travel market report’s outlook on ocean cruises€¦ · either newbies getting started or had...

Travel Market Report’s Outlook on Ocean CruisesBased on the Voice of the Travel Advisor 2019

Sponsored by

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letter from the publisher

Dear Readers,

Hail to the travel advisors and cruise industry leaders who, in less than 50 years,

turned ocean cruises into a universal vacation choice. In fact, 96% of the Travel

Market Report readers we surveyed in this TMR Outlook on Ocean Cruises reported

they sold clients onto the high seas last year, and 99% say they will be registering

sales of ocean cruises in the next 12 months. The few non-sellers were mainly

either newbies getting started or had pulled back from selling because of health,

retirement, and other personal issues.

Listen up CFOs: More good news! Advisors and owner/managers say Ocean Cruise

sales – as well as overall sales – are growing strongly, and in our research they

highlight what factors drive bookings, which vary widely by segment (Contemporary,

Premium, Upper Premium, and Luxury).

While we cover a wide variety of subjects in this Outlook, including why agencies

switch preferred relationships, which lines advisors are selling, what destinations

are hot, the best ways to market cruises, and what types of support advisors want

from suppliers, we also for the first time take a deep dive into which factors are key

to finalizing the booking, from food quality to fitness facilities, connecting rooms,

itinerary length, as well as brand and ship preference.

Most Importantly I’d like to thank MSC Cruises for underwriting this research and

know you will find it insightful and helpful in building your business. With wave

season upon us this research should be helpful marketing cruises, qualifying your

clients and closing cruise sales! Happy Selling and Sailing!

Sincerely,

Anne Marie MoebesExecutive Vice President and Publisher

Sail to the Caribbean with our best deals of the year. Go kayaking in Costa Maya and glide along a clear lagoon that’s many shades of blue. Discover the colorful past of Key West and its famous

dessert, Key lime pie. Slip into relaxed bliss on a pristine beach on our new, exclusive private island, Ocean Cay MSC Marine Reserve, where evenings begin with a spectacular sunset and then bring on

the festivities with a Bahamian Junkanoo parade.

MSC Cruises, the fastest-growing cruise line in the world with 4 amazing ships sailing the Caribbean from Miami, Tampa and New York.

SAILING TO OVER 200 DESTINATIONS WORLDWIDE WITH 4 SHIPS IN THE CARIBBEAN

Call 844-326-7585Visit msccruises.com | Book mscbook.com

GOLD AWARD WINNER

MSC SEASIDEOverall Contemporary Ship

GOLD AWARD WINNER

MSC MERAVIGLIAOverall-Large Cruise Ship (over 1200 passengers)Pool & Aqua Park for Cruise Elements,Contemporary Ship Pool Design

SILVER AWARD WINNER

MSC SEASIDEAsian Market Kitchen by Roy Yamaguchi for Contemporary Ship Restaurant Design

SILVER AWARD WINNER

MSC MERAVIGLIACirque du Soleil at Sea for Cruise Elements, Contemporary Ship Entertainment

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KEY Findings

one thousAnd, two hundred And fifty six (1,256) trAvel Agency personnel, mainly owner/managers and advisors and all readers of Travel Market Report, took part in our survey. Results have a 99% confidence level with a +/- 3.6% margin of error.

respondents AverAged 12.8 yeArs in the trAvel industry and $1.2 million in annual personal leisure sales.

sixty-seven percent (67%) of respondents sAid they or their Agency speciAlize in selling oceAn cruises, although many commented they did not want to be pigeon-holed as “cruise only.”

seventy-six percent (76%) sAid overAll personAl or Agency sAles increAsed lAst yeAr, with 16% saying sales were flat, and more than a quarter (27%) saying total sales jumped by more than 25%

ninety-six percent (96%) sAid they hAd sold oceAn cruises in the pAst 12 Months.

cruise sAles growth in the pAst yeAr closely Mirrored overAll increAses in Agency revenues, with 74% marking an increase, including 24% who said they enjoyed a boost of more than 25%.

ninety-nine percent (99%) of respondents will be selling oceAn cruises in the next 12 Months. In fact, 20% of respondents said they expect sales growth for

Ocean Cruises of more than 25% and in total, 82% expect some type of increase while 14% anticipate being flat.

seventy percent (70%) of respondents told us thAt clients “coMe to Me with A generAl ideA of oceAn cruise lines they Are interested in and then we discuss the options,” while 60% said that clients “may have heard of the lines and ship names, but they come to me for my recommendations.”

nineteen (19%) of respondents hAve clients who wouldn’t hAve considered An oceAn cruise if they hadn’t recommended it. Among Canadian respondents, the number is even higher at 26%.

for conteMporAry cruise lines, which put a lot of energy behind promoting new ships with bells and whistles, AvAilAbility of A specific cruise ship wAs only seventh in terMs of iMportAnce when it coMes to MAtching clients.

only three cruise lines – Princess (50%), Royal Caribbean (49%), and Norwegian (43%) – along with CLIA, hAd 40% or More of respondents coMplete their trAining progrAMs.

Kid-relAted AMenities were the Most iMportAnt when it coMes to conteMporAry lines. Free WiFi didn’t rank as one of the five most important factors when it comes to Contemporary Cruises, yet it still

was a very highly rated amenity, it’s just others were ranked higher.

for preMiuM, upper preMiuM, And luxury lines, food quAlity wAs the Most iMportAnt fActor.

inclusive wines And spirits either viA policy or proMotions rAnKed second As A Key fActor when it came to selecting both Upper Premium and Luxury Cruise Lines.

sixty-four percent (64%) of Advisors use 3rd pArty suppliers for pre-And-post cruise vAcAtions compared to just 35% who used the cruise line with travel insurance showing a 70% to 29% split in favor of 3rd parties. Airline tickets were the same by a 60% to 38% margin.

Advisors, by A 67% to 27% MArgin, sAy thAt they use the cruise line to booK shore excursions. The same for transfers to and from the port (a 70%-29% margin).

clients who don’t thinK they would enjoy A cruise (41%) And feAr of seA sicKness (37%) are the two biggest barriers to increasing Ocean Cruise sales.

eighty-four percent (84%) of respondents sAid they wAnt More fAM trip opportunities, followed by Content I Can Share With My Customers (66%), In-Person Training (50%), and Webinars (45%).

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Letter From The Publisher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Who Answered Our Survey? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Chart 1 Specialization in Ocean Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Chart 2 Personal/Agency Sales Growth last 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Chart 3 Increase/Decrease Ocean Cruise Sales last 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Chart 4 Projected Increase/Decrease in Ocean Cruises next 12 months. . . . . . . . . . . . . . . . . . . . . . . 13

Chart 5 Advisor Influence In Selecting Ocean Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Chart 6 Incidence of Selling Ocean Cruise Lines by Segment — Contemporary, Upper Premium, Premium, and Contemporary . . . . . . . . . . . . . . . . . . . . . . 15

Chart 7 Very Important Factors in Final Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-20

MSC Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-23

Chart 8 Very Important Factors in Final Selection by Segment (Onboard) . . . . . . . . . . . . . . . . . 24-33

Chart 9 Destination Interest for Ocean Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Chart 10 Sale of Ancillary Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Chart 11 Obstacles to Selling More Ocean Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Chart 12 Profitability of Ocean Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Chart 13 Future Targets for Ocean Cruises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Chart 14 Sales of Ocean Cruises Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-41

Chart 15 Use of Training Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Chart 16 Client Crossover between Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Chart 17 Things That Would Make You Switch Preferred Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Chart 18 Best Marketing Tools to Sell Ocean Cruises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Chart 19 Most Needed Support from Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Success Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

table of contents

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introDuction

Ocean Cruise Lines and Travel Advisors have many things in common, according to the over 1,250 readers of Travel Market Report who took part in this TMR Outlook on Ocean Cruises. Perhaps most importantly, they are growing together.

