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New technologies, circular economy and alliances: keys to future success in the cruise market

Costa Cruceros, Pullmantur and MSC Cruceros participate in ‘The Cruise Sector: New Business Routes’, a session organised by ESADE and the Cruise Lines International Association
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“The key factors for the future success of the cruise industry are innovation and new technologies such as big data, the circular economy and alliances, both strategic and short-term,” commented Josep F. Valls, Professor at ESADE and Director of the International Innovation in Tourism Centre at ESADECREAPOLIS, at a recent session organised by ESADE and the Cruise Lines International Association (CLIA). “The cruise industry is the industry that is closest to the concept of experience,” Prof. Valls explained. “Therefore, it is important to strengthen relationships with customers.”

Alfredo Serrano, Director of CLIA Spain, explained: “One of the successes of the cruise industry is that it provides an immersive experience: once you try it, you want to do it again.” According to data collected in a study carried out by Mr. Serrano’s company, “a cruise is conceived as a destination unto itself, but in Spain people still place greater value on the destinations visited”.

Economic outlook

José Blanco, Vice President of Sales at Pullmantur, commented: “The last few years have been very positive for the cruise sector. The factors that have facilitated the economic recovery have been the democratisation of cruises – particularly in a market like Spain – and a firm commitment on the part of the shipowners to develop a tourism distribution model that is atypical compared to other countries, especially European countries.”

Emiliano González, President of MSC Cruceros Spain, observed: “Between 2012 and 2015, cruise products saw a decline among Spanish consumers. However, this trend was reversed completely in 2016, with an increase of 4.2% over the previous year.” Mr. González added that “the sector’s prospects are good for 2018” and “all signs point to growth that is equal to or greater than that of 2016”.

Raffaele D’Ambrosio, General Manager of Costa Cruceros Spain and Portugal, agreed with the other cruise-line representatives that “the sector is seeing healthy and solid growth” and that “it is expected to continue along these same lines”.

Seasonality and new consumer profile

Mr. Blanco stressed the “importance of combating seasonality”. He added: “Thanks to the wide range of destinations offered by cruise companies, as well as more flexible holiday scheduling on the part of customers, we are able to offer cruise products that are less seasonal.” According to Mr. González, “Spain is at a disadvantage with respect to other markets, such as Germany and Great Britain, which achieve higher figures during other periods even though their climate is not as favourable as ours.” Mr. González mentioned the Italian model, which in recent years has managed to attract more customers during unconventional seasons. He concluded: “We need to highlight collective products, target a more junior profile and work on differentiating our products.”

“Today’s customers are better informed, better prepared and more demanding,” commented Mr. D’Ambrosio. “The sector therefore needs to respond to these new demands.” Mr. D’Ambrosio added: “In this regard, travel agents play a fundamental role by providing customers with a unique experience that is not overcrowded.”

The session was held on ESADE’s Madrid campus and also featured the participation of Mónica García Muñoz, President of the ESADE Alumni Tourism Club in Madrid.