Tourism Industry Conference - Singapore Tourism Board 2015 - Cruise updated May 20… · Tourism...
Transcript of Tourism Industry Conference - Singapore Tourism Board 2015 - Cruise updated May 20… · Tourism...
Tourism Industry Conference Cruise 7th April 2015
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Overview
Understanding
the Cruise
Product
Growth
Potential of
Cruise
Ideas for
Exploration
Singapore: A
Major Cruise
Hub of Asia
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Growth Potential of Cruise
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Cruise Industry Highlights
Singaporeans comprise
anything from between 40-60% of passengers on-board international cruise lines sailing out of the island republic.
Cruise packages were
'snapped up' at the recent National Association of Travel Agents Singapore (NATAS) Travel Fair.
It is the other lucrative way in which travel agents can make money from the burgeoning cruise passenger market – selling shore excursions along the route
As well as earning free cruises and attending well-catered training sessions, most travel agents are
paid a standard 10 per cent.
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Source: CLIA 2014 State of the Cruise Industry Report
Growth of Cruise Globally
7.5 CAGR (‘05-14)
Growth > rest of travel trade at 3.8%
%
Source: CLIA Industry Outlook 2015; UNWTO
35 New-ships by 2020
22% Source: Cruise Industry News
Strong growth in cruise sector outpacing general travel forecast
21.7 Mil
Source: CLIA 2014 State of the Cruise Industry Report
Passengers carried for 2014
• Bigger and more innovative ship
• 22% increased capacity
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35.5%
19.5% 15.0%
10.6%
6.0%
6.0% 4.5% 2.9%
Capacity Market Share (2015)
Caribbean
Mediterranean
Other markets
Europe
Asia
Australia/Pacific
Alaska
Alaska 2014: 4.5% 2015: 4.5%
Caribbean 2014: 37.3% 2015: 35.5%
S. America 2014: 3.3% 2015: 2.9%
Europe 2014: 11.1% 2015: 10.6%
Mediterranean 2014: 18.9% 2015: 19.5%
Other markets 2014: 14.5% 2015: 15.0%
Asia 2014: 4.4% 2015: 6.0%
Australia/Pacific 2014: 5.9% 2015: 6.0%
-4.83%
-12.12%
-4.50%
+36.36%
+3.17%
+3.45%
+1.69%
Growth of Asia’s Cruise Market
Strongest growth in ship deployments is in Asia
Source: CLIA 2015 State of the Cruise Industry Report These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
Source: Singapore Cruise Centre; SATS-Creuers
Growth Trajectory of Cruise in Singapore
Top 5 source markets (2014)
Singapore India Australia Malaysia Indonesia
787 717
1018 926
640
394 334 392 380 430
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
857 943 920 1,139 1,014 942 913 1,030
890
Over the next 3 – 4 years, a 5 – 8% CAGR in passenger throughput is expected, outperforming the CAGR of 4% from 2005 – 2014.
Total Throughput (‘000)
No. of Ship Calls
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Singapore: A Major Cruise Hub of Asia
1) Excellent Air Connectivity – A Global Air Hub
• Strong support from partners in Aviation:
Best Business Class
Airline Seats in the World (World Airline Awards 2014)
World’s Best Airport (Skytrax World Airport
Awards 2015)
• Good air-lift facilitates Fly-cruise and Cruise-fly services
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Singapore: A Major Cruise Hub of Asia
2) World-class Cruise Infrastructure
Marina Bay Cruise Centre Singapore
• Officially opened in October 2012
• Operated by SATS-Creuers Cruise Services
• Finger pier with 2 berths (360m and 330m)
Singapore Cruise Centre
• Opened since 1991
• Operated by Singapore Cruise Centre Pte Ltd.
