Print Preview : Terry L. Dale President and CEO of Cruise Lines International Association

Terry L. Dale President and CEO of Cruise Lines International Association

TravelDailyNews: What trends are going to drive the cruise industry in 2007?

Terry L. Dale: For 2007, new and refurbished ships will continue to exceed passenger expectations with even more innovative facilities and amenities; new ports of call are keeping itineraries fresh and exciting; and increased enrichment programming is in sync with today’s quests for experiential vacation options.

As the cruise industry matures, so too do Baby Boomers. They are a formidable segment of the population that grew up on rock ‘n roll, who, although aging chronologically, remain forever “young at heart.” In travel terms, Baby Boomers seek vacations that incorporate active and adventurous elements but are unwilling to sacrifice comfort. The cruise industry expects increasing numbers of Boomers to cruise, along with other emerging groups: honeymoons and weddings; Generation Xers; and the affluent who are flocking to luxury lines and upper category suites on contemporary and premium category ships.

CLIA member lines have invested more than $15 billion in 30 brand new vessels that will enter service between 2007 and the end of 2010 – with these markets in mind.

TDN: Which are the emerging markets for this year and are well served by your member lines?

T. D.: CLIA cruise lines are fulfilling passengers’ wanderlust with new ports in all areas around the globe. One of the Mediterranean’s hottest new summer resorts is Croatia’s Dalmatian Coast. Travelers will find many itineraries that include Split, Kotor, Zadar, Korcula and Rovinj. In Italy, cruisers can explore new ports in the southern Italian region of Puglia, plus exciting new destinations in Turkey, Greece and Spain.

CLIA member lines are also delving deeper into the Southern Caribbean, enabling guests to explore such lesser-known island gems as St. Kitts, Virgin Gorda, Bequia, St. Barts and Tobago. And in Mexico, increasing numbers of cruise lines are visiting Puerto Maya.

South America’s Pacific Coast is also flourishing with cruise lines breaking new ground for 2007. Itineraries venture to such ports as Chile’s Puerto Chacabuco and Valdivia, whose fascinating history is equally influenced by the Mapuche culture and German colonization.

More lines are visiting Dubai; Yasawa, Morocco’s Casablanca; and multiple ports in French Polynesia, Australia and New Zealand.

TDN: Which destinations are going to top the list for 2007 and why?

T. D.: Europe is expected to have an exceptional year, just as it did in 2005 and 2006 – and CLIA member lines and travel agents are reporting that that the past successes will probably be exceeded this year. In Europe, CLIA cruise lines are adding more itineraries to less well-known cruising areas that are in increasing demand, such as Croatia’s Dalmatian Coast, southern Italy, Turkey, Greece and Spain.

Alaska continues to be a popular destination as well. Destinations that are coming into their own and expected to also do very well are Asia, the South Pacific and South America. Some agents are also reported that Panama Canal itineraries are very hot this year.

TDN: Last year we have witnessed many innovations in vessels’ technology services. How is this going to develop during 2007?

T. D.: We can expect to see new ships surpass previous levels of innovation with even more bells and whistles that have never been seen before in the cruise industry or anywhere else. Last year, for instance, new innovations include an on-board Grand Prix racing simulator, a surf park, and a bowling alley. In addition, it’s becoming easier for passengers to stay connected while at sea. Wireless internet connections and mobile phone service are becoming the norm on board ships today.

TDN: What is the feedback from your travel agents network for the status of the cruise business in United States so far?

T. D.: CLIA has received positive feedback from its member travel agents, who report a strong start to the 2007 Wave Season, the January through March period that traditionally produces the heaviest cruise booking activity of the year. CLIA member lines are kicking off 2007 with a host of booking incentives and promotions, including stateroom upgrades, “kids sail free” programs, early booking savings, upgrades from Economy to Business Class air, shipboard credits and cruise giveaways.

Several CLIA travel agents have reported that their customers are booking earlier and earlier each year – with some already booked on itineraries that sail well into 2008.

TDN: What are your estimations for passengers and revenues of cruise lines in 2007?

T. D.: CLIA has forecasted another year of record-breaking growth, with 12.6 million cruise passengers predicted to set sail in 2007, an increase of approximately one half-million guests over 2006. The forecasted 500,000-passenger increase represents a record 4.1 percent year-over-year growth commensurate with the planned net increase in 2007 CLIA-member line capacity.

TDN: More Europeans are considering cruises for their holidays. Do you feel that the competition between US and European cruise operators is growing in the sector?

T. D.: The European cruise market is certainly experiencing growth. In 2006, of the 12.1 million cruise passengers worldwide, nearly approximately 1.9 million were from areas of the world outside North America, the largest source market. CLIA predicts that number will increase to just over two million in 2007. The market has untapped opportunities for the cruise industry as a whole. The more interested Europeans are in cruising, the wider the market opens for everyone.

TDN: Many people consider cruise as an expensive and luxury product and only few can afford one. How do you comment that?

T. D.: The cruise product is incredibly diverse with literally a cruise vacation for every budget. When travelers figure out the value of what’s included in a cruise, they quickly realize they are indeed getting their vacation money’s worth – whether it’s a mainstream or luxury line. The hassles of an ordinary vacation are completely eliminated – you don’t have to worry about meals, accommodations, or activities and entertainment and you only have to unpack once while visiting multiple destinations. You can lie back and be completely pampered or go non-stop – it’s all up to you. Cruising provides the best vacation value today.

TDN: Is cruise only for a certain category of people or is this going to change in the future?

T. D.: The average cruise passenger is 49 years old. Cruise lines are attracting younger passengers and more first time cruisers than ever before. The Baby Boomers and Gen Xers are the prime audiences and cruise lines have their needs and active lifestyles in mind. The industry conducts extensive market and consumer research to guide destinations, ship design, onboard amenities, shore excursions and dining options to reflect the changing vacation patterns of today’s market.

TDN: What are cruise travelers looking for when they book a cruise?

T. D.: Today’s cruisers are looking for seamless travel experiences that offer a high level of convenience and equal levels of excitement in terms of the onboard experience and itineraries. Cruise vacations enable travelers to explore exotic cultures and landscapes around the globe, all the while returning to Western-style comforts and conveniences aboard state-of-the-art ships.

It’s all about choice. Today’s cruise lines offer enrichment programs to sate mind, body and spirit. Cruisers can attend a workshop in Shakespearian acting taught by alumni of London’s Royal Academy of Dramatic Art, study French with a Berlitz instructor or discover undersea wonders with oceanographer Jean-Michel Cousteau.

Guest lecturers also include noted astronomers who shed light on the galaxies; celebrated authors who discuss their best-selling books; celebrated diplomats, politicians and professors that help bring foreign peoples and cultures to life; and scientists, naturalists and explorers who explain little-known destinations, flora and species.

Multiple dining options are also available, with such varied cuisine as Tex-Mex, Japanese, Italian and French. Guests can opt to dine in main dining rooms, alternative venues designed by celebrity chefs or just grab a burger by the pool.

Accommodations’ options are equally diverse, enabling guests to choose between ultra luxurious suites with large balconies, to mini-suites with ocean views to standard staterooms and everything else in between.

TDN: Recently we have witnessed the stomach flu virus incident in Queen Elizabeth 2. Should stricter rules for security reasons be implemented? How well prepared is the cruise industry for incidents such as terrorist attacks and health diseases on board?

T. D.: The reason you hear about norovirus on cruise ships is because the cruise industry is the only entity required to report gastrointestinal illness to the Centers for Disease Control and Prevention (CDC).