CRUISE LINES
INTERNATIONAL
ASSOCIATION
TRAVEL AGENT CRUISE
INDUSTRY OUTLOOK
NINTH EDITION | ECEMBERD 2018
CLIA IS GRATEFUL TO OUR SPONSOR FOR
SUPPORTING THIS REPORT
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Posive trends are dominang cruise industry buzz, for good reason. Travel agents and
their customers are dishing on group and mulgeneraonal travel, river cruising, value,
luxury, the introducon of new ships and desnaons. Aside from these dominant areas,
no one theme stands out among the large swath of “signicant trends” reported by agents.
From a focus on experience and celebraon to small ships to adventure, travelers are
taking advantage of everything that cruises have to oer.
Meanwhile and pursuant to these posive vibes, travel agents are condent in their
views of favorable market condions moving into 2019—four of ve (83.5%) indicate
improvement in booking volume over last year, and a similar number (83.2%) ancipate
higher spending from clients. Of those who say bookings are down, most (3.7%) say
their business has declined just 1%-5%. Indeed, less than 1% say their cruise sales have
decreased more than 10% over the last year.
Summer/Fall
2018
Winter 2018
More than 10% Beer
1 to 5% Worse
6 to 10% Beer
6 to 10% Worse
1 to 5% Beer
More than 10% Worse
Remain Flat - No Change
39%
41%
26%
22% 17% 13%
5%
20% 11%
3%
1%
2%
2%
1%
Describe your agency's outlook regarding its cruise sales volume in the current year
compared to that of the previous year.
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This posive business outlook has become a consistent trend since the incepon of
this quarterly report. Travel agents have seen increases in business compared to the
previous 52 weeks dependably for the last several years. This quarter’s results indicate
an improvement of 4 percentage points over just one year ago: 79.7% in Summer 2017
compared to 83.6% in Summer 2018, and most of the movement comes from those who
report that sales are 6% to 10% beer, from 13.5% to 25.5% (admiedly at the expense to
some in the greater than 10% range).
My cruise business has doubled this year,” reports Tobi
Tuobene of TAW Travel LLC. More and more people are
wanng to travel, and cruising gives them the best opportunity
to see more than one locaon. I feel that people are no longer
looking for the best deals. When thinking of a cruise, my clients
want a unique experience in ports they’ve never been to.
We are seeing more cruising business come into our
agency than ever before,” concurs Laurie Shuss of
Dream Vacaons. “There are so many promos right now from
all the cruise lines, that it is easy to nd the right product for
our clients. There has been more emphasis on river cruising
recently which brings more business to us than ever before.
Terms & Conditions: Offers are valid for new 2019 bookings made between November 1 – December 31, 2018. Offers and fares are capacity controlled and may be changed, cancelled or withdrawn at any
time. Free roundtrip economy air with a maximum value of $1,400 per person. Free roundtrip premium economy air available for Diamond Deck, Deluxe Balcony (BD), Junior Balcony (BJ, B1J) Suites on 11+
Day sailings with a maximum value of $2,100 per person. Scenic Savings are $1,000/pp for 8-10 Day sailings and $1,500/pp for 11+ Day sailings. Offers are based on number of cruise days, and exclude the
land portion of the trip. Scenic reserves the right to correct errors or omissions and to change any and all fares and promotions at any time. Availability is correct at the time of publishing but cannot be
guaranteed. A non-refundable initial deposit of $500 per person is required at the time of booking, with full payment required 90 days prior to departure. Flights must be booked through Scenic, on our
choice of airlines and are non-refundable once ticketed. A secondary deposit of $1500 per person is due upon airfare ticketing. These offers are combinable with past passenger offers, referral offers,
travel show & agent training vouchers and National Geographic departures. Not combinable with Groups or any other offers. For the most up-to-date pricing, availability and offers, please call Scenic
USA or your Travel Professional. Offers applicable for legal residents of the 50 United States of America.
