3/3/2015
Med Cruise Development Course
February 24, 2015
1 3/3/2015
Worldwide projects
Worldwide Experience
• NORTH AMERICA • INTERNATIONAL • PORT EVERGLADES, FL • SINGAPORE ICT • PORT OF MIAMI, FL • HONG KONG KAI TAK • PORT OF TAMPA, FL • ST. PETERSBURG, RUSSIA • PORT CANAVERAL, FL • PORT OF COPENHAGEN • CITY OF KETCHIKAN • PORT OF NICE • CITY OF JUNEAU • BERMUDA • ENSENADA, MEXICO • DUBROVNIK, CROATIA • PORT OF SAN FRANCISCO, CA • PORT OF SAN JUAN • PORT OF SAN DIEGO, CA • COZUMEL (VARIOUS) • LOS ANGELES, CA • PORT OF CARTAGENA • VANCOUVER PORT AUTHORITY • ARUBA PORTS AUTHORITY • NEW YORK CITY • PORT OF MALAGA • BOSTON (MASSPORT), MA • PORT OF GRENADA • NEWFOUNDLAND AND LABRADOR • PORT OF VALENCIA • MARYLAND PORT AUTHORITY • PORT OF MUMBAI • CITY OF NORFOLK, VA • EGE PORT OF KUSADASI • PORT OF NEW ORLEANS, LA • CRUISE LINES • PORT OF CORPUS CHRISTI, TX • CARNIVAL CORPORATION • PORT OF PHILADELPHIA, PA • DISNEY CRUISE LINES • KEY WEST • HOLLAND AMERICA • PORT OF PALM BEACH, FL • RCCL • NEW JERSEY PORT AUTHORITY • NCL • HALIFAX PORT AUTHORITY • MSC • STATE OF HAWAII • TERMINAL OPERATORS • ASSOCIATIONS • P&O PORTS • MED CRUISE • HUTCHISON PORT HOLDINGS • ACCA • ICTSI • CRUISE BC • DUBAI WORLD
2 3/3/2015
Course overview, Session 1
Interactive presentations and discussion Session 1 –Port operations and itinerary planning Welcome to cruising in 2025 –where will the industry be, and how do you fit? Homeport and port of call operations – technology revolution, are you ready? Itinerary planning –consumer demand, demographics and profitability Costa Diadema Captain Nicolò Alba –30 minute session Exercise 1: Itinerary planning (connecting the dots)
Goal Increase… Cruise calls Passenger throughput Port and stakeholder revenues Economic impacts to the community
Objective Gather tools to assist in achieving this goal! Understanding of cruise line methodologies and practices Future planning tools Understanding cruise line decision‐makers
3 3/3/2015
beyond
and 1 2025
in
Cruise
of
Future
Cruise passengers, 1995 –2014
4 3/3/2015
Top 25 worldwide attractions, 2014
Major cruise corporations worldwide capacity, 2014
5 3/3/2015
European cruise brand passenger capacity, 2014
Success factors
• New products that generate sustained interest in cruising –New, exciting vessels, diverse on‐board products and services –New regions, itineraries and on‐shore product offerings
• Converting land‐based resort guests into cruise passengers
• High level of passenger satisfaction –Leading to repeat clientele and lower conversion costs
• Adapt quickly to changing market conditions –Move a vessel to a new destination based on demand, operations cost, low shoreside profit options, other influences
• Limited competition, reduced operational costs, and diversified revenues –Take advantage of brand fleet volumes in agreements & purchasing –Key is to make sure they do not compete against each other
6 3/3/2015
Cruise vessel deliveries and orders, 1990 –2020
Cruise vessel deliveries and orders, 2015 ‐ 2040
7 3/3/2015
Cruise growth, 2015 –2040
Cruise growth, 2015 –2035
8 3/3/2015
Regional competitive cruise deployments, 1997 –2014
Regional cruise berth capacity deployments, 2014
North / West Europe #4 Alaska Mediterranean #5 W. Coast / Mexico #2 Caribbean / Bahamas Asia & Australasia #1
#3 South America
9 3/3/2015
Top 10 cruise passenger sourcing markets, 2014
Population Global Passenger 5 Year Pct. Change Country/region (million) Share (+) USA 320 51.7% 3.75% United Kingdom & Ireland 61 8.1% 16.4% Germany 82 7.7% 80.5% Italy 58 4.0% 26.1% Australia / New Zealand 22 3.6% 2.70% Brazil 201 3.4% 1.3% Canada 33 3.4% 2.42% Spain 40 2.8% 20.7% France 62 2.4% 67.7% Scandinavia & Finland 19 1.6% 184.6%
