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Richard Branson, Brexit and the future: report of CLIA’s Next Generation 2019 conference

photo_camera Sir Richard Branson, tom McAlpin and Lucy Huxley

Brexit is a bump in the road for what is overall a very bright future for the cruise industry.

The theme for this year’s CLIA conference 2019 was Next Generation. Essentially, an in-depth look at what’s on the horizon for the cruise industry, the next generation of cruisers and what they are going to be looking for when it comes to their cruise holiday.

Andy Harmer dressed in star trek uniform clia conference 2019
Andy Harmer suitably dressed in a Star Trek uniform

As CLIA’s UK and Ireland director Andy Harmer, fittingly dressed in a Star Trek costume at the start of the conference, aptly put it: “We are continuing our mission to explore new places and markets…To infinity and beyond.”

With this year having been a record-breaking one for the cruise industry, surpassing two million UK and Irish passengers two years ahead of schedule, the outlook is very positive, as Tony Roberts, vice-president of Princess Cruises, stressed. While there will be difficulties and challenges ahead with “consumer confidence being down”, these, Roberts believes, are short-term, with Brexit simply being “a bump in the road” in what is a thriving industry – as highlighted by the $60 billion being spent on ship builds over the next few years. So, the million-dollar question is how can we as an industry appeal to a new generation of cruisers?

For Roberts, the key to success is innovation. From rollercoasters to tattoo parlours, these state-of-the-art facilities are what differentiate the cruise sector from land-based holidays and make cruising unique, and this story is something travel agents need to sell, along with promoting great value and supreme service.

This was something CEO of Virgin Voyages Tom McAlpin heartily agreed with, confirming during the conference that Virgin’s first ship, Scarlet Lady, will be coming to the UK. Virgin’s mission is to challenge old traditions in cruise and break free from the norm in order to attract newcomers and more importantly, younger people, to cruise.

“We don’t want to fit into any one category. We’re different. We’re going to be so unique they’re going to want to be on board,” commented McAlpin. Just one of the ways the brand hopes to set itself apart from traditional cruise is by giving customers more flexibility with its new Rebellious Luxe category:

“It’s all about making you feel like you’re a rock star and feeling like you can get what you want, when you want it,” he added.

Virgin’s founder Sir Richard Branson, who made a surprise visit to this year’s CLIA conference to discuss the brand’s entry into the cruising market, summarised the brand’s mission statement: “We want to create the kind of cruise ship that we think millions of people who’ve never been on a cruise ship would love to go on so that we can expand the market into a whole new area of people.” Branson hopes to “surprise people” as well as to instil Virgin’s brand identity, incorporating music and even possibly, if Branson gets his way, a silent disco on board.

Of course, while innovation is important, it is vital that the cruise sector continues to meet customer need and expectations, as stressed by Carnival vice-president Ian Baillie, and this is being done through the cruise line’s strong family offering.

Cruise industry wearing matching t-shirts outside Portsmouth Guildhall for clia 2019 conference
The future’s bright for the cruising sector

Understanding how “travel agents are imperative to our business” given that 75 per cent of bookings are made through them, Carnival’s aim, says Baillie, is to make life easier for them. This is not just through offering amazing family experiences, but also through immersive technology and virtual tools so that they can better educate the customer on the offering.

For Larry Pimental, Azamara’s president and CEO, education and knowledge are the real key to success for travel agents today. For Pimental, it is not about launching new ships, but about being aware of the products on offer and agents interpreting and articulating their value to the customer in order to get them to cruise.

“Industry continues to grow because it’s good value,” he commented. “Value is not just about the price you paid. It’s about what you get after you paid.”

With people now looking at a website on average 10 to 12 times before booking a holiday, it is imperative that agents are one step ahead of the game and have the knowledge at their disposal to sell cruises, he argued. According to Pimental, the number one incentive driving cruise bookings is experiences, as the majority of cruisers want a voyage that will take them somewhere on land. It is therefore necessary for agents not simply to educate themselves on the cruise itself, but also the destinations on the itineraries.

Performers at the CLIA conference 2019
Performers at the CLIA conference 2019

Head of NCL Frank J Del Rio similarly stressed the importance of experiences, particularly with the millennial generation. This is something he believes the cruise industry does best, along with continuing to evolve with society to meet the needs to customers, as highlighted with the shift in luxury in the cruise sector. “Today, shirts, flip-flops and T-shirts could be your millionaire next door. The cruise industry does a great job of keeping up with society,” he commented.

Del Rio also made the case for personalised experiences and how the rise in the staff/guest ratio has enabled NCL to deliver a more personalised service to passengers. When it came to upper premium cruising, Bernard Carter, senior vice-president and MD of Oceania Cruises, similarly argued for a truly bespoke and personal cruise experience, while Chris Hackney, Marella Cruises’ MD, made the case for contemporary cruising and technology being the answer to selling cruises in the modern age.

While each of the speakers at the conference from the different cruise lines addressed different areas, the end message and final takeaway was the same: in order to appeal to newcomers to cruise and for the industry to continue to thrive and grow, it is imperative for cruise lines and travel agents to work together to narrate the cruise story to newcomers.

To quote Andy Harmer’s closing words: “We need to reach the next generation of cruisers. We will only do that if we work together to tell that story.”

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