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Description: Scenic Ad
Trim: 8.5" x 11" Live: .375" from trim Bleed: .125" Issue: CLIA - FP DEC
Color: 4c Date: December 4, 2018 2:10 PM Mech Person: GU
To book your European cruise call us
at 1.855.337.1788 or visit scenicusa.com
On Scenic, there’s no nickel-and-diming: we include everything from bikes and
excursions to transfers and tips. Of course, there’s no compromising: we include
unique and customizable experiences on shore, and a butler and 5-star service
on board. Which all adds up to a truly special way to travel. #TheScenicRoute
GU
12.04.18 | 2:10PM
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EUROPEAN
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CRUISES
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Travel agents report a greater degree of increased cruise spending since last year—from
77.9% in Summer 2017 to 83.2% in Summer 2018, a growth of 3.3 percentage points.
Interesngly, this report has seen posive cruise spending since its incepon—but the
current rate is the highest it has ever been, from a low of 67.2% in Spring 2016.
More than a quarter of agents (27.6%) say that their clients are spending greater than 10%
more than one year ago , and an addional 31% say that spend is 6% to 10% beer. Another
quarter (24.6%) say their cruisers are spending just a lile bit more with 1% to 5% increases.
As one travel agent reports: “People seem more inclined to spend the extra money to
travel to exoc places.” Another corroborates: “We are seeing clients willing to spend more
to go to new and interesng ports. They also like the idea of spending the night at a port,
allowing them to aend special acvies.”
INVESTING IN EXPERIENCES
Summer/Fall
2018
Summer 2017
More than 10% Beer
1 to 5% Worse
6 to 10% Beer
6 to 10% Worse
1 to 5% Beer
More than 10% Worse
Remain Flat - No Change
28%
23%
3.6%17%28%
31% 25% 12%
3.7%
27%
0.9%
0.8%
0.9%
0.4%
How would you esmate the cruise spending behavior of your clients in the
current year?
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Alaska has been consistently the No. 1 growth desnaon for the last 3 years, and this
latest edion is no excepon. More than two-thirds of travel agents (67%) say they are
seeing increased interest in the Northern-most U.S. state. Indeed, Alaska has gained an
even wider margin than in the past.
“Alaska is selling like crazy right now,” reports Amy Madson of Cruise Inc. “Families are
liking the big ships in Alaska—Norwegian Bliss and Joy are bringing strong yields.”
But an interesng story is developing for those desnaons that follow. While interest in
the Caribbean remains consistent (up just 1 percentage point to 43% compared to one
year ago), other regions are seeing a greater upck in the amount of increased interest.
Consider Mediterranean Europe, where increased interest has jumped from 25% to 42%
(up 17 points) over the past year. South America has seen growth in increased interest
from just 9% last year to 20% today.
“More clients are requesng bucket list trips to Europe and Africa,” says one respondent.
“We have partnered with vendors that specialize in this area and I am compleng more
training on these desnaons.”
Similarly, growing interest in Hawaii is up 9 percentage points (24% to 33%), Panama Canal
up 9 points (23% to 32%), Canada / New England up 8 points (31% to 39%) and Northern
Europe up 7 points (25% to 32%).
Other, more distant, desnaons are also seeing growth in the increases of interest.
Australia / New Zealand marks a growth in increased interest of 6 percentage points
compared to one year ago (18% to 24%). In fact, one travel agent says this region has
become the majority of business: “It seems lately almost all of the cruises that I have
reserved are for Australia and New Zealand.”
FAVORITE DESTINATIONS
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GROWTH STEADY DECLINE
Alaska
67% 4%29%
Caribbean/
Bermuda/Mexico
43% 11%46%
Europe
Medieranean
42% 48%
Canada/
New England
39% 50%
Hawaii
Panama Canal
Northern
Europe
Australia/New
Zealand
South America
Tahi And
South Pacic
California/
Pacic Coast
Trans-Atlanc
Asia
Africa
World Cruises
33%
32%
32%
24%
20%
20%
19%
17%
17%
9%
9%
52%
53%
53%
58%
53%
58%
62%
50%
55%
57%
54%
10%
14%
27%
33%
11%
16%
22%
37%
15%
18%
28%
20%
34%
In your view, are the following cruise desnaons experiencing growth, decline or
remaining steady in your bookings?
