At the recent CLIA Cruise360 event in Sydney, a number of luxury cruise brands shared their perspectives on the current luxury cruise market. Here’s five key messages we noted at Karryon Luxury.
This year’s CLIA Cruise360 event sessions and showroom floor in Sydney were well-represented by luxury cruise brands specialising in ocean, river and expedition.
Here’s some of the key insights we noted in relation to the luxury cruise segment.
Great wealth transfer in Australia
In the opening session titled ‘State of the Industry – Forces Shaping the Global and Australasian Cruise Market’, Deb Corbett, CEO Asia Pacific of Ponant said that there was a lot of discussion at “the office” about the “great wealth transfer.”
“It’s particularly interesting for our sector because we’re seeing the first generation in the history of this country where the living are actually giving,” said Corbett.
With wealth and financial security being passed down, it means the newcomer to the luxury cruise market is much younger. Corbett says Ponant is seeing a new luxury client emerging, creating a mix in the market between traditional and ‘new luxury’ clients
“So we’re finding we have to switch our strategies to counteract what is happening in the market,” said Corbett.
Need for storytelling and positive community engagement
During that same panel discussion, the importance of ongoing work with local stakeholders, developing ongoing indigenous tourism businesses, and the work of the suppliers with their local supply chains was discussed.
“We’re all sourcing local products, using local services, contracting local expertise, and building and strengthening our ties with local communities, which is incredibly important to us,” said Corbett.
“There’s many partnerships that you would have heard about in the media that have been pursued with Traditional Owners, especially when looking in the Kimberley region. This is particularly important so that First Nations people continue to live sustainably on Country, and what the work that the operators are doing in that area benefits and brings a source of income to First Nations people. It also gives them the opportunity of sharing their traditions and culture with guests, which enhances the guest experience….. that’s a wonderful thing that all the operators are doing,” said Corbett.
“Personally, I think that the risk is that we don’t share the story. We don’t tell everyone about what we’re doing behind the scenes. Wouldn’t it be sad if the education and the message doesn’t actually happen? I think that it’s time for all of us to tell our story and get positive impact community engagement. And you might ask, ‘well, why, why do we need to do that?’ Because as I always say to my team, we protect better what we know.”
“I think the issue is that we’re all so busy at the doing and we’re spending (collectively, just on this stage), millions on our collective actions, doing all this positive work – but we’re actually just not stopping and telling everyone what we’re doing behind the scenes,” said Corbett.
The changing age of the luxury expedition traveller
The Leveraging the Experiential Travel Trend session was moderated by Anthony Goldman, Joint Managing Director Goldman Group, speaking with Conrad Combrink, Senior Vice President, Expeditions, Destinations & Itinerary Management, Silversea.
Combrink noted the changing demographic of the luxury expedition traveller.
“Pre-pandemic, we saw an average age of an expedition traveller at between 65 and 72 years of age. But that’s changed,” he said, with more groups taking multi-generational trips that diversifies the guest age.
“People are discovering that expeditions do offer great opportunities for multi-generational travel. We are seeing more interest in shorter voyages,” he said, noting that the industry has “got smarter” to now offer more shorter-duration expeditions that help attract a younger demographic, including honeymooners which Silversea recently hosted on an expedition.
Utilise your business development managers
Combrink advised agents to really learn about the destination and the offerings and the differences between various products.
“Take guests on a journey because it is a journey… from the time of their booking until they return home,” said Combrink.
“Cruise operators are so open to doing digital meetings. Advisors are not alone out there… you really don’t have to do it on your own. I’m on a webinar at least once a week with trade or consumers. We really have the knowledge and it works very well,” he said.
This message was reiterated multiple times throughout the conference including during a session moderated by Virtuoso Regional Advisory Board Cruise committee member Robyn Sinfield, Owner and Manager of Home Travel Company.
“The most important people in the room, to a cruise advisor, are our BDMs. If we’re not using those effectively, we’re not going to grow our business… so I want to give a big round of applause to all the BDMs in this room,” said Sinfield.
To find new luxury customers, speak to your clients!
Robyn Sinfield moderated the session titled ‘Unlocking the Luxury Market: Strategies for Upselling and Maximising Opportunities’, interviewing Steve Spivak, Global Vice President of Sales & Service, Tauck.
In the discussion, Spivek said that the luxury experience starts when guests get to the travel advisor. But when asked by Sinfield how advisors can identify potential luxury clients from within their own database, Spivek said to actually speak to them.
“I say that a little tongue in cheek but we’re so trapped in an electronic world and so captivated with mass marketing that we often forget the most powerful thing is personal connection,” said Spivek.
“You are the first luxury experience that your clients will have – they can’t go to the internet for that. They can’t click and receive that care,” he said.
“When you’re thinking about who that customer is, it’s not necessarily that you’ll find them coming to you, but you need to speak to them, ask them what they want out of their journeys and find out what’s important to them on the cruise line they’ll travel on,” he said.
“Marketing does not have to be complex. It really comes down to understanding who your customers are,” he said.
Next year’s CLIA Cruise360 will be hosted in Brisbane on 27-28 August.
You can read Karryon’s earlier coverage of the 2024 CLIA Cruise360 conference here and here.
For more information, visit cruising.org.au
