Carnival’s CEO explains the cruise industry’s biggest problem (Photographer-Rob Payne-Gallery Stock)<\/figcaption><\/figure>\nAbout 21.7 million people are expected to take a cruise this year, with Americans making up more than half the industry\u2019s passenger count. But highly public \u201cvoyage disruptions\u201d\u2013the industry term for a nightmare cruise that garners nonstop cable TV coverage\u2013and the reality of a mature market have cruise lines struggling to stoke new demand in the world\u2019s largest market. Almost 52 percent of cruisers hail from the U.S., according to the Cruise Lines International Association, the industry\u2019s trade group. The next largest cruise market, the U.K. and Ireland, supplies only 8 percent of passengers.<\/p>\n
A big problem for cruise lines is that many people who\u2019ve never been on a cruise vacation assume they won\u2019t like it. Common remarks you hear from non-cruisers:<\/p>\n
\u2022 The ships are too crowded, with long lines everywhere.
\n\u2022 Cruises are full of morbidly obese people.
\n\u2022 Do we really need more buffets in the world?
\n\u2022 Cruise ships are floating cesspools and pollute the environment.
\n\u2022 Cruises are for old people.
\n\u2022 Cruises are full of obnoxious teenagers.
\n\u2022 Who wants to be stuck on a boat for a week?<\/p>\n
The industry is confronting \u201ca harder core of people who have negative preconceived notions of what cruising is,\u201d Carnival (CCL) Chief Executive Officer Arnold Donald said Thursday on a conference call with reporters.<\/p>\n
\u201cIt\u2019s clear to me that as an industry we have not done a good enough job effectively communicating to the public \u2026 to those who don\u2019t know what cruising is,\u201d Donald said. \u201cIt\u2019s not just 3,000 people at a buffet line and super crowding.\u201d This is one reason that cruise lines are seeing torrid growth in China, Australia, and New Zealand, which are virgin territories for the industry. Consumers there tend not to have notions of what a cruise is or should be. Moreover, the cruise industry still isn\u2019t sure what kind of market the millennials will represent. Some of them have cruised with their parents, but many others are turned off by the notion of a passive vacation on board a ship.<\/p>\n
In North America and Europe, \u201cwe just haven\u2019t effectively conveyed\u201d the cruise experience, Donald said. \u201cAnd also we haven\u2019t effectively conveyed the value of what cruising is compared to land vacations.\u201d The people who do that best are satisfied customers, Donald said. \u201cGetting a neighbor or a relative saying, \u2018Look, it\u2019s not what you think it is\u2014and you\u2019re coming with us the next time.\u2019 And there\u2019s nothing more powerful than that.\u201d<\/p>\n
By Justin Bachman<\/p>\n
Source: Businessweek<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"About 21.7 million people are expected to take a cruise this year, with Americans making up more than half the industry\u2019s passenger count. But highly public \u201cvoyage disruptions\u201d\u2013the industry term for a nightmare cruise that garners nonstop cable TV coverage\u2013and the reality of a mature market have cruise lines struggling to stoke new demand in […]<\/p>\n","protected":false},"author":1,"featured_media":191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-49","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n
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