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The Parliament, located on the bank of the , built in Neo-Gothic style.

European River Cruises On the Rise Among American Tourists Melinda Jászberényi, Ph.D. iver cruising is one of the most attrac- recognized port of the Danube and capital Rtive and rapidly developing areas of in- of Hungary, as a popular tourist destination. ternational . Beyond the beautiful The American market ranks among natural environment of the rivers, architec- the top in the number of tourists it sends to tural attractions along the riverside enrich Hungary. Consequently, it is one of Hun- the experience, providing historical and cul- gary’s most important partners. American tural background that deepens tourists’ con- tourists generally consist of travelers over nections to the city. the age of 50, intending to use high-quality With other European cities, tourist services, as well as 30 to 55-year old has benefited from the heightened interest in business tourists. Since 1996, the Budapest river cruising among tourists. In fact, Buda- Welcome Touristic Travel Agency has orga- pest won the Best Port Award nized Hungarian cruise programs for three in the American Porthole Cruise Magazine large cruise companies for approximately and the Editor-in-Chief Award in 2014. This 125,000 people per year. In 2013, the num- article provides an overview of Danube riv- ber of American guest nights on European er cruise tourism among American tourist river cruises rose more than 10%. experts. It also showcases Budapest, an in- While the idea of a cruise evokes a creasingly important and internationally vacation designed for recreation and relax-

22 Boston Hospitality Review | Fall 2014 ation, increases in both demand and compe- (plus flight). At this time, participants in tition have given rise to a range of different these programs were mostly retired, older options for travelers. Cruise programs attend travelers. Since then, the popularity of the to guest needs are not only served on board, European luxury river cruises has risen, but also on land. By offering new packages beginning with American-owned Viking and organizing themed tours, cruise enter- Cruise company’s action to halve prices and prises are able to attract new customer seg- thereby initiate a price war. ments. Many oversees visitors seek to ex- As larger and more comfortable tend their vacations by staying extra days on American-owned cruise ships appeared on land, either before or after the river cruise. the market, and as the tickets fell to half Beginning with one week modules, cruise price, demand for river cruising started to packages can be extended and customized increase. Viking Cruises was the leader in to meet customer’s preferences. price reduction. First, they offered 2-for-1 The river cruising industry is one discounts; later prices fell to almost half their of the fastest growing vacation markets. Its original price. River cruises could be found growth rate is almost double compared to for as little as $1,000 to $1,500. As the cost of the overall transportation sector. This indus- these once expensive journeys dropped, riv- try burst is a result of: er cruises became available to a wider range of travelers. t High standards of living in the primary A two-tiered pricing strategy ex- sender countries of origins of travelers ists in the market. First is a comprehensive (North and West Europe, package that includes all programs, accom- of America) modations and catering. Second is a stream- lined plan that covers accommodations and t Growing intensity of competition in the basic meals. In the second plan, arrange- market with evolving price wars in coun- ments for additional services must be paid tries such as , and Bul- for separately (i.e. a la carte pricing model). garia, as cruise liners are lowering their One indicator of the success of river prices to attract customers American Tourists in Hungary 660 t Appearance of new customer preferenc- es in today’s market, such as desire to 640 travel in a manner that enables visits to 620 as many destinations as possible with- 600

out changing hotel rooms, giving cruise 580 ships an advantage because they can 560 serve guests’ needs under safe and luxu- rious conditions 540 520

In the early 2000’s, the European 500

river-cruise ship market was dominated by 480 German and Swiss-owned companies. The (hundreds) American Tourists 2007 2008 2009 2010 2011 2012 2013 ships were small in scale with modest de- Year signs. Ticket prices were very high. An av- Source: HCSO (2012) erage Danubian cruise cost $10,000-$12,000

Fall 2014 | Boston Hospitality Review 23 cruising is the high occupancy even during as an example). Typically, members of this the recent economic crisis. In the last five target group have traveled a lot and are look- years, the number of passengers taking part ing for new ways of traveling. They tend to in river cruising has risen 10%. It is difficult be highly interested in history and culture. for cruise companies to keep pace with this The features of this target group have made demand. Many operators have currently it possible for the river cruise sector to with- sold out their tickets not only for 2014 but stand the negative effects of the economic also for the beginning of 2015. In response, crises. cruise liners have the opportunity to enlarge European river cruise liners are their fleet. Last year, Viking Cruises, one of targeting a wealthier tourist segment than the largest companies, increased the number ocean liners. This is because the cost per of its vessels to thirty-five, purchasing six capita of a river cruise is much higher than new ships. This year, the cruise liner plans an ocean cruise. The river boats are signifi- a further expansion by launching ten new cantly smaller than the ocean ships. Conse- ships. quently, costs of high quality and expensive The countries that send the highest technology have to be divided among many numbers of tourists to Hungary are the Unit- fewer passengers. The capacity of ocean lin- ed States of America, Australia, Japan, North ers amounts to thousands of people, while and West Europe. The primary target group river vessels generally have a maximum ca- of Danubian river cruising is 50-70 year pacity of 200 passengers. olds. This group has both more free time and River cruise lines are also marketing higher discretionary income (with annual to potential tourists who do not seem inter- salaries of $80,000-$100,000 for Americans ested in cruising, but who may be attracted

