ASIA CRUISE MARKET
Asia ups its knots but retail integration ‘requires further work’
Cruising in Asia is increasing exponentially, as passengers clamour to avail themselves of new experiences on the waterways. As Luke Barras-Hill discovers, the intrepid Asian cruise traveller profile needs nurturing to maximise onboard selling.
for inspiration. SCC CEO Christina Siaw says more
than 60,000 cruise passengers used its HarbourFront Cruise and Ferry Terminal in 2016 – a +8% jump compared to 2015 – as it prepares to welcome six new vessels this year: Pacific Dawn, Magellan, Seabourn Encoure, Pacific Pearl, Pacific Aria and AIDAblu. Likewise, Starboard Cruise
Michael Feely, Vice President, Horizon Consumer Science believes work can be done to improve the onboard retailing experience for Asia’s cruises.
R
obust growth in routes, vessel capacities and volumes, plus new port destinations ensures
that access to previously unchartered Asian cruise territories is becoming more commonplace. According to a report from Cruise
Lines International Association (CLIA), there were 31 active cruise line brands contributing a total 5,500 scheduled port calls in the region in 2016. Within this matrix, there was a
marked concentration in visits to South East Asia. When it comes to the core metrics, the historic growth is unassailable. The number of active cruise ships in Asia sprung from 43 in 2013 to 60 (+12%) in 2016, cruise trips were up from 861 to 1,560 (+22%) and passenger numbers rose from 1.5m to 3.1m during the same period (+29%).
“Store excursions are really focused around duty free store visits, and that’s where they are expecting to shop.”
Michael Feely, Vice President, Horizon Consumer Science
78 TRAVEL RETAIL BUSINESS And this growth shows no signs
of slowing. Asia’s share of cruise capacity (9.2%) lags behind the Caribbean (33.7), Mediterranean (18.7%) and Europe (11.6%) in real terms. However, capacity share percentage point changes by region positions it well ahead (32%) of its closest neighbours in Australasia and the Pacific (19.2%), and Europe (8.7%). Interestingly, more than eight
out of 10 Asian passengers cruise within Asia, says the CLIA. Thailand, Taiwan, Hong Kong, Indonesia and Singapore remain some of the hottest destination tickets – both for intra-region hoppers and international explorers. According to Singapore Cruise Centre (SCC) [and
as noted by
TRBusiness in the comprehensive cruise report available in the March print edition] demand for cruise travel continues to rise from Asia’s exploding middle-classes. Higher disposable incomes, a
desire to travel, and a broadened range of onboard offerings are among a number of reasons why passengers are looking to the seas
Services tells TRBusiness that it continues to invest in Asia, as it prepares to welcome a second vessel from Dream Cruises to launch later this year. Targeting the premium sector in China and Asia, Dream Cruises focuses on luxury journeys designed to ‘redefine vacation travel,’ according to its website. In November, it debuted its first
ship Genting Dream, which sails from Hong Kong or Guangzhou. “Fine jewellery continues to
be an important category as the ultimate treasure for cruise guests to commemorate their dream vacation,” comments Beth Neumann, President and CEO, Starboard Cruise Services.
Exploiting onboard retail But while the signs continue to be positive for Asia cruise travel, some believe there is ample opportunity for travel retail to work harder to improve cruise retail environments for Asia travellers. This includes nurturing growing numbers of Chinese would-be consumers. During a session at this year’s
TFWA China’s Century Conference in March, Michael Feely, Vice President of research agency Horizon Consumer Science, pointed out that if current form is anything to go by, Asia is set to become the No. 2 cruise region by 2020. In a presentation unveiling findings from a TFWA-sponsored study into
MAY 2017
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