Cruise consumer market penetration, 30.7 million in 2025
Europe North America Pop: 515 million Pop: 350 million Cruisers: 10.3 million Cruisers: 14 million Penetration: 2.0% Penetration: 4.0% Asia Pacific Pop: 3.4 billion Cruisers: 3.4 million Penetration: 0.1% South America Australia Pop: 400 million Pop: 23 million Cruisers: 2.0 million Cruisers: 920,000 Penetration: 0.5% Penetration: 4.0%
10 3/3/2015
Regional cruise berth capacity deployments, 2025
North / West Europe #4 Alaska Mediterranean #5 W. Coast / Mexico #3 Caribbean / Bahamas Asia & Australasia #1
#2 South America
Section questions
Who are your competitors in the future?
Who are your cruise line clients and what are their needs in 2025 & 2035?
What is the future landscape of cruise at a global level?
Where will the Mediterranean be compared to other cruising regions?
11 3/3/2015 2 operations
Port
Cruise port operations
Homeport Meeting the needs and expectations of the cruise operator and passenger Operating models
Port of call Maximizing positive impacts – minimizing costs Partnering to meet demands
Future fit within a regional scheme Technology as an operations driver Differentiation through port operations
What do the cruise lines want from you as a port? Cruise line and passenger satisfaction Operations costs vs. revenues
12 3/3/2015
Operations
Port Fees Marine Servicing
Security Shore Coaches Excursions & Taxis vessel
Cruise
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Avg. passengers per ship by year of construction, 1999 –2019
Projected Percentage of Passengers per Ship, 2015 –2040
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Percentage of Ships Over 300 Meters, 2015 –2040
Design vessels
Design Vessel 1 Design Vessel 2 Design Vessel Design Vessel 3 Type (small) (Panamax) (post‐Panamax) (super post‐Panamax)
Passengers 200 – 1,500 2,000 to 2,600 2,500 to 4,000 5,400 plus
Crew 450 850 1,200 +1,200
GRT / Displacement Up to 50,000 / + Up to 100,000 / + + 100,000 / + 50,000 + 150,000 / + 70,000 Tons 20,000 50,000
LOA (m) 125 to 250 275 to 300 300 to 345 350 plus
Over 36 Beam (m) Up to 28 Up to 36 Over 40 (generally 40 to 50)
Draft (m) Up to 6.5 Up to 8.5 8.5 to 10 +8.6
Air Draft (m) Less than 50 Less than 60 Up to 62 Up to 62
15 3/3/2015 Homeports
Homeport passenger movements, >2,000 passengers
DIS EMBARKATION EMBARKATION SEPARATION
TIME
16 3/3/2015
Homeport passenger movements, 2,500 passengers
DIS EMBARKATION EMBARKATION
PASSENGER HOLDING
Homeport passenger movements, 3,000 passengers
DIS EMBARKATION EMBARKATION
PASSENGER HOLDING
17 3/3/2015
Homeport passenger movements, 5,400 passengers
DIS EMBARKATION EMBARKATION
PASSENGER HOLDING
Major terminal functions
• Operations
– Coordination marketing –Berth scheduling
–Setup / handover Fiscal agent operations – Gangways (optional) – Traffic control • Maintenance –Routine Passenger stevedoring –Major services • Housekeeping (janitorial) • Security
– Passenger agent security –Terminal • Fiscal agent • Marketing / business development • Parking • Ground handling & Stevedoring (usually separate stakeholders)
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Models
marketing
Fiscal agent operations
Passenger stevedoring services
agent security
Management model, port operated
• Operator paid on a per passenger basis
• Minimum guaranteed annual income
• Operator may have other operations as a percentage of income for: –Parking –Secondary Uses •Cruise fees •Non‐cruise fees –Other Income Clients •pays operator fees Owner •pays non‐operator fees
• collects 100% profit Owner
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Lease model, private terminal operator
• Annual payments to Owner
