Cruise industry needs to target new audiences

With cruisers getting younger and more diverse, the industry will have to target new customers by including specific groups such as minorities, children and Generation X, according to industry executives.

Executives of six cruise lines discussed the industry at the annual Seatrade Cruise Shipping Convention, said AP.

“You’ve seen large shifts in our industry … to an industry which is more and more focused on being able to satisfy not only the American public or whatever public we’re talking about in general terms, but also demographically targeting specific groups,” said Richard Fain, chairman and CEO of Royal Caribbean Cruises.

Meeting different needs of today’s younger and more diverse cruisers is one of the industry’s major challenges, he said.

Citing an industry statistic that shows only about 17% of Americans have taken a cruise vacation, Mr Fain said directly marketing to groups such as blacks, Hispanics, the physically disabled and multi-generation travelers – also known as families with children – would add to cruise vacation demand.

“Children were (once) seen as entities that distracted from the enjoyment of the bulk of our guests. Today we devote whole sections of the ships to meet their needs,” he said.

Stein Kruse, president and CEO of Holland America Line, pointed to the increasing influence and affluence of 78 million baby boomers who are approaching retirement and will have more time and money to spend on vacations.

“I think we’ve got to strap ourselves in and look at what’s coming ahead of us,” Kruse said. “The wave of the baby boomer and what that means for our industry is just absolutely fascinating.”

Bob Dickinson, president and CEO of Carnival Cruise Lines, stressed the need to appeal to younger travelers.

Statistics show that Generation X, from the late 20s in age to the early 40s, is the group that reports it is most interested in taking a cruise vacation, said Daniel Hanrahan, chairman of the Cruise Lines International Association’s marketing committee.

About 12.1 million passengers took cruises to about 500 ports in 2006, and CLIA estimates that number will increase by 500,000 this year. The CLIA cruise lines need the demand because they have invested in 30 new ships at a cost of $15.2 billion for delivery through 2010, adding 74,000 berths and new amenities such as surfing pools and bowling alleys in the process, said Mr Hanrahan.

“My bet is that we haven’t seen the last of the ships being ordered,” he said.

Report by David Wilkening