INTERVIEW S I LV ER S E A C R U I S E S INTERVIEW COMPANY NAME In Person with...
Top-end, luxury cruises make great sales sense for travel agents looking for rich rewards through 2013
MIKE BONNER
General Manager UK, Ireland & Middle East Silversea Cruises
How is the cruise sector at the moment? Forward bookings are looking good and are up compared with the same time last year but 2012 has been a tough year. So far the signs are encouraging. Our 2014 cruises went on sale at the end of November and are selling well. The cruise market is polarized though with most bookings being made very late or very early and our clients benefit from a very generous cancellation policy, plus we’ve introduced our new Fare Guarantee Programme. Holiday purchases are now more
considered; we’ve all got to be offering the best product. Also, whereas people were holidaying three or four times a year, it might now be two or three times. It’s a more considered decision for our clients who are very worldly and well travelled. They’re high net worth individuals and are buying at our price point. For them the money is there it’s just a case of teasing it out of them.
Tell us about Silversea’s Fare Guarantee Programme The whole cruise industry had gone into a late-booking market driven by a late discounting mentality. The consumer
MIKE BONNER
has lost confidence in cruise lines, concerned that fares are going to be undercut later. We want our customers to be confident so they can book early and get a price guarantee that means their fare will be protected. It’s been well received by the trade. Our new Fare Guarantee Programme will operate for all voyages departing on or after June 1, 2013, effective for new Silver Privilege fares – offering guests one simple low fare for their desired cruise – on bookings made on or after November 1, 2012. These new cruise-only fares reward guests who book early with the best possible fare and the chance to select their desired suite when the best inventory is available. Guests can still customise their entire holiday with Silversea's optional air, transfer, hotel and land programmes and we hope to be competitively priced on all our packages.
This all means that guests benefit from any future reduction in the Silver Privilege fares for their voyage with the adjustment made in the form of a shipboard credit, a suite upgrade, future cruise credit, fare reduction or other method.
Are you seeing any changes in the type of cruise booked? Our typical average cruise length is 10 days but we are seeing more combination voyages with two seven-day voyages to make 14 for example. This can give up to 10% savings for clients. Typically, high-end
“The cruise industry represents incredibly good value at the top end when you consider what’s included”
voyagers are looking for 14-day cruises or longer. We’re also finding that our expedition programme is selling well.
How important is the trade to Silversea? Some 85% of our business comes through the trade. We have always been trade friendly. We operate a number of trade incentives like shopping vouchers and offer additional incentives for regular bookings. We’re planning our 2013 roadshows now and will include places like Birmingham and Bournemouth again. Our prices range from £2,500 to £30,000 so there’s good commission to be earned.
How are expedition cruises faring? This is a big growth area for Silversea. We currently have one expedition vessel with a second (the 100-passenger Silver Galapagos) coming online in September after refurbishment. It will be all-suite. We’re working on the expedition programme itself and will announce that very soon but we’ve already detailed our Galapagos programme which will be operated year-round. Our aim is to take a five- star product into an area where there isn’t any. The lead-in price is £3,550. We’ll be operating two seven-day
itineraries, a north and central itinerary and a western itinerary focusing on birdlife and animal life respectively. There will be plenty of add-ons such as a Peruvian Amazon River Cruise. Our expedition cruises are bringing in a new type of client and we’re seeing a lot of growth in this sector. We’re also seeing a high level of repeat business – at 50/55% it’s one of the best in the UK – there’s a high chance that people who go to the Antarctic will go to the Arctic a year or two later. In the summer of 2014 we’ll be sailing through the Northwest Passage for the first time and this is already sold out. Our Russian Arctic cruise is selling well and also the South Pacific, which is also a first-time expedition cruise.
What are your expectations for 2013? We’re feeling positive about next year. The cruise industry represents incredibly good value at the top end when you consider what’s included. Everything is taken care of. I think 2013 will be good and going into 2014.
www.silversea.com
Above: Silversea Explorer Left: Silversea Cloud
www.sellinglonghaul.com • January 2013 47
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