Three quarters of respondents said overall sales and sales of ocean cruises increased in the previous 12 months and 82% said they expect an increase in ocean cruise revenues in the coming year.

Beyond that, advisors shared with us insight on a variety of topics, including frequency of sales by both category as well as specific cruise line, and the factors that are most critical in closing the sale.

Of wide interest is the feedback from advisors on not only which destinations are in demand, but also the biggest obstacles they are facing to selling more cruises, and what type of support they are craving from suppliers.

Retailers also regaled us with their success stories, which included an impressive array of major group bookings, in several cases numbering hundreds of clients aboard specific sailings.

All in all, for cruise lines, advisors and consumers, this report contains lots of good news and many insights that should keep sales rolling and satisfied clients coming back.

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Between Sept. 26 and Oct. 11, 2019, Travel Market Report surveyed via email its readers about Ocean Cruises. An incentive of two $100 gift certificates was offered.

Who answered our survey?

what is your role at your agency? overall

travel Agent/Advisor only 51%

both owner/Manager and Agent/Advisor 36%

owner/Manager only 9%

other position in a travel Agency 2%

i am not a travel agent or advisor and i don't work for a travel agency (exited from survey) 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

19%

2%

79%united states or u.s. territories

canada

other (please specify)

Of the 1,256 respondents, 79% said they work in or for travel agencies based in the United States with 19% telling us they are from Canada (see below).

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On a number of questions, we allowed agents to select multiple answers in multiple-choice questions versus just a single choice. This means totals will add up to more than 100%.

It also enables respondents to give us a full view of the clients they serve instead of being pigeonholed into single answers, perhaps missing the forest through the trees. We think you will find this particularly interesting as we ask about the multiple “Very Important Factors” in determining final selection when making a booking.

Who answered our survey?

The pool of those surveyed (Travel Market Report readers) is experienced – averaging 12 years in the travel industry – and highly productive – personally selling $1 million in leisure travel annually.

Two percent (2%) who didn’t work in or for travel agencies were exited from the survey. The survey took an average of 17 minutes and 30 seconds to complete.

Of the agents who took our survey, 51% described their role as agent/advisor while 36% said they were both agency owner and advisor, and 9% described themselves as exclusively owner/manager of a travel

agency. Two (2%) percent said they held other positions in a travel agency.

Where there were differences between Canadian respondents and the overall sample, we’ve highlighted them.

A significantly higher percentage of the overall sample said they were both Owner/Manager and an Advisor compared to Canadian respondents by a 36% to 20% margin. Conversely, Canadians were more likely than the overall sample to be purely Advisors by a 66% to 51% edge.

trAvel industry (average)

12 Years in the

personAl leisure sAles (average)

$1 million

Results have a 99% confidence level with a +/- 3.6% margin of error.

luxury:

• Crystal Cruises• Cunard Line• Happag-Lloyd• Ponant Yacht Cruises• Regent Seven Seas• Seabourn• SeaDream Yacht Club• Silversea Cruises

upper premium:

• Azamara• Oceania Cruises• Viking Ocean• Windstar Cruises

premium:

• Celebrity Cruises• Holland America Line• Princess Cruises• Virgin Voyages

contemporary:

• AIDA Cruises• Carnival Cruise Line• Celestyal Cruises• Costa Cruise Line• Disney Cruise Line• MSC Cruises• Norwegian Cruise Line• Pearl Sea Cruises• Royal Caribbean• TUI Cruises

note: For questions where we asked respondents to answer about segments, we provided the following breakdown to use as a reference:

Over two-thirds of respondents (67%) told us that they or their agency specializes in Ocean Cruises, which is significantly higher than River Cruises (52%) from our recent TMR Outlook on River Cruises. However, advisors also told us they don’t want to get pigeon-holed as being “cruise only.”

In fact, more than two-dozen respondents re-enforced that while selling cruises is a significant part of their business, they are full service travel agencies. One agent wrote, “Sell (cruises) and sell a lot (of cruises), but don’t specialize.”

specialization in Ocean Cruises

10 | chArt 1

do you, if answering individually, or does your agency, if answering as an owner/manager, specialize in Ocean Cruises?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

29%

5%

67%yes

no

not sure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Personal/Agency sales growth last 12 months

Seeing that both advisors and owner/managers responded to our survey, we asked respondents to answer based on either their personal book of business, or if they were in a management position, the agency overall. Over three-quarters (76%) said they had a sales increase in the past 12 months, including 27% who saw revenues grow by more than 25%.

Of the 6% who told us sales dropped, reasons included personal illnesses and family issues, although one respondent said the drop was “thanks to the internet and tour companies selling to the public.” Several commented they couldn’t answer the question since they are new to the trade and just getting started.

Canadian agencies were in line with the overall results, within the margin of error for the survey.

Over the past 12 months, how have your total personal sales, if answering for yourself, or total agency sales, if answering as an owner/manager, changed?

3%

16%

0%

16%

16%

1%

76%

12%

6%

2%

21%

0%

11%

increased sales (total)

increased more than 50%

increased 26-49%

increased 11-25%

increased 6-10%

increased 1-5%

stayed flat

decreased 1-5%

decreased 6-10%

decreased 11-25%

decreased 26-49%

decreased more than 50%

decreased sales (total)

chArt 2 | 11

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

increase/decrease Ocean Cruise sales last 12 months

Cruise sales growth in the past year closely mirrored overall agency increases in revenues, with 74% marking an increase, including 24% who said they enjoyed a boost of more than 25%.

Most importantly, 96% of respondents said they were selling cruises, and those who said that they don’t reflected new advisors just getting their feet wet.

Over the past 12 months, how have your personal Ocean Cruise sales, if answering for yourself, or agency’s Ocean Cruise sales, if answering as an owner/manager, changed?

1%

9%

17%

4%

4%

1%

18%

0%

15%

2%

1%

15%

5%

17%

increased sales (total)

up more than 50%

up 26-50%

up 11-25%

up 6-10%

up 1-5%

flat

down 1-5%

down 6-10%

down 11-25%

down 26-50%

down more than 50%

decreased sales (total)

we had no ocean cruise sales in the past 12 mnths

12 | chArt 3

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Projected increase/decrease in Ocean Cruises next 12 months (through Oct. 2020)

Good news for cruise line CFOs! Some 99% of Travel Market Report readers will be selling Ocean Cruises in the next 12 months. In fact, 20% expect sales growth for Ocean Cruises of more than 25% and in total, 82% expect some type of increase while 14% anticipate being flat. Only 2% expect cruise sales to decline, and the main reason mentioned being retirement. Answers from Canadian retailers were again in sync with the overall results.