• Covers all facility operations and maintenance –Major issues covered by owner
• Minimal control –Use KPI’s to monitor •Cruise fees Clients •Non‐cruise fees
•pays operator fees TO •Owner pays non‐operator fees
• collects rent Owner
Mixed model, owner operated
• May contract out key functions (income vs. cost) – Maintenance –Security – Housekeeping –Parking
• Less control / lower cost –Non‐essential functions •Cruise fees Clients •Non‐cruise fees
•pays contractor fees Owner
• collects 100% profit Owner
20 3/3/2015 standards
Performance
Performance standards
Operational cycle – disembarkation 3.75 hours
SHIP
Operational cycle – embarkation 5 hours
Time in terminal (disembarkation) –90% under 30 minutes
Time in terminal (embarkation) –90% under 15 minutes PASSENGERS
Queuing ‐‐ 90% under 5 minutes (except embarkation)
21 3/3/2015
Key performance indicator coverage
•Total embarkation / debarkation times –GTA waiting –Walking distances (Curb to vessel) – Baggage drop off / pick up –Security screening – Check‐in – Gangway access – Baggage delivery
•Other significant KPIs – Financial –Safety / Security of passengers and staff – Cleanliness –daily and overall maintenance – Satisfaction – meet & greet, experience, friendliness, etc.
Approach
• Identify the standards of operations
• What Key Performance Indicator’s (KPIs) should be implemented –If so, what are those standards for each?
• Determine how each facility operates –Standards should be compromised based upon the facility limitations
• Establish KPIs –Based upon operational model and division of responsibilities –Operational target or range –Service standards enforcement
22 3/3/2015
RCCL KPI’s –line measurement standards (sample)
Standard * Measure Mitigation Plan Reporting Mechanism
Guests should not exceed Special log for OA review Adjust security team staffing the entrance to the security meeting and GPS Vessel Turn to speed document check queue. 5 minute wait from Zone Lead will record daily Report if failure occurs (will and guest preparation to Security queue entrance to guest data. note max # of guests enter x-ray and processing (20 guests per exceeding the queue magnetometer machine. queue). entrance for each event)
Add GPS staff to work queue Guests should not exceed Special log for OA review and prepare guests for the entrance to the check-in meeting and GPS Vessel Turn processing. Gauge if there queue. 5 minute wait from Zone Lead will record daily Report if failure occurs (will are empty / lighter lines to Check-In queue entrance to guest data. note max # of guests shift guests. Adjust to 'double processing (12 guests per exceeding the queue stacking' method if queue). entrance for each event) necessary.
Guests should not exceed Special log for OA review the entrance to the seapass Evaluate need to purchase meeting and GPS Vessel Turn queue. 1 minute wait from Zone Lead will record daily permanent equipment for Report if failure occurs (will SeaPass queue entrance to guest data. pier then augment with ship note max # of guests processing (6 guests per equipment. exceeding the queue queue). entrance for each event)
CBP meets standard if never Review operations with CBP overflows the entrance of the management to request Special log for OA review 'US / NON US' queue. appropriate staffing levels if meeting and GPS Vessel Turn Balance emptying ship with Zone Lead will record daily needed. Adjust ship call off Report if failure occurs (will guest experience and Debark (CBP) data. schedule to improve guest note max # of guests commencement of embark flows. Add GPS staff to work exceeding the queue process. Maximum # of the queue to prepare guests entrance for each event) guests will fluctuate per for CBP processing. voyage.
