ASIA CRUISE MARKET
the cruise market in Asia, Feely said the Chinese already account for half of Asian cruisers and are predicted to grow to 5.4m passengers in 2020 based on Chinese Ministry of Tourism figures. Drawing on field research among 1,200 cruise passengers, Feely suggested that while the sector is in good shape, more could be done to take advantage of the gains. “It seems cruising as a travel
experience really suits Chinese sensibilities; they enjoy travelling as a family group with children and parents,” he tells TRBusiness. “When it comes to the onboard
retail experience, Feely agrees that a great deal more could be done to take advantage of what is a unique environment. “The other thing notable about
passengers from China is most of them are cruising for the first time and it’s a really novel experience. It’s not like Europe where the prospect to cruise is normal.”
Lack of staff interaction In Europe, cruising and the onboard activities associated with it are a more normalised vocation, whereas the Chinese are often more interested in duty free shopping, he continues. However, the propensity to browse
and spend is not being exploited sufficiently. He says ‘grab and go’ onboard stores lack interaction from sales staff, who are preoccupied with order taking at the expense of trying to understand the needs of Asian consumers. This group, more than others,
is clamouring to discover more about the products and activities surrounding the brands. Accessibly priced accessories are in
demand by passengers, but tend to be lacking in onboard retail, Horizon Consumer Science’s research shows. The novelty factor of being aboard,
Feely continues, is also leading Asian travellers to seek out entertainment during their voyages, which can provide a distraction to core retailing. But does there need to be
significant changes in the way cruise operators, retail concessionaires and their staff approach potential Asian consumers? “You can tell that the retailers
MAY 2017 2016 BIG PICTURE IN ASIA 31 100 43 60 2013
Active Cruise Line Brands in Asian Water
5,500
Number of Cruise Ships in Asia
12% 2,000 861 2016 2013
Scheduled Port Calls in Asian Countries
204
Number of Cruises & Voyages
1,560 22% 10,000 4,307 1.51 2016 * Compound Annual Growth Rate Credit: CLIA TRAVEL RETAIL BUSINESS 79 2013 2016 2013 2016 Asian Destinations 10.9 Number of
Operating Days 7,918
14% 5M 3.1
Potential Passenger Destination Days (millions)
and operators are trying to do different things with pop up stores and things like that,” Feely replies to TRBusiness’ question. “There is a lot of opportunities for
brands, and they would do well to thing differently about cruising and invest for their brand equity with product experts onboard and the experience they can give people.” Feely acknowledges that less space
in store will always be a challenge, but the space could be used as a brand-building exercise.
Building trust onboard “Very rarely do you have a captive audience like you do there that have a mentality to be interested,” he continues. The rise of island duty free
shopping destinations in locations such as China’s Haitang Bay, where China Duty Free Group operates a 72,000sqm retail area, has represented huge business in recent years. When asked whether the Asia
cruise market is at risk of losing large numbers of passengers to burgeoning off-board shopping opportunities unless it responds in a more dynamic fashion, Feely adds: “When passengers come onto cruises, they’re not expecting to
State of the Asia Cruise Industry:
NO SIGNS OF SLOWING DOWN
Cruise Lines International Association releases 2016 Asia Cruise Trends Study
More than eight out of 10 Asian passengers cruise within Asia, says the CLIA
TRBusiness
find much in terms of retail and are expecting to shop when they reach places like Jeju [Island]. “Store excursions are really
focused around duty free store visits, and that’s where they are expecting to shop.” Chinese passengers, he says, may
also not always be confident buying from onboard stores on the first night of their visit, despite seeing things that may pique their interest. “There’s examples of losing sales
by not clearly communicating to passengers that the prices onboard are the best, or matching what consumers find.” One thing that is working in the
cruise operators’ favour, Feely says, is the way current onshore excursions to retail stores are facilitated. He drew on one particular example from personal experience where a lack of time and guidance hampered potential sales. The Asia cruise market is soaring
but only time will tell if the onboard experience keeps pace… «
PASSENGER VOLUME BY SOURCE MARKET 2016
China Taiwan Singapore Japan
Hong Kong India
Malaysia Indonesia Other Asia South Korea Philippines Thailand Vietnam
0% 20% 40% 60% 80% 100%
47.4% 11.0% 8.8% 8.6% 6.1% 6.0% 3.0% 1.9% 1.7% 1.7% 1.6% 1.2% 0.9%
Passenger Capacity (millions)
29%
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