• Finger pier with 2 berths (310 m and 270m)
3) Strong Ancillary Services
Ship Repairs and Refurbishment Players include:
Ground Handlers Players include:
Port Agents Players include:
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Singapore: A Major Cruise Hub of Asia
4) Tropical Climate and Calm Waters
• Conducive conditions for year-round cruising • Favourable position to attract winter home-porting deployments from the Northern
Hemisphere and Southern Hemisphere
4 days SIN-Malaysia 7 days SIN-Vietnam-Thailand-
Malaysia
• Access to cosmopolitan cities, pristine beaches and UNESCO heritage sites e.g. Malacca, Borobudur
Southeast Asia Itineraries
8 days SIN-Vietnam-Hong Kong-
Xiamen-Shanghai
North Asia and Australia Itineraries
5) Proximity to SEA and Beyond
14 days SIN-Darwin-Brisbane-
Sydney
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Singapore: Significant Milestones
2012 2013 2014 2015
Opening of Marina Bay Cruise Centre Singapore
Singapore awarded Destination of the Year
Singapore’s first vessel christening in 20 years: Silver Discoverer
3,807-pax Mariner of the Seas replaces 2,076-pax Legend of the Seas Home-porting of largest-ever
ship in Asia: Voyager of the Seas (3,840-pax)
10 maiden calls including RCI’s newest, most innovative ship:
First-time ever brands in Singapore: Carnival Cruise Line, MSC and TUI Cruises
Refurbishment of Singapore Cruise Centre
Sapphire Princess Seasonal Homeport
Celebrity Century Seasonal Homeport
Signed a 3-year multi-million dollar partnership with Princess Cruises
Quantum of the Seas
Signed a 3-year multi-million dollar partnership with Costa Cruises
Carnival Corp opens regional headquarters in Singapore
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STB’s Cruise Vision
Develop Singapore as Asia’s Year-round Homeport of Choice - Capitalise growth to maximise economic benefits
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STB’s Cruise Strategy
• Policy and regulation reviews to support a conducive business environment
• Raising capabilities of industry partners to drive growth and extract greater yield from Cruise
• Securing pipeline of cruise ships deploying out of Singapore
• Growing local and
regional source markets for cruise passengers
• Strengthen Southeast Asia as an attractive cruising playground
• Facilitating development of local and regional cruise infrastructure
Growing the business Building the industry Infrastructure
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Charting the Way Forward
• Increasing the awareness of cruising e.g. Advertorials in local dailies, Indonesia and Australia, television features, radio interviews etc.
• Representing SG and SEA at international trade shows
• Support for cruise lines activities via Cruise Development Fund
• Shorex Ideation workshop • India Cruise Forum • Trade FAMs
Examples of recent initiatives
Shore Excursion Ideation Workshop Nov 2014
Regional Familiarisation Trip for Cruise Lines to Southeast Asia
Increasing awareness of SEA to encourage ship
deployments to the region
Advertorials in local dailies
Expanding the source market of cruisers locally and in the
region
Increasing industry’s understanding of cruise
potential and establishing business links
Representing SG and SEA at international trade shows
India Cruise Forum Feb 2015
Advertorials in key source markets such as Indonesia
and Australia These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
Understanding the Cruise Product
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Carnival Corp. 45%
RCCL 24%
Star Cruises/NCL
7%
MSC 7%
Others 17%
Market share by passenger capacity
Source: The Global Cruise Industry (2013) presented by Cruise Industry News
Key Cruise Operators in the Cruise Sector
ROYAL CARRIBEAN CRUISES LTD.
