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Boosts Onboard Revenue Set Between Sea and Sky Investment Risk to Donald Strategies for dilemma underinsured bucks sustainable for ports passengers the trend cruise tourism THE GLOBAL CRUISE MARKET MAGAZINE Spring 2014 boosts onboard revenue Set between sea and sky QUÉBEC TROIS-RIVIÈRES SAGUENAY BAIE-COMEAU LIVE TO SEPT-ÎLES ■ A natural archipelago made up of about a dozen islands ■ Red cliffs, rolling hills, honey-coloured sand and brightly coloured fishermen MONTRÉAL houses HAVRE-SAINT-PIERRE ■ Madelinots : a rich and truly distinctive blend of Acadian, French and Scottish To live is to reachEX out. To live is to look, to PLORE EXPLORE TO LIVE. And LIVE TO EXPLORE. cultures and history wonder. To explore. We welcome you to a life ■ Museums, craft workshops, La Grave of exploration. A life of discovery. Cruise the Saint Lawrence. Historical Site, Site d’Autrefois; a wide Come explore nature’s bounty and savage range of cultural activities beauty. Examine the wonders of human ■ Fresh fish and seafood, tasty local engineering and the intricacies of long-established crafts. Investigate the prepared foods, such as, cheese, GASPÉSIE smoked products, beers and liquors, etc. nightlife of multicultural cities. Discover These are the taste of the islands culinary enchantment and comforting cuisine. Explore the boundaries of the possible ... in summer and autumn. escaleilesdelamadeleine.ca Photography: Guylain Doyle (Saguenay) @ EscaleIM Marc Loiselle (Baie-Comeau) / EscaleIlesdelaMadeleine M. Latour (Sept-Îles) CRUISESAINTLAWRENCE.COM Mathieu Dupuis (all other photos) ÎLES DE LA MADELEINE seatrade_2014_2.indd 1 2014-02-05 11:52 Set between sea and sky QUÉBEC TROIS-RIVIÈRES SAGUENAY BAIE-COMEAU LIVE TO SEPT-ÎLES ■ A natural archipelago made up of about a dozen islands ■ Red cliffs, rolling hills, honey-coloured sand and brightly coloured fishermen MONTRÉAL houses HAVRE-SAINT-PIERRE ■ Madelinots : a rich and truly distinctive blend of Acadian, French and Scottish To live is to reachEX out. To live is to look, to PLORE EXPLORE TO LIVE. And LIVE TO EXPLORE. cultures and history wonder. To explore. We welcome you to a life ■ Museums, craft workshops, La Grave of exploration. A life of discovery. Cruise the Saint Lawrence. Historical Site, Site d’Autrefois; a wide Come explore nature’s bounty and savage range of cultural activities beauty. Examine the wonders of human ■ Fresh fish and seafood, tasty local engineering and the intricacies of long-established crafts. Investigate the prepared foods, such as, cheese, GASPÉSIE smoked products, beers and liquors, etc. nightlife of multicultural cities. Discover These are the taste of the islands culinary enchantment and comforting cuisine. Explore the boundaries of the possible ... in summer and autumn. escaleilesdelamadeleine.ca Photography: Guylain Doyle (Saguenay) @ EscaleIM Marc Loiselle (Baie-Comeau) / EscaleIlesdelaMadeleine M. Latour (Sept-Îles) CRUISESAINTLAWRENCE.COM Mathieu Dupuis (all other photos) ÎLES DE LA MADELEINE seatrade_2014_2.indd 1 2014-02-05 11:52 GUADELOUPE ISLANDS, all that you fi nd in the Caribbean, and more. © Océan d’images J.M Lecerf - © Thinkstock Février 2014 Comité du Tourisme des Îles de Guadeloupe Siège 5, square de la Banque - BP555 97166 Pointe-à-Pitre Cedex Tél. +590 (0)5 90 82 09 30 - Fax +590 (0)5 90 83 89 22 [email protected] www.lesilesdeguadeloupe.com AP A4 Cruise Industrie.indd 1 17/02/14 09:53 FRUTIGER REGULAR THE GLOBAL CRUISE MARKET MAGAZINE Ashcroft & Associates Ltd. would like to express their sincere thanks and gratitude to the many organisations that have helped in the production of this magazine by contributing to articles and reports, or supplying facts and figures, f further evidence were needed of just how significant are the changes now information and pictures, or provided sweeping through the industry, it is all right here in this issue of Cruise help in other ways. Insight. We have made every effort to ensure the Carnival Corporation & plc Chief Executive Officer Arnold Donald has Ishown his hand – his priority is to improve the performance of the 102-ship fleet accuracy of the information but changes occur incessantly. Readers are advised under his control by leveraging scale to initiate greater efficiencies through closer to check that any material facts are still brand co-operation. current with the responsible authorities. He also raises the possibility of “brand collaboration in destination ports where there is some joint activity that seems to make sense”(P13). Carnival Australia For information about future issues of Chief Executive Ann Sherry describes how brand cooperation already works in Cruise Insight please email: practice Down Under on page 28. So, down the track, expect to see maximum [email protected] efficiency and