0%

82%

18%

2%

1%

20%

0%

6%

14%

1%

1%

24%

0%

14%

project increased sales (total)

up more than 50%

up 26-50%

up 11-25%

up 6-10%

up 1-5%

flat

down 1-5%

down 6-10%

down 11-25%

down 26-50%

down more than 50%

project decreased sales (total)

we don’t expect to sell any ocean cruises in the next 12 mnths

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Advisor influence in selecting Ocean Cruises

While the cruise industry has helped build guest counts by providing a product clients come back for, our survey found nearly 1 in 5 respondents (19%) have clients who wouldn’t have considered an Ocean Cruise if they hadn’t recommended it. Among Canadian respondents, the number is even higher at 26%.

However, clearly, the results from our research underscore the huge role advisors play in matching cruise-interested customers with the both the right line and right ship for their needs.

Seventy percent (70%) of agents told us, “(Customers) come to me with a general idea of Ocean Cruise Lines they are interested in and then we discuss the options,” while 60% said, “(Customers) may have heard of the lines and ship names, but they come to me for my recommendations.”

Over half (51%) said, “(Customers) come to me with a specific destination(s)/itinerary they want, but I usually suggest a specific Ocean Cruise Line.” Forty-four percent (44%) said that clients “find the numerous categories and types of cabins confusing and look to me to recommend the best options.”

While 44% of advisors say they have customers who “come to me with a specific Ocean Cruise Line and I book it,” a similar 40% told us, “But if I don’t think it’s right, I recommend something else.”

Advisors tell us that even for those clients who have a particular line or ship in mind, customers want validation and are interested in alternative suggestions.

generally speaking, in regards to the Ocean Cruises i book for my clients (check all that apply):

0% 10% 20% 30% 40% 50% 60% 70% 80%

27%

41%

51%

60%

70%

19%

40%

44%

they come to me with a specific ocean cruise line or ocean cruise ship, but if i don’t think it’s right,

i recommend something else

they come to me with a specific ocean cruise line and i book it

they come to me with a specific ocean cruise ship and i book it

they find the numerous categories and types of cabins confusing and look to me to recommend the best options

they come to me with a specific destination(s)/itinerary they want, but i usually suggest a specific ocean cruise line

they may have heard of the lines and ship names, but they come to me for my recommendations

they come to me with a general idea of ocean cruise lines they are interested in and then we discuss the options

they wouldn’t have considered an ocean cruise if i hadn’t recommended it to them

14 | chArt 5

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While selling cruises is ubiquitous, like fashion, automotive or even hotels, sales numbers seem to decline as one works their way up the pyramid.

In terms of core business, 87% of respondents say they sell Contemporary Cruise Lines on a regular basis (Regularly/Sometimes combined, not including Rarely), and 90% say the same for Premium Cruise Lines. However, for Upper Premium Lines, 54% say they sell Upper Premium Lines and 47% sell Luxury Lines regularly or sometimes.

Still, for lines operating at the high end, which aren’t necessarily looking for volume but high-spenders, 79% of advisors say they have clients for luxury cruise lines even if it’s not every day.

incidence of selling Ocean Cruise Lines by segment — Contemporary, Upper Premium, Premium, and Contemporary

How often do you sell the following cruise line segments?

How often do you sell the following cruise line segments?

regularly sometimes rarely never

contemporary 64% 23% 11% 3%

premium 62% 28% 7% 4%

luxury 17% 30% 32% 21%

upper premium 16% 38% 29% 16%

regularly sometimes rarely never

contemporary 72% 20% 5% 3%

premium 55% 30% 11% 5%

luxury 19% 39% 28% 14%

upper premium 14% 30% 32% 25%

chArt 6 | 15

When it comes to Very Important Factors in final selection, we found significant variation between Contemporary, Premium, Upper Premium, and Luxury Cruises, although for the latter three specific itineraries and destinations were cited as the most important driver, and in all but the Luxury segment, Length of Cruise was among the three most mentioned factors.

We also asked advisors of the choices, for which answers they “have very few/no customers where this is a deciding

factor?” Overall, Pre-or Post-cruise Vacation Opportunities (29%), Availability of Dedicated Concierge/VIP Categories/Private Areas (25%), Specific Cruise Ship (23%), and Availability of Connecting Rooms 21%) were the least important.

Following we provide an in-depth look at the most important variations between segments, including some key differences between Canadian advisors and the overall responses.

(Specific cruise line; Specific cruise ship; Availability of specific cabin types, including suites and deck levels, for desired dates; Availability of Dedicated Concierge/VIP Categories/Private Areas with dedicated amenities, including lounges, restaurants, deck areas, and priority services; Availability of connecting rooms; Preferred departure port; Specific itineraries/Destinations Length of cruise, and Pre-or Post-cruise vacation opportunities)

Very important Factors in Final selection by segment (general)

16 | chArt 7

contemporary premium upper premium luxury

Length of Cruise Specific Itineraries/ Destinations

Specific Itineraries/ Destinations

Specific Itineraries/ Destinations

Availability of Connecting Rooms Length of Cruise Availability of

Specific Cabin Types Specific Cruise Line

Preferred Departure Port

Availability of Specific Cabin Types Length of Cruise Availability of

Specific Cabin Types

What are the 3 Most important Factors in final selection when booking different segments?

Chart 7 continued on next page

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While length of cruise was the biggest factor in narrowing down options for clients who sail on Contemporary Cruise Lines with (71%) rating it the highest, both availability of connecting rooms and preferred departure ports came in at (both at 64%) as strong important factors for clients.

Of lesser importance in closing the sale for all respondents when selling Contemporary Cruises are pre-and-post cruise opportunities (32%) as well as the availability of dedicated VIP or Concierge areas (21%).

While lines put a lot of energy behind promoting new ships with bells and whistles, availability of a specific cruise ship was only seventh in terms of importance when it comes to matching clients with their cruise.

chArt 7 | 17


Chart 7 continued

contemporary

Length of cruise 71%

Availability of connecting rooms 64%

Preferred departure port 64%

Specific itineraries/Destinations 60%

Specific cruise line 56%

Availability of specific cabin types, including suites and deck levels, for desired dates 53%

Specific cruise ship 46%

Pre-or Post-cruise vacation opportunities 32%

Availability of Dedicated Concierge/VIP Categories/Private Areas with dedicated amenities, including lounges,

restaurants, deck areas, and priority services21%

Which of the following are Very important Factors in final selection when booking a Contemporary Cruise Line?


While lines put a lot of energy behind promoting new ships with bells and whistles, availability of a specific cruise ship was only seventh in terms of importance when it comes to matching clients with their cruise .

In terms of Very Important Factors when it comes to booking clients onto Premium Cruise Lines, Specific Itinerary/Destinations (67%) and Length of Cruise (64%) were the two most important factors.

Also of importance were availability of Specific Cabin Types (58%), including suites and deck levels, for desired dates, Preferred Departure Port (56%), and Specific Cruise Line (55%).

Less likely to be key factors are Availability of Connecting Rooms (43%), Pre-or Post-Cruise Vacation Opportunities (41%), Specific Cruise Ship (39%), and Availability of Dedicated Concierge/VIP Categories/ Private Areas (36%).


18 | chArt 7

Chart 7 continued

premium









Availability of Dedicated Concierge/VIP Categories/ Private Areas with dedicated amenities, including

lounges, restaurants, deck areas, and priority services36%

Which of the following are Very important Factors in final selection when booking a Premium Cruise Line?


