Investing In the Future

Aug 30, 2008

River cruising is growing across the board and the product is becoming increasingly sophisticated. An intimate vacation experience that visits destinations found along great waterways seems to be a perfect match for the baby-boomer generation.

Patrick Clark, managing director of Avalon Waterways, said river cruising is extending the longevity of travel for consumers.

Avalon ships feature state-of-the-art
technology and large staterooms

"As they get older, the people who wanted to explore still do, but they need additional comforts," he stated. "A river cruise with the small ship experience is perfect for them. Baby boomers are ideal for this product, and it’s an easy move from escorted tours."

Part of the Globus group, Avalon is making a $100 million investment in the future of the rapidly growing river cruise segment with a five-ship contract over two years with Holland’s Den Breejen Shipyard. The 138-passenger Avalon Scenery, which debuted in April, was the first of these ships, and four sister vessels are scheduled for christenings in the next two years: the Avalon Affinity (2009), the Avalon Creativity (2009) and two more ships in 2010. With these deliveries, Avalon will then have 10 luxury vessels in Europe, averaging just two years in age.

"Our ships are more modern in design, showcasing contemporary appointments and state-of-the art technology. They also house the largest staterooms available. Except for our junior suites, all staterooms measure 172-square feet and 90 percent boast floor-to-ceiling windows and panoramic sliding-glass doors," said Clark.

Other features include flat-screen televisions, elegant bathrooms, large closets, beds that can be configured as two twins or a queen, Egyptian cotton linens, a minibar, a safe, laundry and ironing services, a fully equipped fitness room, a library, a hair salon and a gift shop, as well as a club lounge and a large Jacuzzi pool.

Steve Born, vice president of marketing and customer care for the Globus Family of Brands, discussed the services that elevate the Avalon product.

"Avalon serves passengers unlimited, complimentary local wine with all onboard dinners and features regional entertainment; it provides the most impressive land programs available, coupled with a superb English-speaking staff."

The destinations are a substantial draw as well, as Avalon has a wide range of cruise itineraries in Europe, Egypt, China and the Galapagos, including themed offerings like music-inspired getaways, holiday vacations and a special Food & Wine cruise series, created with Burt Wolf.

Clark said passengers who have visited an area briefly on a big ship want to go back and have an in-depth experience. The line’s repeat rate is 25-28 percent after just four years of operation, and its satisfaction rate is 96 percent — the same percentage of guests who say they would recommend the line to friends. Most of Avalon’s passengers are FIT, but they are seeing more incentive group charters.

One in five of its clients is a single traveler and Avalon has three ways of accommodating them: Singles sometimes pair up with other singles, take the solo supplement of 50 percent with a price break or take advantage of a guaranteed share program where the cruise line will match them with a same-sex guest to share a stateroom; if there is not another guest available, the single traveler has a stateroom for the regular, per-person price.

According to Clark, the key to further itinerary development is to have two interesting anchor cities with excellent airlift, increasingly important as the airlines limit their routes. Avalon is looking along the Seine River and at Russia, even though the limited four-month season is an issue. Ships fitted to go into the Black Sea or Mediterranean are no longer river vessels, Clark noted.

"Still, it’s very much on our radar," he added.

Meanwhile, Avalon’s 2008 bookings are up 20 percent over 2007 and 2009 numbers are looking even better, already up 30 percent, year over year. Cruise tours in Egypt and the Nile are booming, Clark said, and are up 25-35 percent. Avalon is launching Amazon cruising under the Globus banner in 2009.

In a message to agents, Clark said the line is offering higher commissions than large ships and product Webinars, fams, virtual tours on site and the agent portal.

www.avalonwaterways.com