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Crystal cuts prices to win more UK customers
Luxury cruiseline Crystal has admitted it was pitching its prices too high for the UK market and it has been forced to slash rates in order to grow passenger numbers. Bookings for 2011 are up 12%, said vice-president – international sales and marketing Pual Orderver, but revenues are down by the same amount. "We have taken a hit on the yield, but we had to do that to grow our custom," he added.
Crystal has also introduced all-inclusive prices for both its ships, Serenity and Symphony, from spring next year and, for the first time, it has launched a range of special offers on three Mediterranean cruises this autumn, which start at £1,879 all-inclusive for 10-11 nights, a saving of about £500. It has also discounted one Hawaii cruise this autumn and it is offering some short, sampler cruises in October and November from £899.
To further boost bookings, the cruiseline is offering agents an additional 2% commission for all bookings from new-to-Crystal customers until the end of June. The cruiseline, which sells exclusively through travel agents, said it was not looking at cutting commission in the future.
The lead-in price for 2012 is £1,995 all-inclusive for a transatlantic crossing in May. "This is unheard of for us," said Ordever. He admitted that previously the cruiseline had not offered the most competitive rates, but he said he was confident they are now at the right level. "When we turned the year in January we thought this is tough," he said, "but over the past couple of months business has been coming back and now we are level with last year. Passenger numbers are up but prices are keen, so the revenue might not be as high as we would like."
Since lowering its prices, bookings for 2012 are "storming", Ordever said, there are only 30 out of 1000 beds left on its World Cruise and the wait-list for 2013 is filling up, even though prices have yet to be released. Ordever said they would be slightly higher than 2012 due to higher fuel prices.
For 2013 Crystal is offering more seven-night cruises to try to attract a younger clientele – the average age of its passengers is 62 although this drops to 48 in the summer months – and broaden its appeal in the UK market.
by Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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