Travel and Cruise 2nd Qtr. 2016

THE OFFICIAL MAGAZINE OF THE CRUISE INDUSTRYSECOND QUARTER 2016

PUERTO PLATA REVIVES TOURISM

REWRITING HISTORY: AFTER THE HISTORIC CALL TO CUBA, TARA RUSSELL HIGHLIGHTS FATHOMS BENEFITS FOR DESTINATIONS AND PASSENGERS

Bride of the Atlantic renews vows with tourism thanks to a wave of investments

Stingray City, Grand Cayman

As your guests disembark in the Cayman Islands, they will be greeted by unique encounters as far as the eye can see. From the renowned tastes that earned us the title of Culinary Capital of the Caribbean, to the rare level of service that comes naturally here, your passengers will nd their Caymankind.

HEAD FOR THE STINGRAYS OF CAYMAN.( THEYLL FORM A WELCOMING COMMITTEE.)

visitcaymanislands.com

CAY-0472.indd 1 5/19/16 2:33 PM

SPOTLIGHT10 Fathom Makes Successful Social Impact Debut with Inaugural Voyage to Dominican Republic Fathom has already benefitted numerous Dominicans, but the best is yet to come, tells President Tara Russell

LETS GET TECHNICAL12 The Tour Guide: More Important Now Than Ever! Amilcar Cascais, VP of Carnival Cruise Lines tour operations, recounts cruise line-contracted excursions evolution and how guides can make or break the experience and operator

15 Itinerary Planning: Are We There Yet? Cruise lines cannot simply ask Siri where to go, and MSC Cruises VP of Operations Albino Di Lorenzo shares insight about the decision process

17 Government Relations Role with Destinations Its all whom you know, and relationships between governments and cruise lines could help your destination

19 The Importance of Infrastructure in the Cruise Industry With cruise ships getting bigger, so is the need for improved infrastructure, tells Bo Larsen, VP of strategic partnerships for CLIA Europe

MEETINGS AND EVENTS20 FCCA Plus Seatrade Cruise Global Equals Opportunities for Success A horde of meetings and networking opportunities helped FCCA members and cruise executives maximize their time and business

24 Cruise Line CEOs Tell Innovation, Differentiation and Destinations Will Continue the Industrys Meteoric Growth Cruise industry brass rang out with a clear message during Seatrade Cruise Globals State of the Industry

28 Making the Most of Meetings at Sea

RESEARCH AND FINDINGS30 Cruising Into the Future New data shows more room for growth in the rapidly expanding cruise industry, tells Peter Yesawich, vice chairman emeritus of MMGY Global

32 Why Cruise Travel Is Outpacing General Leisure Travel

ENVIRONMENTAL AND REGULATORY PRACTICES34 The Cruise Industry Charitable Foundation: Agent of Change

35 Congressional Cruise Caucus Continues Course for Smooth Sailing between the Cruise Industry and Policymakers

36 Holland America Line Receives Sixth Consecutive Green Gateway Award from Port of Seattle for Environmental Stewardship

36 AIDA Cruises and Shell Form Strategic Partnership to Supply Environmentally-Friendly LNG

NEWBUILDS AND REVITES39 Carnival Corporation to Build Five New Cruise Ships Memorable experiences and maximized efficiency will lead the way to growth, says CEO Arnold Donald

40 MSC Cruises Moves Forward with World-Class, Over 200,000 GRT, LNG-Propelled Vessels Executive Chairman Pierfrancisco Vago tells that the contract for up to four cutting-edge ships provide further proof of growth, innovation and environmental-friendly technology

Inside

Amber Cove Cruise Port in Puerto Plata, Dominican Republic

07, 09 Presidents Letter

84 Member Highlights

86, 88 Faces in the Industry

Second Quarter 2016www.travelandcruise.com

Travel & Cruise Magazine 2016. All Rights Reserved. Reproduction in whole or in part, in any form, electronic or otherwise, without written permission of the FCCA is prohibited.

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Florida-Caribbean Cruise Association (FCCA)11200 Pines Blvd., Suite 201 Pembroke Pines, FL 33026Phone: (954) 441-8881 Fax: (954) 441-3171

Published by: In Partnership with:

The information in this publication is provided as is. FCCA, CLIA and its Member Lines disclaim all representations and warranties, expressed or implied, with respect to any information, services, products and materials contained herein. FCCA, CLIA and its Member Lines will in no event be liable for any damage or losses as a result of your use of this publication.

DEPARTMENTS

ON THE COVER

Features

Second Quarter 2016 | Travel & Cruise | 3

10

12

32

:::: CONTENTS

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:::: CONTENTS

41 Regent Seven Seas Cruises Seven Seas Explorer Will Have a Sister

41 Oceania Cruises Christens Newest Ship, Sirena

SHIPBOARD AND LAND-BASED EXPERIENCES

42 The Rise of the River Cruise: Sail Iconic Rivers while Visiting Distinctive Corners of the World

44 From the Deck to the Shore, Disneys Frozen Experiences Add to Summertime Fun

46 Norwegian Joys Exciting and Innovative Features Fuse Unique Experiences with Chinese Comforts and Preferences

DESTINATIONS AND PORTS: THE CARIBBEAN AND LATIN AMERICA49 MSC Cruises Showing Faith in South America President of MSC Cruises South America, Roberto Fusaro, shares reasons for optimism in the South American market

50 Puerto Rico to Showcase Improvements at the 2016 FCCA Cruise Conference & Trade Show After experiencing a 17-percent passenger arrival growth after last hosting the event, Puerto Rico looks to show off infrastructure and product upgrades to cruise executives and stakeholders

52 Tortola Pier Park: The Gateway to an Ideal Caribbean Getaway in the BVI A new pier, landside development and cruise line contracts are putting the scenic British Virgin Islands on the cruise scene

54 Puerto Plata: Resurgence of the Dominican Republics First Tourism Destination

56 Antigua and Barbuda: A Cruise Paradise Still Expanding

60 Trinidad and Tobago: The Atypical Caribbean

62 Discover the Island of Roatn

64 Del Rio Praises New Cuban Policy, Looks Forward to Future Operations

DESTINATIONS AND PORTS: NORTH AMERICA66 Port of New Orleans to Showcase Its Offerings and Growth to Cruise Executives and Stakeholders Hosting the 2016 FCCA PAMAC gives the opportunity to display New Orleans tours, culture, museums and increased cruise capacity

66 PortMiami Eyes Accelerating $38 Million Investment to Berth MSC Seaside

69 CLIA North West & Canada and CLIA Alaska Celebrate 2016 Cruise Season in Vancouver

70 Port of Los Angeles Plans $100 Million Revitalization

DESTINATIONS AND PORTS: EUROPE, MIDDLE EAST AND AFRICA72 New Record for Europes Cruise Market: 6.6 Million Europeans Cruised in 201573 Top 10 Must-Do European Excursions74 AIDAdiva Kicks Off Cruise Season in Rostock-Warnemnde

DESTINATIONS AND PORTS: AUSTRALASIA76 Cruise Tourism Continues to Add Value to the Australian Economy Even after a record summer cruise season, Australias growth story is expected to turn the page

77 P&O Cruises Embarks on Biggest-Ever Western Australia Season

78 Royal Caribbean Going Big in Hong Kong with Largest-Ever Homeported Ship and Voyager of the Seas Extended Season and Upgrades

MEMBERS AND TRAVEL AGENTS83 CLIA Releases Second Quarterly Travel Agent Cruise Industry Outlook Lower airfares, favorable currency rates and ports close to home driving cruise bookings, according to CLIAs quarterly report

84 Platinum Member Highlights Updates from FCCA Platinum Members show a snapshot of upgrades and developments by destinations, ports and stakeholders

Features

35 65

44


Michele Meeting with Alejandro Garca Padilla, Governor of Puerto Rico.

EXECUTIVE COMMITTEEMicky Arison

FCCA Chairman,Chairman

Carnival Corporation

Michael BayleyPresident & CEO

Royal Caribbean International

Adam GoldsteinPresident & COO

Royal Caribbean Cruises Ltd.

Karl L. HolzPresident

Disney Cruise Line

Richard E. SassoPresident

MSC Cruises (USA) Inc.

Andrew StuartPresident & COO

Norwegian Cruise Line

FCCA STAFF Michele M. Paige

President

Adam CeseranoSenior Vice President

Terri CanniciVice President, Operations

Omari BreakenridgeDirector, Communications & Design

Carlos SantamarinaDirector, Membership Events & Programs

Justin PaigeManager, Communications, Marketing &

Research

Jessica LalamaExecutive Assistant

Raquel NalesAdministrative Assistant

:::: PRESIDENTS LETTER: FCCA

PEOPLE OFTEN CATEGORIZE cruising as innovative. From launching new experiences to landing at new destinations, the industry continues to evolve. This adaptation to consumers constantly changing wants and needs is something we all must embrace.

