Making Room for More Passengers According to Cruise Lines International Association (CLIA), the global cruise industry exceeded the association’s original 2016 projection of 24.2 million passengers, with a total of 24.7 million passengers, or a 6.5% increase over 2015. CLIA’s passenger forecast for 2017 is 25.8 million, which would be a 4.5% increase over 2016. According to CLIA research, 48% of non-cruise travelers expressed interest in taking an ocean cruise. To fulfill continuing demand and generate traveler excitement, the industry has invested more than $6.8 billion in 26 new ships for 2017, including 13 ocean and 13 river ships, with a total new capacity of 30,006 passengers.

Improving the Cruise Experience Cruise lines have been changing their itineraries to include more late and overnight port stays, and re- routing cruises because of weather events, such as Hurricanes Irma and Maria, and geopolitical situations. Expedition cruises are becoming more popular as passengers seek adventure. Expedition ships are smaller and go to less-visited destinations. They focus on education, including staff lectures on culture, history, ecology, etc., with professional photographers onboard. Cruise lines are also focusing on memorable experiences, including food from celebrity chefs and original, high quality entertainment. MSC has invested $22 million in a Cirque du Soleil theater and Celebrity has a risqué love story with top-tier choreography.

From the Desks of Travel Agents According to the CLIA’s Q1 2017 Travel Agent Cruise Industry Outlook, more than three-quarters (77%) of travel agents say that their sales are somewhat or much better than last year and 74% expect their 2017 sales to be more than 2016’s. According to travel agents, bookings are increasing the most among Baby Boomers (70%), followed by Gen X (60%), Millennials (52%) and Silent Generation (31%). Multi-generational cruise travel is increasing as a result. The biggest two selling points for first-time cruise travelers are all- inclusiveness and the variety of destinations (95% each), followed by pack/unpack once (75%), price/value/return on experience (42%) and variety/quality of food (36%).

“Make Mine Cruising!” Almost half (47%) of travel agents say that an ocean cruise is the vacation that leads to the highest satisfaction among their customers, followed by all-inclusive resorts, 21%; other land-based vacations, 9%; and resort/hotel vacation packages, 5%. There are now more than 30 North American embarkation ports, and within driving distance of 75% of North American vacationers. This reduces the cost of the cruise vacation by eliminating airfares to and from the ports and enlarges the customer base. Two-thirds of Millennials and 71% of Gen Xers say cruising is their favorite vacation. Cruises are a preferred choice for families, especially with children younger than 18, many of whom influence the decision process.

The Increasing Attraction of Smaller Ships According to CLIA, the addition of 13 river vessels will result in a 7% increase in capacity for that segment, for a total of 197 river cruise ships by the end of 2017. According to Ask Your Target Market (AYTM) Research, 8.8% said they would be more likely to book a cruise on a smaller boat, and 22.2% said they agree/strongly agree that they would be more likely to book a cruise if they could choose their destinations. Europe is the world’s top destination for river cruises, particularly the Rhine and the Danube. Other river destinations are the Irrawaddy in Myanmar, the Ganges in India, the Nile in Egypt, the Amazon in South America and the Mississippi in the US.

Challenges and Opportunities Cruise industry executives point to shore excursions as the biggest source of onboard revenue. Some companies are charging extra for special entertainment events. Cuba is a new destination increasing in popularity, but it is vulnerable to US governmental policies. China is experiencing record increases, but mostly with Asian customers. Ships are being moved from Europe to the Caribbean. Cruise lines are continuing to add capacity, but this has caused congestion at the most popular ports- of-call. Cruise lines are now considering new itineraries to relieve congestion.

Advertising Strategies Since price is a major issue when it comes to vacation spending, emphasize the all-inclusive nature of a cruise vacation and how much local travelers would save by driving to the nearest port compared to airfare. Travel agents may be able to increase cruise bookings by offering a discount for multiple couples booking together and/or a discount for previous cruise customers who bring a first-time cruise customer and also book together. Based on The Media Audit data in the Profiler, show travel agents and cruise lines that the 5 to 7 PM block on your station is the most cost- effective place to connect with potential cruise passengers.

New Media Strategies Travel agents can ask customers to record videos during their cruise and/or upon their return, emphasizing the value, fun and ease of a cruise vacation. Upload to YouTube, Facebook and your Website. Use captured data from RFID wristbands to customize email promotions to past customers based on their excursions, activities and destinations during their cruise. Travel agents can entice prospective cruise travelers by showcasing unique entertainment options onboard or at ships’ destinations on a blog, an email newsletter and social media posts. Curate such content from other sources on your Website.