Prospects are buoyant as more Asians start to see the beauty of cruising With additional reporting from Lee Pei Qi, S Puvaneswary, Greg Lowe, Mimi Hudoyo, Prudence Lui and Marianne Carandang
While a string of disasters at sea recently has somewhat taken the shine out of cruising, particularly in the world’s biggest cruise market North America, in Asia the waters are anything but murky.
With cruise companies reporting healthy increases in the number of Asians getting onboard their ships, expectations that the size of the Asian cruise market will expand to 3.7 million by 2017 are looking within reach. Currently, there are around 1.2 million Asian cruise passengers, according to the 2012 Cruise Industry News Annual Report.
Royal Caribbean Cruises Asia-Pacific regional director, Kelvin Tan, said: “The number of our Asian guests have increased by an average of 20 to 30 per cent year-on-year since 2007. As the region grows increasingly affluent, cruise vacations are being viewed as a fresh, alternative holiday option to the traditional land vacation.”
Eileen Oh, head, marketing & communications, ASA Holidays Singapore, said: “Our cruise business has been seeing a healthy year-on-year growth of at least 20 per cent. In 2012, the total sales figures generated from cruise packages grew almost twofold compared to 2011, largely spurred by increased take-ups in longer-haul cruises which cost an average of about S$6,000 (US$4,730) per person.”
Singapore-based Chan Brothers Travel’s spokesperson, Michelle Yin, said: “On average, we see a 30 per cent year-on-year increase in demand for regional cruises from Singapore and fly-cruises from port-of-calls beyond Singapore. This trend was evident since 2010, when we started to focus on international or fly-cruises.”
Said Imam Syafii, president director of Menara Tudjuh Sembilan, Costa Cruises’ GSA in Indonesia: “The regional cruise (business) increased 30 per cent in 2012 from 2011 since Costa Cruises deployed Costa Atlantica in Singapore last year. Between 30 and 40 per cent of the market are first-time cruise travellers.
“Indonesia is a sleeping giant. While the longhaul (cruise) traffic will continue to grow it will remain niche, while shorthaul cruise destinations will be big (for Asian passengers),” added Imam, who projected the market to expand a whopping 40 per cent this year.
Multi facilities net diverse travel segments
Michael Goh, Star Cruises’ senior vice president of sales, said: “Asians enjoy holidays that bring them to several destinations, allowing them to experience different food and cultures all in one go. Cruising offers them the most convenient way of exploring multiple exotic destinations in a single holiday.”
Regional cruises are also well-received among Asian travellers who dislike longhaul flights or have tighter budgets. “Asian cruises are attractive to families with young children, first-timers and incentive groups with lower budgets and time limitations,” said Sukanya Rattanavadee, GSA general manager, Regale International Travel Thailand.
Added Cooper Huang, CEO of Malaysian Harmony Tours & Travel, which sold 100 per cent more South-east Asian cruise packages in 1H2013 than in first-half 2012: “You can take a three-night cruise for below RM2,000 (US$614), inclusive of city tours.”
Huang continued: “Many families with children book these cruises during the school holidays whereas working adults travelling with small groups of friends may take a few days’ leave from work to go on a cruise. For the elderly, the attraction is visiting different places without having to lug around luggage.”
Abdul Rahman Mohamed, deputy general manager, channel management of Mayflower Acme Tours, promotes SuperStar Libra, homeported in Penang, for its easy accessibility. The Kuala Lumpur-based firm recorded a growth of between 15 and 20 per cent in South-east Asian cruising in 1H2013, driven mainly by the Muslim market since the ship launched two halal restaurants – Spices and Blue Lagoon – earlier this year.
He added that most cruise clients were either first-timers or had been on Star Cruises in the past, hence they were usually keen to experience shore excursions in a new destination and facilities on board a “moving five-star hotel”.
“Compared with the longhaul market, travellers in the region take cruises because they want to try new big ships which offer more facilities and entertainment on board than the destination itself,” noted Edhi Sutadharma, general manager of Golden Rama Tours & Travel Indonesia, which has set up a separate cruise division to tap the growing cruise market.
Shorter cruises in demand
As Asian travellers warm up to cruising, the trade is seeing a surge in interest for shorter and more affordable itineraries.
“Due to (Asians’) lack of familiarity with cruising, they prefer to cruise in South-east Asia as it is closer to home. As a result, they also prefer shorter cruise itineraries of three to five days for their first cruise,” said Ong Huey Hong, cruise director of Singapore Tourism Board.
Budget also plays a key consideration as many first-time cruise travellers in Asia do not wish to fork out prices beyond HK$20,000 (US$2,579) for European and American cruises, pointed out Kevin So, deputy general manager of Sightseer (HK).
He said: “It’s also typical to see experienced Asians cruise travellers sail in their backyard because they enjoy the cruising experience and look for affordable shorthaul trips, for example a six-day journey under HK$10,000.”
Menara’s Imam added: “The advantage of these short cruises is that travellers can decide on a short getaway at the last minute, provided the cabin is available, since there’s no need for a visa.”
He said short cruises of between three and five nights were a favourite among Indonesian travellers, with the Costa Victoria roundtrip Singapore-Penang-Langkawi-Phuket itinerary departing on December 28 as the bestseller since it would berth in Phuket on New Year’s Eve.
As Asian travellers take to the seas in rising numbers, cruise lines are also venturing into more remote waters in the region, steering the course to hitherto less visited destinations like Sabah and Myanmar.
Apart for the popular 4D3N itineraries in its portfolio, Goh said that Star Cruises had rolled out a special 7D6N cruise departing from Penang to Krabi, Yangon and Phuket this month. It would also homeport the 1,511-pax SuperStar Aquarius in Kota Kinabalu from November, with calls at Brunei’s Bandar Seri Begawan and Sarawak’s Bintulu, he added.