For destinations, this means adapting to both cruisers desires for engaging experiences, ranging from heart-pounding adventure to cultural understanding and leisure, along with cruise lines growing capacity and technology.

As a trade association for the cruise industry, I am proud to also embrace this philosophy of evolution, along with something else that categorizes the industry: partnership. This magazine is a testament to both, as the FCCA has joined with Cruise Lines International Association (CLIA) to transform our successful quarterly publication into the official magazine of the global cruise industry.

We will also continue to build onto this partnership with new features and events, like the upcoming Travel Agent/Destination Summit, which will gather 200 agents for an add-on to our 23rd annual FCCA Cruise Conference & Trade Showtaking place in San Juan, Puerto Rico from September 26-30 and joining over 1,000 cruise tourism stakeholders and 100 cruise executives for meetings, workshops and exhibiting and networking opportunities.

You can read more about that in an article by Puerto Rico, which has also utilized the philosophy, witnessing a 17-percent jump in passenger arrivals since hosting the 2011 event because of their partnership with the industry and innovations to infrastructure and product.

This edition of Travel & Cruise features other examples of innovation and partnership leading to mutual successes. FCCA Member Line presidents, chairmen and CEOs stress its importance in a recap of the State of the Industry. Tara Russell, president of Fathom, touches on their innovation and impact on the destinations they call. And FCCA Member Line cruise executives like Amilcar Cascais, vice president of tour operations for Carnival Cruise Line, and Albino Di Lorenzo, vice president of operations for MSC Cruises (USA) Inc., discuss some of the innovations of cruise line tour operations and itinerary planning, along with how industry partners can utilize this knowledge to improve their business.

Plus, you can read how the FCCA continues to innovate to forge these partnerships between its members and the cruise industry, such as the new meetings and networking events during Seatrade Cruise Global.

With further innovation and growth comes an even greater need for synergy, so the FCCA remains committed to continually innovating and growing to help foster understanding and partnerships between cruise destinations, stakeholders and lines.

Respectfully yours,

Michele M. PaigePresidentFCCA

EMBARK IN A MARVELOUS EXPERIENCE THROUGHCOLOMBIAS HOMEPORT AND TAKE ADVANTAGE OF

OVER 1,022 WEEKLY INTERNATIONAL AIR FREQUENCIES.


CLIA GLOBAL EXECUTIVE COMMITTEE

Adam GoldsteinCLIA Global Chairman

President & COORoyal Caribbean Cruises Ltd

Micky ArisonChairman

Carnival Corporation & plc

Frank J. Del RioPresident and CEO

Norwegian Cruise Line Holdings Ltd.

Arnold DonaldPresident and CEO

Carnival Corporation & plc

Richard D. FainChairman and CEO

Royal Caribbean Cruises Ltd.

Karl L. HolzPresident

Disney Cruise Line and New Vacation Operations, Walt Disney Parks & Resorts

Manfredi Lefebvre dOvidioChairman

Silversea Cruises Group

Pierfrancesco VagoChairman, CLIA Europe

Executive ChairmanMSC Cruises

CLIA STAFF Cindy DAoust

President & CEO

Tom FischettiChief Financial Officer

Bud DarrSenior Vice President, Technical and

Regulatory Affairs

Mike McGarrySenior Vice President, Public Affairs &

Government Relations

Lorri ChristouSenior Vice President, Strategic Marketing

& Communications

:::: PRESIDENTS LETTER: CLIA

WELCOME TO THIS EDITION of Travel & Cruise, the official magazine of the global cruise industry. Earlier this year, I shared two key CLIA priorities: 1) Enhancing CLIA member value and 2) Unifying our industry on a global scale. This expanded publication demonstrates our commitment to those priorities and creates a platform that delivers relevant content to our collective membership.

As leaders, it is imperative that we listen to each of the many voices in our community and help all our members achieve success. An important element of this commitment is increasing collaboration within the cruise industry. This approach led to an expanded partnership with the Florida-Caribbean Cruise Association (FCCA).

This issue is filled with industry news and contains top industry trends. Whether it is spotlighting CLIAs leadership in establishing policy and industry best standards or highlighting the incredibly important segment that is our travel agent community, Travel & Cruise delivers important updates to each constituent in the global cruise industry.

CLIA is proud to release our first jointly developed edition at our annual education conference, Cruise360, in beautiful Vancouver, British Columbia. I look forward to speaking with you, our readers, to gain input on ways to enhance the value of our magazine publication. We welcome your contributions, so please connect with us.

I am also thrilled to share another exciting announcement as a result of our collaboration with FCCA. This September, CLIA will introduce a new Travel Agent/Destination Summit co-designed with FCCA, hosted by Puerto Rico. This event, taking place in September, is a first for CLIA and offers our membership another opportunity to spend quality time with destination experts, experience ship inspections and learn from industry leaders. More information regarding this new opportunity will be released in the coming months.

As we continue to collaborate and develop new partnerships, you can be sure that our One Industry, One Voice philosophy will be fostered by the many voices and perspectives of our global community. Together, our voice is louder, our influence is greater and we can ensure that cruising is the first and best vacation choice for travelers around the world.

On behalf of everyone at CLIA, thank you to Michele Paige and her team, and to you, our community our valued Cruise Line Members, Travel Agency and Agent Members and our Executive Partners across the worldfor your continued support.

Best,

Cindy DAoustPresident & CEO

10 | Second Quarter 2016 | Travel & Cruise

SPOTLIGHT ::::

Fathom, the newest brand within Carnival Corporation, returned from its successful inaugural voyage to the Dominican Republic April 17. It was the culmination of more than two years of work from Fathoms president Tara Russell and her team to launch this new concept in cruising called social impact travel.

Our goal and vision is to ensure human flourishing, to inspire the human impact journey and to harness that for the greater good of others, Russell said.

Russell and her team worked closely with the Dominican Republic community leaders and stakeholders to identify projects that are authentically impactful, scalable and sustainable. The projects are wide ranging and touch all aspects of the region from education to employment to the environment.

For Fathoms inaugural voyage, for

instance, hundreds of guests joined Fathom for a unique weeklong journey that left a lasting impact on each of them, as well as an immediate impact on people in need in the Dominican Republic.

Feedback from our guests during the voyage was extremely positive, said an enthusiastic Russell. This first voyage provided more evidence there is a growing market of guests who want to make a positive, direct impact when traveling. Fathom gave our guests a unique way to leave an impression on a very personal level within the community, as well as have an extraordinarily rewarding experience.

Launched in June 2015, Fathom provides the opportunity to travel with like-minded people, become immersed in another culture and work alongside its people to create enduring social impact. What sets Fathom apart is the long-term, systematic partnership approach and unique business model of traveling every other week to the

Dominican Republica combination that creates sustained and lasting impact.

Our brand has been on an incredible journey, from the ideas conception over two years ago through today, added Russell. We set out to do something special with Fathom by introducing the world to a unique type of traveltravel with purpose.

Preparation at seas for each of those onboard is keybasic Spanish lesson, geography, culture and history lessons, plus training for the type of volunteer each traveler has signed up to do. Food from the local culture is also featured on the 704-passenger Adonia, as well as the entertainment.

MAKING A SUSTAINABLE IMPACTFathom selected the Dominican Republic as its first impact destination, as it is a country of great beauty and rich culture, but also a country with great needs. The average household income is less than $6,000, and

Fathom Makes Successful Social Impact Debut with Inaugural Voyage to Dominican Republic

By Roger Frizzell, Chief Communications Officer, Carnival Corporation


Tara Russell, President, Fathom

:::: SPOTLIGHT

more than 3 million Dominicans do not have access to piped water. Yet the country has much potential: its natural resources are plentiful; it has a good infrastructure that can allow for positive impact; and its people are motivated to create better lives for them and their families.

Impact activities in the Dominican Republic include a wide range of projects focused on economic development, education and the environment. During the inaugural voyage, guests, depending on their individual passions and skills, participated in projects they felt most strongly about and worked directly alongside local people and Fathoms partner organizations.

We have already accomplished a lot in a short period of time, but there is still much to do, added Russell. We are looking forward to taking our guests every other week to the Dominican to continue making a profound and lasting impact for people in the country.

Working with its impact partners Entrena and the Instituto Dominicano de Desarrollo Integral, Inc. (IDDI), in less than one week, Fathom and its guests made an immediate impact, including the teaching of conversational Englisha driver for employment successwith some 650 students, as well as reforestation with the planting of more than 2,400 trees.