Marseilles assessment exercise
Evaluate your passenger experience in Marseilles:
What did you observe?
Information (on ship, process, ports) ?
Boarding?
On board?
23 3/3/2015 Call
of
Port
Port of call components
Security
Tourism Welcome
Ground Transportation
Sites, venues, commercial, retail, restaurant
24 3/3/2015
Port of call movements, 15,000 passengers
Port impacts
• GTA operations – Coaches operating simultaneously –Taxi operations with active curb – Limited private vehicles – Shuttle
• Marshalling area –Off‐site for easy access? – Depends on port configuration and space
• Parking (cumulative impact) – Primarily port staff (much higher for homeports)
• Vessel servicing? –Waste, fuel, services, stores
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Passenger capacity impacts
• Cumulative peaking effect – Timing of berthing –Number of vessels (1 to ?) – Vessel capacity (500 or 5,400) –Rate of passenger flow (controlled at gangway, security) –Total time in port (4, 6, 8 or more hours)
• Does port configuration affect impacts? –Does a terminal provide a barrier or gateway? – Commercial vs. non‐commercial port • What are some examples? • Is it a choice of revenue for the port v. community? (what drives the choice?)
• How are crew members dealt with in your port? –Are you meeting their needs, providing services and capturing revenues?
10,000,000
9,000,000 8,650,000
8,000,000
7,000,000
6,000,000 5,909,236
5,000,000
4,000,000
3,000,000 1,900,000 2,000,000
1,000,000 337,475 0 200020012002200320042005200620072008200920102011201220132014 Venice Tourists Venice Cruisers
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Negative cruise tourism model
CRUISES BEGIN EVERYONE LIKES THEM
SUCCESS START UP OVERCROWDING COMMUNITY CAPITAL NEEDS SUPPORT NEGATIVE REACTIONS
PASSENGER DISSATISFACTION CRUISE LINE DISSATISFACTION COMMUNITY BACKLASH
Comprehensive approach to cruise operations
TOURISM CRUISE LINES AND INFRASTRUCTURE: ASSOCIATED AIRPORT, SERVICE PROVIDERS HOTEL, TRANSPORTATION
Cruise TourismPORT Delivery: Focus on Visitor Satisfaction
CITY VENUES & SITES
27 3/3/2015
Managing the destination
• This is the area where more change is needed • It is not just about a pier or dock or terminal
It is about the destination as a whole…
• Meeting the needs and expectations of the visitor • Competing for economic and social impacts • Providing value for money
• Managing resources today and for the future – Not just stores, shops and restaurants – Historic and natural resources, roadways, ports, parking areas, environment, etc.
Managing the passenger experience exercise
What may need to be done in the future to manage the passenger experience?
How to cope with crowding? (regional and port perspective)
28 3/3/2015
Security
and
Technology
Industry trends and standards
• “Highly Functional = World Class” – Performance targets achieved – Limited queue time/length – Vessel and Brand as the “experience” – Minimized labor costs –Two level operations –Multiple gangways –Flexible for future reconfiguration
• Next Level –Space for any holding scenario –More comfort and amenities –airport model –Elevators, escalators – redundancy –Large investment in AV/IT –Terminal as part of the “experience”
29 3/3/2015
New technology driving the industry
• Advanced Passenger Information System (APIS) –e‐passport readers
• Radio Frequency Identification (RFID) – baggage tags
• Biometric Identification Systems –integrated Automated Fingerprint Identity (IAFIS)
• Scrubber / shore power
• Internet / smart phone Apps – check‐in –tour options, ticketing, maps, guide links
Cape Liberty cruise terminal
30 3/3/2015
Cape Liberty cruise terminal
Next generation cruise terminals will be…
• Single terminal servicing multiple brands –Airport style concept –Off site with vessel access
• Overlapping operations –Security portal – Centralized Customs & Immigration unit • Technology savvy space –Back of house functions combined • Baggage screening with RFID
• Cruise lines using more technology for check‐in / baggage – Check‐in processes will disappear as we know it – Increase efficiencies / reduce costs
• Smaller terminal spaces –Relying on adjacencies, flow, technology and intuitive flow planning
31 3/3/2015
Terminal for multiple users using efficiencies to control costs
How will technology change the experience?
