One problem many solutions
Oh, how I love the travel industry and have focused much of our agency to this market. Why? Because it’s better than selling Preparation H, not that I would mind getting that account, yet it certainly is more exciting and pleasing visually. We do specialize in the travel and tourism industry and in reviewing the market share below pie chart we can see the activates is grown which is tours, attractions, and events. We see how much hotels have to airlines and in the “other” section is our beloved cruise industry.
Also, in this chart seeing that the online booking has grown and that the other regional segments have stayed the same except Asia Pacific (APAC) keeps growing.
Understanding the growth potential
Even with COVID and now in the post COVID era we can still see the hotel and travel industry growing expedientially even to 2025. The hotel industry is very competitive and with rate reduction the growing number of mergers and acquisitions the hotel industry is growing at a steady pace. If they continue to offer enhances amenities and significant expansion of their properties, they will boost booking rates. Still in the next coming years with the cruise industry growing even further with expanded itineraries, inclusion of shore programs, expanding ship building and other innovative port engagements it can take more growth.
Segmentations are Key
As you see more segmentation for the travel industry to the cruise industry, we see that Carnival and Royal Caribbean International (RCI) still take up so much of the market share in this specifics segment. The specifically with in Carnival for example you have more segmentation with the different brands ranging from AIDA, Carnival, Costa Cruises, Holland, P&O, Princes and Seabourn. The grow will be incredible coming in the next few years as the cruise lines are consistent with their health protocols. Even though these main brands such as Carnival and RCI are very segmented it give opportunity for each target to enjoy the different brands such as, mass market brand as Carnival, Princess and Holland they also have the luxury end of the market with Seabourn.
Let’s all AIDA: Attention, Interest, Desire, Action
In understand each segment, we can make some recommendation to have the cruise industry keep growing in global travel industry, the “other” can divide to a segment for just cruises. Get attention for each brand segmented with creative advertising for each target through social media, SEO and web banners. Create interests to explore with the potential guest how this segment fits in with their lifestyle. This will create the desire to want the brand and inquire more. Some ways the cruise industry start to create more interests:
- High tech features like write bands for keyless entry and onboard purchases. To full app usage to sign up for shore exclusions, tours and events
- Private Island experiences a must from Caribbean to Middle East create a safe haven for guests on all levels
- Small and Expedition Ship becoming more popular with our client Seabourn the new Expedition Class ship Seabourn Venture is the ultimate in innovation from submarine to interactive environments. This will give guest a true authentic experience and be in-depth outdoor tours that are not only active yet getting so close and personal with local animals and cultures
- Health and safety at the forefront in these controlled environments. Not only will everyone need to be vaccinated also the deep cleaning measures done on the ship is stricter than any hotel.
- Loyalty is key, improve loyalty programs to grow your loyal base like hotels and airline
In developing this desire, to name a few, the cruise industry will create action for more and more cruise line fan base therefore can create a large loyalty groups industry wide. The cruise industry should put more effort in growing this loyal fan base like the airline and hotels. They are the lowest hanging fruit, and they will come again and again to experience the new and improved way of cruising post COVID. The satisfaction rate is also very high after therefore creating this great group to continue to target in the communication process. So, let’s get our suntan oil, hats, sunglass and get cruising because it is coming back new and improved.
References:
- https://www.phocuswright.com/Travel-Research/Research-Updates/2018/Tours-and-Activities-A-market-on-the-Move
- https://www.phocuswright.com/Travel-Research/Research-Updates/2019/Global-online-bookings-growing-2x-as-fast-as-overall-market
- https://www.grandviewresearch.com/industry-analysis/us-hotels-resorts-cruise-lines-market
- https://cruisemarketwatch.com/market-share/
- https://www.travelcodex.com/the-complete-guide-to-cruise-line-loyalty-programs/
Thank you and let’s get creative,
Patsy I. Linares
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