2010 Cruise Down Under
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1 Bruce Krumrine Vice-President of Shore Operations Princess Cruises August 26, 2010
2 What do All of These Things Have in Common?
3 Just a Few of the Lifetime Memories You can Experience on a Cruise to Australia
4 Continued Growth of Cruise Tourism Down Under
5 Is Cruise Down Under on the Right Track?
6 Much Has Been Accomplished Opportunities to do Even More Review Eight Priorities
7 1. Sharing a Common Purpose
8 Grow Cruise Tourism in Australia
9 2. Encourage Stakeholder Participation
10 Ports, Government Authorities, Tourism Boards, Tour Operators, Port Agents and Many Others
11 Teamwork Does Not Happen Everywhere
12 3. Understand Regional Interdependence
13 Regional Ports are Interdependent. Need to Work Cooperatively to Improve the Quality of All Ports in the Region
14 You re Only as Strong as Your Weakest Link
15 4. Understand Regional Dependence
16 Regional Ports are Dependent on Their Home and Marquee Ports in Their Region
17 Decisions Made by Home and Marquee Ports Impact Cruise Tourism in the Entire Region
18 Expand the Facilities East of the Sydney Harbour Bridge
19 5. Encourage Port Differentiation
20 Encourage Your Member Ports to Differentiate Themselves From Other Ports in the Region
21 Develop Breakthrough Experiences that Set Them Apart
22 Create an Identity that is Easy to Communicate
23 6. Recognize the Economic Benefit of Cruise Tourism
24 2009 Report from Access Economics Economic Contribution by the Cruise Industry in 2007 and 2008 Growing 54% to 1.2 Billion Australian Dollars
25 7% Growth Each Year for the Next Decade
26 Resiliency of the Cruise Industry during These Challenging Financial Times
27 6. Create Seamless Experiences
28 Focus on All Aspects of the Cruise Call and Passenger Experience from Arrival to Departure
29 Ensure that the Tourism Infrastructure in Your Home Ports and Cities Support the Needs of the One Day Cruise Visitor
30 7. Encourage Long-Term Planning
31 We Need to Grow Affordable Infrastructure
32 Support Infrastructure Australia & National Transport Commission Developing a National Ports Strategy
33 Optimistic that the Infrastructure Needs of our Industry Will Be Included in This Strategic Plan
34 8. Encourage Ports to Protect and Preserve the Best of Their Past
35 Experience the Essential and Indigenous Attractions and Activities History, Culture, and Identity of the Places You Call Home
36 Your History is Your Future
37 Third Largest Cruise Line in the World 17 Ships 1.4 Million Passengers This Year
38 Two New 3600 Passenger Ships Delivered in 2013 and 2014
39 43 rd Anniversary Calling in Australia and South Pacific Almost That Long
40 Destination-Based Cruise Line Call in Over 350 Ports Worldwide 17 Australian Ports
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42 Largest Cruise Vacation Group in the World
