In recent years, there has been a noticeable shift towards direct sales in the cruise industry. With consumers becoming more comfortable with online shopping, especially in the wake of the Covid era, the trend towards booking cruises online has seen a surge. This shift towards direct sales has raised concern and sensitivity among travel advisors and cruise lines, who have traditionally relied heavily on the advisor channel for bookings.
According to a report from Phocuswright, travel advisors accounted for about 70% of bookings in 2019, but their share plummeted to 52% in 2021. However, the dominance of the advisor channel is predicted to bounce back to prepandemic levels by 2025. Despite this, direct-to-consumer channels for companies like Royal Caribbean Group have been performing exceptionally well, thanks to consumer preference for digital engagement and enhanced capabilities. This trend has led to record-breaking bookings, indicating a shift in consumer behavior towards online booking platforms.
The Impact of Travel Partners and Trade Partners
While direct booking channels have seen an uptick in bookings, travel partners and trade partners continue to play a crucial role in driving new-to-cruise customers. Jason Liberty, CEO of Royal Caribbean Group, emphasized the importance of minimizing friction for customers in their path to purchase. This may lead customers to the company’s websites, apps, or call centers, ultimately driving sales through direct channels.
Josh Weinstein, CEO of Carnival Corp., highlighted the changing behavior of younger cruisers who are more comfortable booking their trips online. He acknowledged that bookings coming in directly from the web are cost-effective, but also noted the significance of trade partners in driving new customers to their brands. This acknowledgment of the importance of travel partners demonstrates the ongoing value of traditional booking channels in the cruise industry.
As the cruise industry continues to adapt to changing consumer behavior, finding a balance between direct sales and traditional booking channels will be crucial. Companies like Windstar Cruises are aware of the importance of supporting travel advisors, who play a vital role in selling to their clients. Janet Bava, Chief Commercial Officer for Windstar Cruises, emphasized the value of maintaining strong relationships with travel advisors, recognizing their dedication and support.
The rise of direct sales in the cruise industry presents both opportunities and challenges for companies. While direct-to-consumer channels offer increased efficiency and cost-effectiveness, trade partners and travel advisors remain essential in driving new customers and providing personalized experiences. Finding a balance between direct sales and traditional channels will be key to navigating the evolving landscape of cruise bookings in the years to come.