Agents ‘must not be passive’ or cruise capacity ‘will fill’, Royal boss warns
Will PayneAgents "must not sit back and be passive" when it comes to marketing and selling river cruises or extra capacity "will fill up", Clia UK chair and Royal Caribbean vice-president EMEA Ben Bouldin has warned.
Speaking during the 2023 Clia Riverview Conference in Vienna on Sunday (12 March), Bouldin said an increase in capacity and decrease in price is a "warning shot" for agents.
"Don’t sit back and be passive, because capacity will fill. The reality is, the next four, eight and 12 weeks will be important," he told delegates.
"I think we will see a broadening of the booking curve off the back of wave, which is a great opportunity for you to book customers in the river cruise sector."
He told agents to target new-to-ocean-cruise customers when selling a river itinerary, reporting that 30% of first-time ocean cruise customers said they would consider a river cruise, and 70% of first-time river customers would consider and ocean cruise.
"There is an overlap between what cruisers like to do," he added. "The [river cruise] industry can do better at marketing itself more broadly, by talking about the relevance to family and couples, as a river holiday is a great vacation opportunity for everyone.
"Whether you have teenagers doing GCSEs trying to learn about the history of Europe, or you want to enrich your family, or if you just want to get away and adventure – there really is a river cruise for everyone."
Bouldin challenged river cruise lines to "broaden their horizons" and be more encompassing, saying the one thing the sector suffers from is "not articulating its value".
"The competition is land based holidays – not other river or ocean lines," he explained.
"Those holidays are becoming more expensive over time, which is a real opportunity for us. The lines need the support of the agents to maximise that message.
"There is only discounting if there is excess capacity, and the way you solve that is by increasing distribution to lessen the need for prices to drop, as the value for river cruises is exceptional, prices shouldn’t need to come down."
Despite a positive wave period, Bouldin also warned the cost of living crisis could begin to have more of an impact on consumer spending as the year continues.
"The cost of living is forcing many consumers to reevaluate how they spend. We have seen good demand in January and February, but I think the reality over the cost of living is going to catch up with the noise.
"As we end a successful wave period, I urge you all [delegates] to continue your focus on river cruise.
"There’s not been a more import time to embrace challenges and think outside the box of ways to attract new to cruisers."
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