43 11 Cruise Brands in North America, Down Under, and Australia
44 Combined Fleet of 95 Ships Carries More Than 8 Million Passengers annually
45 Carnival Group Almost 80% of the Cruise Industry Worldwide
46 Princess - Large, Established, and Successful Company
47 Princess Belongs to the Largest Group in the Cruise Industry
48 Princess - Long and Loyal Business Partners with Australia
49 How Do Cruise Lines Determine Where to Deploy Their Ships?
50 Itinerary Planning: 5 Basic Factors
51 Itinerary Planning Factor 1: Customer Demand
52 We are Customer-Driven and We Respond to the Demands of the Marketplace
53 We Take Passengers Where They Tell Us They Want to Go
54 How Do We Know? We Ask Them
55 How Important Was Each Port in Their Decision to Purchase the Cruise?
56 Marquee Ports Ports Rated Most Important by Passengers When Purchasing the Cruise
57 Where Passengers Want to Cruise to Next
58 What Ports Are Most Important in the Passenger Purchase Decision
59 Ports Should Aspire to be Marquee Ports Destinations that Travelers both Recognize and Wish to Visit
60 Itinerary Planning Factor 2: Customer Satisfaction
61 We Take Passengers to the Places They Like Best
62 We Ask Passengers to Rate Each of the Ports They Visited
63 Customer Satisfaction is Paramount to Your Success
64 Itinerary Planning Factor 3: Yield
65 We Deploy Our Ships To Where We Can Achieve the Best Financial Return
66 Yield = Cruise Fare + Onboard Revenue Operating + Overhead Costs
67 Critical that Ports and Service Providers in Those Ports Remain Affordable
68 Itinerary Planning Factor 4: Geographic Proximity
69 A Port s Location Relative to Other Desirable Cruise Ports is a Critical Aspect in Itinerary Planning
70 Cruising Offers Both Quality and Variety
71 Itineraries with More Ports Generally Sell Better Than Those with Fewer Ports
72 Ports Should Work Cooperatively to Improve the Quality of All Ports in the Region
73 Importance of Port Association and Collective Conferences
74 Itinerary Planning Factor 5: Marine and Other Operational Requirements
75 Port Facilities, Safety, Security, Infrastructure, and Services
76 Ports Need to Have Both the Right Hardware and Software
77 Itinerary Planning Princess in Australia in 2011
78 Homeports: Sydney & Auckland
79 2011 Diamond Princess 19,000 Passengers to Australia
80 Two Ships Deployed in Australia for the Australian Market
81 2011 Sun, Dawn, and Sea Princess Itineraries: New Zealand South Pacific Circle Australia World Cruise
82 2011 Sun, Dawn, and Sea Princess 100,000 Passengers
83 2011 Ocean and Pacific Princess Carrying 3,000 Passengers
84 Princess in 2011: 6 Ships Calling in Australia Over 40 Cruises Over 110,000 Passengers Visit 17 Different Australian Ports Over 134 Australian Port Calls
85 2011 vs = 10% Increase in Passengers and Passenger Days
86 Five Australian Ports that Rate Most Important Passenger Decision to Purchase the Cruise International Market
87 Top 5 Passenger Purchase Decision Ports: Sydney 88% Fremantle 84% Hobart 84% Melbourne 84% Adelaide 82%
88 Top 5 Passenger Experience Ports: Sydney 93% Hobart 90% Fremantle 89% Melbourne 87% Adelaide and Airlie Beach 86% Brisbane & Port Douglas 84%
89 Compare the Two Sets of Scores for the Australian Ports
90 Experience Score is Higher than the Importance Score
91 Experience Exceeds the Expectations
92 How Do Cruise Lines Select Turnaround Ports?
93 Turnaround Port Itinerary Planning Factor 1: Scheduled Air Lift
94 Turnaround Port Itinerary Planning Factor 2: Cruise Terminal or Alternative Facility
95 What are Some of Your Favorite Cruise Terminals?
96 Four Different Terminals Selected Not So Much for Their Functionality More for their Special Characteristics Relevant to Australia
97
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101 Preserving Our Architectural Heritage and Maritime History
102 Preserving Our Powerful and Personal Connection to Our Immigration Past
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108 Honest and Practical Artistic But Not Pretentious
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115 Links Old and New, the Historic City to the New Terminal
116 Multi-Purpose Design Serves the Needs of a Cruise Ship Call Provides Open Space and a Better Quality of Life for the Community
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121 Question 5: How is Current Business in Light of the Financial Crisis?
122 Financial Crisis = Reduced Demand Reduced Demand = Reduce Prices Reduce Prices = Lower Yield
123 Passengers Not Booking as Far in Advance
124 In Response We Look for Ways to Be More Efficient
125 Do Not Want to Have a Negative Impact on Passenger Services
126 Service Quality Remains Unchanged
127
128 What Can Ports Do to Help?
129 Actively Manage Your Costs
130 Work Together to Identify Areas of Common Efficiency
131 Thanks to Those Ports Who Did Not Increase Cost
132 Question 7: How Important is it for a Port to Have a Berth and a Cruise Terminal?
133 Prefer to be Alongside Versus Anchor
134 Anchorage Issues: Passenger Delays and Complaints Requires Greater Ship Resources to Operate Ship to Shore Boating Services Shoreside Tenders Typically Very Expensive
135 There are Many Ports Around the World Where We Are at Anchor We Would Not Avoid a Quality Port Because it is at Anchor
