Cruiseport Boston Presentation for Advisory Commission on Travel & Tourism June 23, 2014

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Cruiseport Boston Vision The vision for Cruiseport Boston and Black Falcon Cruise Terminal (BFCT)… Provide a welcoming gateway into the City of Boston Offer our passengers a best in class customer experience Achieve the highest levels of operational efficiency, safety and security Create flexible and adaptable facilities Ensure our business model is financially sustainable …to meet the current and future needs of a vibrant and growing cruise industry in order to sustain jobs and support a key economic engine in the Port of Boston 4

Cruiseport Boston Overview Black Falcon Cruise Terminal (BFCT) Busiest cruise terminal in New England (owned and operated by Massport) ~$187M in annual economic benefit to region ~2,000 jobs supported 2013: record-breaking year: 382,885 passengers, 116 ships 2014: expecting more than 320,000 passengers, 115 ships 2015: expecting nearly 370,000 passengers, 122 ships Passenger volume expected to double by 2025 Four (4) ships homeport (T/A) in Boston, offering cruises to Bermuda, Canada, Europe and Caribbean (end of season only) 52% homeport, 48% port-of-call (PoC) $11M in upgrades completed in 2010; $3.5M in additional upgrades being completed in

Cruiseport Boston Overview 6 Before After

Cruiseport Boston Customers 7

Cruiseport Boston Itineraries 8

2014 Norwegian Cruise Line (Fridays) Norwegian Dawn: 22 Boston to Bermuda 2 Canada/New England 1 Caribbean Repositioning Holland America Line (Saturdays) Maasdam: 11 Canada/New England Veendam: 9 Canada/New England 1 Transatlantic Voyage 1 Repositioning to San Diego Royal Caribbean (Sundays) Brilliance of the Seas:6 Canada New England 1 Caribbean Repositioning 9

Cruiseport Boston Itineraries 2015 Norwegian Cruise Line (Fridays) Norwegian Dawn: 22 Boston to Bermuda 4 Canada/New England (+2) 1 Caribbean Repositioning Holland America Line (Saturdays) Maasdam: 11 Canada/New England Veendam: 9 Canada/New England 6 Bermuda (+6) 1 Transatlantic Voyage 1 Repositioning to San Diego Royal Caribbean (Sundays) Brilliance of the Seas:9 Canada New England (+3) 1 Caribbean Repositioning 10

11 Cruiseport Boston Activity Homeport activity peaks in June and July with vast majority of PoC activity occurring in September and October (foliage itineraries) Passengers (PAX)

12 Traveler Dynamics International travelers far more likely than US travelers to combine cruising with pre-/post destination visits

Cruiseport Boston Opportunities Pre-/Post-cruise packages (Homeport) Hotels Parking or shuttle transport to/from the cruise terminal Destination/excursion spending by fly-in passengers, especially international travelers Shore Excursions (PoC) Intercruises Shoreside & Port Services handles shore excursions for 90% of the cruise lines that call Boston –~50% of excursions are booked onboard –~25% are booked in the cruise terminal through Intercruises –~25% of cruise passengers go out on their own (fastest growing group, but lowest satisfaction w/ destination experience) 13

Takeaways for Travel + Tourism Know the Market Homeport Cruises –ALL homeport cruises currently arrive/depart Friday–Sunday, and probably will indefinitely, so land-sea packaging has to involve weekdays –Canada/New England cruisers are largely non-local fly-in travelers, so reach them before they book if possible Port of Call Cruises –Intense 6-7 hour excursion opportunities, so likely limited to one hour travel time from BFCT Help Grow the Market Word of Mouth –Still one of the most effective means of marketing…spread the word about cruising to/from Boston to your contacts 14

Takeaways for Travel + Tourism Communicate and Connect Cruise Lines/Intercruises –Sell your experience on the ship, not after it arrives Other Homeport Destinations –Cruiseport Boston’s homeport business depends heavily on the quality and capacity of other anchor ports in our itineraries (e.g. Quebec City, Montreal) so seek opportunities to co-develop and co-market pre- and post-cruise land excursions with these partners Airlines –Most Canada/New England cruisers are fly-in rather than drive-in cruisers, and many are international travelers, meaning they are more likely to spend time and $$ on pre- and post-cruise land excursions…getting their attention at or before they book their flights is important 15

Cruiseport Boston Presentation for Advisory Commission on Travel & Tourism June 23, 2014