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Travel agents say their most benecial asset (86.2%) is providing valuable experience and
product knowledge to their clients. They also enjoy being able to advocate for their clients
and leverage relaonships and experse if something goes wrong (80.7%).
“For any professional, educaon and training is key to their success. The same is true for
travel agents and these survey results prove it.” says Stephani McDow, MCC, Director
Membership & Professional Development at CLIA, “Those who invest in themselves
through professional development will not only provide their clients, customers and
partners with the best service and collaboraons; but will earn more. CLIA’s Career
Seascape is a one-stop shop for professional development designed to grow cruise sales
business, while CLIA’s Global Cruise Lines oer top-notch product training. “
THE VALUE OF THE TRAVEL AGENT
Time Savings
Access to Exclusive
Oers/Savings
Access to resources
not avaliable online
Provide
Round-the-clock
Support
Provide Valuable
Experse/Product
Knowledge
Free of charge
Provide Advocacy/
Leverage if something
goes wrong
Deliver Important
Nocaons
HIGH VALUE SOME VALUE NO VALUE NO VALUE AT ALL
69%
81%
66%
65%
63%
63%
86%
59%
28%
32%
17%
32%
13%
29%
32%
5.8%
38%
2.7%
0.4%
1.9%
1.2%
2.3%
3.8%
3.1%
0.4%
0.4%
1.2%
0.8%
1.1%
0.4%
2.7%
From the opons below, where do you feel you bring the highest amount of value?
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Other values come from the me they save their customers (69.4%), access to exclusive
oers (66%), resources not available online (65.3%) and round-the-clock support (63.2%).
Two-thirds of agents (62.6%) say the fact that all of this comes free of charge connues to
bring client value, as well as the delivery of travel and other nocaons (59.0%).
“I educate the consumer that their price is no dierent if they use me, but the value and
quality of their vacaon will be beer,” says one agent.
The good news is that current clients seem fairly well educated in the power of using
a travel agent over self-booking, though further edicaon of the general public could
benet all travelers. Overall, there is at least some posive awareness among clients
around agent experse / knowledge (96%), advocacy (92%) and me savings (90%).
To a lesser extent, clients know about agents’ access to exclusive oers and resources
(87%), nocaons (86%) and round-the-clock support (85%). Free services at 83% are
the least known asset that travel agents oer.
Free of Charge
Time Savings
Provide
Round-the-clock
Support
Deliver Important
Nocaons
Provide Valuable
Experse/Product
Knowledge
Access to Exclusive
Oers/Savings
Provide Advocacy/
Leverage if something
goes wrong
Access to resources
not available online
VERY AWARE SOMEWHAT AWARE SOMEWHAT UNAWARE VERY UNAWARE
53% 5.8%
56%
51%
49%
47%
43%
72%
35% 5%
30% 11%
8.1%
12.6%
39%
36% 6.2%
12%
24%
36%
39%
12.7%44%
8.5%52%
3.4%
0.4%
1.9%
1.5%
2.3%
1.9%
From the opons below, to what extent do you feel your clients are aware of the
following services you provide?
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The second-highest trend impacng the cruise marketplace is the river cruise, behind only
group and mulgeneraonal travel. Nearly four in ve travel agents (79%) say that river
cruising is, to some or great extent, a good way to introduce customers to cruising. Only
17% indicate that it isn’t.
The queson is why. Travel agents most frequently and overwhelmingly say their clients’
interest in river cruises comes from a desire to experience something new or dierent.
Trailing this substanally are requests for smaller ships, desnaon immersion, relaxed
entrée to Europe, less unpacking, more desnaons and reduced seasickness. Other
movaons for river cruisers include educaonal experiences, slower pace, inmate
sengs, luxury and trendiness.
The most popular river cruises showcase Europe, including 53% growth to eastern
waterways (Rhine, Moselle, Danube, Elbe), 30% growth to western channels (Soane, Seine,
Loire) and 24% growth to the south (Douro, Rhone, Dordogne, Garonne, Po).