• Expedite homeport processing –provide advanced information about the terminal process –real time – check‐in, baggage and security
• Changing port of call visits –more accurate information about things to do and see – access to other shore excursion options –shrink the pool of shorex passengers, more independent operators • Traffic patterns will change
• More emphasis on experience and immediate gratification –more options for experiences for small groups / single persons –wider demographic and more knowledgeable on destination –do not forget powerful Wi‐Fi for passengers, crew and clients!
32 3/3/2015
Security
• Driven by world, regional and local threat assessment –Affects deployments – Defines security level
• Flexibility in security design and processing is required based on –Threat level – Passenger throughput –Demographics
• Likely to get more stringent for cruise over next decade – U.S., Asia, Canada applies rules that require terminal security (FIS), as well as primary, secondary and support areas (5,000 sq. ft.) EURO 1.5 million
• ISPS sets minimum standards –In contrast to tighter security, access to the water’s edge is expanding!
Conflicting needs?
33 3/3/2015
Trending to 2025 and beyond…
Focus on creating a Huge consumer market in Asia New and expanded brands dedicated to the market sailing worldwide New build market moves beyond Europe to fuel growth of the industry (China)
Technology influences vessel and port operations Minimized or no check‐in counters (airport style) On line check‐in, RFID baggage tags drive automation (decrease staffing)
Security worldwide is a major issue for cruise operations Affecting deployments and movement of assets at sea / port Increased terminal security processing throughout Europe / Middle East
Building the backbone for the future through strategic planning Develop businesses & partnerships to control operations (shorex, pre/post, staff, stores) Investment into key infrastructure is expedited (ports, terminals, private islands)
Section questions
What technologies have you used as part of this cruise?
What was the affect?
How do you believe technology will influence your future operations?
Do you have any cost‐saving or experience enhancing examples of technology positively impacting your destination?
34 3/3/2015 3 planning
Itinerary
Deployment and Itinerary planning
What is the primary driver of cruise line deployments to a region?
Is deployment planning the same as itinerary planning? How do they differ? How are they similar?
What factors influence cruise brand itineraries?
As a destination or port how can you best influence this planning effort?
35 3/3/2015
Deployment
N. Europe
Alaska 3 5 Caribbean 2 1 Mediterranean 4 6 Australasia South America
Seasonality
S E A S O N A L
Y E A R R O U N D
S E A S O N A L
36 3/3/2015
Deployment and itinerary planning selection criteria
Marketing and sales Marine and operations
Consumer awareness Marine navigation and access Access to consumers –sales chains Security Marketability value for the consumer Berth, apron and terminal features Fit with cruise brand philosophy Ground transportation areas Fit with consumer holiday patterns Provisioning
Landside – revenue opportunities Port charges Airlift – capacity and cost Labor, fuel and other operating costs Lodging – capacity and cost Regulatory and environmental issues Consumer product satisfaction Maritime law Destination venue and tour capacities Emission Control Areas
Logistics, air and shore excursions Finance and legal
Selection criteria
• Varies by cruise line based upon consumer target –Use yield management tools to identify pricing schemes
• Operators place vessels in the most easy & profitable locations –Driven by consumer demand – Need to balance fleet to capture new customers and keep loyal cruisers
• Profitability –Sales & Marketing costs vs. Ticket price –Onboard / shoreside revenue opportunities vs. Operational costs
37 3/3/2015
Deployment drivers
• Driven by profitability and net yields –Provide what the consumer wants (based on vacation patterns) –Craft a product with marquee destinations, shipboard experience and intrigue with new ports (every demographic may be slightly different)
• Limit time in ports while creating value experiences –Critical on long‐haul itineraries (how many ports to visit?) – Revenue v. operations costs
• Include destinations lines directly control or have deals with… –Private islands, shorex sales, retail, guarantees
• What other factors influence deployments in Europe?
