Cruise lines are struggling to cope with increased passenger demand and almost all major cruise lines are commissioning and building new ships. The global cruise industry is currently valued at $39.6bn.
George Argyropoulos
The number of passengers carried by the cruise industry has grown year-on-year and is expected to exceed 24 million in 2018. (Source Statista)
The largest passenger segment by nationality is predictably from the USA, the UK being second, Germany third and Australia fourth. Major growth is expected from the Asian market and ships designed specifically for this market are presently being designed and under construction.
Growing the number of South African cruise travelers
In a statement from Cruises International, the largest Southern African sales and marketing agent, CEO George Argyropoulos said "The South African cruise travellers represent a mere 0.1% of the South Africans who travel overseas annually. We are convinced this figure can increase to 1% and beyond’. To this end, we have offered substantial discounts on certain sailings, free flights on Ama Waterways river cruises, and other incentives to grow the market."
Antiquated perceptions regarding cruising prevail in the South African psyche. These include that one has to be middle-aged, retired and wealthy to select a cruise. "In fact, anyone who can afford an overseas trip can afford a cruise. It is still the best value for money, least hassle, and most memorable vacation. With all-inclusive fares, there is no comparison with a land-based option."
Cruise industry evolution
Some cruise lines like SeaDream Yacht Club boasts 60% repeat passengers; it’s evident that brand loyalty is important. Royal Caribbean has 36% repeat guests and Crystal a mammoth 65%.
Argyropoulos noted "of course the cruise industry has evolved enormously over the past five years. Now ships like SeaDream include accompanying the executive chef to local markets, cycling and hiking with the captain, and a far more flexible and relaxed programme. Gourmet cruises, wine cruises, al fresco dining, and a Living Food menu reflects contemporary guest lifestyles.
Cruising has become mainstream and is more accessible than ever. Chartering a ship for incentive and brand launches is a major part of SeaDream’s business. Family reunions and weddings are just some of the options. A full three-day charter of a SeaDream yacht Club from Nice to Cannes is $200,000, and at $1,800 per person, that’s an excellent business decision."
"Business charters represent 30% of our business" said Thomas Harrison, sales director of SeaDream during a whirlwind visit to South Africa this week.