THE RIVER CRUISE
TO A GREAT EXTENT OTHERTO SOME EXTENT TO NO EXTENT TO NO EXTENT AT ALL
23% 5%56% 12% 10%
To what extent to do you think river cruising is a great way to introduce
customers to cruising?
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Nearly a quarter of agents (23%) see growth in U.S. river cruises, as well, parcularly on
the Columbia, Mississippi and Ohio rivers. Topping o river cruise desnaons with at least
20% growth is Asia at 21%, parcularly Vietnam and Myanmar (Mekong, Red, Irrawaddy and
Chindwin rivers).
GROWTH STEADY DECLINE
Europe, Central -
East - Rhine, Moselle,
Danube, Elbe
53% 7%40%
Europe,
Central - West:
Soane, Seine, Loire
30% 11%60%
Europe, South - Douro,
Rhone, Dordogne,
Garonne, Po
24% 14%62%
USA - Columbia
River, Mississippi,
Ohio River
23% 23%54%
Asia, Vietnam,
Myanmar - Mekong,
Red River, Irrawaddy
21% 28%51%
Asia, China (Yangtze)
15% 28%57%
Africa
8% 36%56%
South America
6% 27%67%
Asia, India -
Ganges River
5% 33%62%
In your view, are the following cruise desnaons experiencing growth, decline or
remaining steady in your river cruise bookings?
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This increase in interest comes from all ages and generaonal cohorts—though the
greatest increase in demand constutes Baby Boomers (67%). But Generaons X and Y
aren’t to be tried with. Gen X has the second greatest growth in cruise bookings (42%),
followed by their immediate predecessors, Millennials, at 36%. Even the Silent Generaon
is upping its cruise ante, but to a lesser extent (31%).
GROWTH STEADY DECLINE
Silent Generaon/
Tradionalists
(Born before 1948)
31% 16%53%
Boomers
(1948-1966)
67% 3%29%
Gen X (1967-1981)
42% 7%51%
Gen Y/Millennials
(Born aer 1981)
36% 18%47%
The results of last quarter’s survey were no
surprise,” reports Rob Human, Vice President
Sales, USA, Scenic Group. “ We’ve seen tremendous
growth for both of our river cruise brands – Scenic and
Emerald Waterways – on the tradional European routes
like the Danube, as well as on newer routes like the Douro.
And it was because of our growth predicons in Asia that
we’re launching the new Emerald Harmony this spring. I
was also very happy to see the high awareness consumers
have of the knowledge and experse travel agents can
provide. It points to the importance of making sure that all
of us in the industry make sure our educaon programs are
updated regularly. I remain condent that in the coming
year we will connue to see even greater awareness of the
tremendous value travel agents have to oer.
In your view which of the following generaonal cohorts are experiencing growth,
decline or remaining steady in your river cruise bookings
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To say the cruise marketplace is ourishing may be an understatement. Posive trends in
mulgeneraonal travel, river cruising, value and luxury and new ships and desnaons
are pushing more and more travelers into the cruise marketplace, and those travelers are
spending more than they have in the past. Four of ve travel agents (83.5%) say their
bookings are up since last year, and another 83.2% say spending is up, as well.
Alaska connues to be the desnaon with the greatest amount of growth in interest. But
other regions are seeing higher percentage increases in this area. Europe and South America
are seeing double-digit increases in interest over just one year ago. Hawaii, Panama Canal,
Canada / New England, Northern Europe and Australia / New Zealand are all experiencing
growth in interest from cruise clients.
The benets that travel agents bring to their clients, and the value of using a professional to
help book travel, are well known to cruisers. Clients understand that agents provide valuable
experience and product knowledge, advocacy and leverage, me savings, exclusive oers
and resources—all free of cost to the end consumer.
Aer group and mulgeneraonal travel, river cruises are the hoest trend in the
marketplace. Nearly four in ve travel agents (79%) say that it’s a great way to introduce
customers to cruising. It’s ideal for clients who desire new or dierent experiences, smaller
ships, desnaon immersion and relaxed entrée to Europe.
It’s a great me to be cruising.
CONCLUSIONS
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