MORE CRUISE SHIPS ARE COMING—AND THE INDUSTRY NEEDS TRAVEL ADVISORS TO HELP FILL THEM

Cruise lines are building a plethora of new ships—and they’re counting on travel advisors to help fill them.

That was a key message from cruise line executives at this year’s Cruise360 conference, hosted by Cruise Lines International Association (CLIA) at the Broward County Convention Center in Fort Lauderdale.

At the six day professional development event, which took place April 16-21, travel advisors attended educational seminars, chatted with industry leaders, networked with each other and learned more about a wide array of cruise companies and their offerings. Many also worked toward achieving CLIA certifications and helped celebrate the 2024 Hall of Fame Cruise Industry Award winners. 

More than 1,250 travel advisors attended the sold-out conference, eager to learn more about the growing industry which has now fully rebounded from the COVID-19 pandemic. 

“Just like cruise, this event keeps getting stronger and stronger,” said Kelly Craighead, CLIA’s president and CEO, during her keynote address.

Last year, the industry welcomed 31.7 million passengers, up 2 million from 2019. It’s expected to grow even more in the coming years, with projections calling for 39.4 million passengers by 2027, according to CLIA’s latest State of the Industry report.

In a bid to capitalize on this strong demand, cruise lines have ordered a plethora of new ships—both large and small. The CLIA member fleet is projected to surpass 300 ocean-going vessels for the first time this year, with eight new ships coming online in 2024 alone. 

CLIA member lines also have 35 total ships in the works between 2024 and 2028. Industry-wide, 56 ships are scheduled for delivery by the end of 2028, representing an investment of $38 billion and the addition of more than 121,000 lower berths.

At the same time, cruise lines are also investing in upgrades to their existing fleet, said Craighead.

“When you consider the number of net-net lower berths, you should really see this as an opportunity to grow your business,” Craighead said. “And, frankly, I’ll tell you, we’re counting on you, as the largest and most professional network, to be able to invite and welcome new cruisers to help fill these new ships.”

Cruise line executives echoed that sentiment, adding that travel advisors are critical to the industry’s future success.

“The fact that the cruise industry continues to build new ships is really exciting,” said Adolfo M. Perez, senior vice president of global sales and trade marketing at Carnival Cruise Line, during the "Sales and Marketing Hot Seat" general session. “The more we build, the more we’ll need travel advisors like yourselves to help us fill these ships because we couldn’t do it without you. The future is bright. There’s a lot of opportunity, even today. But in the future, as we continue to grow as an industry, we’re going to rely on you for even more support so we can fill all the new ships coming online.”

The Future Is Bright for Private Islands

In addition to new ships, many cruise lines are also investing in their private islands. 

MSC Cruises is in the process of updating its private island in the Bahamas, Ocean Cay MSC Marine Reserve, ahead of new ship MSC World America’s launch next year. With eight new ships coming online between 2026 and 2036 across its three brands, Norwegian Cruise Line Holdings also plans to make enhancements to Great Stirrup Cay.

Carnival Corporation is extending the pier at Celebration Key. And Royal Caribbean recently completed an expansion of Perfect Day at CocoCay and will be opening new beach clubs in Nassau and Cozumel.

Cruise companies like that private destinations allow them to deliver a controlled, high-quality product that meets their standards. And, across the board, guests love them. 

“This year, we’ll take over 3 million guests to Perfect Day at CocoCay—it’s the No. 1 destination for Royal Caribbean globally,” said Michael Bayley, president and CEO of Royal Caribbean International. “From what we’ve learned with Perfect Day, if you get it right, the demand is unbelievably strong—and, more importantly, the satisfaction is extremely high. The other key element is: When you get your product just right for your target market, there is no issue with pricing, rate or cost. People will pay for quality, if you deliver the kind of experience they really want. So we feel really optimistic about the future as it relates to private destinations.”

A.I. Is Here to Stay—But So Is Human Connection

Cruise companies are using artificial intelligence (A.I.) in a wide array of applications, from itinerary planning to predictive sales tactics to supporting their decarbonization efforts. They encouraged travel advisors to embrace A.I. and use it to help make their businesses more efficient.

But they also doubled down on the fact that selling travel is all about human connection—and they encouraged travel advisors not to lose sight of that.

“This is a people business,” said David J. Herrera, president of Norwegian Cruise Line. “Guests are everywhere, but they still want to be spoken to. They need you. They need your help.” 

And will the rise of virtual reality ultimately hurt the travel industry? Not a chance.

“These new virtual experiences, they’re great, they’re fun, they’re enjoyable,” said Bayley. “But at the end of the day—and I certainly think we see it now in terms of demand for our products and experiences—people are really thirsty for real stuff, real experiences, real emotions and real connections to other people. We’re in a great place to capitalize on that opportunity.”

Small Ships Have a Place, Too

While much of the recent focus has been on megaships—like Royal Caribbean’s new Icon of the Seas—industry leaders also reiterated that small ships have their place, too.

The current CLIA member fleet is evenly split among ships of different sizes: 34 percent are considered small, with less than 1,000 lower berths; 39 percent are medium-sized, with 1,000 to 3,000 lower berths; and 28 percent are large, with 3,000 or more lower berths.

“One thing you might be surprised to know is that there’s a solid balance among the size of ships in the fleet today,” said Craighead. “This range in ship size helps demonstrate there truly is a cruise for everyone.”

To that end, CLIA dedicated an entire general session to selling small-ship cruises. Titled “Small Ship, Small Talk, Big Commissions,” the event featured representatives from river cruise companies and luxury small-ship lines.

“Selling small-ship cruises is something that can profoundly improve your cruise sales volume and take your commission income to the next level,” said Charles Sylvia, CLIA’s vice president of trade relations and industry special envoy. “And what’s most interesting is the fact that small-ship clients are typically easier to sell and service because they’re often experienced and sophisticated travelers who require less hand-holding. This leaves you with more time to surprise and delight them in other ways in order to secure their future business.”

Focusing on luxury small-ship cruises can also be a good way to convert customers who usually want to book land-based vacations.

“We’re definitely going after that first-to-cruise, that customer who’s never been on an ocean experience before,” said Saul Fonseca, head of sales for U.S. east and Mexico for Explora Journeys. “When we talk about who advisors should consider for Explora Journeys, it’s definitely the luxury land lovers. It’s those clients you have going to One&Only, Six Senses, Aman resorts—very boutique properties with lots of personalities. That’s what we are. We’re a European luxury lifestyle ocean experience.”

2024-04-22T19:14:50Z dg43tfdfdgfd