There has been a strong uptake in all-inclusive cruise packages among South Africans as they seek out more comprehensive experiences that remain within budget.
However, cruise experts note that it is important for travel agents to understand that there are two types of ‘all-inclusive’ cruise fares – those that require passengers to buy premium alcoholic beverage packages and additional experiential excursions over-and-above the bundled fare, and those that include these in the fare.
Gaynor Galbraith Neill, CEO of Cruise Vacations, explains that South African cruisers are affected by the weak rand, provoking a preference for all-inclusive packages that have beverages and experiences included, as they are perceived as offering more value for money.
“With the rand, if cruisers are signing for drinks and buying tours and doing this and that, their credit cards get charged and, because of the rate of exchange, they can get a bit of a surprise,” says Neill.
She says this all-inclusive model benefits clients, as they know upfront how much they have paid for their cruising experience and that it will stay within their budget.
“Pay more before you go, but pay less by the time you come home,” Neill sums it up.
She says when Silversea introduced a “less-bundled” Essential Fare – a significantly lower fare with fewer inclusions and strict cancellation penalties – Cruise Vacations had little to no uptake.
“It hasn't been popular. And it's a very interesting statistic from us as the GSA in Africa. I think they thought a market like ours might jump at it because of the rand being so poor. But strangely enough, I think for Africans, it's more a case of what’s inclusive. It actually is better value for us.”
On the other hand, Shaun McCarthy, Founder of Whitestar Cruise & Travel, points out that all-inclusive fares, with alcohol included, may result in overspending, especially among clientele who drink less.
“From a South African point of view, I think the perception is that it's better value. But it's not always, because if you buy the drink package, it's about US$70 to $80 (R1 250 to R1 430) per person per day. That's a lot of money. They have got to be drinking about R1 500 worth of drinks per day and, even at cruise ship prices, that's quite a lot,” says McCarthy
He says while all-inclusive packages are becoming more popular, not every cruise line will adopt this model, explaining that it’s because different cruise lines offer different experiences.
Neill adds that these variations in all-inclusive packages also depend on cruise lines’ means of earning revenue. Cruise lines with all-inclusive packages and add-ons value the additional revenue earned on board, as passengers decide to buy more drink packages and embark on excursion experiences as they go.
“Whereas, other premium cruise brands, such as Silversea, Seaborne, Azamara and SeaDream, want the champagne to flow. That's the look and feel that they want for their product. They don't want their passengers signing for every drink,” adds McCarthy.
