old
there were simply none on offer.
However, anybody who thinks that
cruising is still stuffy, expensive and
formal need only to experience the Oasis,
which is a great signature for cruising. The
current roster of new ships come with
exciting features and amenities, but some
lines are charging extra fees for services
that were previously included in fares.
Most passengers expect to pay extra for
unusual services and features such as topnotch
dining, but too much of this ‘nickel
and diming’ is not a good idea.
Passengers are spending less on board
and lines should see this as a warning,
especially with rumours that fuel
surcharges are coming back. Fares are
lower and people are getting a great deal,
but it is a perception issue and having to
pay extra could put people off cruising.
Of course, this downturn will end. There
have been so many efforts to stimulate the
economy and give people confidence that
they can relax and take their holiday.
Cruising is moving away from being a
niche form of travel to one that is
mainstream and there is potential for
growth. In the near term, this shows
strong potential, but the long-term
prospects will be a different story if lines
hold back from ordering new ships. If
this is the case, by around 2012 the
industry will plateau. �
World Cruise Industry Review | www.worldcruiseindustryreview.com 13