In addition, the passengers onboard undertook water filter production that produced 50 water filters (for a country where more than 3 million residents do not have access to piped water), along with the harvesting of more than 200 pounds of cacao nibs and wrapping of some 6,000 chocolate bars working hand-in-hand with a womens cooperative.

Other projects included recycling and the production of concrete floors I homes for 20 local residents.

An elderly grandmother was the first recipient of a cement floor, said Sharon Kenny, a journalist making the inaugural journey. Knowing we had made a real impact on their health, welfare and future was an extremely rewarding and satisfying experience for all of us.

MAKING TIME FOR LEISUREWhen not participating in social impact projects, Fathom guests experienced fun and memorable recreational, leisure and sightseeing activities in the Dominican Republic. Whether exploring ancient ruins, interacting with the abundant marine life in the clear water, or lounging along the sun-soaked stretches of surf and sand, guests made the most of their experiences in the Dominican Republic.

The MV Adonia docked at Carnival Corporations newest port Amber Cove, located in the Puerto Plata region, where guests had access to select shore excursions. The port offers numerous sea and landside experiences, including several beach getaways, kayak, paddle board and snorkeling tours, ATV-like terracross buggy expeditions, Puerto Plata tours, helicopter rides, fishing trips, horseback riding, deep sea fishing tours and catamaran sailings.

Guests also discovered that impact travel is far more than a seven-day experience. On the return trip, Fathom helped guests with ways they can stay involved by bringing the knowledge, inspiration and insight back to their home communities.

TRAVEL TO CUBAThe history books marked May 2 as the first cruise from U.S. to Cuba in over 50 years after Fathom arrived in Havana, also commemorating the first time in decades that Cuban-born individuals traveled by sea to or from Cuba. The historic call was part of Fathoms new itinerary of seven-night voyages to three Cuban ports of call every other week.

Our arrivalin Havana is a special moment in history that contributes to a more positive future, said Arnold Donald, CEO of Carnival Corporation. We are so honored that Carnival Corporation and our Fathom brand can be part of such a meaningful milestone. As we worked to become the first U.S. cruise company to sail from the U.S. to Cuba in more than five decades, it was clear just how much interest there is from travelers who want to experience Cuba.

Fathoms round-trip culturally immersive cruise itinerary featured experiences in the Cuban port cities of Havana, Cienfuegos, and Santiago de Cuba, providing travelers the opportunity to enjoy a rich and vibrant culture that until now most U.S. travelers have only seen in photographs.Designed for rich immersion and ease of travel, the Fathom Cuban itinerary offers passengers a comfortable cabin including all the amenities of a modern hotel, plus the luxury of having to unpack only once. Every night, Fathom travelers also return to the comforts of MV Adonia and enjoy onboard experiences including Cuban- and Caribbean-inspired food and films, music and dancing, and much more.

This is history in the making. Tara Russell, President, Fathom


LETS GET TECHNICAL ::::

It has been just over 30 years since I joined the cruise industry, and how times have changed. Every aspect I remember is differentthere were few amenities onboard; we offered a handful of tours in each port, if that; and selling tours comprised of three pursers sitting behind a couple six-foot tables on a stage in some lounge with a few rolls or books of tickets, each representing a tour like old movie tickets.

We would give guests this simplistic ticket in exchange for cash or travelers checks (yes, I said travelers checks or cash, which is a good as money, so said Yogi Berra). That was it. The rolls would be marked with the tours capacity, usually with a paper clip or rubber band, and the tour was sold out once you reached that not-so-scientific symbol. Period. The session would also end either by no more guests in the lounge or tickets to sell.

If we did have more tickets to sell, the pursers office would hold the tickets and sell on request. One of the pursers would telex (yes, I said telex), fax or call the tour operators with the counts, and that was it. How simple it all was. We had a few tours to offer on a cruise as a whole; however, they delivered excellent experiences by great guides.

Turn the clock 30 years, and we now offer dozens of tours on a single cruise; do PowerPoint presentations; have stateroom TV channels running shore excursion clips in; arrange presales via websites; provide 40 pages of tour information on any given cruise; produce banners and flyers for our dedicated shore excursion teams and audio and visual guidesyou get the picture.

Now, why did I agree to write this article? I hold the strongest opinion that in all the noise now surrounding shore excursions, little attention is being paid to the most

crucial componentthe tour guide. There are some exceptions; a few operators do; and I congratulate them on their wisdom.

Just like the cruise ships of today nearing or topping a billion dollars to build, with more amenities than you can experience on a single cruiseif you dont have the right crew with proper skillsets, the intended experiences delivery can be far from ideal. We receive thousands of communications from guests every week on their incredible cruise experience, and without fail it always ties back to a crewmember who made it exceptional. A memory to last a lifetime, how wonderful is that?

The same goes for shore excursions; from the simplest and inexpensive to the most complex and expensive tour, the tour guide can make the difference. Unfortunately, the trend I have witnessed the last few years has been that tour guides are not mentioned as often as I

The Tour Guide: More Important Now Than Ever! By: Amilcar Cascais, Vice President, Tour Operations, Carnival Cruise Line


Amilcar Cascais, Vice President, Tour Operations, Carnival Cruise Line

from the simplest and inexpensive to the most complex and expensive tour, the tour guide can make the difference.

:::: LETS GET TECHNICAL

recall in the past. Now, the reasons for this are as varied as the destinations we visit and tours we offer, and many are significant. But I call them excuses for mediocrity.

Opportunity: this is how I see the current status. Please allow me to elaborate. Not all tour operators have the financial strength and additional bandwidth needed to create new experiences, which may require tens of thousandsif not hundreds of thousandsof dollars to bring to life, along with year-after-year investments to keep up with the industrys demand, especially for the appeal of repeat guests. However, operators can improve their product with a much smaller investmentthe skillset of their tour guides. Now, one may say that local mandate requires hiring from a pool of guides, but nothing prevents from teaching them further while under contract. I am sure that in most cases, if not all, this is possible.

Prominence: this what you want to achieve as a tour operator to be at the top of your field, and in my opinion, there is no faster way to get there and stay there then by having the best guides that will ensure every tour offering and guest experience will represent a lasting

memory that they will tell us about, along with the rest of the world, for that matter, with todays abundance of social media.

Marketability: having the best, most experienced and credentialed tour guides is extremely marketable, from my perspective. You give yourself an edge over your competition. When an operator has such a position, it should be promoted loudly and confidently first to the cruise line, which will make the choice to buy or not to buy products from you, and then by the cruise line to the guests, who will have the ultimate choice to buy or not to buy the offering. The products perceived value can be greatly enhanced if delivered by the most qualified and experienced guides.

The three points I made above should be enough to make you analyze your current state of business. If this is an opportunity for you, then you owe it to yourself and your team to explore it. I hope to see tour guide associations and guides roles in your business used more often, for their experience, qualifications and certifications and integrated into your proposals to cruise lines.


Albino Di Lorenzo, Vice President, Operations, MSC Cruises (USA) Inc.


Itinerary Planning: Are We There Yet? By Albino Di Lorenzo, Vice President, Operations, MSC Cruises (USA) Inc.

W here to? Cruising is a popular option for vacationers all over the world. More and more people are exploring the high seas on cruise ships due in part to the exciting locations these floating hotels can offer. With so many beautiful places to see, why choose just one?

Cruising gives you the opportunity to explore multiple destinations on a single trip. Where else can you wave goodbye to the tranquil mountains of Philipsburg, St. Maarten and then greet the vibrant views of Old San Juan, Puerto Rico, all without leaving your room? Accomplishing this task may seem seamless to the guest, but it actually involves an important job behind the scenes. The fact that you can leave from St. Maarten at 5:00pm and arrive in Puerto Rico at 8:00am the next morning is all a part of a central process called itinerary planning.

Itinerary planning takes place constantly and involves multiple departments within the company, as well as outside partners. An itinerary can greatly impact the success of a company, so itinerary planners have to carefully examine each unique port of call. They have to consider the proximity to the other ports on the schedule, the

desirability of each individual port, shore excursion activities, safety and security, port development, docking space, marketability of the destination, country development and adequate shoreside facilities. Current events can also positively or negatively influence a guests perception on the attractiveness of a destination. Every aspect that is considered when selecting a port plays a key role in the overall guest experience.

The cruise industry is constantly changing, and cruise lines need to keep up with the times, or they run the risk of getting left behind. In a business full of competition, not only do we have to be knowledgeable of the current trends, but we also have to be pioneers.

