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BIG RIVER CRUISE QUIZ!
#MyCLIA #SayCheese
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LUCIA ROWE Head of A-ROSA UK & Ireland Chair CLIA River Cruise Section, UK & Ireland
UK & Ireland CLIA River Cruise Operators & Sponsors
Top line figures 2015 Growth of UK market: 10% for European river cruises in 2014 139,400 passengers from UK took a river cruise in 2014 (CLIA members only) 1,101,954 passengers in total (CLIA and Non-CLIA) 34,7% Germany 31,8% USA/Canada 21,8% UK 10,9% France 3,4% Australia Increasing capacity: 28 new ships in 2015 and at least 23 lined up for 2016 making the total number of river vessels over 350
UK Passengers & Market Behaviour Average UK river cruise passenger takes 2.5 holidays per year Late bookings: 37% of river cruises booked less than 3 months in advance UK river cruise market average price of a river cruise GBP1495 The major 3 booking drivers are: 1. Itinerary/destination 2. Departure date 3. Cruised with the same cruise line before
Major Trends Most popular destinations: Europe (10% increase representing 86% of all river cruises from UK) Asia (biggest increase in demand) 19% increase to 40,000 USA / South America (11% increase) Most significant trends: Informed over 67% of clients research beforehand Savvy & Impatient - intolerant of poor service and slow delivery The light and the dark : only Authenticity counts Personal Improvement as a Holiday Goal Change in Demographic Groups (younger generations) Move towards more all-inclusive models New-builds: more facilities and flexibility for onboard experience Crystal Cruises River Cruises 2016/2017
The future is bright... raising the profile and selling profitably DESTINATION is key thorough knowledge about its history and culture is a must Offering the right product to the right market segment Differentiation culture Brand Awareness
Thank you! We look forward to growing the river cruise product with you in 2016!
PHIL NUTTALL The Cruise Village Chair of the CLIA Travel Agent Advisory Panel
WE DON T NEED NO EDUCATION RIVER CRUISING 101 PHIL NUTTALL WITH
WE DON T NEED NO EDUCATION RIVER CRUISING 101 PHIL NUTTALL WITH
Geography
European Geography
The Rhône
The Rhône
The Seine
The Seine
The Rhine
The Rhine
The Danube
The Danube
School Report Could do better
Homework CruiseExperts.org
PAUL SHARP & ANGELA SLOAN Avalon Waterways & Emerald Waterways/SCENIC
SIMON McDERMOTT AmaWaterways
KEITH CARTWRIGHT Accord
Finding your next crew of passengers Helen Roberts GfK 2015 CLIA River Cruise Convention November 2015 36
1 2 How 3 Who are the opportunity? to reach them? Who are the competition? GfK 2015 CLIA River Cruise Convention November 2015 37
River cruise today Low market share Often a second holiday or one of many Perceptions of river cruises <1% 1 2 3 4 Mid to high price range GfK 2015 CLIA River Cruise Convention November 2015 38
1 Who are the opportunity? GfK 2015 CLIA River Cruise Convention November 2015 39
Spectrum of opportunity Outright rejecters Least likely to book a river cruise 7% Beach lovers 32% Cost conscious free timers 30% Active cultural junkies 31% Most likely to book a river cruise Figures indicative, based on rest of market GfK 2015 CLIA River Cruise Convention November 2015 40
Beach lovers Meet Joy and Trevor 2-3 holidays per year mainly beach holidays followed by city breaks Love sitting and relaxing on the beach Not a relaxing holiday, I like the beach and pool too much Never really appealed so never really looked into it Because it seems insanely boring, and is ridiculously expensive Least likely to be interested in excursions GfK 2015 CLIA River Cruise Convention November 2015 41
Beach lovers Meet Joy and Trevor River cruising is for older people, it s expensive but it is a good way to visit multiple locations Not a relaxing holiday, I like the beach and pool too much Never really appealed so never really looked into it Because it seems insanely boring, and is ridiculously expensive Features most appealing in-room entertainment and room size Key messages: it s not just for older people and ships can offer a relaxing experience! GfK 2015 CLIA River Cruise Convention November 2015 42
Cost conscious free timers Meet Sarah Low spend 1 or 2 holidays per year Costs. We can do a city break, a 20 day break for the cost of a one week break on the river. Easier to organise other holidays other types of holiday are more appealing and exciting. Influenced Like to book direct with company or agent Like culture at their own pace and to their own itinerary choice and flexibility GfK 2015 CLIA River Cruise Convention November 2015 43
Cost conscious free timers Meet Sarah River cruising is relaxing, fun way to go on holiday but it is expensive and not hassle free Features most appealing standard of food and staff and size of room Costs. We can do a city break, a 20 day break for the cost of a one week break on the river. Easier to organise other holidays other types of holiday are more appealing and exciting. Key messages: Facilities and ability to tailor their holiday to them type of accommodation is less important! GfK 2015 CLIA River Cruise Convention November 2015 44