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Passenger Carried
6000+
3000+
2000+
1000+
<700
4000+
>10 A380 planes
Evolution of the Cruise Industry
1970s
1980s
1990s
2000s
Cruise ships are getting bigger in recent years
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360° views in the North Star
On-board Offerings
Innovative On-board Activities
Bumper Car Arena
Water Playground On-board Sky Diving High Element Courses
Sea Walk
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Pool Deck Party Broadway Musicals
On-board Offerings
Endless Entertainment
Movies under the Stars
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On-board Offerings
Princess Cruises – Pool
Spa Treatments
Facilities to Relax and Rejuvenate
Gymnasium Variety of Pool Options
Meeting & Networking Facilities
Lounges Conference Room Theatre
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Cruise Itineraries
Alaska
Tracy Arm Fjord
Skagway
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Cruise Itineraries
Bahamas
Saint Kitts
Saint Lucia
Mexico
New Jersey
Caribbean
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Cruise Itineraries
Europe Norway
Artic Circle
Greece
Spain
Italy
Denmark
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Cruise Itineraries
Australia/New Zealand
Doubtful Sound
Brisbane
Darwin
Dunedin
Sydney These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
Cruise Itineraries
Asia
Korea
Japan
India
China
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Cruise Itineraries
Southeast Asia
Thailand Malaysia
Philippines
Indonesia
Singapore
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Advantages of Cruising
Multi-destination experience Convenient – no need to unpack or arrangement logistics to get from destination to destination Many experiences – both on-board and on-shore e.g. activities, meal options, entertainment Suitable for different groups of travellers e.g. elderly, couples, families and singles Value for money i.e. All-in one fare – covers accommodation, meals, activities
A convenient, value-for-money way to enjoy a myriad of experiences
On-board activities On-board entertainment Variety of dining options
All-inclusive Fare Pack and unpack only once These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
Advantages of Cruising
Multi-destination experience Convenient – no need to unpack or arrangement logistics to get from destination to destination Many experiences – both on-board and on-shore e.g. activities, meal options, entertainment Suitable for different groups of travellers e.g. elderly, couples, families and singles Value for money i.e. All-in one fare – covers accommodation, meals, activities
A vacation option suited for different groups of travellers
Adults
Children Couples
Singles These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
Categories of Cruises
Type
Size Mid to Large (2,000 to 6,000+ pax) Small to Mid (700+ to 3000+ pax) Small (100 to 700 pax)
Length of Sailing
Short 3,4,5 night cruises 4 - 7 night cruises 7 nights & longer
Price Point Up to USD 150 per person per day
Up to USD 230 per person per day
Up to USD 480 per person per day
Profile of Passengers
Predominantly families and couples
Predominantly couples and retirees
Predominantly couples and retirees
Cruise Experience
The affordable “mass market” cruise ; Offers amenity- filled experience in a casual environment.
More up-scale experience, ships are usually designed to offer greater space and comfort for each passenger.
Cruise ships offer luxury with personalised experience in a more intimate setting e.g. butler service. Cruise experience tends to be more inclusive such as including alcoholic beverages in the package.
Presence in Singapore
78% 12% 10%
Contemporary Premium Luxury
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Type of Ship
Size Small (<100 pax) Small to Mid size (700+ to 3,000+ pax)
Length of Sailing ~ 14 days 30 days and above (e.g. year-round)
Price Point ~ USD 5000 – 25,000 per person Depending on cruise ship category (contemporary/premium/luxury)
Profile of Passengers
Active middle-age adults Predominantly retirees
Cruise Experience
Adventurous, close to nature type experience in more exotic destinations.
Cruise experience tends to be “laid back”, with the cruise ship taking travelers across the globe by sea.
Categories of Cruises
Expedition World Cruise
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• Passengers debark and explore destination before they return to the ship •Possibility of half/full day shore excursions
• Sailing starts and/or end in Singapore and there is a turnaround of passengers • Possibility of passengers to do pre and/or post stays in Singapore •Possibility of half/full day ground tours
Home-ported (70%)/Turnaround (21%) sailings
Port-of-call (10%) sailings
Types of Cruise Ship Calls
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Understanding Cruise Passengers
¹Source: CLIA 2011 Cruise Market Profile Study ²Source: CLIA State of the Cruise Industry 2014 Report ³Source: CLIA State of the Cruise Industry 2015 Report
• Average age: 45 - 55 years • Increasing number of families and
honeymoon couples
• Passenger growth coming from younger generation travellers – especially Millennials²
*Varies according to type of ship and itinerary
• Seeking unique/exclusive/memorable experiences
• Staying connected with friends and family through Wi-Fi and phone connectivity
• Group Travel
• Love for themed cruises and ‘foodcations’
General Demographics¹*
Consumer Cruise Trends³
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Understanding Cruise Passengers
¹Source: CLIA State of the Cruise Industry 2015 Report ²Source: CLIA 2011 Cruise Market Profile Study
• Short duration for shore excursions (Shorex)
• Fast-pass in attractions • Accessibility to attractions from cruise terminals
• May visit attractions in large groups
• Capacity to accommodate groups and high influx of passengers at one time
• Seeking unique/exclusive experiences
• Niche tours/intimate venues
• Some cruise passengers may be elderly with mobility challenges • Elderly-friendly facilities
• ~70% of cruise travellers use a travel agent to plan and book cruise vacations¹
• Cruise travellers tend to plan their vacation 4.9 months prior and make a booking 3.3 months before the trip²
Booking Patterns
Cruise Passengers’ Needs
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Ideas for Exploration
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Ideas for Exploration
Shore Excursions
City tours
Back-of-house / exclusive experiences
Local cuisine cooking classes
Business tours on technology/design etc.