Factors influencing European deployments
•Homeland Market: Opens key national consumer markets
•Target Market: What markets provide large volumes of cruisers?
•Shorter Cruise Product: Ability of ships to reach marquee ports
• Seasonality: No more winter cruising ‐ season is year round
• Airlift: Out as large part of mix due to homeport options (interporting, close to home)
• Vessel Size/Capacity: Infrastructure to service vessels targeted
38 3/3/2015
Why is deployment critical to success?
• Drives profit and loss
• Leverages expensive mobile assets
• Fluid, complex issues affecting entirety of the corporation –It is the heart and soul of the product!
Itinerary development considerations
• Profitability – Leverage consumer tastes and demands into revenues
• Guest Appeal
• Guest Sourcing –Drives itinerary types, patterns, ports, etc.
• Brand Positioning
• T(time), S(speed), D(distance)
• Business relationship with the destination –Costs, contractual guarantees, revenue opportunities, etc.
39 3/3/2015
What are other major considerations?
• Infrastructure –Does it support our ship?
• Berthing availability and policies –Confirmation policies and assignments –Tendering based upon vessel capacity
• Fuel cost, type (low sulfur) and availability
• Emission, discharge and wastewater regulations
• Air lift availability & cost (dependent upon brand/itinerary)
Price comparison of itinerary patterns, 2014 sample
Vessel Homeport Itinerary Inside Outside Balcony Suite Notes 8‐Night Grandeur Baltimore $409 $539 $1,149 $1,349 Bahamas 7‐Night Explorer Cape Liberty $549 $749 $859 $1,049 Bahamas 7‐Night Quantum Cape Liberty $1,209 $1,249 $1,269 $1,789 2014 Bahamas 7‐Night Serenade New Orleans $549 $649 $849 $1,499 Bahamas 7‐Day Pride Baltimore $529 $649 $739 $1,389 Bahamas 7‐Day E Summer Pride Baltimore $889 $989 $1,119 $1,549 Caribbean 2014 7‐Day E Fantasy Charleston $369 $529 $709 $1,109 Caribbean 7‐Day E Liberty Miami $369 $489 $679 $1,029 Caribbean 8‐Day E Splendor NYC $369 $479 $739 $1,149 Caribbean 8‐Day E Summer Splendor NYC $919 $1,019 $1,299 $1,779 Caribbean 2014
40 3/3/2015
Itinerary comparison conclusions, 2014 sample
• Slightly higher fares for northeast ports vs. Florida –$50 ‐ $100 per category –For Florida ports per diems made up for in lower fuel costs, more time in ports, more ports per sailing, etc.
• Newer vessels get higher ticket prices – Quantum, Breakaway and Epic
• Higher pricing further out in sales cycle and reduces over time – Revenue management model – Supply & demand would typically dictate increased pricing, but for cruise lower pricing is used to fill the ship
Deployment and Itinerary planning
What is the primary driver of cruise line deployments to a region?
Is deployment planning the same as itinerary planning? How do they differ? How are they similar?
What factors influence cruise brand itineraries?
As a destination or port how can you best influence this planning effort?
41 3/3/2015 study
case
Quick
Alaska market
1,200,000 50
45 1,000,000 40 800,000 35 Ships
Passengers 600,000 30 Cruise
Cruise 25 400,000 20 200,000 15
0 10
Passengers Ships
42 3/3/2015
Port cruise traffic, 2004 ‐ 2015 120,000
103,044 100,000
80,000
60,475 60,000
40,000
20,000 3,366 0
What happened to the Port?