co-operation among brands for the greater good of the whole or tel:+44 20 8994 4123 Carnival group. Whether that damages individual brand equity remains to be seen but it is a Cruise Insight is available annually for £35 (inc. postage). The contents of this clear signal of a determination to drive profits during what has been a difficult publication are protected by copyright. period for all sectors of the industry – witness the grim financial results recently All rights reserved. ISSN 2050-6961 announced by the All Leisure Group (parent of All Discovery Cruising brands Voyages of Discovery, Swan Hellenic and Hebridean Island). We have previously Publisher and Editor questioned the viability of older ships with operating costs heading north and Chris Ashcroft ship values heading south and now we have the evidence. Ports are not immune from the industry’s growing financial pressures as they are Associate Editors now expected to invest in berths to accommodate larger ships while also having to Tony Peisley pay for new environmental (waste management and shore power) facilities. And - Maria Harding at the same time - remain competitively priced. (Page 51). Another challenge is the quest for sustainability. Sustainability Consultant to Production editor Jon Elphick WSP Environment & Energy Oliver Pearce (Page 38) defines what this actually means – and recommends strategies for sustainable cruise tourism for ports, Contributors destinations and cruise ship owners. Oliver Pearce Tony Peisley discovers (Page 18) how some cruise companies have tired of waiting for passengers to be willing to pay higher ticket prices and are developing Design & Production ever more sophisticated onboard revenue generation. studioo86.co.uk But the focus on improving profitability has already had one positive impact: truly innovative ideas are driving the development of the core product so that it Administration and Finance wows both the experienced cruiser and the potential first-timer. The ship is now Gilly Ashcroft being described by industry leaders as the destination more often than ever before. This ship description supports the notion that a new modern ship with sliding Circulation Kerstin Jones roof flexibility, among many other new features, will be able to operate almost anywhere in winter months – a key to the industry’s increasing demand for new Printed by year-round destinations (Page 93). Warners Midlands Innovation is something that drives us too as Cruise Insight e-Zine (our monthly digital publication) continues to wow many sectors of the industry with its concise and insightful commentary using the smartest technology to mix text and video on the same page. Thank you for all your positive comments over the past four editions. Published by Ashcroft & Associates Ltd PO Box 57940, London W4 5RD, United Kingdom Cruise Insight Spring 2014 Chris Ashcroft 5 Publisher and Editor Francesco Balbi Andrew Baldwin Mike Bonner Ioannis Bras Sandra Bratland Bernard Carter Steven Cernak Steve Collar David Dingle Arnold Donald Christopher Emilio Freeman Edgington Comment, opinion and quotes inside this issue Julia Torstein Hagen Andy Harmer Tony Heuer Roberta Jacoby Fredrick Grundmann Johansson Cruise Insight Spring 2014 Susanne Marco Maresca Michael Ares Michaelides Ken Muskat Martine Pasquet 6 Mackillop McCarthy Dominic Paul Oliver Pearce Tony Peisley Larry Pimentel Rich Pruitt Nancy Ramos John Richardson Francis Riley Gennaro Russo Graham Sadler Adam Sharp Kevin Sheehan Donald: “Ticket pricing is very important and over time we need to return to and exceed the levels we have been at in the past.” Ann Sherry Christina Siaw Jens Skrede Tom Strang Andy Stuart Michael Ungerer Cruise Insight Spring 2014 Pierfrancesco Elena Visnar- Richard Vogel Vince Wilkins Vago Malinovska 7 13 THE GLOBAL CRUISE MARKET MAGAZINE 13 Donald bucks the trend Competitors are focusing on onboard revenue, but Carnival Corporation CEO Arnold Donald is setting his sights elsewhere. Chris Ashcroft reports. 18 ‘Big data’ boosts onboard revenue There’s more than one way to persuade passengers to pay what lines think their cruise is really worth – as Tony Peisley discovers. 28 Sherry delivers Down Under If you want to know how to successfully develop a market – look no further than Australia. Chris Ashcroft talks to Carnival Australia Chief Executive Officer Ann Sherry. 38 Sustainable ports and destinations The cruise industry needs the environment at its ports and 38 destinations to remain attractive to its passengers. Oliver Pearce, Sustainability Consultant to WSP Environment & 59 A shore thing 67 Don’t get me started Energy, sets out a programme for Outstanding shoreside events and New technology is a bit like climate sustainable cruise tourism. offbeat travel experiences are the
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