Consumers have gotten comfortable with online shopping, thanks in
part to the Covid era. I speak from experience, as I reflect on the
Amazon boxes I have piled up in recent years.
And the cruise industry isn't exempt. Online sales and DIY bookings
have led to a pandemic-era surge in direct sales. Concern and
sensitivity around direct sales from travel advisors and cruise lines,
respectively, is a perennial issue.
"And it will always be around," said Janet Bava, chief commercial
officer for Windstar Cruises. "Because the travel advisors... go through
a lot to support us, and they have many options of who to sell to their
clients. And they want to make sure that we stay by their side."
Because the travel advisors... go through a lot to support us, and they have many options of who to sell to their clients. And they want to make sure that we stay by their side.– Janet Bava, chief commercial officer, Windstar Cruises
The trend line of trade-booking share is something of a roller
coaster. After travel advisors made up about 70% of bookings in 2019, their share
plummeted to 52% in 2021, according to a 2023 report from Phocuswright.
But the dominance of the advisor channel is expected to snap back to
prepandemic levels by 2025, according to the report.
Direct-to-consumer channels for Royal Caribbean Group "continue to
perform exceptionally well, as consumer preference for digital
engagement and our ongoing investment in enhanced capabilities is
supporting record-breaking bookings," Jason Liberty, the group's CEO,
said during its Q4 2023 earnings call.
But travel partners are also delivering meaningfully more bookings than last year.
On a question from a securities analyst about how to increase the
direct booking channel, Liberty stressed the company is neutral about
its different booking channels. What's key is that customers experience
as little friction as possible on their path to making a purchase, which
may lead them to its brands' websites, apps or call centers, he said.
Meanwhile, travel partners "do an exceptional job helping guests
identify and have the experiences that they want," he said.
[Trade partners are] absolutely critical in driving new-to-cruise to us. Year over year, they're showing great strength as well.– Josh Weinstein, CEO, Carnival Corp
Josh Weinstein, CEO of Carnival Corp., pointed out in its Q4 call
that younger cruisers, including a lot who are new to cruising, are more
comfortable "just playing around on the 'net and doing things direct."
Obviously, bookings coming in direct from the web are going to be the
most cost effective, he said, but first-timers book the company's brands
in a variety of ways depending on the brand and the itinerary length.
And he tipped his hat to trade partners.
They are "absolutely critical in driving new-to-cruise to us," he
said. "Year over year, they're showing great strength as well."
Source: Travel Weekly