(Specific cruise line; Specific cruise ship; Availability of specific cabin types, including suites and deck levels, for desired dates; Availability of Dedicated Concierge/VIP Categories/Private Areas with dedicated amenities, including lounges, restaurants, deck areas, and priority services; Availability of connecting rooms; Preferred departure port; Specific itineraries/Destinations Length of cruise, and Pre-or Post-cruise vacation opportunities)

While with Contemporary and Premium Cruise Lines as much as 70% of respondents said Length of Cruise and Specific Itineraries/Destinations were key factors in final selection, there weren’t any factors that played as an important a role when it comes to Upper Premium Cruise Lines.

Most important was Specific Itineraries/Destinations (59%), although for Canadian advisors Length of Cruise (57-49%) was more likely to be a factor. Availability of Specific Cabin Types (51%), including suites and deck levels, for desired dates was another factor while Specific Cruise Line (45%) was mentioned.

Compared to Contemporary (64%) and Premium Cruise Lines (56%), Preferred Departure Port was only cited by 37% of respondents as a key factor when it comes to Upper Premium Lines.

At the same time, 42% of advisors said Availability of Dedicated Concierge/VIP Categories/Private Areas with dedicated amenities, including lounges, restaurants, deck areas, and priority services was a key factor, compared to just 21% when it came to Contemporary Cruise Lines.

Availability of Connecting Rooms (16%) was also a significantly less important factor with Upper Premium cruisers compared to those who sail on Contemporary (64%) and Premium Lines (43%).

chArt 7 | 19


Chart 7 continued

upper premium











Which of the following are Very important Factors in final selection when booking an Upper Premium Cruise Line?


When it comes key factors in matching clients with the right Luxury Cruise Line, Specific itineraries/Destinations (54%), Specific Cruise Line (47%), Availability of Specific Cabin Types (47%), Availability of Dedicated Concierge/VIP Categories/Private Areas (45%), Length of Cruise (43%), and Pre-or Post-Cruise Vacation Opportunities (41%) were the most important factors.


20 | chArt 7

luxury











Which of the following are Very important Factors in final selection when booking a Luxury Cruise Line?

Chart 7 continued

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In looking at additional elements that are key factors in matching clients with the ideal vacation, again there were variations by segment with kid-related amenities taking the three top slots for Contemporary Lines.

At the same time for Premium, Upper Premium, and Luxury Lines, food quality was the most important factor while Free or WiFi-Inclusive Packages or Policy also ranked highly. Inclusive Wines and Spirits, either via Policy or Promotions, ranked second as a key factor when it came to both Upper Premium and Luxury Cruise Lines.

In terms of things that rarely play into final selection, Affiliation with Celebrity Chefs (54%) and Specific Shows (44%) topped list.

Keep in mind, while Free WiFi didn’t rank as one of the five most important factors when it comes to Contemporary Cruises, it still was a very highly rated amenity, just there were others that ranked higher. You can see a full analysis of key drivers by segment following.

(Food quality; Diversity of all restaurants; Diversity of free restaurants; Ability to reserve tables limited just to their party; Specific surcharge restaurants; Affiliation with celebrity chefs; Diversity of bars and lounges; Onboard dancing/lounges/clubs appropriate to their interests; Inclusive wines and spirits either via policy or promotions; Non-alcohol free drinks either via policy or promotion; Diversity of onboard entertainment, including shows and live entertainment; Specific shows they want to see; Onboard Casino; Cruise specific programming; Spa; Gym/Fitness facilities; Rock climbing walls, zip lines, waterslides, racing cars, water sports decks, subs, water toys, etc.; Onboard kid’s clubs/programs; Dedicated Family/Kid’s pool area; Dedicated facilities for kids; Adults only pool and deck areas; Solo Traveler offerings; Private Island experience; Quality/Diversity of shore excursions; Free or WiFi inclusive packages or policy, and Gratuities Policy)

Very important Factors in Final selection by segment (Onboard)

24 | chArt 8

contemporary

• Onboard Kid's Clubs/Programs

• Dedicated Facilities for Kid's

• Dedicated Family/Kid's Pool Area

• Rock Climbing Walls, Zip Lines, Waterslides, Racing Cars, Water Sports Decks, Subs, Water Toys, etc. as applicable to the lines in this category

• Diversity of Onboard Entertainment, including Shows and Live Entertainment

What are the 5 Most important Factors in final selection when booking different Ocean Cruise segments?


premium

• Food Quality

• Diversity of Onboard Entertainment, including Shows and Live Entertainment

• Free or WiFi Inclusive Packages or Policy

• Diversity of All Restaurants

• TIE – Gratuities Policy; Adults-Only Pool/Deck Aria AND Diversity of Free Restaurants

chArt 8 | 25


Chart 8 continued

upper premium

• Food Quality

• Inclusive Wines and Spirits either via Policy or Promotions

• Free or WiFi inclusive Packages or Policy

• Quality/Diversity of Shore Excursions

• TIE – Diversity of All Restaurants AND Cruise Specific Programming (i.e. guest lecturers, enrichment seminars, themed cruises, cooking classes and demonstrations)

What are the 5 Most important Factors in final selection when booking different Ocean Cruise segments?


luxury

• Food Quality

• Inclusive Wines and Spirits either via Policy or Promotions

• Free or WiFi inclusive packages or policy

• TIE – Quality/Diversity of Shore Excursions; Cruise Specific Programming (i.e. guest lecturers, enrichment seminars, themed cruises, cooking classes and demonstrations), and Spa

contemporary

Onboard kid's clubs/programs 78%

Dedicated facilities for kid's (i.e. arcades, gaming areas, etc.) 76%

Dedicated Family/Kid's pool area 74%

Rock climbing walls, zip lines, waterslides, racing cars, water sports decks, subs, water toys, etc. as applicable to the lines in this category 71%

Diversity of onboard entertainment, including shows and live entertainment 70%

Free or WiFi inclusive packages or policy 67%

Diversity of free restaurants 66%

Gratuities Policy 63%

Non-alcohol free drinks either via policy or promotion 58%

Onboard dancing/lounges/clubs appropriate to their interests 57%

Food quality 56%

Onboard Casino 54%

Diversity of bars and lounges 53%

When it comes to matching customers to the right Contemporary Ocean Cruise, there were 18 different elements that at least 50% of respondents told us are key factors in the final decision. That compares to just three factors that matched those totals when it comes to Luxury Cruises.

Topping the list was Onboard Kids Clubs/Programs (78%), Dedicated Facilities for Kids (76%) such as arcade and gaming areas, and Dedicated Family/Kids Pool Area (74%).

Rock climbing walls, zip lines, waterslides, and racing cars onboard were a key factor for 71% of respondents, followed by Diversity of Onboard Entertainment (70%), including shows and live entertainment,

Free or WiFi Inclusive Packages or Policy (67%), Diversity of Free Restaurants (66%), Gratuities Policy (63%), Non-Alcohol Free Drinks either via policy or promotion (58%), Onboard Dancing/Lounges/Clubs (57%) appropriate to their interests, Food Quality (56%), Onboard Casino (54%), Diversity of Bars and Lounges (53%), Solo Traveler (52%) specific cabins, fares, dining and/or programming, Quality/Diversity of Shore Excursions (51%), Adults Only Pool and Deck Areas (51%), Diversity of All Restaurants (51%), and Private Island Experiences (50%).

While vacations are a time many indulge, it’s worth noting that 49% of advisors said Gym/Fitness Facilities were a key factor and 46% said the ability to reserve tables limited to their customer’s party were very important.