Market research is essential. To this end, cruise lines conduct surveys to find out where guests are interested in going. People are always looking for new and exotic experiences and ports of calls, and this is clearly reflected in the presence of many cruise lines now in Cuba and Asia, along with developing new products, like our island development in The Bahamas, Ocean Cay Marine Reserve.

A strong worldwide presence can also benefit a company or destination in building brand recognition and awareness and, thus, demand. Additionally, offering a variety of destinations and experiences can help in securing repeat cruisers, as well as attracting new business.

We want to continue to enhance our

guest experience, as we are in the business of delivering memorable moments. It is essential that we exceed our guests expectations both onboard and on land. We have to work hand-in-hand with each port because the destination and offerings affect guests perspective of our own brand.

Moreover, each port has a responsibility of their own to market their product as cruise lines can market and sell the itinerary. An important question for the destination to ask is Why should they choose us?

To conclude, when considering an itinerary, there are many factors that play a key role in the decision making process. Market research and product stability are essential. Cruise lines have to be innovative and understand consumer demands. People cruise for a variety of reasons (e.g. relaxation, exploration, cultural enrichment, and excursions). Whatever the reason for cruising, it is up to us to find a destination and experiences that will deliver on all facets.

Furthermore, as a cruise line, we have to match the quality of services delivered onboard with the services provided in each unique destination. With an ever-evolving industry, there are many more exciting and exotic locations to discover, presenting almost-endless possibilities. As a cruise line, we constantly ask, Where to next? As a destination, you must tell us and our passengers why to visit.



Government Relations Role with Destinations

To better understand the role of government relations today, we must take a brief look at the past and the origins of the current cruise industry.Passenger travel started on cargo ships, which provided the lifeblood of global transportation. As passenger movement increased, ships were built to carry more passengers and less cargo. Travelers mostly used ships to move from one point or destination to another, not for leisure, but more and more amenities developed to enjoy while onboard.

The regulatory environment under which all operations were governed, however, remained founded in the cargo industry. After all, they were ships with similar basic measurements and technical characteristics. Fees for pilots, tugs, docks, navigational dues and others were set based on a simple set of measurements and applied to passenger or cargo. Immigration and customs formalities were handled at the beginning and end of the cruise, and almost all passengers boarded and disembarked in the same ports.

Enter the age of modern cruising in the 1960s. Now cruising goes from incidental to the core business; cargo spaces are converted to more gust cabins and amenities; and service

becomes a priority. Year-round itineraries to the Caribbean and Mexican Riviera with multiple ports of call and defined hours in portnormally 10 hours or lessbecome the standard of the industry. Larger, higher-capacity ships with new marine technologieslike twin propellers and rudders, side thrusters and, later, azipodsemerge. But the basic regulations remain fundamentally unchanged.

The 1960s also witness significant changes in the political makeup, especially in the Caribbean and Central America. Many islands gain full or partial independence. New governments are formed, financial goals set and laws enacted to attract foreign investment and support tourism, the emerging economic component. The need arises to expand or develop port facilities appropriate for the arrival of thousands of tourists.

Here is where the need for increased focus on destinations government relations becomes more apparent. With each election of a new government or change of official or party, the need to initiate, develop and maintain relations with key ministries or agencies is clear.

Now it is essential to address matters like educating key agencies on the value of the cruise visitor to the destination, along with changing global requirements from environment to health, finance and compliance. Monitoring

of new laws and regulations also becomes necessary. Interactions with governments as a company or industry to assure these new laws support sustainable growth develop into ongoing dialogue.

As the industry grows globally, the challenges do equally. Many of the issues and solutions encountered in the Caribbean emerge around the world in some form.

And what about the natural disasters and global health challenges that now surface unexpectedly and can have a huge impact on all parties? With a solid broad base of relations between cruise lines and destinations, even these unfortunate situations can be planned for, dealt with and minimize the negative impact on the destination while accelerating recovery.

And the destinations private sector? Since cruise lines do not vote, they have no direct say in who is elected or how they will govern. The most productive overall relationship between a cruise line, the industry and a destination ideally will be built on a strong private sector with good ties to the cruise industry and a solid ongoing relationship with the government across all key areas that impact tourism.

This is why the FCCA works tirelessly to establish these relationships between cruise lines and destinations private and public sectors to foster these mutual benefits.

As the industry grows globally, the challenges do equally.


Proper Infrastructure is essentialwhen it comes to creating

itinerariesalong with catering to growing consumer demands.


The Importance of Infrastructure in the Cruise IndustryBy Bo Larsen, VP, Strategic Partnerships, CLIA Europe

As the cruise vacation expe-rience has evolved to e n c o m p a s s more than just the actual cruise, so has the need to focus on proper infra-structure. Vital for the cruise industrys con-tinued successful growth, having the proper infrastructure to support it is equally import-ant. In 2016, for instance, there are 27 new ships on order, and many of those ships have some of the largest passenger capacities the industry has seen. So having ports that are able to handle this demand remains an important aspect of the ongoing growth.

Proper Infrastructure is essential for the cruise lines, ports and destinations when it comes to creating itineraries that work well with each other, along with catering to growing consumer demands. Each year, we see more and more itineraries being offered. As cruise lines continue to adapt, its equally important that the ports and destinations are also adapting.

Cruise lines, along with the ports and destinations they work with, need to be constantly communicating, as they collaborate in providing the best possible experiences for travelers. This continues to be an important focus of the industry.

This past year, we saw first-hand what open communication looks like when the Cruise Lines International Association (CLIA) held its Port and Destination Forum in Hamburg, Germany. At this Forum, CLIA cruise line members and port and destination members had an opportunity to network and create a dialogue for future projects. The cruise industry needs to see more collaboration between cruise lines, ports and destinations.

Positive collaboration provides a better understanding between the two parties, as well as helping reduce costs for both the cruise lines and ports. Giora Israel, Senior Vice President, Global Port & Destination and Development Group, Carnival Corporation, offers some insights on the importance of collaboration.

Passengers play an important role in the planning of cruise itineraries. Cruise lines and ports and destinations should work together to cater to this demand, said Israel. Passenger flow creates economic impact as well as drives other services, like pre- and post-stays and airline transportation.

Israel also highlighted some of the key things that cruise lines are looking for, including the need for ports to accept feedback from the cruise lines and their passengers, better communication on berthing options, and coming to a better agreement on long-term pricing mechanisms. He also explained that cruise lines can

offer advice and make long-term financial guarantees to ports in order to facilitate better relationships. Israel also continued to stress the position that passengers play in the strategy that ports and cruise lines should take when planning new projects.

Ports are an important aspect of the cruise passenger experience, from parking availability and options to procedures when it comes to picking up luggage and bags. Road systems and access from airports are critical to a successful vacation experience. These are all determining factors when cruise lines are choosing where to homeport new ships.

As part of CLIAs Summit at Sea this past January, 80 CLIA Executive Partners and 18 cruise line executives came together onboard the MSC Preziosa. They visited four different ports to look at different port infrastructures in Barcelona, Marseille, Genoa and Civitavecchia. Each port represented a top import port in the Western Mediterranean and gave attendees the chance to discuss important topics and needs.

Opportunities like CLIAs Summit at Sea continue to support the need for stronger relationships and ongoing communication. CLIA is focused on facilitating this for the cruise industry as well as educating partners on current trends and legislature. These relevant platforms will continue to move the industry forward.


MEETINGS AND EVENTS ::::

FCCA Plus Seatrade Cruise Global Equals Opportunities for Success

This years Seatrade Cruise Global was an exciting and rewarding time for all attend-ees, offering ample opportu-nities to renew and create business partnerships, dis-cuss ideas and tackle issues with the attending cruise line representatives and global stakeholders.

And the FCCA amplified these opportunities for its Member Line executives, Platinum Members and partner destinations. After all, positively impacting the relationship and understanding between these entities is one of the FCCAs main functions.

It did this at Seatrade by providing multiple events and opportunities to put members on a first-name basis with FCCA Member Line executives, presidents and CEOsinteractions that spawn relationships and put a foot in the door.

The FCCA maximized time and opportunities during this busy week, told Micky Arison, chairman of Carnival Corporation and the FCCA, who was on-hand at many of the events. Time

becomes extremely limited, and the FCCA made it possible to meet with some of the industrys most important stakeholders throughout the Caribbean and Latin America, helping us work synergistically to improve cruise tourism in the region.

To foster these engagements during Seatrade and actualize its resources and attendees, the FCCA programmed a block of functions coinciding with the event to ensure that Platinum Members have a direct line to the FCCA Member Line presidents, CEOs and executives who decide where ships call, what to sell onboard and how to invest in destinations and infrastructure.

It began the Sunday before Seatrade at an annual pre-event welcoming party offering an intimate affair for Platinum Members and Member Line executives like Arison and Adam Goldstein, president and COO, Royal Caribbean Cruises Limited.

