ing that the first ships were “designed for transport” across the Atlantic and were “sea-worthy ships with big drafts,” but could not enter many Caribbean ports of call and had cold weather in mind, with more portholes and no balconies and fewer outdoor spaces. Of course, they also had fewer amenities, whereas ships are “now destinations of their own.” And there is plenty more space for those amenities, as the ground-breaking, world’s-largest 100,000 GRT ships from just 20 years ago have more than doubled. But there is no stopping there. “Ships are getting bigger,” with more than 60 percent of the order book committed to large ships with more than 5,000 berths, and “every brand has a ship on order.” Another interesting thing about the record order book is the timeline itself, looking 10 years to the future and showing the “commitment from the industry…for a bright future.” However, he reminded that shipbuilding must look further to the future, with the ships used for decades and requiring
lines to ask “what people will want in 30 years’ time.” That view to the future should appeal to the industry, as he also reminded that cruising is “still a niche product,” with only three to four percent saturation in mature markets. “We have a fantastic future.” “I love destinations,” announced Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings Ltd., and “self-appointed itinerary planner” who still prepares or reviews every itinerary. Why? “I know of nothing else that influences profitability as much as destinations do.” “I also happen to love their diversity, I love their history, I love their quirks, I love piecing them together to make incredible and memorable itineraries for our guests, and most of all I love them because they make us lots of money.” The first question he gets asked when telling people about going on a cruise is “where are you going,” and “the answer influences everything from demand to price and the customer mix.”
“…WE STRIVE TO CREATE HUMAN CONNECTIONS IN POWERFUL (AND UNEXPECTED) WAYS…” —ARNOLD DONALD, CEO, Carnival Corporation & plc, & Chairman, CLIA
“It is the overall most significant determinant of their purchase decision,” he continued, showing NCLH’s chart of purchasing decisions led by destination or itinerary at 82 percent, “and remember it’s guests through their demand who ultimately determine the price.” And destinations do not just determine demand and pricing, but also “generate the most onboard revenue” through shore excursions, “the number one driver of onboard revenue, and that all has to do with the quality of the destination and its attractions.” SECOND QUARTER 2017 | TRAVEL & CRUISE 17