Focal Point

Cutting Through The Competition

The cruise companies targeting Indian customers feel that the cruise market segment in India is now coming of age. Not yet into the number game in terms of passengers, cruise liners have demarcated their market segments and clientele. Realising the competition and the objective, these companies have set their targets towards capturing their own market share in the future

The Indian travel industry can be virtually described as a melting pot of possibilities. Modern lifestyle, enhanced economic standards, competitive work culture and the globe conjoining at the click of a mouse, has led to the travel bug afflicting people all over the world. Jyoti Koul finds out how people are now geared to exploring corners of the world they had never conceived to venture into before. The ever-lasting golden triangle of tourism universally would thus be land, sea and space and would that probably be the limit of this fast expanding industry ?

In the current tourism scenario, however, it is the cruise industry that is creating waves, not only in the country but the world over. Cruising is fast gaining popularity as a vacation option. Some of the best international cruise companies are ambitiously eyeing the Indian market. Most of them have already established a presence to embark on these virgin waters. To lure the market, cruise companies are offering designer packages for their target audience. The promotional and marketing strategies are meticulously designed to suit the Indian consumer. Although the cruise liners had made their entry in the Indian market a few years ago, their growth targets seem to be slated very optimistically. These companies are very focussed on creating awareness about the entire experience of cruising as they realise that as a product, cruising is fairly new to the Indian travellers.

Cruising as a vacation option

According to Nishit Saxena, country head, Princess Cruises, “ The level of awareness with regards to cruising as a vacation option has increased considerably over the last few years. Earlier, cruising was considered to be either for the retired and the elderly or the rich and famous, but today, honeymooners, entrepreneurs, senior corporate executives, adventure traffic and families are all part of our clientele. A great deal of time is wasted in activities like checking-in and out of hotels, making flight connections packing & unpacking of baggage etc in a land based vacation as against a cruise wherein all comforts are at one’s disposition on board. However, there is still a need to educate the potential cruise passenger about certain issues, particularly the cost factor, which is still perceived as relatively high.”

“ Now more and more Indians are looking at newer travel experiences and consider cruising as an alternate vacation option that has already started off the trend of cruising and in turn reduced the need to educate people as they are already conversant with the concept “ said Dimple Vorha, deputy manager, Holland and America Line.

Contrary to the above statement, Ratana Chadha, director sales, Royal Caribbean Cruises feels that the level of awareness of cruising as a vacation option is still very much at a nascent stage and that one needs a comprehensive and ongoing education programme as people recognise the advantages of cruising, primarily the luxury of eliminating regular travel hassles, the market is undoubtedly poised for tremendous growth.

Importance of the Indian market
Major players of the cruise industry are targeting the Indian market as it provides ample opportunities for any travel product. Most cruise companies are establishing their presence in the Indian market. As explains Chadha, the concept of appointing international representatives is basically to focus on the marketplace. Since we are the representatives for the two cruise brands i.e. Royal Caribbean International and Celebrity Cruises, in India, it is our prime focus. And in order to tap the market all that needs to be done is to identify the right segment and systematically target our marketing communication to this segment. In fact, we see India emerging as the second largest source market in Asia, after Japan, for Princess Cruises by end of the year 2003 says Saxena.

Targeting the Market Share
The cruise companies targeting Indian customers feel that the cruise market segment in India is now coming of age with new players permeating the arena. Not yet into the number game in terms of passengers, cruise liners have demarcated their market segments and clientele. Realising the competition and the objective, these companies have set their targets towards capturing their own market share in the future. HAL gradually plans to control 10 per cent of the market share in the coming years as it targets the top end user. Star Cruises already enjoys a major share. The success is the result of an aggressive marketing strategy and extensive distribution network having a strong presence in Western, Southern and Eastern region and also the Gujarat region. Although, it is too premature to speculate the current market share, Princess is targeting to capture 20% of the western cruise market by the end of year 2002. However Royal Caribbean differs as they believe that market shares are meaningless for a lifestyle product like theirs in a market that is still developing. What is important is customer share and there is no limit on how much one can tap.

Promotional strategies
To promote this unique tourism product, the role of travel agents is becoming pivotal. As far as Princess is concerned it works through a very strong network of travel agents who promote Princess Cruises to their existing client base. Conducting product seminars and one-on-one workshops to train the agency staff, help them significantly to promote the product. Further, to make the consumer aware of its presence, they have regular direct mail campaigns for various itineraries. They have also come up with very aggressive price structures this year for India.

When speaking of promotions, the philosophy of the Royal Caribbean includes ‘ Innovative Marketing ’ “ Since our marketplace is so diverse, conventional promotions are not always effective hence unique approaches need to be adopted “ enthuses Chadha. As for Star, it has been quite successful in positioning itself as an alternate to land vacations highlighting its salient features namely - lots of fun and excitement and great value for money. Therefore its product is getting popular not only in metro cities but also in satellite towns. “ Our marketing strategy and extensive distribution network ensures that we penetrate into the minds of consumers. We are also targeting the incentive market,” divulges Majoo.

To grab its share of the pie, Radisson Seven Seas Cruises will focus its activities towards this frequent traveller, a person who has seen the world and travels out of the country atleast to or three times a year. The company’s marketing activities will revolve around tapping this customer and having a more interactive sales pitch. The focus will also be on creating top of the mind awareness levels along with some co-branding activities.

Future Marketing strategies
Having said all that, it is clear that the cruise companies are keenly drafting their marketing strategies to be deployed for the Indian market. The better the strategy, the better the results. As part of its marketing strategy, HAL would be tying up with airlines and would also venture into joint promotions to offer special packages, special deals and tailor made fares.

According to Chadha, “ Marketing strategies, for the Indian market which is unique in its diversity, cannot be common rated. Each segment has its own needs and therefore strategies need to be different. However, the only common factor is the strategy of using different strokes for different folks.”

Realising the importance of a tailor made strategy, Sushant says, “ Our strategies will revolve around brand promotion, maintaining very high quality back of the house service levels, a one- to- one personal interaction with all our guests. We are also aiming at generating a top of the mind awareness both amongst travellers and travel agents.” Since marketing and awareness go hand in hand, the major thrust of Star Cruise has been to create awareness. “ Some of our promotions continued sponsorships of the TV programmes, promotions at Macdonald’s and Archies outlets all over India. Co-sponsorship of the heritage Quiz for school children, special tie-up with some Tourism Boards and Hong Kong tourist association, formulating fly-cruise packages with leading tour operators and airlines. Besides, we also offered the sponsorship of golf tournaments, “ explains Majoo.

Having found the main channel of distribution, Princess cruises is focusing more on the travel agents, which probably are the business generators for the cruise liner. “ We strongly believe that a travel agent has a much wider role to play than just issuing ticket and is always a first point of contact for the passenger, when a passenger decides to travel on business or leisure. We are also evaluating the possibilities of equipping travel agents with tools to promote and book cruises either through the GDS or a net based reservation tool. Further, we offer special Fam (familarisation) rates to travel agents so that they could experience the product at a very affordable cost,” concludes Saxena.

- By R Mukadam