Sponsored by the U.S. Virgin Islands and hosted by Governor Kenneth Mapp, the event let the group spark or strengthen relationships, prepare for the week ahead and sway to the steel drums while taking in the water views and

award-winning cuisine at Smith & Wollensky Miami Beach.

FCCA Masquerade by the Sea then started Seatrade with a bang, gathering more than 200 at Vibe Las Olas on Tuesday, March 15. Following the first long day of meetings and workshops, the event let Platinum Members and guests loosen their ties and enjoy casual networking opportunities with some of the cruise industrys most important decision makers.

The FCCAs opening event for Cruise Shipping Miami gave a unique chance to interact with the cruise industry, said Arison, who attended the event with Arnold Donald, CEO of Carnival Corporation, and Stein Kruse, president and CEO of Holland America Group. Building relationships with the industrys decision makers is essential for successful operations and dealings, and the FCCA and its events always offer that.

More of these key playersincluding Arison, Goldstein; Karl Holz, president, Disney Cruise Line; Richard Sasso, president & CEO, MSC Cruises (USA) Inc.; and Andy Stuart, president & COO, Norwegian Cruise


:::: MEETINGS AND EVENTS

Linehosted tables at the FCCAs keynote Seatrade event, the 22nd annual FCCA Gala Dinner and Entertainment Extravaganza.

Taking place on Wednesday, March 15, the Gala joined more than 400 attendees looking to improve their cruise tourism business. After a 90-minute reception and silent art auction with the entire audience, attendees sat down with their pre-selected cruise executive for a private dinner with a side of product promotion, relationship building and business development.

The FCCA Gala facilitated networking between Member Line executives and cruise tourism stakeholders, while contributing to a good causethe FCCA Foundation, told Michele Paige, president of the FCCA. Of course it is crucial to link anyone doing business in the cruise industry with deci-sion makers from the cruise lines, which is the best way to build understanding and business relationships, but even better is benefitting the citizens from Latin America and the Caribbean.

All proceeds benefitted the FCCA Foundation, a non-profit, charitable organi-zation that funds humanitarian causes in the Caribbean and Latin America, from disaster relief and supporting hospitals and orphanages to annual projects like children essay and post-er competitions and the Holiday Gift Project, which gave more than 8,000 underprivileged

children something to celebrate last December by delivering presents, festivities and smiles.

Both the Gala and FCCA Foundations efforts were possible because of Port Everglades, the Featured Event Sponsor; Canaveral Port Authority, the Partner Sponsor; Bahamas Junkanoo Carnival, the Reception Sponsor; and Park West Gallery, whose contribution and assistance gave the silent art auction a voice.

The FCCAs Seatrade booth also hosted networking events. In addition to serving as a one-stop shop for Seatrade attendees looking to learn more about the FCCA, the both helped fulfill another goal of the FCCA, promoting partner destinations and companies, while bringing together Platinum Members and Member Line representatives in a private atmosphere.

Plus, the booth hosted a series of meetings

taking place between FCCA Member Line executives and destinations private and public sectors, including a meeting between FCCA Member Line CEOs and FCCA partner destinations ministers of tourism.

Our meetings and events made it possible for our partners to optimize the cruise executives gathered for Seatrade Cruise Global, said Paige. We pride ourselves in bringing executives and stakeholders together to discuss crucial operational issues and develop relationships that pave the way for future business and mutual success.

Indeed, this years Seatrade Cruise Global again benefited participants with its success-proven formula combined with new features and a new location, but the FCCA offered backstage passes to meet the real rock starskey decision makers from Member Lines.

Building relationships with the industrys decision makers is essential for successful operations and dealings, and the FCCA and its events always offer that. Micky Arison, Chairman, Carnival Corporation & plc and the FCCA


The Twenty-Second Annual Gala Dinner Extravaganza




Cruise Line CEOs Tell Innovation, Differentiation and Destinations Will Continue the Industrys Meteoric Growth

The State of the Industry set the stage for Seatrade Cruise Globals agenda chockfull of workshops, panels, exhibit-ing, networking opportuni-ties and more at the Broward County Convention Center. But most importantly for the auditorium packed with cruise tourism stakeholders, it gave a glimpse of the futurealong with a look to the past, an idea of the current growth and input about how it all applies to attend-eesfrom presidents, chairmen and CEOs of the worlds largest cruise lines.

Cindy DAoust, president and CEO of CLIA, first gave some of the global numbers and trends. After praising expanded partnerships

with Seatrade, leading to participation in more events, and the FCCA to produce this magazine, the official global publication of the cruise industry, she touched on the $119.9 billion of economic impact and 1 million jobs in 2014; the industrys unparalleled safety and environmental record; and surging demand for cruising leading to a record 23 million cruise passengers in 2015.

But 2016 shows no sign of slowing down, she said and pointed to the forecast of 24 million passengers, largely thanks to the globalization and growth of markets like Australia and China, the continued strength in North America, and cruisings unmatched ability to personalize its experiences for all types of travelers. Moving further to the future, she

told, the possibilities for the cruise industry are endless if we work togetheradapt to new business and consumer demandsand continue to innovate.

These same trends and seemingly impressive numbers also fell on the radar of the roundtable discussion. Moderated by Peter Greenbergtravel editor of CBS, Emmy-award winning investigative reporter and the travel detectivethe panel included Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings; Arnold Donald, president and CEO of Carnival Corporation; Richard Fain, chairman and CEO of Royal Caribbean Cruises; and Pierfrancisco Vago, chairman of MSC Cruises.

Greenberg first focused on the record 23


The purpose of cruising is still to go to new and different places and experience [them].

Richard Fain, Chairman & CEO, Royal Caribbean Cruises Ltd.

million passengers in 2015a small fraction of the more than 1.2 billion that crossed an international border. But that small fraction represents staggering, unparalleled growth, with bookings up significantly year over year and shipyards full with orders of new vessels. He credited the cruise industrys innovation for part of this growth and asked the panel for their thoughts and examples.

Obviously innovation is something very important to us, told Fain, with the implied series of at-sea firsts like rock climbing and skydiving. But Fain touched on the important distinction between innovation and creativity: Creativity is coming up with great ideas. Innovation is bringing great ideas to life.

He also gave an example of how those great ideas do not always translate, like the originally planned grassy rolling hills onboard the Oasis-class, which after unsuccessfully testing models at FIU, turned into Central Parks nooks and crannies and numerous offerings.

And when they do translate, they give a whole new definition to cruising. Though shocking, considering cruisings growth and increased maturity, he told that the industry still needs to battle peoples misconceptions about cruising, and innovations help that. After an example of a belief that cruising is sedentary, he asked, So how do you argue that cruising is sedentary when you can go surfing, and you can go ice skating?

It says something about who we are as an industry, so it really helps redefine us, he continued.

To innovate, you have to think outside the box, and you have to think differently, said Donald. We listen to the guests because you want diversity of thinking to create the innovation.

He also drew a similar distinction: Innovation for usis actually how you convert that difference in thinking to what in the end is an experience. So its all about experience; to exceed guests expectationsto have a memorable, deep, emotional

experience. And he reminded that those experiences and expectations vary between cruise brands, from the ultra-luxury Seabourn to the contemporary, social Carnival.

To me innovation is first understanding your customer, and second it has to be something that differentiates your product enough that customers are willing to pay for it, told Del Rio. There has to be a balance betweeninnovation for the sake of innovation and innovation that has a return.

He also highlighted one of the key features of the innovation: the innovation is driven by the drive to seek yield. With new vessels limited to how quickly shipyards can build (a capped industry growth rate of around six percent) and a new vessel only adding a percentage point or two of capacity for large cruise lines, innovation is the only way to drive yield.

Nobody wants to only grow six percent; thats just not good enough, told Donald, agreeing with the need for innovation and fleet refurbishments driving higher yields.

Of course, it also helps that chasing higher prices by teaching old dogs new tricks saves $800 million of debt and waiting six years. Therefore theres going to be a greater emphasis to maintain existing fleets, told Del Rio after mentioning that the companys smallest, oldest ship commands the highest yield, along with the companys $500 million of planned vessel upgrades over the next two years.

However, Del Rio reminded of other benefits of newbuilds. You need new vessels to enter new markets, he said, reaffirming the industrys growth and increased demand, and giving the example of Norwegian Joy, the lines newest ship that is being custom-built for the lines newest market, marking its entry into China.

Innovation is my second name, told Vago. Calling MSC the new kid on the block, he stressed the importance it places on constantly reinventing, especially in the light of growing more global. This reinvention can

be seen in the four different ship prototypes developed in the last 10 years, along with features like the highest ratio of public spaces and servers descending from the ceiling to serve wine before disappearing into the fog above. Innovation is about delivering an experience you could never have at home.

