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Cruise lines dependence on agents to continue

Tuesday, 20 April 20043 min read

The cruise lines will continue to encourage direct bookings but that won’t seriously detract from agent bookings. Said Tom Gerace, senior vice president for marketing, NLG:

“We see quite the opposite. We think what the cruise lines want to do is find a replacement for the mom and pop agencies closing up shop.”

In the future, the cost of creating new customers will continue to rise. “And the challenge will be for travel agents to deliver a differentiated service experience,” Mr Gerace told TravelMole.

NLG, whose companies include CruisesOnly, which is the world’s largest cruise agency, is expected to continue its growth spurt. Mr Gerace said the company’s emphasis will continue to be dual one: combining the human factor with the latest technology.

“We have a very aggressive program in human capital. We are aggressively sending agents out into the field so they can experience the product. We think that’s a big advantage when they book clients,” he said.

At the same time, the company has spent more than $40 million in technology to “develop the best cruise and vacation booking engine in the industry.”

In cruise trends, Mr Gerace sees continuing specialized cruises such as a recent “Hogs on the High Sea,” which was geared towards Harley Davidson motorcycle enthusiasts.

“We see continuing opportunities there where you might get Spanish language cruises or cruises for honeymooners or family cruises for younger audiences,” he said.

Mr Gerace thinks the cost of the cruise lines matching up customers with their particular needs will continue to be cost-effective by using agents.

“What’s missing in the distribution cycle is someone to tell those 85% of people who have not gone on a cruise why it’s such a good product, and to dispel some of the negative myths about cruising such as you can’t get off the ship or its an inactive experience,” said Mr Gerace.

He obviously think that will be a job for NLG, which is one of the nation’s largest online and offline leisure travel companies with a portfolio of brands that the company owns or licenses including Vacation Outlet, Orbitz and others.

Report by David Wilkening