CRUISE NEWS
Companies off er recession-busting discounts to attract old and new customers
Cruise gets tactical
with bargain breaks
Juliet Dennis
juliet.dennis@rbi.co.uk
Cruiselines are introducing
increasingly aggressive tactical
offers and in some cases
slashing prices in half
to shift sales for winter and
next summer.
With a later booking season
predicted in the economic
downturn, many cruiselines
are lowering prices on specifi c
dates to boost early bookings.
Fred Olsen Cruise Lines
general sales manager Lol
Nichols said some of the company’s
Caribbean cruises were
on sale at half their usual
£1,400 price this winter.
He said: “We are having to
work very hard to get the business
in for 2009. For late business
this winter we are having
to discount quite heavily;
people are buying when the
price hits a certain level. Some
cruises are selling at half the
price they should be.”
He maintained current sales
for 2009 were on a par with
this time last year, with healthy
regional departure sales.
Carnival UK’s sales arm
Complete Cruise Solution, representing
P&O Cruises, Ocean
Village, Cunard and Princess
Cruises, is using money-off
deals or bonus commission payments
to boost trade bookings.
Sales director Giles Hawke
said bookings were “adequate”
but admitted the lower end of
the market, including Ocean
Village, was a harder sell. “At
16 | Travel Weekly | November 21 2008
Giles Hawke said it was a ‘harder sell’ at the lower end of the market, such as Ocean Village
the lower price end you have to
do more to attract customers
who have never cruised before.
There are some cruises where
you have to go to a certain
price point, but a lot are selling
at the normal tariff.”
He insisted Ocean Village
prices were “no lower than
normal”.
Meanwhile, sister brand
Costa Cruises is using tactical
deals and investing more
in marketing. Managing
director Marco Rosa said
volumes were holding up
but at lower yields. “The last
three weeks have been amazing
in terms of volumes but
with lower yields, although
they are at reasonable levels.”
Budget brand easyCruise
hopes to attract customers
looking for cheaper deals. Sales
and marketing director Paul
Ellerby said: “Overall our pricing
should be 30% lower than competitors
in the Greek islands.”
But he admitted the lates
market could be tough because
of competitive fl ycruise offers
from larger cruiselines.
EasyCruise launches fi rst trade brochure
EasyCruise is in talks with
major consortia and The
Co-operative Travel to strike
distribution deals as it launches
its fi rst trade brochure.
The cruiseline goes live with
its new bookable trade website
next month. Currently many
agents use customers’ credit
cards to book and charge an
administration fee.
Sales and marketing director
Paul Ellerby said talks were under
way with Advantage, Worldchoice
and The Co-operative
Travel Trading Group.
He added: “The new site will
also allow us to work with
agents in the traditional way,
but we have an education issue
and need to get the concept
across to agents.”
The cruiseline’s fi rst trade
brochure does not have prices
but has itineraries and is intended
as an information tool.
About 20% of the cruiseline’s
sales are from operators and
agents. It is targeting 50% for
2009.
“We are having
to work very hard
to get the business
in for 2009”
EasyCruise bosses are hoping to strike a deal with consortia
SeaDream Yacht Club has
introduced a last-minute Cancel
for any Reason policy allowing
customers to cancel up to 48
hours in writing prior to
departure and delay trips for up
to 18 months. It operated a
similar policy after the September
11 attacks.
Head of UK business Ian
Buckeridge said: “We have
introduced this to stimulate
the market.”
The company is also using
more aggressive tactical offers
on less popular dates, such as
Caribbean sailings next spring,
and special ‘take a mate’ deals
until December 15 worth up
to 25% off.
Early ‘wave’
period will
kick-start
2009 sales
Cruiselines are planning bigger
and better peak season
sales campaigns that focus on
value to kick-start 2009 sales.
The ‘wave’ period turn-ofyear
campaigns start from December
1, a month ahead of traditional
operators’ promotions.
Complete Cruise Solution,
the sales arm for P&O Cruises,
Princess Cruises, Cunard and
Ocean Village, said its campaign
spend was “slightly
higher” than last year and will
include TV commercials and
large-scale advertising.
Carnival UK sales director
Giles Hawke said: “The four
brands will be very visible and
we have got some pretty strong
prices for the wave period. Our
objective for 2009 is to focus
on the value for money that
cruises offer and maintain the
early bookings.”
Fred Olsen Cruise Lines has
extended its added benefi ts in
its wave campaign to boost
bookings in the tough market.
The cruiseline traditionally
offers extra onboard credit, free
port transfers or parking on
about a third of cruises in its
Captains’ Collection brochure.
This year savings will be offered
across all 60 cruises.
Hawke: ‘We have strong prices’
The cruiseline also hopes to
work with agents specialising
in Greece. “That’s as important
to us as cruise agents,” added
Ellerby.
Mark Godden is in the newly
created role of sales manager
for the UK and Ireland to improves
ties with trade partners.
He said: “Our product has matured
and agents who sell it will
have customers coming back.”
EasyCruise plans to work with
the Association of Cruise Experts
to offer further educationals.
www.travelweekly.co.uk
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