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contemporary

Solo Traveler specific cabins, fares, dining and/or programming 52%

Quality/Diversity of shore excursions 51%

Adults only pool and deck areas 51%

Diversity of all restaurants 51%

Private Island experience 50%

Gym/Fitness facilities 49%

Ability to reserve tables limited just to their party 46%

Inclusive wines and spirits either via policy or promotions 44%

Specific shows they want to see (i.e. Cirque du Soleil, Jersey Boys, etc.) 42%

Spa 39%

Specific surcharge restaurants 39%

Cruise specific programming (i.e. guest lecturers, enrichment seminars, themed cruises, cooking classes and demonstrations) 19%

Affiliation with celebrity chefs 12%

chArt 8 | 27


Chart 8 continued



premium

Food quality 73%













When it comes to key factors in figuring out which Premium Cruise Line best fits the bill, Food Quality (73%) was the biggest factor, which advisors differ from Affiliation with Celebrity Chefs, which was listed by just 19% of respondents.

While the same percentage of Canadian advisors pointed to Food Quality (73%) as important, they put Free WiFi Packages and Diversity of Onboard Entertainment, each 76%, slightly ahead, although within the margin of error for our research.

As with Contemporary Cruise Lines, there were a number of factors that advisors say are important – 17 of which were mentioned by at least 50% of respondents. Behind Food Quality are Diversity of Onboard Entertainment (68%), including shows and live entertainment, Free or WiFi inclusive Packages or Policy (67%), Diversity of

All Restaurants (63%), Gratuities Policy (60%), Adults only Pool and Deck areas (60%), Diversity of Free Restaurants (60%), Quality/Diversity of Shore Excursions (59%), Inclusive Wines and Spirits (55%) either via policy or promotions, Onboard Kids Clubs/Programs (54%), Diversity of Bars and Lounges (54%), Gym/Fitness Facilities (54%), Onboard dancing/lounges/clubs appropriate to their interests (53%), Non-Alcohol Free Drinks (52%) either via policy or promotion, Solo Traveler (52%) specific cabins, fares, dining and/or programming, Ability to reserve tables limited just to their party (52%), and Spa (50%).

Dedicated Family/Kids pool area (48%), Dedicated Facilities for Kids (47%) such as arcades and gaming areas, and Onboard Casino (47%) were also noted as important factors in making a final match.


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premium




Spa 50%



Onboard Casino 47%







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upper premium

Food quality 66%



Quality/Diversity of Shore Excursions 53%



Spa 49%







There were only six factors that at least 50% respondents told us were very important in matching customers to the right Upper Premium Ocean Cruise.

The most important factors are Food Quality (66%), Inclusive Wines and Spirits (55%) either via policy or promotions, Free or WiFi inclusive packages or policy (55%), Quality/Diversity of Shore Excursions (53%), Diversity of All Restaurants (51%), and Cruise Specific Programming (51%) such as guest lecturers, enrichment seminars, themed cruises, cooking classes, and demonstrations.

Other important factors when it comes to Upper Premium Ocean Cruises, other key drivers include Spa (49%), Adults Only Pool and Deck Areas (48%), Gratuities Policy (47%), Ability to reserve tables limited just to their party (47%), Solo Traveler (45%) specific cabins, fares, dining and/or programming, Diversity

of Onboard Entertainment (44%), including shows and live entertainment, and Gym/Fitness Facilities (43%).

While Canadian advisors generally followed the overall trends, more pointed to Food Quality (71%-66%), Free WiFi (65%-55%), Inclusive Wines & Spirits (63%-55%), and Quality/Diversity of Shore Excursions (60%-53%).


30 | chArt 8



There were only six factors that at least 50% respondents told us were very important in

matching customers to the right Upper Premium Ocean Cruise . . .

Chart 8 continued

upper premium






Onboard Casino 25%








chArt 8 | 31


Chart 8 continued



luxury

Food quality 65%





Spa 49%








Food Quality (65%), by a larger margin than any other segment, is a key decider, advisors say, when they recommend Luxury Cruises. Other elements that play an important role in final selection are Inclusive Wines and Spirits (51%) either via policy or promotions, Free or WiFi (50%) inclusive packages or policy, Quality/Diversity of Shore Excursions (49%), Cruise Specific Programming (49%) such as guest lecturers, enrichment seminars, themed cruises, cooking classes and demonstrations, Spa (49%), Diversity of All Restaurants (47%), Ability to reserve tables limited just to their party (45%), Gratuities Policy (42%), Adults Only Pool and Deck Areas (40%), and Solo Traveler specific cabins, fares, dining and/or programming (39%).

While many new luxury ships, which double as expedition vessels, have promoted subs, water sports decks, and water toys, only 5% of advisors said these amenities are key factors when it comes to deciding on the right vacation. In terms of Canadian advisors, the major divergence was the importance of WiFi-inclusion by a 59%-50% margin.


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Onboard Casino 20%








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When we asked advisors about which destinations have the most interest from their clients by segment, only the Mediterranean was ranked among the top six in all categories, and first with Upper Premium and Luxury cruisers.

For Contemporary Lines, the top five choices were all North America-centric, led by the Caribbean and followed by Hawaii, California/US and Mexico Pacific Coast, Alaska/Western Canada, and Atlantic Canada/New England.

When it comes to Premium Lines, Alaska/Western Canada topped the list followed by Caribbean/Bermuda/Caribbean Mexico/Bermuda, Europe – Mediterranean, Atlantic Canada/New England, Europe – Northern Europe/British Isles/Ireland, and Australia/New Zealand.

Upper Premium cruisers are most interested in European cruising, with the Mediterranean topping the list followed by Northern Europe/British Isles/Ireland, Tahiti and South Pacific, Australia/New Zealand, South America, and Asia.

For Luxury Lines the Mediterranean and Northern Europe also topped the list followed by Tahiti and South Pacific, Asia, Australia/New Zealand, and World Cruises.

destination interest for Ocean Cruises

34 | chArt 9

When it comes to taking an Ocean Cruise, for each segment of Ocean Cruise Line, which destinations have the most interest?

contemporary premium upper premium luxury

Caribbean/Bermuda/ Caribbean

Mexico/BermudaAlaska/Western Canada Europe – Mediterranean Europe – Mediterranean

HawaiiCaribbean/Bermuda/

Caribbean Mexico/Bermuda

Europe – Northern Europe/

British Isles/Ireland

Europe – Northern Europe/British

Isles/Ireland

California/US and Mexico Pacific Coast Europe – Mediterranean Tahiti and South Pacific Tahiti and South Pacific

Alaska/Western Canada Atlantic Canada/ New England Australia/New Zealand Asia

Atlantic Canada/ New England

Europe – Northern Europe/

British Isles/IrelandSouth America Australia/New Zealand

Europe – Mediterranean Australia/New Zealand Asia World Cruises

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sale of Ancillary Products

Underscoring the value of travel advisors, our survey shows that virtually all those that responded provide an inclusive service, including booking airline tickets to and from the voyage, arranging pre-and-post cruise vacations, booking shore excursions, transfers to and from the port, and travel insurance.

When it comes to Pre-and-post cruise vacations, 64% of advisors use 3rd party suppliers compared to just 35% who used the cruise line. Travel Insurance showed a 70% to 29% split in favor of 3rd parties, and airline tickets the same by a 60% to 38% margin.

Still, 67% to 27% said they use the cruise line to book shore excursions and the same for transfers to and from

the port at the beginning and end of the cruise by a 70%-29% margin.