He also touched on MSCs differentiation as a European product adapting to markets like the Caribbean, with a recent North American push including a dedicated berth at PortMiami and an extensive island development in The Bahamas, Ocean Cay Marine Reserve. A lot of Europeans come back to the Caribbean, so the Caribbean is very important, he told, while reminding that many North American cruisers want to embrace the European feel.

With all the onboard innovation, many, including Greenberg, have referred to a cruise ship as a destination in and of itself, but its not a destination by itself, declared Fain. The purpose of cruising is still to go to new and different places and experience [them], but to do so in conjunctionI would say theyre symbiotic, so you want to go to new places, but you also want wonderful experiences onboard.

The symbiotic destinations also received plenty focus from the panel, with the rise of markets like China and the potential of new destinations like Cuba.

Donald referenced Chinas 135 million




outbound tourists in 2015, the largest outbound tourist nation in the world. So we have six shipswere infinitesimal in China. Though he predicted that the cruise industry in China could eventually be as large as the current overall industry, he reinforced the growth restraints. Plus, that restraint also applies to cruise lines deployment strategies. Were not just going to take our other 95 percent [and move them to China]so the reality is we can only grow so quickly there.

The panel also discussed Cuba, reminding that it already thrives as a tourism destination, currently Canadas number one tourism destination, and even a cruise destination, with a cruise pier in Havana, and multiple locations that can support small ships.

Today Havana is ready to take our ships, told Del Rio.

But Vago, who has MSC Opera homeported in Havana, told, Cuba is very complex between port and operations, stressing the constant work necessary with the authorities and hope that their current operations have sent the message that Cuba needs to do something about infrastructure.

Fain agreed that the current infrastructure will not support 5,000-6,000 passengers, and it doesnt need to. He argued even in its limited capacity, Cuba will have a large impact

on both the cruise industry and the Caribbean. My view is that Cuba has already been

a benefitin terms of size, its not going to divert much traffic from other places because it simply doesnt have the capability of handling that many ships, but what it will dois create a halo of interest, and as people start to go and talk about Cubait will raise the Caribbean in total.

Donald agreed that Cuba would just be one of many port calls for the ships that go there, and Fain echoed one of many, and it adds two percent or five percent of the supply of places to go, and it will add 10 or 20 percent to demand of cruisingI think its a great opportunity for the Caribbean.

Its going to be a slow, rolling start, said Del Rio after telling Cubas capacity was currently capped at one medium-sized ship, or about 2,000 passengers. So the Caribbean doesnt have to worry, he said before citing the new regulation allowing cruises beginning in the United States to visit other destinations after calling Cuba. It will shine a bright light on the overall areathe Western Caribbean will get a jump. Places like Jamaica, Grand Cayman [and] Mexico will benefit from all of this.

Cubas a great refresher for the Caribbean, said Donald. Its taking Europeans there now,

but theres pent-up demand here in the US. Itll help all brands. Itll help all the rest of the Caribbean islands, he continued and mentioned Cubas draw for people who already traveled to the Caribbean to want to return. So its going to be a great, expansive thing.

New destinations and further market penetration were music to Vagos ears. 24 million is nothing, he said, stressing that the opportunity lies in the untapped potential of a population more than 8 billion, along with the ability for cruisings rapid ascents in underserved markets, like European cruising increasing 50 percent over the last five years, with land-based tourism remaining flat. So I think the opportunity is thereand its a sustainable industry.

We listen to the guests because you want diversity of thinking to create the innovation.Arnold Donald, President & CEO, Carnival Corporation & plc

the opportunity is thereand its a sustainable industry. Pierfrancisco Vago, Chairman, MSC Cruises

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28 | Second Quarter 2016 | Travel & Cruise28 | Second Quarter 2016 | Travel & Cruise


Making the Most of Meetings at Sea

Combining business and plea-surewith a dash of once-in-a-lifetime experiencesis the hallmark of a successful meeting or corporate event.Meetings and events at sea offer unique adventure and excitement with exotic destinations, a variety of entertainment and dining options and vessels to suit any groups purpose and personality.

While nearly 70 percent of Americans have cruising on their bucket list, only about 20 percent have actually cruised. That makes meetings and events at sea an exciting, buzz-worthy experience for attendees, especially as incentive travel.

TURN-KEY MEETINGS FOR EVERY ORGANIZATIONLand-based meetings are often built from the ground up, with the meeting planner setting

a program of entertainment, dining and diversions, while also creating an inviting and functional meeting space.

With cruise-based meetings, existing activities, venues and options can be utilized, offering fewer action items and greater control for the planner. Plus, the full complement of onboard activities ensures that guests dont feel a need to venture off on their own (as they are highly likely to do at a land-based venue), creating a more cohesive and engaged group and a more productive meeting.

From intimate river cruise vessels to large, well-appointed oceangoing cruise ships, meeting planners can select the type of cruise, duration, destination and activities that suit their customers personality and goals.

THE BEST OF LAND AND SEAMeetings and events at sea offer the best of all worlds on boardtop-tier facilities,

high-quality entertainment and fine dining, with captivating shore excursions available at exotic ports of call. With cruises available in every corner of the world, breathtaking destinations are easily accessible by means of the convenient and comfortable travel afforded by a cruise ship.

MAKING SENSE FOR YOUR DOLLARSA cruise ship is the ideal venue for meetings and events, especially for those with tight budgets or who wish to add a bit of sizzle without breaking the bank.

Meeting planners can realize significant savings in food and beverage, audiovisual equipment and support, meeting space, entertainment and ground transportation, all by capitalizing on existing inclusions and equipment on a cruise ship.

Planners have the option of chartering an entire vessel, buying out all the rooms and service or overlaying their programming

Second Quarter 2016 | Travel & Cruise | 29Second Quarter 2016 | Travel & Cruise | 29


MYTH BUSTING: MEETINGS AT SEAMYTH: Its a lot more work to plan a meeting at sea.TRUTH: Cruise lines plan a full schedule of activities and events, entertainment and dining options for thousands of guests each day. Meeting planners have a readymade resource for full programming, meals and entertainmentplanners can simply add their agenda to the ships existing schedule for a simple, turnkey event.

MYTH: A cruise meeting will bust my budget.TRUTH: Generally, the budget for a five-day, land-based event would be sufficient for a seven-day cruise meeting, says Jo Kling (MPI South Florida Chapter), president of Landry & Kling. Pricing is set up-front, so there are no surprises. A meeting on a cruise ship means significant savings in ground transportation, entertainment, audiovisual, meeting space and F&B costs.

MYTH: Were not really a buffet kind of crowd.TRUTH: Todays cruises offer a wide variety of dining options, from gourmet and specialty restaurants to quiet cafes for a quick bite. Cruise ships provide the ultimate selection for any group.

MYTH: Guests arent interested in cruise meetings.TRUTH: Cruising is on most peoples bucket lists, making meetings and events at sea a tremendous draw. More than half of all organizations that plan a meeting at sea get such overwhelmingly positive feedback that they schedule a second meeting at sea within three years.

MYTH: My guests will feel bored on a cruise ship.TRUTH: Not so! Todays cruise ships are designed to offer myriad options for diverse interests, ages and activity levels. From skydiving simulators to yoga classes, world-class shopping and Broadway-caliber entertainment, theres something for everyone. Plus, ports-of-call excursions offer guests a break from meetings or training.

MYTH: It is difficult to get speakers on a cruise ship.TRUTH: There is no less flexibility with returning a speaker home on board a cruise ship than there is with a land-based venue. In fact, a cruise venue is more likely to appeal to a speaker in terms of remaining on the vessel, sometimes with the speakers family included. The speaker can disembark at the next port of call.

Reprinted with permission from the 2015 Guide to Meetings & Events at Sea, a publication of Meeting Professionals International.

onto an existing cruise. Costs are confirmed well in advance of departure, preventing budget creep and allowing for consistency. For major events, such as the Super Bowl or trade shows, vessels can be docked alongside ports, functioning as a floating hotel during periods of high demand.

LIVING THE GOOD LIFECruising affords planners the opportunity to provide highly appealing options to their attendees while leaving the vast majority of programming and execution to the onboard cruise ship event staff.

Cruise ships offer a wide variety of dining options, from fine-dining specialty restaurants with visiting chefs to quaint, romantic cafes. For evening entertainment, attendees can choose from myriad options, including comedy clubs, Broadway-caliber theater productions, outdoor movies on a big screen, lively nightclubs and intimate jazz lounges.

