More marketing spend, early access to distressed inventory and favourable fares are some of the ways cruise partners like Oceania and GSAs like Cruises International could develop new markets in Africa and encourage a younger generation of cruise-goers.
Oceania recently hosted its first-ever Presidential Forum, where senior management met with local and international trade partners to discuss changes in the industry and the road to recovery.
Marco Cristofoli, MD of Cruises International, Oceania’s biggest sales partner in South Africa, said more marketing spend would help attract new business. He also called for special consideration when it came to last-minute specials and fare pricing.
Cristofoli estimates that the average luxury cruise customer will spend an average of between US$2 500 and $3 000 (R38 064-R45 677) per person on a seven-night luxury sailing. However, he urged Oceania and other cruise brands to consider South Africa’s market nuances, for example the extra costs passengers incur for visas and long-haul flights.
Cristofoli said he had also appealed to Oceania to give GSAs a fair crack at distressed inventory. For South Africans, planning a trip takes time and last-minute specials seldom worked.
“The idea was for Oceania’s new president and leadership team to meet with its partners, to share a high-level view of where they have come from in terms of the pandemic, and what they will do to get back to pre-pandemic levels,” he said. “It was nice to understand the needs of the Europeans. We aren’t that different and we all have the same needs and wants. But what is more challenging than other markets is that we still have to get people there on an airline. Passengers have to fork out for visas. It’s a little more difficult.”
Cristofoli said the luxury cruise market was recovering fast. Proof of this was the new Oceania world cruise which sold out in just one day.
He added: “The message is – Oceania is back. The forward bookings are looking good, sailings are in place, and the pent-up demand is amazing. Oceania is known among foodies and there are plans to make the brand’s appeal from a food perspective even better.”
“The size of the luxury cruise market in South Africa is quite significant. From a volume perspective, middle-range market cruises are bigger, but from a value perspective, the luxury cruise market is higher in value.”
Cristofoli said there were some remaining challenges around COVID safety protocols and different requirements at different ports, which needed a lot of time spent on explaining to customers.
The way back
Oceania’s Presidential Forum was hosted by the cruise line’s new President and Chief Executive, Howard Sherman, who took office on January 1 this year.
The three-day event involved trade partners from Europe, the UK and South Africa, and was staged on board luxury river vessel, the MS George Eliot, while sailing round-trip from Düsseldorf. The forum provided the trade partners with a chance to network and to participate in round-table discussions.
“One of the key messages Oceania delivered was that it isn’t prepared to go out and discount – and for very good reason. Firstly, you don’t want to bastardise the product and, secondly, it is very difficult to get back to the pricing you require. I find that this has been the case with most cruise lines,” Cristofoli said.
Like many global cruise lines, a ‘return-to-service’ programme is currently under way at Oceania, and more capacity will be added when it takes delivery of its new ship, the Vista, in 2023.
Cristofoli was upbeat, expecting that more of the world’s luxury cruise fleet would be back in service by the end of this year. Forward sales for many lines are showing signs of recovery, with confirmed bookings stretching into 2023 and 2024.
He encouraged agents to book early while global capacity was limited. He said business had recovered to 35-40% of pre-COVID levels and, if current trends continued, recovery should be possible by 2024.
“The sailings are filling up very quickly. We are nowhere near 2019, but what is exciting, in the last six months, is that we have seen a huge turnaround,” Cristofoli said. “From Oceania, the message is positive. They are rebuilding and restarting, and cruising is taking off.”
Cristofoli said 95% of Cruises International’s business came via travel agents. Outside South Africa, Nigeria and Kenya are CI’s biggest markets on the African continent.