Case Study
• Celebrity Cruises organised a 7N President’s Cruises hosted by then-PCEO Michael Bayley in 2014 for loyal guests
Impact/Opportunity: • Cruise operators, ground handlers and
experience owners collaborated to deliver ‘wow’ experiences for guests on-board
• E.g. hot air balloon, helicopter flight etc. • Exclusive experiences were well-received by
guests and contributed towards a memorable sailing
• Potential repeat visits to attractions and positive word-of-mouth/publicity These slides are property of STB and shall not be reproduced and/or redistributed without permission
from STB
Ideas for Exploration
MICE Events On-board
On-board meeting facilities
Boardroom
Lounges
Theatre
Benefits for MICE travellers
• All-inclusive fare
• One-stop venue
• Exciting on-board offerings for participants and accompanying pax
• Multi-destination experience
• Extend stay in Singapore pre/post cruise
• Seamless airport to
ship connectivity
• Year-round option for MICE events
Case Study
• Aflac, the largest provider of supplemental insurance in the U.S, chartered Carnival Ecstasy for a combined incentive/convention for 1,800 pax.
• The event included a black-tie dinner and on-shore award presentation
Impact/Opportunity: • Cruise operators and event organisers
collaborated to deliver a creative and customised experience for guests
• E.g. personalised letters from the captain, name plates on stateroom doors, individual bon voyage gifts etc.
• Event received positive reviews and Aflac booked another cruise ship for another program
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Ideas for Exploration
On-board Special Demonstrations
On-board showcase by industry stakeholders
• SATS Ltd. worked with RCI to showcase their award-winning chocolatier, Then Chui Foong, on-board a 3N Legend of the Seas holiday cruise
• The highlight of the sailing was Chui Foong creating a chocolate sculpture in front of guests in the ship’s Centrum
Impact/Opportunity: • Heightened publicity of product/service to cruise
passengers • Other similar showcases on board e.g. Cooking Nanta
serve as a unique selling point which agents can highlight to potential consumers
Case Study
Cooking NANTA performance These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
Ideas for Exploration
Themed Cruises
Music Festival on-board Character Themed Cruise
Sports-themed Sailings
Case Study
Formula 1 Singapore Grand Prix
• The Melbourne Cup is hosted in Melbourne annually and P&O Cruises specially organises several themed sailings
Impact/Opportunity: • Heightened publicity of event to cruise passengers • Cruise operators, travel agents and ground handlers
leveraged the marquee sports event to theme the sailing
• E.g. Cup Day Gala Breakfast hosted by a race celebrity, VIP access to a suite at the race, Behind-the-scenes tour of the racecourse, Special collectibles
• Themed cruise packages have a unique selling proposition to consumers and provides additional sales potential for agents
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Ideas for Exploration
Exclusive Pre/Post Cruise Experiences
Gala Dinner at Gardens by the Bay
Amazing race concept of exploring precincts
Case Study
• As part of its round-the-world cruise, Crystal Cruises wanted to host its guests to a special event at marquee ports along the sailing
Impact/Opportunity: • Cruise operators and ground handlers collaborated to
organise an exclusive Gala Dinner for guests at Gardens by the Bay
• Guests were kept entertained by specially choreographed performances telling the tale of Singapore’s history and culture
• Exclusive event was well-received by guests and contributed towards a memorable sailing and potential repeat visits
• Event generated revenue for a wide spectrum of stakeholders e.g. venue providers, event organisers etc.
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In Summary
• The rate of growth of cruise ships deployments is strongest in Asia, and Singapore projects a 5 - 8% CAGR in passenger throughput in the next 3 - 4 years.
• Cruising is fast gaining traction amongst local and regional travellers as a new holiday option.
• Cruise passengers are increasingly seeking exclusive and
unique experiences. Industry partners can tailor/package products and services to cater to the needs of this new market segment.
• Strong support from STB, cruise associations and cruise lines through training, business facilitation and other initiatives, to welcome more industry players to leverage these growth opportunities.
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Thank you
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