CONFERENCE About 250 delegates attended the first in-person Clia Cruise F
Cruise lines urged to avoid a repeat of 2022 price war
C
ruise line bosses are confident there will not be a repeat of the price war of 2022, with one
saying a “race to the bottom” on fares is “a dangerous place”. Princess Cruises’ UK and Europe
vice-president Eithne Williamson argued that it is important for cruise lines to recognise the value they offer in the market and “hold up” prices, even though customers are hunting for deals. Azamara’s UK managing director
David Duff told delegates that as international markets recovered from the pandemic, competition would prevent a price war, even though more ships were coming online. In 2022, 28 ships launched across the cruise sector. Williamson said: “The race
to the bottom is a dangerous place. Our industry needs to
Our industry needs
to return to profitability – if we start a race to the bottom, it’s not going to help anybody
return to profitability – if we start a race to the bottom, it’s not going to help anybody.” Duff explained that competition
between global source markets would help cruise lines fill ever-expanding fleets while maintaining high pricing. “This year, the UK and European
markets have been more open for business, but that’s changing for 2023,” he said. “We’re already seeing the
Australian market coming back and the US market is definitely back and buying so we’re having to compete
for space, so I think that’s going to hold up prices in the summer.” Clia Europe director general
Marie-Caroline Laurent reported that 100 markets were currently open, but 45 are still closed. Giles Hawke, chief executive of
Avalon Waterways, said the river line had reported its “best year ever” in terms of UK passenger numbers. He admitted that the brand’s low
pricing had driven UK demand, but added: “We’ve seen our customers who want to travel at low prices this year come back and pay full price to travel next year because the experience is so good.” Both Williamson and Duff said
they were confident ahead of the 2023 wave season. Williamson added: “We didn’t have a brilliant wave this year and so it’s a key period that everybody is getting ready for and keeping everything crossed.”
Green credentials attract millennial customers
Agents should promote the cruise industry's environmental credentials to millennials, as this may encourage them to make a booking, Clia Europe’s director general has said. Addressing agents during a session on sustainability,
Marie-Caroline Laurent revealed the average age of cruise passengers between 2018 and 2020 was 47.6, and that 85% of millennial cruise passengers planned to cruise again. Clia Global Market Report data in 2020 showed millennials (aged between 26 and 41) are the “most enthusiastic cruisers of the future”, ranked against traditionalists (73%), baby boomers (77%), Gen X (82%) and Gen Z (79%). Laurent added: “Millennials are
12 15 DECEMBER 2022
becoming more enthusiastic for cruising, which is why when we speak about sustainability, it is also important for all of you to be able to articulate why cruising can actually be one of the sustainable tourism forms.” Cruise lines have never focused on or invested in
Marie-Caroline Laurent
carbon offsetting or “compensation” schemes, explained Laurent, adding: “The investment from our industry has been looking into new [greener] vessels. It’s important to explain this concept.” She said many millennials
had probably cruised with their families and were aware that it was “a great way to see the world”. She also argued that excursions
that are active or focused on sustainable activities appealed to potential millennial customers.
Clia deputy chair Rob Scott
A morning fun run and w First Hall of Fame m
The first inductees of Clia UK & Ireland’s new Hall of Fame were announced at this year’s Clia Winter Ball, with Hays Travel’s head of cruise Catriona Parsons and Mundy Cruising’s managing director Edwina Lonsdale both honoured for their contributions to the industry. Parsons was recognised for being “one
of the leading advocates for cruise within retail businesses that are well represented on the high street”. She was also praised for her “can-do
attitude, resilience and belief in cruise holidays”, as well as for “growing cruise as a proportion of Hays’ holiday business via an innovative approach, engaging
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