136 Cruise Terminals Generally Expensive to Build Requires High Throughput to Achieve a Positive Financial Return
137 If You Already Have a Cruise Terminal That s Great If You Want to Become a Regular Turnaround Port You Will Need One
138 If You Are a Transit Port or an Occasional Turnaround Port Cruise Terminal May Not be the Best Investment For You
139 Cruise Lines Do Not Want to See Their Port Costs Increase to Pay for it
140 Investing in Your Tourism Infrastructure
141
142 Question 8: Is Princess / Carnival Group Interested in Investing in Ports?
143 Investments at Both the Group and Brand Level
144 Core Business is Cruise Tourism
145 Need to Grow Port Infrastructure
146 Always Available to Review and Comment on Proposals and Plans
147 Question 9: What Can Ports Do About Congestion?
148 More Cruise Ships = Port Congestion
149 Chronic Port Congestion Identify Affordable Opportunities to Expand Infrastructure
150 Ensure Tourism Infrastructure Can Also Support an Increase in Visitors
151 Ports Have a Fair and Practical Berth Reservations Policy
152 Congestion Represents an Opportunity for Boutique and Emerging Ports
153 Question 10: What is the Cruise Line View of Shorepower?
154 We All Have a Common Interest
155 In Protecting the Environment
156 Shorepower Ships in Port Connecting to Shoreside Electricity
157 Princess Pioneered Shorepower in Juneau, Alaska in 2001
158 Juneau Excess of Clean Hydroelectric Power
159 Very Few Ports in the World Have this Situation
160 Few Ports have an Excess of Power or Affordable Electrical Rates
161 Shoreside Power Needs to be Cleaner than the Ship Producing Its Own Power
162 Shorepower May Not be the Best Way Forward for Most Ports
163 Question 11: What Can Ports do to Improve Their Marketing Efforts?
164 Deliver a Great Experience Word of Mouth Still the Best Advertising
165 Fam Trips and Site Inspections Nothing Better Than Experiencing the Destination Firsthand
166 Port Associations Like Cruise Down Under Foster Cooperation and Dialogue
167 Questi?
168 Nine Priorities for Cruise Down Under
169 1. Sharing a Common Purpose Growing Cruise Tourism in Australia
170 2. Encouraging Stakeholder Participation
171 3. Understanding Regional Interdependence - Improving the Quality of All Ports in the Region
172 4. Understanding Regional Dependence on Home and Marquee Ports
173 5. Encouraging Port Differentiation
174 6. Recognizing the Economic Benefits of Cruise Tourism
175 7. Creating Seamless Experiences
176 8. Encouraging Long-Term Planning Grow Affordable Infrastructure
177 9. Encouraging Ports to Protect and Preserve the Best of Their Past
178 Five Itinerary Planning Factors and Their Key Take-Always
179 1 Customer Demand Ports Should Aspire to be Marquee Ports 2. Customer Satisfaction Paramount to Your Success 3. Yield Ports and Suppliers Should Remain Affordable 4. Geographic Proximity Improve the Quality of All Ports in the Region 5. Marine and Other Operational Requirements Have the Right Hardware and Software
180 Turnaround Ports Itinerary Planning Factors
181 1. Scheduled Airlift and 2. A Cruise Terminal or Alternative Facility
182 Four Cruise Terminals Relevant to Australia
183 Cherbourg Honoring Our Past Hamburg Innovating for the Future Ponta Delgada Bridging Old and New Cagliari Connecting to Nature
184 Unless You are a Turnaround Port a Cruise Terminal May Not be a Necessary Investment for You
185 Shorepower May Not Be Your Best Environmental Investment
186 Port Associations Such as Cruise Down Under Are a Great Way to Share Best Practices and Market Ports and Regions
187 Port Operations: Peggy Sanford & Eleonor Tieng Passenger Logistics: Victoria Sipe Shore Excursions: Rob Roberts
188
189 Incredible Interest That Americans Have to Visit Australia
190 Transcends Our Usual Interest to Travel
191 Two Countries that are Nations of Immigrants, a Place of New Beginnings and Unrestricted Opportunities
192 Our Success is Far More a Measure of Hard Work and Practical Solutions than Birthright and Tradition
193 Countries of Vast Physical Size, Places that Embody the Grandeur of Nature and Personify the Spirit of the Frontier
194 Sense that Tomorrow Will be Better Than Today
195 Shared Sense of Values, a Shared Sense of Past, Present, and Future
196 Very Special Common Bond for Our Two Countries
197 Americans Coming to Australia are Americans Coming Home
198 Thank You for Making Me Feel So Much at Home
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