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Cracking Challenging Asia Cruise Market Is No Slam-Dunk

by Fran Golden  May 09, 2013

This is the second in a two-part series. (See: In Hot Asia Market, Cruise Lines, Ports Jockey for Position)

As Asia, particularly Singapore, seeks to catapult its standing in the cruise world, the cruise lines are trying to figure out how to sell to the Asian consumer market – and where travel agents fit into the picture.

Selling through travel agents in Asia requires a different strategy than in the U.S., said Kelvin Tan, regional director, Asia Pacific, for Royal Caribbean. For one thing, he noted, the travel trade structure varies from country to country.

Some countries require agents to have a transportation department permit before they can even set up shop.

Sales channels in Asia
Most of Royal Caribbean’s customers in Asia buy their cruises through wholesalers or retail groups, and there is very little direct business with the cruise line, Tan said. That’s due in part to all the different languages involved.

Word of mouth is important, he added. So is value for money.

In the Asia consumer marketplace, Royal Caribbean benefits from its DreamWorks partnership (with costumed characters onboard) and features such as its ice skating rinks. The pitch? “Go and try it, it’s different,” Tan said.

But that difference brings its own set of issues.

Lacking in product knowledge
Few travel agents in Singapore even know what an American-style cruise experience is like, much less differences in cabin types, said tour operator Bob Guy, managing director of ground operator Destination Asia.

Nor do consumers, he added.

Star Cruises, the big local player, sells short and inexpensive gambling-focused cruises on ships that Guy said are “gaudy and bright” and stress partying over relaxation.

“They make a Carnival ship look like a hospital,” he said. “But it’s exactly what most Asians want. They hit it perfect, including a first-rate marine operation,” he said of Star Cruises.

Undoing a widely held Asian perception that cruises are about cheap, gaming-focused jaunts – and even getting Asians to try cruises of more than five days – will be a challenge, Guy predicted.  

For its part, Princess officials said as part of its deployment next year of the Sapphire Princess (see sidebar), it will launch a version of its online training program, Princess Academy, for agents in Singapore.

Cracking the Asia market is likely to be well worth the effort for cruise lines.

“The market potential for cruising in Asia is huge as the total potential number of cruise passengers could reach 3.7 million by 2017, and double to over 7 million by 2020,” said Carnival Asia chairman and CEO Pier Luigi Foschi.

See Part One: In Hot Asia Market, Cruise Lines, Ports Jockey for Position

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