Additional onboard amenities offer once-in-a-lifetime experiences such as skydiving in a vertical wind tunnel, hanging ten on a FlowRider surfing machine, cooking like an expert chef at a hands-on culinary demonstration and trying a hand at ice sculpting. In fact, options like these make cruising a great opportunity for attendees to bring the whole family. From childcare options to programming that appeals to every age group and interest level, meetings and events at sea are a smart choice for todays meeting planners.


RESEARCH AND FINDINGS ::::

Boomers (5068 years of age), Millennials have overtaken their older counterparts in both taking cruises (18% have done so during the past 12 months) and interested in taking one during the next two years (66%). This is particularly noteworthy, and encouraging, as Millennials represent the largest generational cohort of active travelers today.

Half of traveling grandparents (54%) are

interested in taking a cruise during the next two years. This underscores the considerable potential that exists to market cruise vacations to multi-generational families (grandparents, parents and grandchildren) and represents a market segment from which demand is destined to continue to grow in the future because the median age of the US population is rising (hence, more adults will soon find themselves among the ranks of grandparents).

Cruising also appears to be a particularly

attractive Celebration Vacation, or one that is motivated by the achievement of an important life event. The latter includes such things as marriage, college graduation, retirement, or a milestone birthday or anniversary (one divisible by five, such as a 25th wedding anniversary). This is also an important insight because Celebration Vacations typically are planned much further ahead, are longer in duration, include more participants and are exempt from many traditional budgetary constraints. Translation: those who take them typically spend more.

Over a third (36%) of travelers who are

interested in taking a cruise during the next two years plan to use the services of a traditional travel agent to make the arrangements, and almost a quarter (22%) generally book cruises through a traditional travel agent.

The evolving media habits of prospective

cruisers reaffirm the importance of funding advertising schedules that include both offline (television) and online (web and social) components, as each plays an important role in moving prospective cruisers from inspiration to booking. And as noted in the survey results, the aggregate average time

The results of the brand-new MMGY Global 2016 Portrait of American Travelers reveal that the global cruise industry is about to enjoy unprecedent-ed growth in demand from US leisure travelers, despite lingering con-cerns about discretionary spending in the aftermath of the recession and anxiety about the perceived safety of travel. In fact, pro-spective demand for cruise vacations should drive the industrys embarkation numbers from the US to record levels during the next two years.

HERES WHY:

12% of active US leisure travelers (those who took at least one overnight trip primarily for leisure purposes during the past 12 months) took at least one cruise vacation last year (by way of comparison, 18% took a theme park vacation, and 11% took a vacation to an all-inclusive resort). Fully 56% of active US leisure travelers express interest in taking a cruise vacation during the next two years, however, suggesting there is considerable potential demand to be cultivatedand converted.

Although cruising has traditionally been

viewed as a preferred vacation alternative for mature travelers (age, not behavior!) and

CRUISING INTO THE FUTUREBy Peter C. Yesawich, Ph.D., Vice Chairman Emeritus of MMGY Global

:::: RESEARCH AND FINDINGS

adults who are interested in cruising now spend online daily (for all purposes) exceeds the average amount of time they spend watching television.

Exposure in social media will play an

increasingly important role in cultivating future demand from leisure travelers who are interested in a future cruise vacation, as over half (56%) visit online communities and blogs seeking information about destinations and travel service providers, and six out of ten (62%) of travelers interested in taking a cruise that consult online reviews trust the reviews posted by other travelers more so than the product and experience reviews authored by institutional sources.

So, all in all, it appears the near-term itinerary for the cruise industry calls for smooth sailing.

For more actionable insights from the MMGY Global Portrait of American Travelers, or subscription information, please visit mmgyglobal.com.


RESEARCH AND FINDINGS ::::

Cruise travel is becoming the vacation of choice around the world, quickly outpac-ing leisure or land-based travel. In fact, from 2004 to 2014, global cruise vaca-tions have grown faster in popularity than global land-based vacations by a 20 percent margin, according to the United Nations World Tourism Organization (UNWTO) Annual Report 2014.

And the industry shows no signs of slowing down. In 2016, 24 million passengers are expected to sail, up from the record 23 million in 2015, according to Cruise Lines International Associations (CLIA) 2016 State of the Industry Outlook. Travel agents are also predicting a higher demand for cruise travel, with eight out of 10 CLIA Travel Agent Members stating that they are expecting an increase in cruise sales in 2016 over last year.

Cruise lines are constantly updating their offerings and providing almost unlimited itinerary options for travelers, so it comes as no surprise that cruise travel is outpacing alternative vacation experiences, said Cindy DAoust, president and CEO of CLIA. A cruise vacation delivers amazing experiences in locations around the world at a tremendous value.

From the ease of travel to expanded destinations, here are the top 10 reasons why cruise vacations are on the rise:

CRUISE VACATION VARIETY: Over the past 15 years, cruise vacation options have continued to evolve, and today there is a cruise for every kind of traveler. Ranging from family cruises complete with kid-friendly brand experiences to high-end pampering at world-class spas, theres a cruise experience for every travel desire.BEST BANG FOR YOUR BUCK: Cruise travelers state the Return on Experience offered by a cruise vacation is better than other vacation options. In addition to meals, accommodations and on-board activities that are typically included in the price, cruises also allow travelers to see multiple destinations in one trip and for one cost.

ON THE RIVER AND BEYOND: River cruising is experiencing a big boost in cruise popularity and allows travelers to reach intimate, inland destinations that were never thought possible.

A TAILORED TRIP: Cruises offer each traveler the chance to customize a trip specifically to personal travel preferences.

Whether travelers are hoping to relax by the pool or explore ancient ruins, theres a cruise and itinerary available.

CRUISE TO EVERY CORNER OF THE WORLD: Cruising not only allows travelers see and travel to multiple destinations, but also makes touring foreign countries accessible and less intimidating. A cruise can take travelers to foreign lands without the worry of navigating airports, restaurants or tourist sites.

NEVER A DULL MOMENT: Many cruise lines offer a variety of onboard activities to keep travelers entertained, day or night, as they travel from port to port. From simulated surfing and sky diving to wine and chocolate tastings, the offerings are diverse and abundant.

MULTI-GENERATIONAL CRUISING: Its hard to please everyone when it comes to vacationing, but cruising is designed to appeal to every age, from toddlers to seniors. From family reunions to the family vacation of a lifetime, cruise experiences are the perfect multigenerational travel solution.

STAYING CONNECTED AT SEA: While many like the appeal of being disconnected while on vacation, there are those that want or need to be connected while at sea. Todays cruises offer a myriad of Wi-Fi, onboard texting and data options.

A HEALTHIER VACATION: With a growing emphasis on health and well-being, cruising offers a wide variety of health benefits. From the purity of ocean air to onboard fitness options, theres a way for everyone to stay healthy in both mind and body while on a cruise.

UNPACK ONCE TO SEE THE WORLD: Cruising gives travelers the chance to see, do and experience all areas of the world. While one can pack as little or as much into their trip as theyd like, their suitcase only needs to be unpacked once.

Why Cruise Travel Is Outpacing General Leisure Travel


:::: RESEARCH AND FINDINGS


ENVIRONMENTAL & REGULATORY PRACTICES ::::

The Cruise Industry Charitable Foundation: Agent of Change

C ruise lines are committed to giving back to local communities all over the world, and the Cruise Industry Charitable Foundation (CICF) is one example. Founded in 1998, CICF was established to enhance the cruise industrys charitable contributions in communities where the industry does business through educational assistance and training programs, environmental preserva-tion initiatives, civic and community devel-opment, and public health programs.

A special focus area for CICF includes educational and training programs that have been designed to improve literacy, promote good citizenship and public service, as well as teaching basic life skills. Increasing reading, math and science proficiencies are another component. Particular attention is given to disadvantaged children and low income communities.

When it comes to educational assistance and training programs, one long-standing relationship CICF has built is with the Washington Workshops Foundation, because it embodies all of CICFs goals. Founded in 1967, this private, nonprofit, nonpartisan education foundation annually presents topical leadership seminars in

Washington, D.C. for high school, junior high and elementary school students from across the U.S. and the international community.

Since 1998, CICF has sponsored Washington Workshops Foundations Democracy in Action seminar, which brings students to Washington, D.C. for a week. The seminar offers students a broad range of educational experiences to learn about the federal government, centered around research and preparation for a Model Congress on the final day. Students experience an action-packed meeting with their senators and representatives.

