Cruise Companies On A High

The concept of crusing is fast catching up with most Indians, who want to get away from the run-of-the-mill to the exotic and unexplored. Anindita Chattopadhyay delves further

After a brief downturn in 2002 that paralleled a travel-industry wide slump, the cruise industry is poised to witness an increased growth this year. The proof is in the numbers. In 2004, member lines of Cruise Lines International Association (CLIA) that represents the North American cruise industry will offer 2,220 European sailings. The reason for these cruises’ popularity lies in the fact that it enables travellers to visit several destinations within a single vacation, without having to re-pack suitcases every night or worry about how they are going to get to the next city and more so, the price has everything inclusive.

Interestingly, the booking scenario in India this year mirrors the world trend. So far, the India market didn't seem to really reflect the world preference. Out of the total outbound travellers estimated at five million annually (2004 expects to see a 20-25 per cent growth in outbound travel), less than 40,000 travellers take cruise vacations, despite the fact that Royal Caribbean entered the market a decade ago. According to Naresh Rawal, senior manager marketing, Star Cruises India, "The slow growth is due to the fact that cruising is still a developing holiday option in India and the gap will reduce as people become aware of the benefits of a cruise vacation."

While Nishith Saxena, country head, Princess Cruises attributes it to absence of an affordable cruise along the Indian coastline could definitely be a reason for the lack of popularity of cruises among masses. Others are of the opinion that the availability crunch is a factor because Europe, Alaska and Mediterranean cruises are seasonal - only five months a year. In fact, Star Cruise owes its popularity in India because it is the only cruise liner that offers a year-round itinerary.

Moving Ahead On A High Note

It is a different story this year. According to cruise companies, the strengthening of the rupee against the dollar is all set to bring a champagne-popping time for the US$12.8 million cruise industry in 2004 as cruise vacations have become 10 per cent cheaper. Princess Cruises has seen 80 per cent of its enquiries being converted to bookings. "The first quarter booking pattern of 2004 has shown a clear sign that passengers are inclined to book longer duration cruises in exotic destinations like Alaska, Mediterranean, Baltic, Panama Canal etc. We have offered some special prices for seven-day cruises in Alaska as well as 10 and 12-day cruises in Mediterranean and Europe this year," added Saxena. Royal Caribbean is certainly not behind. Adding further, Gautam Chadha, India representative of Royal Caribbean Cruises said, "This year during January 1- May 15, we have booked more passengers than we had in the entire calendar year of 2003. We now look for a 100 per cent growth in 2004 over 2003."

Significantly, cruise companies were never really bothered about numbers as the high yield vacation option kept their bottom line healthy. Passenger numbers is not their only growth parameter because if 500 passengers book a 12-night itinerary, it would amount to 6000 cruise nights, translating into a very good revenue opportunity. Hence, they beg to differ with the fact that the cruise segment has observed a slow growth. "We feel that the cruise vacation concept is being accepted very quickly in India, otherwise, how would you justify the growth rate of 20-25 per cent year-on-year boasted by most cruise companies being represented here," explains Saxena. "Cruising on high seas has caught the imagination of Indians who can afford it because this segment's lifestyle and needs are the same as any other nationality in the world - that is comfort, convenience and entertainment topped by quality service," adds Chadha.

Reiterating similar sentiments Rawal says, "Star Cruises has received passengers not only from top metros but also smaller cities on board the ship. We have seen a very positive growth from satellite towns as well. All this has been made possible due to extensive sales efforts that have been put by our sales team to target these satellite towns and cities."

Planning Ahead With Optimism

Most companies see the current buoyancy to continue in the future because India's GDP is growing at almost seven per cent, which means the rupee would remain strong. It is estimated that India would emerge as one of the biggest source markets for various cruise companies by 2010. The reason cited is that the current trend shows first time cruisers who would traditionally opt for a two to four day cruise, are now willing to opt for a seven-day or even longer cruise vacation. "Over 53 per cent of our guests return on a cruise with us and each time they bring more family and friends with them," says Chadha.

Rawal, who does not think that cruising can be a competition to land-based packages and vice-versa, adds, 'We would combine both elements into a holiday plan to make a perfect vacation. Star Cruises very frequently offers special itineraries to destinations like Bangkok, Ko Samui, Langkawi etc. We will continue to do so and have just started promoting our Ship Super Star Gemini, which is cruising from Taipei (Taiwan) to the exotic islands of Japan (Naha, Ishigaki and Okinawa)."

(With inputs from Bhisham Mansukhani, Mumbai)