The Port entered the cruise market in 2004 with the opening of its new cruise ship terminal.
At its peak, the port handled in excess of 60 cruise ship calls and 100,000 passengers with strong prospects for growth.
The port has seen a decline in the number of cruise calls since 2008.
In 2011, they lost the last remaining weekly call by Norwegian Cruise Line.
Over the past three years the port has handled between six to ten vessels per season and less than 10,000‐passengers. primarily made up of shoulder season repositioning calls periodic calls from smaller cruise lines small pocket exploration cruise ships
43 3/3/2015
Impacts and next steps
The impact of this deterioration caused an erosion of the shore excursion program, once a strength of the destination!
Decline of engagement from the business community and citizens as volunteers.
Sustained loss of traffic and revenue forced the organization to reassess the relevance and roll in the cruise sector.
What are the opportunities and challenges associated with development of cruise to support future planning initiatives.
The study should serve as the basis to profile what would be required to be competitive, create a basis for developing priorities and the development of an action plan.
SWOT assessment
44 3/3/2015
Cruise projection composite, 2004 ‐ 2025
4 Q&A
Captain’s
45 3/3/2015
Q&A
What are the main challenges that you encounter at a port?
What is key for the success of a port? Turnaround and port of call
How do the Med ports compare to ports in other regions?
Can you provide any port best practices examples?
Any specific suggestions or recommendations for improvement? dots
the
5 connecting –
planning
Itinerary
46 3/3/2015
Assignment overview
Divide into teams Each team will build a deployment model and itinerary for a brand 45 minutes to work and 5 minutes to present followed by discussion Utilize the information provided as to the following: Deployment drivers Seasonality (if any) Itinerary balance, cost and revenues, etc.
Prepare an itinerary for the following: Star Cruises Oceania Cruises Celebrity Cruises
Consider the following elements: What is the brand and therefore the target market? Whom is the passenger demographic? Speed, distance and time in port (consider homeport operations)
Typical Income Cruise Brand Age Range Market Sector Notes Nationality Range Contemporary Younger middle class, couples Carnival Cruise Line Primarily US 25 and up Avg. 3, 4, 5, 7‐day sailings and families Primarily US and Premium Celebrity Cruises 35 and up USD $100,000 Couples and families Canadian 7‐day plus sailings Premium Holland America Line Primarily US 45 and up USD $75,000 Couples and retired singles 7‐day plus sailings Contemporary Younger couples, singles and Norwegian Cruise Line Primarily US 35 and up Avg. 7‐day plus sailings families Royal Caribbean US and Intl. 30 and up Avg. to high Contemporary / Premium Couples, families and singles International (50% goal) Disney Cruise Line Us and Intl. mix 35 and up Avg. to high Contemporary / Premium Families and couples Predominantly couples and Princess Cruises Primarily US 35 and up Avg. to high Contemporary / Premium singles Luxury Crystal Cruises Us and Intl. mix 55 and up High Couples and retired singles 7‐day plus sailings Luxury Small ship experience Silversea Cruises Us and Intl. mix 55 and up High 7‐day plus sailings Couples and retired singles Luxury Small ship experience Seabourn Cruises Us and Intl. mix 55 and up High 7‐day plus sailings Couples and retired singles Affordable Luxury Small ship experience Regent Seven Seas Us and Intl. mix 45 and up Mid to high 7‐day plus sailings Couples and retired singles Affordable Luxury Small ship experience Oceania Cruises Us and Intl. mix 45 and up Mid to high 7‐day plus sailings Couples and retired