Canadian respondents were more likely to handle Travel Insurance than the overall sample by an 85% to 70% margin.

One reason agents said they use 3rd parties is when cruise lines don’t pay commissions. “We need to get paid on what we sell,” said one advisor, however, others noted they get better deals for their clients when they bypass the cruise line to do it directly with local suppliers. “I always compare the cruise lines with other options and do what’s best for my customer,” said one advisor.

Almost always with the

cruise line

Mostly with the cruise line

Mostly with 3rd party suppliers

Almost always with 3rd party

suppliers

i don't sell/book this

Air travel to/from the cruise 9% 29% 38% 22% 2%

pre-and-post cruise vacations 11% 24% 37% 27% 2%

shore excursions 29% 38% 18% 9% 6%

transfers pre-and-post cruise 28% 42% 19% 10% 1%

travel insurance 13% 16% 31% 39% 1%

While the majority of respondents didn’t see any or many big obstacles to selling more Ocean Cruises, perception – Clients who don’t think they would enjoy a cruise and Fear of seasickness – were the two most mentioned by 41% and 37% respectively.

And while 34% of respondents told us they have no obstacles and “lots of clients who are interested,” 35% of advisors agreed that “despite what they say, I believe most lines are trying to sell directly to my clients and would like to cut me out.”

Perhaps a storm cloud on the horizon, 24% of advisors said, “A lot of my clients have previously taken Ocean Cruises and want to do something else” although only 16% of Canadian advisors agreed with that statement. However, 29% of Canadians cited “too expensive” as a reason for

not cruising compared to 20% for the total sample.

Advisors also shared concerns, including “unless they book premium most feel nickel and dimed once they get onboard and are opting for vacation packages or tours.” Another said lines are cutting corners, with one noting, “Clients complain that lobster isn’t available for dinner as it once was,” while extra charges for WiFi leaves a bad taste with clients when they see their bills at the end of the voyage.

A number of advisors complained about big box retailers like Costco and numerous respondents shared stories of lines poaching their customers. Several also noted bad press regarding cruise lines and environmental issues. One wrote, “Sometimes cruises are more expensive than all inclusives, and we don’t make as much commission.”

Obstacles to selling More Ocean Cruises

36 | chArt 11

What are the biggest obstacles to selling more Ocean Cruises? (check all that apply)

luxury

Clients who don't think they would enjoy a cruise 41%

Fear of sea sickness 37%

Despite what they say, I believe most lines are trying to sell directly to my clients and would like to cut me out 35%

None, I have lots of clients who are interested 34%

A lot of my clients have previously taken Ocean Cruises and want to do something else 24%

Negative press coverage from various incidents involving Ocean Cruise ships and lines 21%

Too expensive 20%

Not enough personal experience to sell with confidence 13%

Lack of inventory for the times and places my clients want to go 13%

Customer interest in Ocean Cruises isn't as strong as it was a couple years ago 10%

Quality of current Ocean Cruise ships is lacking 8%

Not enough sales and marketing support from Ocean Cruise lines 7%

I don't have many clients who are interested in Ocean Cruises 6%

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chArt 12 | 37

Profitability of Ocean Cruises

Nearly 9 in 10 cruisers (89%) are either among highest spending most profitable customers (42%) or spend about the same as typical clients (47%) say advisors. That said, Canadian advisors said Ocean Cruise customers were “among my highest spending, most profitable clients” by a significantly higher margin (59% to 42%) than the overall sample. What’s more, only 3% of Canadians said Ocean Cruise customers spend less than typical clients compared to 11% for the full sample.

On advisor told us Ocean Cruise clients are “very loyal and cruise regularly” while another put it this way: “I have some budget, and some very big budget clients.”

Others said profitability and sales don’t necessarily correlate. “They spend and some travel plenty, but cruise compensation is not really that profitable unless travelers are looking for upscale cabins or cruise lines.”

Another advisor added, “We make far less selling most cruise lines than selling land-based vacations.Their total costs usually end up higher, but more and more of the dollars are now spent onboard.”

Worth noting, when we asked the same question in our TMR Outlook on River Cruises, advisors 74% told us “They are among my highest spending, most profitable clients.”

Which best describes your clients who take Ocean Cruises?

overall vs. canada

they are among my highest spending, most profitable clients 42% - 59%

their spending is about the same as my typical clients 47% - 38%

they typically spend and travel less than most of my clients 11% - 3%

Boomers (66%), Generation X (55%), and Friends and Family Groups (47%) are the best prospects when it comes to convincing landlubbers to hit the high seas, say advisors, with Canadian respondents particularly bullish on Boomers (76%).

However, respondents from north of the border were less likely to be bullish about Millennials when it comes to Ocean Cruises by a 33% to 23% margin. Advisors also told us some lines that are catering to disabled travelers, opening up a new segment of customers.

Several advisors told us Solo Travelers could be a robust target market. One noted, “Solo cabins requests are becoming very popular. The single supplement causes solos not to travel.”

Future Targets for Ocean Cruises

38 | chArt 13

Thinking toward the future, which segments of your current customer base who have not taken an Ocean Cruise are your best prospects to sell an Ocean Cruise in the next 24 months (check all that apply)?

overall vs. canada

Boomers (ages 55 to 73) 66% - 76%

Generation X (ages 39-54) 55% - 55%

Family and Friend Groups 47% - 42%

Millennials (ages 23 to 38) 33% - 23%

Luxury Travelers 32% - 38%

Clients who take multiple 7+ day vacations 30% - 30%

Incentive and Affinity Group Clients 24% - 19%

Silent (ages 74 to 91) 12% - 16%

Generation Z (ages 7 to 22) 7% - 5%

There are 17 cruise lines that are sold by at least 50% of respondents, including Royal Caribbean International (95%), Norwegian Cruise Line (93%), Princess Cruises (91%), Celebrity Cruise Line (90%), Disney Cruise Line (86%), and Holland America Line (86%), which were each sold by at least 85% of the advisors who responded.

In an interesting twist, more advisors say they sell newcomer Viking Ocean Cruises than Carnival Cruise Line, one of the inventors of modern day ocean cruising, although the 78%-75% difference is within the margin of error.

In terms of overall Ocean Cruise Sales, respondents indicated they are prolific closers, with over 20% advisors saying that they or their agency have been recognized as a top producer for nine different lines.

Among our respondents, 41% said they were top producers with Royal Caribbean, followed Princess (36%), Celebrity (35%), Norwegian (31%), Holland America (28%), Oceania (24%), Carnival (23%), Viking (21%), and Regent Seven Seas (20%).

sales of Ocean Cruises Companies

40 | chArt 14


i sell this company

(Top producers and all sellers

combined)

i/My agency sells this company and has been recognized as a top pro-ducer for this company

i’m aware of this company,

but don’t sell them

i am not familiar with this company

royal caribbean international 95% 41% 4% 0%

norwegian cruise line 93% 31% 7% 0%

princess cruises 91% 36% 9% 0%

celebrity cruise line 90% 35% 9% 1%

disney cruise line 86% 18% 13% 1%

holland America line 86% 28% 14% 0%

viking ocean cruises 78% 21% 20% 2%

carnival cruise line 75% 23% 24% 1%

oceania cruises 73% 24% 25% 2%

regent seven seas cruises 67% 20% 31% 2%

Azamara 64% 12% 33% 2%

cunard line 62% 11% 35% 2%

crystal cruises 62% 16% 34% 4%

In an interesting twist, more advisors say they sell newcomer

Viking Ocean Cruises than Carnival Cruise Line, one of the inventors of

modern day ocean cruising

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sales of Ocean Cruises Companies