Active cultural junkies Meet Rachel and Bob Take 2 or 3 holidays per year Conduct lots of online research At the time of wanting to book there were not enough bookings and cruise was cancelled. Like experiences Passionate about travel Could not afford a river cruise as well as the holidays that we had already planned. Influencers GfK 2015 CLIA River Cruise Convention November 2015 45
Active cultural junkies Meet Rachel and Bob River cruising is relaxing; fun and the best way to discover multiple locations but not exclusive or hassle free Features most appealing range and type of excursions, in-room entertainment and land programs At the time of wanting to book there were not enough bookings and cruise was cancelled. Key messages: Standard of service, type of food, all inclusive, culture and activities Could not afford a river cruise as well as the holidays that we had already planned. GfK 2015 CLIA River Cruise Convention November 2015 46
2 How to reach them? GfK 2015 CLIA River Cruise Convention November 2015 47
Key common challenges to overcome How to maximize the value of your current marketing channels? What messages do you need to convey to stand-out in the crowded travel market? GfK 2015 CLIA River Cruise Convention November 2015 48
How to maximize the value of your current marketing channels?
The dramatic increase in distribution channels continues to change consumer behaviour Intensely used, greater importance during search process Less used, minor importance during the search process More transaction of frequency between 2 subcategories Less transaction of frequency between 2 subcategories GfK Digital Market Intelligence GfK 2015 CLIA River Cruise Convention November 2015 50
Information seeking online 06 Jun 27 Jun 10 Aug 17 Aug Who Female 65+ East Midlands What City Break Booked trip: Sep 2014 Start trip: Sep 2014 Where Secret Escapes Holiday Pirates Trip Advisor Travelzoo Wanderlust Secret Escapes goes to homepage Secret Escapes Moves to instant-access section of site Secret Escapes Then sets up a membership on the register section Holiday Pirates Looks at holiday packages to Spain in October for 7 nights Holiday Pirates Looks at holiday to Brussels for 2 nights and a four star hotel Trip Advisor Reads hotel review for the Bucchus Hotel in Sutton on Sea Trip Advisor Moves on to a members page to look at hotel and restaurant suggestions Travelzoo Goes to the sign up page to create an account Wanderlust Looks at a competition to win a trip to Dominca GfK 2015 CLIA River Cruise Convention November 2015 51
Limited portfolio of websites but multiple visits exploring diverse holiday options 08 Dec 06 Jan 07 Jan 17 Jan Who Male 65+ Scotland What Ocean Cruise Booked trip: Feb 2015 Start trip: Dec 2015 Where PC NCL Thomas Cook IHG Cruise 118 British Airways goes to travel section IHG Looks at hotel in Civita Vecchia NCL Goes to find a cruise section of site IHG Goes to reservation page and moves to booking page British Airways Goes to exec club and then payment section IHG Goes to reservation page British Airways goes to travel section IHG Looks at the rewards section Thomas Cook Goes to Cruise section and filters on Mediterranean NCL Looks at cruises to the Med departing Feb 2015 for 2 adults NCL Views the Norwegian Spirit ship and looks at the Excursions page IHG Signs in to his account and looks at upcoming reservations Iglu Cruise Looks at Norwegian cruise lines in February IHG Goes to booking, then to the reservation confirmation page and prints out confirmation British Airways goes to travel section Iglu Cruise Looks at Norwegian spirit cruise for the 12 th February GfK 2015 CLIA River Cruise Convention November 2015 52
Review your advertising Does it help build familiarity and address the barriers that exist? 35% Recalled seeing some holiday advertising GfK 2015 CLIA River Cruise Convention November 2015 53
Review your advertising Does it help build familiarity and address the barriers that exist? However, within the cruise sector, 67% recalled seeing advertising and it helped them decide where to go and what to do 67% GfK 2015 CLIA River Cruise Convention November 2015 54
Make it easy to discover what people want to know If people can t easily discover what they need to know, they are more likely to move to a provider / operator that clearly answers their need or opt for a holiday type they are more familiar with The booking process needs to be hassle-free and part of the gold standard experience Still undecided if it is for me or not. Mostly for old people and I don t feel that old yet. I didn t know what to expect and I am taking a child with me on their first holiday. I don t know how I would get to the boat Make it as hassle free as possible, so I literally just have to turn up. GfK 2015 CLIA River Cruise Convention November 2015 55
What messages do you need to convey to stand-out in the crowded travel market?
