At Seatrade Cruise Global 2023 earlier this month, a very interesting panel addressed the question, “Will Hotel-Operated Cruise Lines Solve the Industry’s New-to-Cruise Conundrum?” That is, will these players begin attracting the vast majority of travelers who have still never tried a cruise?
Among the executives on hand for the discussion were representatives from Cruise Saudi (which is partnering with Aman Group), Margaritaville at Sea,Orient Express at Accor and The Ritz-Carlton Yacht Collection, as well as Scenic Group (not coming from a hotel, per se, but a shoreside touring and river cruise background).
As for The Ritz-Carlton, the answer already seems to be “yes.” An impressive 80% of its passenger base is new to cruising, according to CEO Douglas Prothero, who calls the collection a “yachting lifestyle product.” What’s more, 75% of guests are members of the parent company’s Marriott Bonvoy loyalty program.
Recognizing that those who have sailed before know what to anticipate, he added, the “new-to-cruiser comes with extra attention.” So, The Ritz-Carlton specifically set out to mirror not a cruise ship, but a super yacht “interested in flow,” with a focus on abundant space, great food and exceptional service. Clients won’t find a typical cabaret or casino onboard, but alive and well is the brand’s mantra of “ladies and gentlemen serving ladies and gentlemen.”
There’s still such tremendous value, because when you step onboard a cruise ship, you’re not just getting a hotel room. You’re getting the food, the entertainment and the end-to-end experience, which will forever put us at an incredible advantage to land-based experiences.
In much the same way, Kevin Sheehan Jr., CEO and president of Margaritaville at Sea, is also interested in converting clients to cruising, and that the key to the approach is doing so with an established brand they trust, like Margaritaville, which also has shoreside resorts.
"The brand needs to sing from every part of the ship … now we can give it to you on the sea,” he said.
In the case of Accor and its upcoming luxury train-turned-cruise product, the Orient Express Silenseas sailing yacht will set out to convey the 1930s style of the French Riviera when it launches in 2026. Featuring only 54 suites onboard, “experience [is] at the heart of what we do,” according to Guillaume de Saint Lager, vice president of the brand.
And for Aman, Fawaz Farooqui, managing director for Cruise Saudi, noted that the brand’s upcoming 2025-scheduled luxury yacht will be all about “privacy and space” with a two-to-one crew ratio set to emphasize software and service, plus hardware and experience. He sees a unique opportunity to retain guests across its hotels, trains and, now, ship.
Guest Sourcing
“Coming back to the travel advisor community, they’re finding our customers in places where they’re selling them something other than a cruise,” said Ritz-Carlton’s Prothero. (For him, that means a Tuscan villa or land trip to the Maldives.)
Ken Muskat, managing director for Scenic USA, also believes advisors “need to tap into other luxury” segments, such as safaris. He underlined the importance of getting travel agents on fam trips, sharing the statistic that advisors are five times more likely to sell a product once they experience it themselves.
Another suggestion Cruise Saudi’s Farooqui gives agents is to look for those customers who might otherwise charter several smaller yachts for a vacation, who could alternatively select Aman’s singular larger yacht for such a purpose.
Value: Cruising Vs. Hotels
In the end, it all comes down to the extraordinary value that a cruise affords, which can oftentimes get people in the door.
"The delta between land-based and cruise pricing is what creates a huge opportunity” said Margaritaville’s Sheehan. “There’s still such tremendous value, because when you step onboard a cruise ship, you’re not just getting a hotel room. You’re getting the food, the entertainment and the end-to-end experience, which will forever put us at an incredible advantage to land-based experiences.”