singles Primarily European Contemporary MSC Cruises 30 and up Avg. Couples, singles and families mix 7‐day plus sailings Primarily European Contemporary Costa Cruises 35 and up Avg. Couples, singles and families mix 7‐day plus sailings Premium / Luxury Cunard Line UK and Intl. mix 50 and up Mid to high Couples and retired singles 7‐day plus sailings Premium / Luxury Hapag‐Lloyd Cruises Primarily German 50 and up Mid to high Couples and retired singles TWO 7BERTHS‐day plus sailings ALTERNATIVES Contemporary AIDA Cruises Primarily German 25 and up Avg. Couples, singles and families 3, 4, 5, 7‐day plus sailings
47 3/3/2015
Celebrity Equinox, 11‐Night
Port Detail Arrival Departure • Day 1 Fort Lauderdale, Florida 4:00PM • Day 2 At Sea • Day 3 Grand Cayman Tendered 8:00AM 5:00PM • Day 4 At Sea • Day 5 Cartagena, Colombia Docked 7:00AM 4:00PM • Day 6 Colon, Panama Docked 8:00AM 6:00PM • Day 7 Limon, Costa Rica Docked 7:00AM 6:00PM • Day 8 At Sea • Day 9 Belize City, Belize Tendered 9:30AM 6:00PM • Day 10 Cozumel, Mexico Docked 8:00AM 5:00PM • Day 11 At Sea • Day 12 Fort Lauderdale, Florida 7:00AM
48 3/3/2015
Oceania Marina, 7‐Day
Port Detail Arrival Departure • Fri Copenhagen, Denmark 8 PM • Sat Berlin (Warnemunde), Germany 7 AM 11 PM • Sun Cruising the Baltic Sea • Mon Tallinn, Estonia 9 AM 6 PM • Tue St. Petersburg, Russia 9 AM • Wed St. Petersburg, Russia 8 PM • Thu Helsinki, Finland 10 AM 5 PM • Fri Stockholm, Sweden Disembark 8 AM
Superstar Virgo, 3‐Night
Port Arrival Departure • 13 Mar 2015 HONG KONG 2030 • 14 Mar 2015 HIGH SEAS • 15 Mar 2015 HONG KONG 2000 • 16 Mar 2015 HONG KONG 1400
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Tools
http://www.sea‐distances.org/ Use voyage calculator (there is a complete template that can be used)
Presentation should discuss the following: Cruise brand, consumer target market(s) Deployment Vessel, capacity, LOA, etc. Seasonality (if any) Sailings (how many) Cover the major deployment drivers in the presentation Itinerary Type (length) Ports (explain the mix and reasoning using itinerary drivers in the presentation) Speed & distance between ports Time in port (discuss cost vs. revenue factors)
Discussion
• How did the team do in terms of presenting the deployment and itinerary plan?
• Discuss the major elements presented and the reasoning
• How does this exercise apply to port operations and marketing?
• Can the process provide uses when developing presentations or discussing issues with cruise line decision‐makers?
• What are the key lessons learned from this exercise?
50 3/3/2015 6 Takeaways
Key
Course
Course key takeaways
Developing a mid‐ to long‐term strategy should: Identify and benchmark competition
Define port infrastructure requirements Larger vessels driving needs
Define and expand upland soft infrastructure needs Attack congestion now for the future Prepare for new consumer markets (China and others)
Consider technology in all aspects of planning and delivery
Security and waterfront access will further define cruise infrastructure
Establish key performance indicators Focus on… Passenger satisfaction Cruise line services Community impacts
51 3/3/2015
Course key takeaways
Define your future target markets (cruise brands) Understand their perspective of your region and port
Work together as a Unit to attract and retain cruise (Med Cruise)
Develop itinerary products, shore excursions and other revenue options To allow them to expand their presence Develop additional revenues and passenger satisfaction levels
Communicate regularly with cruise line personnel Survey and discuss their needs Differentiate your destination
Focus planning efforts on cruise passenger satisfaction Each destination is unique in its strategy for development and implementation
Med Cruise Development Course
February 24, 2015
52