Key messages Destination Experiences Accommodation Target market Getting the right balance across the four core elements is key! Remember, it s not all about the ship! GfK 2015 CLIA River Cruise Convention November 2015 57
Key messages to each segment Beach lovers Cost conscious free timers Active cultural junkies Choice and flexibility to do as little or as much as you like relaxation is key Cruising is for the young and young at heart Free time to immerse yourself in culture or do a little shopping Upsell the best features upmarket hotels on water, door to door transfers Fun and excitement Immersive experiences Choice of land programmes Entertainment wherever and whenever you want it GfK 2015 CLIA River Cruise Convention November 2015 58
3 Who are the competition? GfK 2015 CLIA River Cruise Convention November 2015 59
Who are the competition? 1. Grow the total river cruise market 2. Grow your share of the river cruise market Who are the competition GfK 2015 CLIA River Cruise Convention November 2015 60
Grow the River Cruise market steal from City Break? Of those who actively looked into a river cruise but didn t book 42% booked a city break instead 27% of international holiday bookings were for a City Break Food and cultural activities which help you really experience the countries you are travelling through Too expensive at the time We weren t sure what we had to do to get to the river boat Similarities Cultural immersion Variety Excursions Differences RC more expensive Still gives flexibility of excursion planning Ability to easily get to multiple destinations Ship adds to the experience GfK 2015 CLIA River Cruise Convention November 2015 61
In summary 1 2 How 3 Who are the opportunity? Huge opportunity still for growth People who want experiences to reach them? Communicate the fun and freedom Continue to educate Who are the competition? More than just a city break GfK 2015 CLIA River Cruise Convention November 2015 62
Finding your next crew of passengers Helen Roberts GfK - Accord GfK 2015 CLIA River Cruise Convention November 2015 63
SIMON McDERMOTT AmaWaterways
WERNEY BEYER Cruise Director, SCENIC BACK BY POPULAR DEMAND!!
SIMON McDERMOTT AmaWaterways
STEVE SPIVAK Tauck
Sustainable River Cruising
We don t want to be the biggest just the best at what we do -Arthur Tauck Jr.
Protecting our Brand Consumer Bill of Rights Truth in Advertising Integrity in Pricing- Protect the Value of our Industry Consistency of Experience Accountable to Each Other The Human Factor
Glossary of Terms Luxury All Inclusive Award Winning Guest to Staff Ratio Dining Venues Exclusive Amenities Family Travel
Agents Play a Critical Role In A River Cruiser s Decision-Making Process Is River Cruising right for me? How do I select the right river cruise? I am ready to purchase!
How do I Create a Highly Engaged Consumer? 1. Exclusive, Immersive Destination Experiences 2. Thoughtful, Inspiring and Personalized Service 3. Intimate, Club-like Experience Onboard 4. Distinctively All Inclusive: Rich, High-Quality Experiences Throughout
Be a Matchmaker Think of the Lifetime Value of the Customer Don t Sell from you Pocketbook Retail Mentality You Cant Return a Holiday
Our Mission, Your Goal
The Rivers of Europe
The Rivers of Europe
The Rivers of Europe
You are Deputized
Travel is Open Doors, Hearts, Minds
Thank you!
ANDY HARMER CLIA UK & Ireland
The Next Generation of Cruising
New ships and ship design New destinations New shore-side experiences
Changing Consumer Demands: More active - sight-do Soft adventure Authentic Connected Multi-generational
Travel agents should be at the heart of river cruising
Putting yourself in the heart: Knowledge and expertise Access to training and events Product knowledge Customer knowledge and travel history
New for 2016 MyCLIA River Cruise Club Clubs Sector specific news updates River focused Webinars PDF Resources dedicated to river cruising New-build Updates & Fleet Updates Additional reading on the sector available Competitions Exclusive Offers from our member river cruise lines
Join the #CruiseRevolution 18 20 May 2016, Southampton P&O Cruises Ventura & Royal Caribbean International Harmony of the Seas With Optional Pre-Conference Masterclass onboard MSC Splendida Tuesday 17 May
Thank you!
Cheese
See you at 14:30!
Welcome Back!
LYNN NARRAWAY Holland America Line & Seabourn Chair of the CLIA Executive Committee
BIG RIVER CRUISE QUIZ!
See you tomorrow!