The Cruise Industry Charitable Foundation plays an integral part in helping us carry out our mission of providing valuable experiential education programs for students and empowering future leaders, said Tom Crossan, Executive Director of the Washington Workshops Foundation. The generous support from CICF creates incredible opportunities for Americas youth to visit their nations Capital and gain a greater understanding of U.S. government, politics, policy making and the importance of being engaged and informed citizens in our democracy. The Democracy in Action program offers an unparalleled window to opportunities our students werent aware of

before this experience. Our many thanks to CICF for their generous support and commitment to Americans youth.

CICF also focuses on organizations and programs designed to promote environmental awareness and public education. CICF partners with the National Marine Sanctuary Foundation and sponsors their yearly gala during Capitol Hill Ocean Week. The National Marine Sanctuary Foundation (NMSF) is dedicated solely to supporting the national marine sanctuary system through education and research initiatives, public engagement and advocacy. Their mission is to enhance national marine sanctuaries and to ensure a healthy ocean.

Coinciding with World Oceans Day on June 8, the National Marine Sanctuary Foundation will host the Capitol Hill Ocean Week (CHOW) during June 7-9, 2016. It is the nations top Ocean Policy Conference. As a sponsor of CHOW, CICF is helping promote ocean conservation and awareness with policy makers and other stakeholders.

CICF is proud to support the National Marine Sanctuary Foundations Capitol Hill Ocean Week, said Michael McGarry, executive director, Cruise Industry Charitable Foundation. This event is an important way to give a voice to ocean conservation on Capitol Hill.


:::: ENVIRONMENTAL & REGULATORY PRACTICES

Congressional Cruise Caucus Continues Course for Smooth Sailing between the Cruise Industry and Policymakers

June marks the arrival of the Cruise Lines International Associations (CLIA) annual Congressional Cruise Caucus, where various cruise industry stakeholders gather to engage Washington D.C.s legislative and political leaders. Representing every facet of the cruise industry, CLIA, togeth-er with cruise line executives, Executive Partners and travel agency leaders, uses this opportunity to engage with elected officials. Educating them on the industry and advocating policies that allow for the preservation and continued growth of the U.S. cruise industry are a critical part of this caucus.

Although the Congressional Cruise Caucus is an important component of CLIAs advocacy efforts, CLIA engages with policymakers all year long. CLIAs Capitol Hill outreach has resulted in increased appreciation for and understanding of the cruise industry among lawmakers in both the U.S. House of Representatives and the U.S. Senate.

Lawmakers know that travel and tourism is essential to the American economy, and that cruising makes up a growing portion of the travel industry. In 2014 alone, the cruise industry contributed $46.09 billion to the United States economy. With half of global cruise passengers embarking from United States ports, millions of passengers will contribute billions of dollars to the local economies of those port communities.

The economic benefit of cruise travel extends to all 50 states and every congressional district. CLIA wants to ensure that lawmakers are aware of this information when considering legislative initiatives affecting the industry.

Although CLIA engages with national and international government agencies around the world, the Congressional Cruise Caucus focuses solely on the U.S. Congress. Policymakers continually

demonstrate how much they value the cruise industrys contributions by sharing their time to meet with CLIAs members. This years Congressional Cruise Caucus speaker lineup includes Senator Roger Wicker (R-MS), and last years appearances and speakers included Senator Dan Sullivan (R-AK), Senator Brian Schatz (D-HI), Representative Patrick Murphy (D-FL), Representative Carlos Curbelo (R-FL) and Representative Jeff Denham (R-CA).

Recently, legislators took an important additional step to recognize cruise travel professionals. By booking 70 percent of all cruise vacations, cruise travel professionals certainly have a tremendous impact on the cruise industry, and CLIA brought this impact to the attention of policy leaders. Last year with the encouragement of CLIA, legislation was introduced in the House of Representatives designating October as Cruise Travel Professional Month.

One of the authors of the resolution, Rep. Carlos Curbelo (R-FL), said, By designating the month of October as Cruise Travel Professional Month, we acknowledge the spirit, innovation, and creativity of those who work in the cruise industry, while also recognizing the safe and secure environment provided to all passengers and staff.

Government policies can impede or benefit the operations of cruise lines and stakeholders. Year-round engagement allows CLIA to educate lawmakers on the value of the cruise industry and the cruise travel experience. Policymakers can then make informed decisions when considering legislation with the potential to impact the cruise industry.

To help its diverse membership succeed, CLIA will remain focused on government policy proposals on Capitol Hill and around the world for the common interests of the wider cruise community.

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Date: August 10, 2015Project: CMU-1501-01 Proof number: REV2

Quarterly MagFormat: 8.37 x 10.87Bleed: 0.25

This year, immerse yourself in Martinican culture in our Cruise Village, experience our exciting excursions, and take in our spectacular natural landscapes. www.martiniquepro.org/cruise

If you are looking for something fresh, authentic, and unique in the Caribbean, you will find it all in Martinique! - Coralie

36 | Second Quarter 2016 | Travel & CruiseAida President Felix Eichhorn and Lauran Wetemans, General Manager LNG Development for Shell Sign Agreement

ENVIRONMENTAL & REGULATORY PRACTICES ::::

THE PORT OF SEATTLE presented Holland America Line with its sixth consecutive Green Gateway Award, given annually to cruise and commercial lines that call at the port and whose environmental efforts are deemed worthy of recognition.

Holland America Lines commitment to the environment is something were very proud of, and to be recognized for the sixth year by the Port of Seattle with a Green Gateway Award is a testament to our dedication and focus, said Orlando Ashford, Holland America Lines president. We are continuously seeking more ways to be an environmental steward and responsibly sail the worlds oceans. We are honored to earn these accolades in our hometown.

Holland America Line also received the Technology Innovator award for investing in its Seattle-based fleet that has resulted in year-over-year reductions in fuel use and resultant greenhouse gases. Port of Seattle also cited the cruise lines installation of IPCO Power Fuel Treatment systems that are designed to

enhance combustion, lower emissions, improve fuel economy, extend engine overhaul intervals and lower overall operating costs.

In previous years Holland America Line received the Green Gateway Award for its use of shore power, comprehensive practices to reduce emissions and its commitment to protecting the environment.

Holland America Line also was named the 2014 Marine Environmental Business of the Year by the Port of Seattle and the Seattle Propeller Club. The company was honored for its efforts to shrink its global environmental footprint through a series of objectives that reduce consumption of fuel and water, engine emissions and generation of solid waste.

Holland America Lines ships meet or exceed all provisions of the international regulations governing the environmental management of marine operations. But the company aims for superior environmental performance while operating responsibly via a practices to reduce pollution through strong

policies, effective procedures, innovative technology, best practices and consistent training of employees.

Holland America Line is among the pioneers in the maritime industry in investing in technology to reduce engine emissions while a ship is at berth. Six of the 15 Holland America Line ships ms Amsterdam, ms Veendam, ms Noordam, ms Zuiderdam, ms Oosterdam and ms Westerdam use shore power at the ports of Seattle, San Diego, Halifax and Vancouver.

In addition to the Green Gateway Award, the company also received the 2014 Blue Circle Award from Port Metro Vancouver for the fifth consecutive year and the 2012 Rear Admiral William M. Benkert Environmental Protection Award from the U.S. Coast Guard for its commitment to the environment. Holland America Line was named among the 2016 Worlds Most Ethical Companies by Ethisphere Institute for the fifth consecutive year for its commitment to high ethical standards.

Holland America Line Receives Sixth Consecutive Green Gateway Award from Port of Seattle for Environmental Stewardship

ON AIDAprimas FIRST docking in Rotterdam on April 19, AIDA Cruises and Shell sealed their partnership for the future supply of liquefied natural gas (LNG) to AIDAprima and her sister ship, AIDAperla. AIDAprima is the worlds first cruise ship that can be operated in port with the environmentally-friendly LNG, leading to a major reduction in emissions when docked. As the exclusive strategic partner of AIDA Cruises, Shell will supply the LNG at all ports for low-emission ship operation.

We believe in LNG as being the cleanest fossil fuel, said Felix Eichhorn, president, AIDA Cruises. In Shell, we have a strong global partner who will forge a new path with us in establishing LNG within the maritime industry. With the supply of

LNG to AIDAprima when she is docked, we are setting a clear trend in terms of environmental and climate protection.

In all ports along the Metropolitan route, AIDAprima can be operated with LNG while docked at port. The preparations and initial permit procedures for the ports of Hamburg, Southampton, Le Havre, Rotterdam and Zeebrugge are already well underway. LNG trucks will ensure the supply of LNG to AIDAprima.

In contrast to the use of traditional marine diesel containing 0.1% sulfur, emissions will be significantly reduced when using LNG. The emission of sulfur oxide and soot particles will be completely prevented, and nitrogen oxide emissions will be reduced by up to 80 percent, and carbon di

Travel and Cruise 2nd Qtr. 2016

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