Chart 14 continued

i sell this company

(Top producers and all sellers

combined)

i/My agency sells this company and has been recognized as a top pro-ducer for this company

i’m aware of this company,

but don’t sell them

i am not familiar with this company

seabourn 62% 15% 33% 4%

windstar cruises 60% 11% 36% 4%

silversea cruises 59% 15% 38% 3%

Msc cruises 57% 10% 41% 2%

seadream yacht club 33% 6% 47% 19%

ponant yacht cruises 26% 3% 52% 22%

virgin voyages 24% 2% 58% 18%

costa cruise line 23% 2% 69% 8%

celestyal cruises 21% 2% 54% 25%

pearl sea cruises 16% 1% 45% 38%

hapag-lloyd cruises 9% 1% 48% 42%

tui cruises 3% 0% 33% 65%

AidA cruises 2% 0% 39% 59%

0% 20% 40% 60%10% 30% 50%42 | chArt 15

Use of Training Programs

While Cruise Lines have been among the leaders in offering certification programs for advisors, these training programs seem to have a somewhat limited impact. Only three cruise lines – Princess (50%), Royal Caribbean (49%), and Norwegian (43%) – along with CLIA, found 40% or more of respondents who had completed their training programs. Among Canadian advisors, Celebrity was also in the club with 44% of respondents saying they had graduated from its programs.

In terms of why more advisors don’t take the certification programs, comments ranged from “not that helpful,” to “not enough time.”

3%

17%

49%

12%

31%

1%

7%

20%

15%

38%

2%

17%

43%

12%

31%

1%

4%

19%

50%

13%

37%

1%

15%

40%

princess cruises

royal caribbean international

norwegian cruise line

cliA

celebrity cruise line

disney cruise line

carnival cruise line

holland America line

Msc cruises

oceania cruises

Azamara

cunard line

crystal cruises

regent seven seas cruises

silversea cruises

seabourn

windstar cruises

viking ocean cruises

virgin voyages

costa cruise line

ponant yacht cruises

pearl sea cruises

seadream yacht club

celestyal cruises

For which, if any, of the following Ocean Cruises Lines/Organizations have you achieved/graduated from a certification training program?

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disagree(strongly/ somewhat) neutral Agree

(strongly/ somewhat)

it depends on who they are traveling with - just themselves versus with

family or multi-generational trips10% 30% 59%

Most of my clients stick to a single category of cruise line 18% 25% 57%

My clients who started sailing with luxury cruise lines rarely sail on upper premium,

premium or contemporary cruise lines24% 22% 54%

Most of my clients work their way up, starting with contemporary or premium

cruise lines, but then eventually sailing on luxury cruise lines

30% 38% 32%

Most of my clients cruise in multiple categories switching back and

forth between them57% 24% 19%

chArt 16 | 43

Client Crossover between segments

While in fashion, mix and match has become a staple, with jeans from H&M and a handbag from Chanel, we wanted to find out what kind of crossover between the various segments – Contemporary, Premium, Upper Premium, and Luxury – there was, based on the experience of advisors.

It turns out, a lot of it has to do with the situation with 59% saying, “It depends on who they are traveling with – just themselves versus with family or multi-generational trips.” At the same time, 57% Strongly/Somewhat Agreed that, “Most of my clients stick to a single category of cruise line.”

While 54% said, “My clients who started sailing with luxury cruise lines rarely sail on upper premium, premium or contemporary cruise lines,” only 32% agree that, “Most of my clients work their way up, starting with contemporary or premium cruise lines, but then eventually sailing on luxury cruise lines.”

Only 19% said, “Most of my clients cruise in multiple categories switching back and forth between them.”

What makes agencies switch preferred relationships? The number one answer by far with a weighted average of 4.21 on a scale of 5 is “Too many complaints by customers.”

Other relationship breaking behavior includes General lack of support from the cruise line (4.03), Ongoing problems with commission payments/tracking (3.98), Poor communication by the line about my clients who book future cruises while sailing (3.93), Poor telephone reservations sales support (3.9), How the line handles onboard future cruise sales to my clients (3.9), Finding a line that offers commissions on products and services my current suppliers don’t pay commissions (3.82), Poor technology which creates more work for me (3.74),

Poor support for my sales rep (3.64), and Group policies and support (3.48).

While senior cruise executives are omnipresent at industry events, lack of engagement from the C-Suite (3.11) was the least likely factor to lead to a divorce, although one advisor told us, “Lack of engagement by senior execs usually is a precursor to everything else listed.”

Another advisor said, “In the end, it’s about what’s best for the client. But if everything else is equal, I’ll support those who support me the best and make my job easiest.”

Things That Would Make You switch Preferred suppliers

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1 2 3 4 5 weighted Average

too many complaints from customers 7% 6% 11% 13% 63% 4.21

general lack of support from the cruise line 6% 5% 14% 27% 47% 4.03

ongoing problems with commission payments/tracking 7% 8% 14% 22% 49% 3.98

poor communication by the line about my clients who book future cruises while sailing 5% 8% 18% 26% 43% 3.93

poor telephone reservations sales support 6% 7% 20% 25% 42% 3.90

how the line handles onboard future cruise sales to my clients 6% 7% 21% 24% 42% 3.90

finding a line that offers commissions on products and services my current

suppliers don't pay commissions6% 8% 21% 26% 38% 3.82

poor technology which creates more work for me 6% 8% 24% 30% 32% 3.74

poor support for my sales rep 8% 9% 25% 24% 33% 3.64

group policies and support 5% 13% 30% 31% 20% 3.48

lack of engagement by senior executives 11% 17% 38% 20% 15% 3.11

Thinking about the cruise lines you sell regularly, which of the following would most likely make you switch your sales efforts to competitive cruise lines. Please rank each state-ment 1 to 5 with 1 being strongly disagreed and 5 being strongly agree:

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chArt 18 | 45

Best Marketing Tools to sell Ocean Cruises

Referrals from existing clients (73%), My agency website (63%), My email list (57%), My social media (54%), and My agency’s social media (45%) are the best marketing tools to sell Ocean Cruises, say agents.

While responses from Canada were closely in line with the total survey, they were significantly more likely to find Consumer Travel Shows as being effective by a 33% to 25% margin.

However, marketing ideas went beyond the long list we provided, with respondents adding Networking Groups, Hosting a Radio Show, Local TV, and writing a column for a local newspaper.

Which of the following do you use to promote Ocean Cruises? (check all that apply)

overall vs. canada

referrals from existing clients 73% - 70%

My agency website 63% - 69%

My email list 57% - 52%

My social media 54% - 51%

My agency's social media 45% - 41%

direct Mail 36% - 30%

Marketing programs from my consortia 36% - 30%

An email list from my agency 33% - 33%

events i host for potential clients 32% - 34%

the website of my consortia 26% - 31%

consumer travel shows 25% - 33%

My personal website 25% - 31%

print advertising (newspapers, magazines) 18% - 22%

My agency blog 18% - 23%

incentive and Affinity organizations 17% - 11%

digital advertising 16% - 18%

An email list from my consortia 13% - 11%

My personal blog 11% - 12%

“If I can see it, I can sell it,” typifies what advisors told us when we asked, “What type of additional support would you like to see from Ocean Cruise suppliers?” Eighty-four percent (84%) of respondents said they want more Fam Trip opportunities, followed by Content I Can Share With My Customers (66%), In-Person Training (50%), and close behind, Webinars (45%).

