Focus on ancillary revenue
companies I've seen come and go. Meanwhile we've just invested €360 million in new ships there. That's what drives our customer loyalty and that is why loyal customers recommend us to new prospects. The tricky issue in such price-sensitive markets
is the question of what represents value for money to the customer. That perception comes first and foremost from the fares we charge. But our fares reflect our success, or otherwise, in driving AR. And the way we drive AR should enhance the customer experience and support customer loyalty. ST: Our approach is the antithesis of cynically minded airlines who attract business with an artificially low fare and then make the transaction profitable by using every conceivable means to extract incremental revenue from the unsuspecting punter.
Above and right: The quality of the Brittany Ferries' product is designed to make the longer crossings feel more like a mini cruise
44
www.onboardhospitality.com
The low-cost carriers revolutionised the airline business. Can something similar happen to ferries and what effect might it have? SJ: The low-cost airlines have revolutionised the ferry industry. When I started in this business we could reasonably expect a peak season return fare on the Dover-Calais service for a car and passengers to be £300. These days, it is more like £100. Factor in inflation and fares have fallen to an extent that is difficult to comprehend. There have been two radical changes. The first is wide-ranging efficiency gains tied to economies of scale from larger ships. The second is dynamic pricing and load management that we lifted straight out of the easyJet book. ST: There are already low-cost ferry operators in the market with basic ships providing a utilitarian experience. They tend to operate the shorter routes where the short time on board makes the experience bearable. The ultimate in terms of a no-frills experience is Eurotunnel.
How do you see the ferry industry developing in the next 10 years? SJ: Look at the two new ships, Spirit of Britain and Spirit of France, which we've just built. They dwarf any other ferries that have sailed between Dover and Calais before, and are built to a quality specification, with an environment created through extensive customer research. This gives us economies of scale, with a big increase in capacity. The new ships have twice the payload of the ships they replace, but burn no more fuel. On bigger ships we have more scope to build AR. Average spend per person on our new ships was higher from day one. Moving in this direction improves the economics of our business with every sailing. At the same time we raise the bar in terms of the quality of ferries, and that locks in customer loyalty. ST: There will be greater differentiation between operators. As Brittany Ferries continues to invest in quality ships providing
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76