Cruise Trends Although travel agents perceive that the overall outlook for cruises is strong, they do not expect to see growth across the board. With travelers growing increasingly price-conscious, the segments that are expected to see growth are mass market cruises (62% of travel agents anticipate some growth) and premium cruises (54%).
Canada and New England, with 42 percent of travel agents expecting growth.
Travel agent Aiko Yao Lim says that the trend that is most affecting his business is the consumers’ desire for “deals and getting the lowest price possible with the best value.….We’ve also been seeing more customers wanting to embark on cruises in their own city and not want to take air to go on their cruise.” Similarly, there is uneven growth among the types of cruises that travel agents are booking. They report that river cruises and cruises on large ships are generating the biggest growth (with 71 percent and 66 percent respectively reporting growth in those segments). While few declines are anticipated in any segment, according to travel agents, growth is lowest among expedition vehicles and boutique or yacht cruises.
Another trend that travel agents are reporting is that customers are booking their cruises further in advance. Forty-seven percent say that customers are increasingly booking nine to twelve months ahead, and 42 percent say more cruises are being booked six to nine months in advance. Not surprisingly, last-minute deciders seem to be on the wane. A third of travel agents report a decreasing number of cruises being booked in less than three months. Agency Trends Like any modern industry the travel agency business continues to change. When asked an open-ended question about what trends are having the most impact on their businesses, the most frequently volunteered trend was an increase in groups and families (including multigenerational families) who are cruising together. This is having a positive impact on cruising as more and younger families discover cruise travel.
Travel agents are reporting that the cost and hassle of international flying is becoming a barrier to many long-distance cruise destinations. Consequently, domestic and local cruises are experiencing the most significant growth so far this year. Even though Alaskan cruises are one of the smallest segments of the industry, accounting for only four percent of total deployment, more travel agents (73%) are seeing increases in Alaskan cruises than any other region. The largest region for cruising, with a third of all cruises—the Caribbean—is poised for even more growth in 2016, with 52 percent of travel agents seeing growth there. Another local region with strong growth in 2016 is
New ships, especially larger ships that offer all-inclusive pricing, seem to be having a positive impact on the demand for cruising. Travel agents have also noticed an increased interest in river cruising. Summary As we begin 2016, the cruise industry is headed for growth, and travel agents are reinforcing this trend. Travel agents are anticipating increases in both the number of people who are cruising and the amount of money they spend on cruises. Looking long-term, the future of cruising is secure. As more multigenerational families embark on cruises, the cruise habit will become ingrained in younger consumers. This is important because retention rates are extremely high among travelers after they experience their first cruise.
First Quarter 2016 | Travel & Cruise | 101