One advisor said she wants, “Information we can’t get from the brochures, understanding itinerary design, port choices, more details about technology, and amenities on board.”

Another said with so much variation between a line’s ships, even sometimes within a class, she wants, “More details about specific ships, highlight the differences, so we can better match the right ship to the right customers.”

Other suggestions were video loops that don’t have the line as the call to action, more on-ship education

and behind the scenes during fams, more port visit availability for inspections, the ability to easily printout shore excursion options for non-computer users, and making sure webinars can be viewed from a library at a later date.

Most needed support from suppliers

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What type of additional support would you like to see from Ocean Cruise suppli-ers? (check all that apply)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

39%

66%

34%

50%

45%

84%fam trips

content i can share with my customers

in-person training

webinars

More educational information from suppliers

videos

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We asked advisors to share some success stories about selling Ocean Cruises, and one word populated many of the answers – love!

Showing their power to influence, one respondent told us, “They came in for an all-inclusive to Cancun (and) came out with a balcony cruise to several places in Mexico.”

Another told us, “I have sold all sorts of clients from honeymooners to multi-generational family groups.”

Personal experience helps. “I love cruising so selling it is easy for me as I have done it and had a great experience that I can relate to my clients,” said one advisor.”

Sometimes advisors jump in and help. “I have clients who

came in to my agency and had booked their $62,000 trip on their own. It was 23 couples and the company had them on three different airlines. The wanted to ensure that does not happen again. I took care of them and it never did.”

Referrals often provide a basis for success. “My group sales escalated when I got out there and networked with small business owners, friends, family and clients who promoted my groups to other people. I would share my own marketing postcards and they would hand them out to others they know,” one agency owner told us with another adding, “Word of mouth has been best form of advertising.”

Advisors also say they aren’t afraid to prospect. “If I hear people talking about cruising

when I am out and about, I give a tip or two to entice them to call me for their next booking.”

Advisors also say selling cruises to new customers is a winning strategy: “I push for those first timers to really consider cruising and the majority of them become lifetime cruisers.”

Cruising also presents a great solution for multi-gen travel. “(I had) a client’s parents visiting from Asia and wanted to see some Canadian cities. I offered a St. Lawrence Seaway and Canadian Atlantic cruise ending in Boston with numerous stops en route. His mother was elderly and by cruising they were able to enjoy a family vacation with dining and entertainment experiences onboard and touring a variety

When we asked advisors to share their own stories about selling river cruises. We got nearly 400 responses, many of which we might classify as love letters.

Here are some highlights:

SUCCeSS Stories

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of destinations daily, rather than running to catch a train or a plane to the next city. They were able to visit places they had not even thought of. They remarked they had a fabulous vacation and the itinerary afforded them sights they had never experienced.”

Another respondent says booking groups becomes an incubator for other FIT trips. “Positive group experiences provide me with many loyal clients.”

Social media also helps get the word out. “By posting my own pictures and experiences from a recent cruise, I was able to gain several new clients who wanted to experience the same.”

Advisors also tell us confidence breeds success. “I recently had a customer looking for a cruise to Antarctica. After several days of research and back and forth of presenting information on different lines and cruise tours, I found a great cruise that fit all the parameters: itinerary, length of sailing, number of consecutive days at sea, etc. When the client then asked, “So, can you give me

a great deal, or should I just go directly through the cruise line?’ I felt like someone had punched me in the stomach! I took a few deep breaths and replied, ‘I am a credentialed agent for this line. I can offer you the same promotions. I hope I have earned your business, and will continue to do so. Customer care is my Number One focus. Please let me know how you’d like to proceed.’ Much to my delight not only did they book, but decided on an upgraded stateroom! I was successful through knowing the product and deciding to ‘win ‘em over’ with customer service.”

Another told us, it’s important to encourage clients to provide referrals. “I went with a group of 30 I organized and it went off without a hitch. I always tell my clients, if they like my service to not keep me a secret and share my contact info with friends and family.”

One common theme from advisors and owner/managers is how quickly selling Ocean Cruises can build sales. “We’ve been in business for two years. We have booked an affinity group of 145 guests to sail in

November 2019!” Another newbie told us, “I sold over $200,000 in cruise sales in my first year in business.”

Many respondents told us stories about selling groups. “I booked a group of 12 people on a cruise including two VIP suites. The promotion is very easy to sell. Another added, “Our first group was 30, second group was 60, and now in April 2020 we are 80 strong.”

Advisors also told us how important it is to develop new leads, including networking locally in places like the country club. The payoff can be big. “One of my agents recently sold two $185,000 per person round the world cruises,” she said.

Agents say their love for Ocean Cruises can also save the day when something goes wrong. “A client was very disappointed with one cruise line and vowed now to go on cruises again. I found them a great deal, and they booked another cruise and are now into luxury line from contemporary, and I’ve gotten three referrals.”

Respondents say cruises are often the ideal choice when clients have divergent interests. “I love doing multi-generational family groups. They always have a great time, and when we can get just the perfect rooms for each family within the group it makes it that much more special for them traveling together. Hearing their stories when they return about all the fun that had while onboard and on shore exploring makes it all worthwhile.”

Social media also helps get the word out . “By posting my own pictures and experiences from

a recent cruise, I was able to gain several new clients who wanted to experience the same .”

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conclusions

In reviewing the findings of this Outlook, one note is clear, and that is that even though cruises are widely sold – 99% of respondents said they expect to sell ocean cruises in the coming year – the category is still growing—more than 80% of the over 1,250 respondents expect to see sales of ocean cruises increase in the next years, 40% by double digits.

Other key takeaways are that there are significant differences in the factors that are most important to driving cruise sales cruise tier – Contemporary, Premium, Upper Premium, and Luxury—including of course destination, but also beyond.

In other words, lines may want to review the findings to more sharply tailor their B2B messaging emphasizing the amenities and attributes that retailers say make the difference in the lines they recommend.

Moreover, agents strongly shared ideas and suggestions on support and tools they want from suppliers that will help them increase sales even more.

Most of all, lines may wish to review policies which might increase sales via retailers of ancillary products such as insurance, air, and pre-or-post cruise vacations.

G U E S T S E N J O Y P R I S T I N E B E A C H E S , E X Q U I S I T E S U N S E T S A N D L I V E L Y E V E N I N G S

O N M S C C R U I S E S ’ N E W P R I V A T E I S L A N D

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Travel Market Report brings to you more than a combined 100 years of experience in the North American travel agency market . Our databases of travel agents and suppliers are ideal for customized research on your behalf . Contact [email protected] and we will be happy to discuss how we can help you .

RESEARCh AUThORS:

Dan McCarthy, EditorBrian Israel, Associate PublisherGeraldine Ree, executive Director Canada Doug Gollan, Research Consultant and AnalystLouis Intreglia, Marketing Manager

GRAPhIC DESIGN:

Alissa Schelp

MARKETING:

Brian Israel, Associate PublisherLouis Intreglia, Marketing Manager

Please go to the following link to view the downloadable pdf version of this outlook: https://www.travelmarketreport.com/library/tmr/TMR_Ocean_Cruise_Outlook_2019.pdf

travel market report’s outlook on ocean cruises€¦ · either newbies getting started or had...

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