Andrea Zelinski
Consumers have gotten comfortable with online shopping, thanks in part to the Covid era. I speak from experience, as I reflect on the Amazon boxes I have piled up in recent years.
And the cruise industry isn't exempt. Online sales and DIY bookings have led to a pandemic-era surge in direct sales.
I bring this up after writing about direct sales for an Insight last month. Concern and sensitivity around direct sales from travel advisors and cruise lines, respectively, is a perennial issue.
"And it will always be around," said Janet Bava, chief commercial officer for Windstar Cruises. "Because the travel advisors... go through a lot to support us, and they have many options of who to sell to their clients. And they want to make sure that we stay by their side."
The trend line of trade-booking share is something of a roller coaster. After travel advisors made up about 70% of bookings in 2019, their share plummeted to 52% in 2021, according to a 2023 report from Phocuswright. But the dominance of the advisor channel is expected to snap back to prepandemic levels by 2025, according to the report.
Direct-to-consumer channels for Royal Caribbean Group "continue to perform exceptionally well, as consumer preference for digital engagement and our ongoing investment in enhanced capabilities is supporting record-breaking bookings," Jason Liberty, the group's CEO, said during its Q4 2023 earnings call.
But travel partners are also delivering meaningfully more bookings than last year.
On a question from a securities analyst about how to increase the direct booking channel, Liberty stressed the company is neutral about its different booking channels. What's key is that customers experience as little friction as possible on their path to making a purchase, which may lead them to its brands' websites, apps or call centers, he said. Meanwhile, travel partners "do an exceptional job helping guests identify and have the experiences that they want," he said.
Josh Weinstein, CEO of Carnival Corp., pointed out in its Q4 call that younger cruisers, including a lot who are new to cruising, are more comfortable "just playing around on the 'net and doing things direct." Obviously, bookings coming in direct from the web are going to be the most cost effective, he said, but first-timers book the company's brands in a variety of ways depending on the brand and the itinerary length.
And he tipped his hat to trade partners.
They are "absolutely critical in driving new-to-cruise to us," he said. "Year over year, they're showing great strength as well."