Another Seatrade Cruise Global is in the books, and the 2023 convention took place during an interesting time of transition for the market. As executive changeovers continue to take place at the big three corporations (Carnival Corporation, Norwegian Cruise Line Holdings Ltd. and Royal Caribbean Group), the focus is on the future with COVID-19 now out of the spotlight.
Here are 7 of the top takeaways from this year’s Seatrade convention.
Leadership Is Changing
Both Carnival and Royal Caribbean already have new presidents and CEOs — Josh Weinstein and Jason Liberty, respectively — at the helm, and it was announced just before the expo that Norwegian’s Frank Del Rio would also be retiring, with Harry Sommer stepping into the role on July 1, 2023.
As Sommer vacates his position as president of Norwegian Cruise Line, David J. Herrera, the brand’s current chief consumer sales and marketing officer, will fill the position, and both expressed a “shared vision” moving forward, with an objective of “bringing new-to-brand” guests into the fold.
But for one last time, Del Rio joined Liberty and Weinstein, as well as MSC Group executive chairman Pierfrancesco Vago and Kelly Craighead, president and CEO of Cruise Lines International Association (CLIA), for a keynote chat.
Perhaps most importantly, from a business standpoint, the industry is thrilled to be profitable again. After the last three years, “it’s so great to be making money,” Liberty said.
The main takeaway overall, though, is “cruise has a great story to tell,” according to Craighead. “There is a product for everyone,” and sailings are available for all walks of life.
Sustainability Is Key (But Also Overplayed)
With environmental concerns maintaining a high public profile, sustainability remained a buzzword during the convention, and all players universally agree that it is important to address it — particularly the common goal of being net zero by 2050.
Practicality is a concern, however. The truth is, no one really knows how to achieve that objective. Weinstein believes the solution doesn’t exist yet, but from oceans to rivers, lines persist in discovering and pursuing a way forward.
Del Rio, however, also thinks the industry has gotten “carried away by this narrative of sustainability,” adding “let’s not forget about the real purpose of our business,” which is to provide a valuable vacation experience.
River Cruising Is Super Popular
“There’s a lot of excitement with the start of this river cruise season,” said Janet Bava, chief marketing officer of AmaWaterways. All of the line’s vessels are sailing, including along the Mekong River in Southeast Asia, and even in South America once the new Colombia sailings start up for the brand. Or, for those interested in Europe, where airfare is currently expensive, she recommends customers leverage the situation by taking longer trips with combined cruises.
For Ken Muskat, managing director for Scenic Group USA, “it’s all about getting in front of the agents to get brand awareness out there” for Emerald Cruises and Scenic Luxury Cruises & Tours. Of course, both are known for their river cruise offerings, but he highlights the broader portfolio that also encompasses ocean yachts, with each brand launching a new yacht this year. He also points to their “easy-to-do-business-with” approach and availability of fams for agents to experience the product firsthand.
“The trend is traveling together,” said Jennifer Halboth, CEO of Riverside Collection, Americas, for Riverside Luxury Cruises, who added the importance of debunking the “old person” myth that the river cruise market faces in order to engage with multigenerational travelers.
Expedition and Small-Ship Cruises Are Trending
Similar to river cruising, small-ship and expedition travel are also booming, and the segment’s passengers are changing, as well.
At the very beginning, passengers were “very adventurous,” according to Andrea Zito, CEO of Swan Hellenic, but now the demographic is broadening. In fact, the average age has decreased from 55 and up to 45 and up for Aqua Expeditions, according to its CEO and founder, Francesco Galli Zugaro. Contributing to such statistics are also advancements in connectivity, like Starlink internet access in remote regions, as Atlas Ocean Voyages president and CEO James Rodriguez believes.
Meanwhile, Lindblad Expeditions - National Geographic has newly introduced its “Expedition 360” program as an “all-encompassing” trade initiative with four pillars, “Technology, Training, Service and Appreciation,” according to John Delaney, senior vice president of sales and revenue management at Lindblad Expeditions. He said that agents want to know how to better sell expeditions, since they consider it the next frontier.
And on the small ship side, Windstar Cruises, which is also in the process of rolling out Starlink onboard its fleet, is showcasing its upcoming 10-day “Sparkling Sands & Cities of the Persian Gulf” itinerary from Dubai on November 23, 2023, for the chance to see Formula 1 racing at the Abu Dhabi Grand Prix.
Luxury Cruising Is Crossing Over (and Coming Home)
“We are safaris at sea,” said Barbara Muckermann, president and CEO of Silversea Cruises, indicating that there is a continuing crossover between expedition and luxury cruising and underlining the “the need for authentic experiences” in the luxury market.
For newcomer Explora Journeys, which has plans for six ships, some of its first destination experiences will be closer to home. Explora I will feature the United States, Canada and New England from September to November 2023. Guests can expect curated experiences in the likes of New York, Boston and Portland, Maine, as well as Baie-Comeau, Charlottetown, Quebec and Halifax in Canada.
New Ships Are Coming
Besides Explora, more lines have new and redesigned ships on their way to the market, including Celestyal Cruises, Cunard Line and MSC Cruises, to name a few.
Set to expand its presence in Greece, Celestyal Cruises previewed renderings of its newly acquired Celestyal Journey ship, formerly Holland America Line’s Ryndam. The ship will introduce more balcony accommodations and specialty dining options for the line when it relaunches Sept. 2, 2023, following an approximately $21 million refurbishment.
Cunard Line is having a renaissance of its own, sharing that 60% of its latest passengers are new to the brand, as the historic company looks ahead to the new Queen Anne. The new vessel will launch in 2024, and already the line is preparing its first 107-night “World Voyage,” departing on Jan. 9, 2025, roundtrip from Southampton, England, to visit five continents and over 30 individual ports.
Additionally, MSC Cruises is preparing to introduce its MSC World America to U.S. cruisers starting in April 2025. Among its onboard features will be The Harbor family fun zone, outdoor World Promenade, indoor World Galleria, 13 restaurants (including two new specialty concepts), 20 bars and lounges, an 11-deck-tall dry slide, six pools and 14 hot tubs, an interactive waterpark, additional kids’ clubs, a trio of entertainment venues, a signature MSC Yacht Club and more.
The Industry Is Targeting New-to-Cruise Travelers
It’s time to capture the “new wave of first-time cruisers,” said MSC’s Vago, in what was a shared refrain during the convention, and agents are crucial to that endeavor. Scenic’s Muskat even has a solid suggestion on how to achieve that goal.
“We need to tap into other luxury” segments, he says, that have not yet experienced cruising; specifically, those travelers who might have a safari or villa on their radar, but have not yet considered a trip to Antarctica.
Most cruise lines don’t even consider each other to be their biggest competition, still citing land vacations as the top challenge to overcome. Carnival’s Weinstein estimates cruising is 25-50% cheaper than a comparable shoreside experience. Overall, the cruise market’s extraordinary value is the main message that needs to be presented to clients.
The Seatrade Cruise Global 2024 conference will take place in Miami from April 8-11.
