CRUISE: SUPPLIER ROUNDUP “While pax have limited time in


airports and [onboard] airlines, they have enough time to spend when the cruise ship is sailing from point A to B,” explains Zehnder. For all these reasons, the


demographic for cruise ships is not time poor, but a captive market of passengers actively looking for ways to spend their money. “The airport shopper has [often]


two hours and is not always interested in shopping, whereas if you are walking on a ship or cruising for a week or 10 days you will pass by the items for sale on one day or another,” continues Westelinck. He points out that the industry


needs to recognise that when it comes to cruise ships, suppliers are not limited to showcasing their wares in shops, but can target them in many different ways to passengers once they are onboard. “There are weekly table sales


which are good initiatives, but also many opportunities to do so many more interactive things with passengers,” he explains. Zehnder agrees, describing how


pop-ups on ships are another way to encourage purchasing; as on cruises, it’s not all about the shop. “Sales are not only generated via


the shops, but with after-dinner pop- ups on the boat,” he says, suggesting that travel retail needs to look beyond traditional retail and display when merchandising onboard. “There is a huge opportunity for


things that are eye-catching and for niche brands that are not available in many local markets,” explains Westelinck. However, Bush notes that


passenger demographics on differing cruise liners and routes surrounding the US can vary enormously. “Some of the higher-end cruise


lines are a perfect fit for our prestigious brands,” he observes. “Others are a better fit for


high-volume brands as cruise passengers and the lines that target them represent a broad demographic spectrum.” Westelinck in turn acknowledges


that there is sometimes difficulty with ships that offer the same merchandise, which is something that could be changed in the future.


MARCH 2018 Bush reveals that WGS aims “to


dedicate more time and resources to the cruise channel, including an increased focus on staff training”, which is an area that goes hand-in- hand with increased sales on board.


Supply chain challenges According to Westelinck, “it is also a question of motivating and giving incentives to the sales staff”, but with a high turnover of staff, this can be a challenge. “It is not always easy because


the sales staff change really frequently and there are new people month-after-month and year-after- year,” he explains. One solution, he suggests, is to


motive them to sell and see their position as a serious career path, rather than an interim post serving people who enjoy travelling. Bush says there is also a need for


people working on both sides to implement marketing initiatives, pointing out how “organising on-board promotions can prove logistically challenging for a smaller team”, with work required to get the most out of a presence on US cruises. Pricing also needs careful


consideration, according to Zehnder. “Although being a travel retail channel, operators are looking for domestic pricing,” he intonates. “Due to complex logistics, this is


not easy to offer.” He stresses that changes within


the supply chain that deliver the smooth-running of stock onboard without


costs is also a change that needs further assessment. “In general the pricing strategy


depends on the retailer but for us, on MSC Cruises for example, we will often be asked for specific items or a specific colourway,” says Westelinck. Having said that, he warns against


adopting a cheaper pricing strategy for onboard. “This channel is about the


shopping experience and that is the most important thing,” he states. As mentioned, one of the biggest


barriers to growing business on US cruise ships is the issue of logistics, as transporting products to vessels without incurring great expense has become increasingly problematic.


incurring significant


“Logistics is the biggest challenge, not only in terms of cost structure but also the multiple consignment points and the non-refrigerated handling to ships which is just like inflight sales.”


Peter Zehnder,


Head of Global Duty Free, Lindt & Sprüngli


“Logistics is the biggest challenge,


not only in terms of cost structure – a third party is needed to deliver – but also the multiple consignment points and the non-refrigerated handling to ships which is just like inflight sales,” describes Zehnder. Westelinck says Blue Storks relies


on using companies like Heinemann, but admits that the logistics for getting items to ships in cases where third party assistance is not available can sometimes prove “costly” and “challenging”. Notwithstanding the challenges,


there remain many developments on the horizon that could change the way cruise retail is conceived in the future. “New mega ships coming in would


be one, but the main breakthrough would be a development on the handling terminals,” says Zehnder, who identifies that there are “increased efforts from some operators to renovate their shops and make the pax shopping experience more interesting”. All of these are steps in the right direction. «


Blue Storks has recently launched with Tui Cruises. Source: TUI Cruises.


TRBUSINESS 79


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  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92