Meanwhile, Silversea Cruises is developing new regional itineraries and experiences to attract more Asian travellers. “Three of our ships (Silver Whisper, Silver Shadow and Silver Wind) are returning to Myanmar in 2014 and will each incorporate a special multi-night stay in this mystical and undiscovered destination,” said Asia regional director, Melvyn Yap.
Meetings market growth
While cruises are undeniably suited for leisure travellers, the trade also sees cruiseships’ strong potential for the MICE market, especially with the recent launch of Marina Bay Cruise Centre Singapore and Hong Kong’s Kai Tak Cruise Terminal.
Star Cruises’ Goh said: “Many corporations see cruising as a great tool for team building, breaking free from traditional land-based venues. The setting out at sea is serene and perfect for brainstorming and exchange of ideas.
“A good number of sizeable corporations as well as special interest groups have organised MICE events onboard SuperStar Libra, such as a 4D3N destination cruise for 1,000 guests for an India-based incentive group,” he added.
Said Royal Caribbean Cruises’ Tan: “For Indonesia and India, MICE business makes up almost 50 per cent of our total sales. Incentive travel is a popular trend for companies in these markets.”
MICE cruises make up a small but growing segment for Jebsen Travel Hong Kong, according to cruise section assistant sales manager, Crystal Wong. Such cruises were particularly “hot” for investment banks, which would invite their clients and hold seminars on board” she added.
Wally Cervantes, general manager for Arpan Air in the Philippines, remarked that the incentive segment presented immense potential for cruising and that business was only “hindered by the current deployment of ships and how creative the principals are”.
When faraway seas cast their spell
While Asia is set to be a hotbed for cruising in coming years, a significant number of South-east Asians, particularly the high-end segment, have passed over the opportunity to sail in their own backyard for the distant shores of the Mediterranean, Alaska and the Antarctica, according to cruise experts in the region.
Melvyn Yap, Asia regional director at Silversea Cruises, opined that the desire to explore exotic realms was a key motivator. “A holiday destination that offers a contrast in culture, cuisine and sightseeing than found locally can often appeal. Most South-east Asians are keen to explore a different world from what they are used to,” he said.
Added Sukanya Rattanavadee, GSA general manager of Regale International Travel Thailand: “Most experienced Thai travellers have been to most Asian countries by land, so they seem to lose interest in returning to the same cities, (where) they can easily travel by themselves probably at lower fares.”
Faraway destinations were deemed more fascinating, she said. “Our most popular cruise destination is Alaska. Thais like to enjoy cool weather, different scenery, especially glaciers and fjords and wildlife.”
Celebrity Cruises’ European and Mediterranean itineraries had sold well among Filipino cruise travellers, said Marilen Yaptangco, president and CEO of Baron Travel. She added: “The US (market) is tired of Alaska, but Asians aren’t – they can’t get enough of it.”
Similarly, Alaskan and Mediterranean cruises are popular among high-income Malaysian travellers, with bookings typically made for one cabin (two people) and duration lasting one or two weeks, according to Abdul Rahman Mohamed, deputy general manager, channel management of Mayflower Acme Tours Malaysia, which saw a five per cent year-on-year growth in cruises outside Asia in 1H2013.
He added luxury cruiseships such as Silversea, Queen Elizabeth and Princess were favoured by high-end customers, but the numbers were limited due to high cruise fees. He said: “To encourage high-end travellers to cruise within Asia, Asian NTOs have to attract more luxury cruises to make Asia their port-of-call.”
WITA Tour Indonesia director of sales and marketing, Rudiana, said: “To the Indonesians, Asian destinations like Singapore, Phuket and Penang are not new; they have been there a number of times before finally deciding on taking the cruise. Generally, people are trying the ships, enjoying the facilities and programmes (on board) rather than choosing a destination.”
More efforts are hence needed to promote regional cruises among Asian travellers, industry experts pointed out.
“Many Asians still have the mindset that cruises are more suitable for retirees or families with young children,” said Eileen Oh, head of marketing & communications at ASA Holidays Singapore. “We are exploring ideas with various stakeholders to reach out to different clientele such as the young adults and luxury travel segments.”
Urging greater efforts to demystify cruising, Tina Cortez, president of Travel People Philippines, remarked: “While pricing is always a key driver to attract markets, awareness campaigns should address (misconceptions) by highlighting cruising’s unique value propositions: all-inclusive pricing, free entertainment, activities for all members of the family, etc.”
Ong Huey Hong, Singapore Tourism Board cruise director, concurred, adding that many Asians were “surprised” to learn of the diverse offerings available on board and considered cruises to be a “value-for-money vacation choice”.
But getting repeat Asian cruise travellers is a challenge. Rudiana said: “Indonesians want to see many places when they travel and spending more time on the cruiseship is not their type of vacation. Our surveys showed that while the majority of cruise travellers are satisfied and happy with the trip, the repeat level is low.”
Furthermore, it is not uncommon for experienced cruise travellers to opt for destinations beyond Asia for their subsequent vacations, noted Karl Wat, director of sales for Asia, Compagnie Du Ponant Yacht Cruises. “They started with Star Cruises or Costa Cruises from the outset, which helped nurture a group of mature clientele (heading further afield for their cruises),” he said.
Improving shore excursions is hence key to raise the allure of regional cruises. Ground operators could operate tours in various Asian languages, for example, Regale’s Sukanya suggested.
Developing supporting infrastructure and improving awareness of cruises and training across the travel trade would help convince more Asians to cruise within the region, added Silversea’s Yap.
