A frank panel discussion about the growing cruise market.

The closing session on Day 1 of the TRC Forum presented an analysis of the cruise market titled The Maritime Marketplace: From Products to Experiences – Driving Conversion at Sea.

The session incorporated expert insights from across the cruise sector by our five panel members: Claire McLennan, Lifestyle Director, Harding+; Suzanne Mahoney, Founder & Consultant – Cruise & Travel Retail Cruise Consultancy; Janice Smith, Sales & Marketing Director, YV Global; Clara Susset, Chief Operating Officer, m1nd-set; and Hannah Whitehouse, Co-Founder, Raconteur.

Susset highlighted the cruise opportunity with data that demonstrate that Cruise footfall (48.2%) is above that of Airports (38.3%), purchase rates are higher (32.5% versus 25%), and the average Cruise spend is 44% stronger ($194.81, compared to $135.63).

Susset went on to emphasise that the experiential element is the key to growth: “The m1nd-set data shows that the lion’s share (55%) of cruise passengers come from the US, and the average guest age is 46.7 years old. What’s unique to cruise retail, as opposed to airports, is that it competes with onboard experiences, rather than time.  The rising proportion of young cruise passengers (aged under 40) – 35% of the market  – defies the outdated expectation that the cruise sector is dominated by elderly travellers.

Susset then highlighted how planned purchasing is much stronger onboard than in airports – with ‘specific’ or ‘partial’ planning reaching 77% among cruise passengers, compared to 69% among air travellers at the airport: “Our key recommendations are to make every store visit an experience.

Seven in 10 cruise shoppers buy something new – in-store trial is distinctly a cruise driver, and sampling and demonstrations convert browsers into buyers.” Before buying, they also spend much more time assessing the offer, partly driven by the fact that they clearly have more time to browse. A drawback to this repeated footfall is that it could make the guest feel that the offer seems unchanged: “We must give them a reason to come back.”

Susset closed her section by showing how staff interaction is a vital opportunity to drive sales, with 82% of cruise shoppers saying that staff influenced their purchase, and 15% stated that they wouldn’t have bought anything without advice from staff. The onboard retail strategy needs to be underpinned by an emphasis on staff skills: “Eight in 10 cruise interactions influence the purchase, so train staff to advise, not just direct, and diversity among the crew to help break cultural barriers.”

Keeping the cruise passenger interested

Mahoney, with a perspective built on strong experience in airport retail but now specialising in the cruise sector, “the biggest advantage we have onboard is time; but we have to keep those passengers coming back day after day… such as new activations, a tasting, a masterclass… but we are competing for the passengers’ time with a huge range of amazing activities available onboard. We have to give the passenger a compelling reason to come (to the stores). We also need to understand that every itinerary and every nationality is different.”

Mahoney and Wells both raised the challenge that the cruise sector faces, with logistical supply lines aiming to reach what Mahoney described as the difficulty of reaching “a moving target”.

McLennan looked at the issue of the onboard sense of place: “Our shops cannot be simply products on shelves”, pointing out that, for example, guests experiencing an amazing itinerary in the Arctic, for example, need to see a retail offer that reflects their itinerary and the sense of place they are experiencing on their trip, such as local artisan products and local food offerings.

She also highlighted the special challenges faced by staff, such as operating shops open up to 12 hours per day and the fact that staff could be assigned to a ship for up to six months, conditions that make it more difficult to drive sales and conversion. McLennan also showed that pre-cruise ordering is the latest intiaitve is a new strategy at Harding+.

Smith, sharing the brand perspective, emphasised that brands “getting the listing is just the start… and drawing the cruise passengers into the store needs to be something immersive.”  She also reminded the Forum that the onboard retail experience needs to offer something different to other channels, and cruise passengers will not be engaged by brands or products that they have seen repeatedly, such as at the departure airport and on their flight to their cruise departure port.

A brand rethink?

Indie brands are particularly desired by the onboard audience. She also featured the open opportunity to take sales into new areas of the ships, such as placing product in cabin bathrooms, engagement of the retail with the huge range of onboard activities, such as kids’ clubs: “It simply can’t be the same as what we were doing fifteen years ago.”

Whitehouse, bringing a unique perspective as a former cruise worker, closed the session with a look at the appeal and effectiveness of onboard activations, which need to be tailored to the particular cruise passenger profile, which varies significantly between different cruise lines, ranging from high-energy, fun-focused ships to lines offering a more elegant or sophisticated experience.

Her closing comment was that no matter what the quality of the activation, it will only work if staff are supported to ensure that they buy into it; even something as simple as ensuring staff receive samples ahead of the activation can make a difference, especially as staff often have to adopt roles across the whole range of onboard product categories.