Panoramic view from Buda to Pest side and St. Stephen’s Basilica named after St. Ste- phen, the founder of the Kingdom of Hun- gary

24 Boston Hospitality Review | Fall 2014 to the wide range of programs and luxury mantic landscape appears from on board of facilities available on the ship. Cruise liners the ship, a view not accessible from the land. often organize many different themed routes From the river, the noise of the city is softer; to enable travelers to find a journey that travelers are not caught up on hectic side- meet their particular interests. Organizers walks or in frustrating traffic jams. are also working to attract younger tourists, The most popular stations of Danu- by offering short, family-friendly packages. bian river cruises are: Passau, Linz, Vien- Marketing campaigns for river cruises often na, Bratislava, Esztergom and Budapest. In highlight a comfortable, easy way to visit cit- 2014, Budapest was ranked the 11th friend- ies less frequented by tourists. liest city for tourists by Conde Nast Traveler. Many European rivers are destina- According to the travelers, Budapest is ma- tions for tourism. The most popular water- jestic, regal and breath-taking with its rich ways are the Danube, Rhine, Elbe and the history and elegant buildings, filled with rivers of France and Russia. An important lovely, friendly people, courteous drivers, characteristic of sightseeing by ship is that and a youthfulness that make the city spe- tourists visit multiple cities along the river cial. than engaging in an extended stay in one Budapest is a key destination among location. The most significant advantage of European river cruises. With the unique this style of sightseeing is the variety. Guests coast of the Danube, world heritage sites on reach new cities every day without tiring both Pest and Buda side and rich historical travel. New tourist attractions are available and cultural offers, the capital deserves its each day without changing accommoda- special place among European river shore tions. Additionally, a magnificent calm, ro- cities. The most beautiful view of the city

Budapest panorama, which is part of the world heritage, with Gellért Hill in back- ground

Fall 2014 | Boston Hospitality Review 25 HUNGARY BY BUS

The Royal Palace of Gödöllő is an imperial and royal Szentendre is a small Hungarian town near the Dan- Hungarian palace located in central Hungary. ube bend, framed in a picturesque, natural setting with the winding river, nearby hills and mountains. greets passengers arriving on the Danube. Budapest, visits to Gödöllő Castle Museum The first landmarks they see are the Buda (Buda Castle) and the small, romantic, pic- Castle, the bridges over the Danube, and the turesque, Szentendre, are highly desired. view of the Danube embankments, which is Tourists spend an average of two to a cultural world heritage site. three days in Budapest. The highest amount Nearly all of the existing Danubian of travelers’ exchange is seen in Budapest as cruises include a visit to Budapest. Some the city is either a trips starting point or a operators offer further Hungarian stops and final destination. In that case, tourists often buses allow for easy travel to other Danubian extend their Budapest visit with a few guest coast towns. Sightseeing by bus or on foot en- nights in a hotel. ables travelers to customize their journeys to The annual Condé Nast Traveller address their particular needs and interests. Gold List includes cruising in a separate sec- These excursions on land might include: tion, testament to the general success this exploration of religious sites, programs de- tourism sector. According to 1,300 Amer- signed for tourists with Hungarian origins, ican tour operators, European river cruises visits to museums and exhibitions, and gas- are more popular for American tourists than tronomy tours. Specific programs might in- holidays at the Mediterranean Sea. The 2014 clude the discovery of the Royal Castle and statistics indicate only Caribbean and Alas- Castle District, the Fishermen’s Bastion, Cit- ka journeys are more popular than Europe- adel with its fascinating panorama, and the an river cruises. Within this, the Danube has world famous baths, such as the Gellert Bath a valuable position among European rivers, or the Szechenyi Bath from the nineteenth creating a positive potential for Budapest century. Beyond the planned programs in tourism. ■

Melinda Jászberényi, Ph.D. is an Associate Professor of the Centre for Tourism, Institute of Marketing and Media in the Faculty of Business Administration at Budapest Corvinus Uni- versity where she is the program leader of Bachelor of Sience (BSc) in Tourism and Hospi- tality. She has PhD degree in transportation from Budapest Corvinus University and master degree from Budapest University of Economics. Email:[email protected]

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