‘We in the cruise industry cannot afford to cut corners as prices go up’
Alison EarnshawVolatile, inconsistent, unpredictable; these are just some of the words used to describe trading in the travel industry this year. And from a retail perspective, I’d say they are all valid for the cruise sector too.
What has been consistent is the relative strength of the luxury end of the cruise market, a trend that began post-pandemic and has continued.
There has been growth in demand too for experiential breaks, once-in-a-lifetime trips and multi-generational travel, which cruise caters for uniquely with a range of destinations that cannot be explored by any other means.
All the data also points towards the cruise market seeing an increase in the window between booking and departure, which will be linked – in part – to these kind of holidays, as well as the many cruise lines going on sale with future programmes earlier than ever, years earlier even, and a distinct lack of availability for late bookers.
All these trends have supported a significant increase in average selling price, which has been further compounded by the record percentage sold positions of the majority of cruise lines, which has driven prices up.
This is a double-edged sword for us agents, as we’d all naturally prefer higher price points, providing they drive higher margins.
But for years we’ve inadvertently educated customers that there will be good deals to be had in the lates market, something else the pandemic set back years of progress on.
Cruise is no different to the broader holiday market in this regard, of course, but this year there appears to be more capacity in the land market than in cruise, albeit at higher prices in many cases.
So we currently have a marked difference in customer expectation and budget, based on past experiences, and little to sell that is departing in the next few months, so the lates market is the more challenging one at present.
We are all working hard, cruise lines and retailers, to re-educate the customer that it is often best to book early despite what they think they might know.
"One line even has an excellent price guarantee message for 2025 and 2026 sailings, which really backs this up and provides the agent and customer with maximum confidence in this message.
In the cruise sector, we need to ensure we are striking the right balance between these higher price points and customer experience. Cruise has always represented exceptional value for money and been able to shout about it with conviction.
In my personal experience, you rarely receive the consistent service levels and range and quality of dining in the finest of hotels as you do on a cruise. Not to mention the many inclusions some cruise lines also offer, from entertainment and fine dining to just coffee and cake.
The cruise industry cannot afford to make wholesale changes, or even cut the smallest of corners in the luxury space, to delivery of the onboard experience, inclusions and quality while prices increase – lest we lose our strongest selling point of all.
Alison Earnshaw is managing director of World Travel Holdings UK, which owns and operates owner of Cruise118.com, SixStarCruises and RiverVoyages.
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