First-time cruisers key to future growth

Sunday, 08 Dec, 2005 0

Question Time special report: Attracting younger, first-time passengers and the building of ever-larger ships will help fuel growth in the cruising market, a debate on the future of the sector has heard.

Island Cruises managing director Patrick Ryan told TravelMole’s travel industry question time that the company targets customers who have never experienced cruising.

As a result, he said, more than half its passengers are first-timers.

“We are targeting people who have been on – and I am not being detrimental – bucket and spade holidays and want to try something else,” Ryan told delegates. “We offer cruise and stay options which enable people to try out cruising without it representing the entire holiday.”

Around 30% to 35% of sales are for cruise and stay holidays, he said.

“We are a young company but are seeing good levels of sales and that’s without a big trading history,” Ryan continued.

The average age of its passengers is 48, he said, many of whom are attracted by its relaxed approach to cruising.

“It’s for those who don’t want to wear a tuxedo.”

Carnival UK managing director David Dingle praised the cruise and stay concept for drawing in new cruisers.

“It’s a significant amount of money to pay if you have not been cruising before and are not sure about it,” he said. “Cruise and stay is a tremendously useful way of dripping into the market. That’s how a lot of people started cruising.”

Dingle added that since Airtours withdrew from the market, a “significant number” have traded up to P&O.

The debate heard from the Carnival boss that bigger ships, specifically built for the UK market, are also helping the industry.

“New ships can offer new and different things that can’t be done with retro-fitting,” said Dingle. “I have no truck with the notion that ships will get too big.”

They also produce economies of scale, enabling more attractive prices, he said.

Royal Caribbean UK and Ireland managing director Robin Shaw added: “The bigger the ship the more chance you have to innovate.”

The panellists also said the launch of easycruise would do the industry no harm.

Ryan said: “Anything that promotes cruising has to be good. We know the biggest opportunity for us is to grow awareness.”

Passenger Shipping Association director Bill Gibbons said easycruise has “deconstructed” seven and 14-night cruising and opened up the market for travellers who may later trade up.

But he added: “Passengers have turned out to be more affluent and less rowdy than Stelios (easycruise founder) would have imagined.”

Gibbons described the cabins as “challenging.”

Dingle said the new entrants will help the market as long as they are “safe, professional and deliver on service.”

“That’s what matters to the reputation of cruising,” he said.

Report by Steve Jones