The Cruise Factor

An Emerging Segment Of Indian Tourism

Cruiseliners globally have charted a special agenda for the India and the market has so far been responding with equal vigour. Taking the current scenario into perspective, Jyoti Koul presents what lies ahead

The outbound cruise market till recently languished within the limits of an elitist niche. The convergence of two parallel phenomenon’s - the rise of the middle class and scaling down of the base price for a cruise from a short haul port of call, has suddenly opened up this segment to a seemingly infinite market. Citing this gathering potential, cruiseliners globally have charted a special agenda for the Indian market and the market has so far been responding with equal vigour. While the strength of the outbound market is pegged at about five million of which only the cruise segment is still an insignificant percentage, it is headed northward, growing at about 25 per cent annually. Worldwide, cruises constitute a mere two per cent of tourism numbers and yet rank high on the list of industries with a lot of upside potential. Unlike most other tourism, there is a universal recognition of the need to develop this sector for both the outbound and inbound potential it contains.

To cash in on this dual ‘prospect’ product, the Ministry of Tourism (MoT) and Ministry of Shipping are presently coordinating with the cruise companies in order to establish cruising as a high value product. Amitabh Kant, joint secretary, ministry of tourism revealed that the MoT had written to all the cruise companies, exhorting them to help the ministry develop the segment by putting Indian ports on their itineraries. The MoT was also seeking feedback from the cruise companies. “Though we believe that the cruise segment holds a lot of potential, right now it is difficult to quantify the business that can be generated. The segment will invariably attract high yield business albeit in lower volumes. Yet there is every possibility of earning good revenue,” Kant said.

GOT INFRASTRUCTURE?

Gautam Chaddha

The biggest initiative that the government can launch to give an impetus to this sector

There is no doubting the potential of India’s coastline but that by itself will not have cruiseliners queuing up to dock at Indian ports. Ground realities betray the virtual lack of infrastructure to support the inbound cruise industry. When queried on the subject, Kant said, “We are trying to figure out certain things like the development of ports and docks for which we are conducting feasibility surveys whereby we are working very closely with the ministry of shipping to promote cruise tourism in the country. It will take at least three to four years to develop proper port infrastructure to service this segment.” However, according to Gautam Chaddha, director, Royal Caribbean Cruises, “The biggest initiative that the government can launch to give an impetus to this sector is to change the general mindset. Until then, infrastructure by itself will serve no real purpose. People receiving cruiseliners at the ports need to have a different approach — they need to be proactive and welcoming.” Chaddha also insisted that India must delink cruise terminals from the rest of the shipping area. “We know the government has a noble idea but the ground reality is quite different. And we need to recognise this from the onset in order to develop a quality product or it will be consigned to remaining a challenge,” he said.

TAPPING THE MARKET

Some of the biggest names in the cruise tourism business have trained their focus on the Indian market. Most of them have already set up their network in order to promote their vessels. To grown in the market, cruise companies are offering designer packages for their respective target audiences. The promotional and the marketing strategies are carefully crafted to suit the Indian consumer. Though the ‘call’ of the cruise was actually heard in the country many years ago, it is only now that these companies are revising their growth targets upwards.

Cruise operators are now going that extra nautical mile by creating tailor-made services and packages for the Indian market. Mainstays like Star Cruises have already garnered a strong recall value in the Indian market as clientele have taken a liking to its ships both in terms of price and service culture. SuperStar Virgo for instance has an Indian restaurant that also serves Jain cuisine and even has vegetarian meal lines at the main buffet. Over and above the touch of Indianess, a combination of world-class entertainment, recreation and food and beverage facilities suitable for families, adults, honeymooners, teenagers and children lends the product a universal appeal. Star Cruises is now extending its marketing campaign to regional markets like Punjab, Delhi, Gujarat, West Bengal, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu, and Madhya Pradesh.

Nishith Saxena

Cruise companies have learnt the merits of allying with the Indian travel trade

Radisson Seven Seas Cruises is heating up the competition with a return to Indian waters after a brief interlude. After withdrawing one of its premium cruise liners, Song of the Flower, that did dock in India sometime ago, Radisson Seven Seas is poised for a comeback. K B Kachru, senior vice-president, Carlson Hospitality India Inc, divulged, “Our cruises are positioned for the premium segment therefore marketing effort is not as aggressive as it is for hotels. Given that we are relatively new players in this market, we are in still at the stage of assessing whether our vessels can dock at Indian ports. There is a possibility of one of our ships, Navigator, docking at an Indian port and we are presently exploring the option.” Market share, Kachru believes, is an utterly misplaced consideration in the case of a lifestyle product like a luxury cruise. “Our targets for the coming year are to create brand recall. Princess is the only brand we have established in the Indian market thus far. We will be aiming for more than just double-digit growth,” said InterGlobe Cruises head Nishith Saxena. His company represents six cruise brands in the country.

FUTURE PLANS

Cruise companies have quickly learnt the merits of allying with the travel trade to grow their markets by providing them with opportunities to generate incremental revenues. Holland America, Radisson Seven Seas, Carnival, Royal Carribean, Star and InterGlobe Cruises are busy wooing the market ’differently’ in terms of packages, experiences and of course price. “It is important to understand the distinction between the two types of cruise liners, one that gives you a unique holiday experience and the other that serves just as a medium to get away. Some cruise companies though provide a total holiday experience which does not peter out into a poor substitute for the land vacation,” Chaddha said. In 2006, Royal Caribbean is planning to bring one of its ships to Asia. Currently, it is in the process of finalising plans for one of its cruiseliners to sail to India.

According to Saxena, “The challenge for us is to establish InterGlobe Cruises as the most preferred cruise representation company in the country. We plan to promote each brand for what it has to offer and in the first year our primary focus will be on the three popular brands namely Princess Cruises, P&O Cruises and Cunard as these are best suited to the Indian passengers’ requirement.” Considering the Indian market’s price sensitivity, many companies are planning to introduce special rates for the Indian traveller shortly. InterGlobe is planning to launch special packages soon. “We are working on some fly-cruise packages for Indian passengers that would make purchase decisions much easier for Indians,” informed Saxena.

Interglobe is pursuing a multi-pronged marketing strategy for establishing these brands in the Indian market. “While we will distribute the cruise products through established travel agencies, we need to provide them support through brand building and strategic advertising, direct mails, cruise seminars, joint promotions etc. We cannot opt for a single national strategy on marketing as our experience shows that different initiatives produce different results in different regions. India is so vast and varied that you have to be sensitive to the needs to each region individually,” Saxena added.