Cruise operators are embracing South-east Asia as a market as well as a destination but are travellers from around the region reciprocating their affections?
Sea-based explorations of South-east Asia are experiencing a surge in demand from within and outside the region, and cruise lines have been quick to expand their reach here with new homeportings and itineraries in recent years.
Intra-ASEAN cruising remains the dominant choice, report cruise lines and travel consultants.
A growing middle class lure more ships
ASEAN travellers are taking up regional itineraries over international itineraries 70:30, according to Royal Caribbean Cruises’ managing director, Singapore and South-east Asia, Jennifer Yap, who attributed this to closer proximity and better flight availability.
“The number of guests from ASEAN taking up regional cruises has also grown 50 per cent year-on-year, especially with…the arrival of the new Quantum of the Seas (in Singapore this) June,” said Yap.
Royal Caribbean International’s Mariner of the Seas is plying 29 sailings for the current Singapore season until March 2015. Itineraries range from three to five nights, cruising to Malaysia and/or Thailand.
Carnival Asia has also doubled its regional market share in the past two years as well. Farriek Tawfik, director of South-east Asia of Carnival’s Princess Cruises, credited this to the region’s booming consumer market and rising purchasing power of the middle class. “We expect double-digit growth in passenger traffic and 30 per cent growth in sales for regional cruise packages in (2015).”
First-time cruisers and large family groups from the region tend to take three- to five-day cruises, opt for larger ships and also prefer more affordable itineraries within South-east Asia since it is nearer to home.
Farriek commented that Princess Cruises is seeing an “increase in first-time cruisers and young Asians”. Based on Carnival Asia’s research, a larger proportion of 18- to 30-year-olds in Singapore aspire to go on a cruise holiday than the over-65 age group.
Given such a forecast, it is unsurprising that Princess Cruises entered a strategic partnership with Changi Airport Group and Singapore Tourism Board to promote fly-cruises out of Singapore last year.
Markets ripe for plucking for the Singapore-centred fly-cruise segment are the Philippines and Indonesia.
Jenica Ferrer, sales and operations officer at Travel People Philippines, Costa Cruises’ preferred sales agent and groundhandler in the Philippines, said about half of Costa’s Filipino clients sail around ASEAN.
Ferrer attributes “strong bookings” to the lower cost of cruising compared with other means of travel, especially competitive fly-cruises in the region due to the proliferation of LCCs.
Filipinos like flying into Singapore and sailing to Thailand and Malaysia, though some also venture farther to Shanghai, Japan and South Korea.
Elsewhere in the region, travel consultants are also reporting a continued preference for ASEAN cruises. Anthony Chan, group managing director and CEO, Chan Brothers Travel Singapore, said: “We have seen a 30 per cent year-on-year increase in demand for regional cruises from Singapore.”
Passengers range from busy professionals to multi-generation families and groups of friends with a budget, he said.
“Since international cruise liners began deploying ships in South-east Asia, they have been promoting heavily in Indonesia, collaborating with travel companies and offering promotional fares,” said WITA Tour Indonesia’s director of sales, Rudiana, who said demand for ASEAN cruising has been increasing.
Meanwhile Buhdy Bok, senior vice president Pacific Asia and China, Costa Cruises, noted China’s growing appetite for intra-ASEAN cruises, such that the Costa Serena will be deployed year-round in Shanghai starting April 2015.
On the other hand, local markets have also been a mainstay for Star Cruises. “Star Cruises’ three key ASEAN markets are Singapore, Malaysia and Indonesia,” said Michael Goh, vice president sales. “Both our two- and three-night destination-centric cruises (in Asia) are very popular with ASEAN travellers.”
“We’ve seen year-on-year growth in the family segment for SuperStar Libra mainly due to its affordable pricing. The fact that it is homeported in Penang, which has good access out of our main customer base Kuala Lumpur, also helps,” Goh said.
Enter the Muslim, incentive markets
The lucrative Muslim market is also taking to cruising, in the meantime.
Rakyat Travel Kuala Lumpur’s CEO, Adam Kamal, told TTG Asia: “We’ve seen a 20 per cent increase in year-on-year bookings for family travel on SuperStar Libra, mainly due to the availability of halal food on board. This is very important to entice the Muslim market, which is our main customer base.”
Sunflower Holidays Kuala Lumpur’s managing director, Mint Leong, said the company is promoting the idea of cruising as an incentive, which is still a novel idea in Malaysia. “In 2014 we started to market SuperStar Libra’s 4D3N cruise from Penang to local corporates looking for new incentive ideas.”
Negotiations with two multi-level marketing companies for incentive cruises are also underway at the moment, she revealed.
“We have seen demand growing in the last two years from both FITs and corporate incentives for South-east Asian cruises. They take 4D3N or 5D4N packages, boarding in Singapore and cruising to Malaysia and Thailand,” said Edhi Sutadharma, general manager of Golden Rama Tours and Travel Indonesia.
Far-flung destinations keep appeal
On the other hand, cruise travellers with deeper pockets in South-east Asia tend to gravitate towards far-flung destinations.
Paul Garcia, director of public relations at Crystal Cruises, said that while demand for cruises from Asia-based clients remains strong, especially from Hong Kong, Singapore and Taiwan, most travellers are opting to go beyond South-east Asia. Mediterranean and Baltic itineraries remain firm favourites.
He explained: “The ultra-luxury cruise guest is much more adventurous than the regular cruiser and therefore is seeking destinations much farther afield, though they sometimes book a regional sailing at the very last minute if they opt for a last-minute holiday.”
Likewise, cruise specialists in Thailand say demand for intra-regional trips remains weak. Supanee Bencharit, managing director of SEA Tours Thailand, said Crystal Cruises and Oceania Cruises remain the leading choices for local clients, who range from 40 to 80 years old and comprise both FIT and group travel.
Star Cruises’ Goh added: “Our affluent guests are eager to experience longhaul cruises to worldwide destinations especially with our ships, Norwegian Breakaway and Norwegian Getaway.” Popular destinations include Alaska, the Mediterranean and Caribbean, or Hawaii, he shared.
This article was first published in TTG Asia, February 13, 2015 issue, on page 12. To read more, please view our digital edition or click here to subscribe.
Additional reporting from S Puvaneswary, Paige Lee Pei Qi, Greg Lowe, Rosa Ocampo
