In the wake of the Covid era, consumers have become increasingly comfortable with online shopping, a trend that has extended to the cruise industry. The ease and convenience of online sales and DIY bookings have contributed to a significant surge in direct sales during this pandemic era. As someone who has personally seen the influx of Amazon boxes piled up in recent years, I can attest to this shift in consumer behavior.
Direct sales have raised concern and sensitivity among travel advisors and cruise lines alike. This ongoing battle between direct sales and traditional travel advisor bookings is a perennial issue in the industry. Janet Bava, Chief Commercial Officer for Windstar Cruises, emphasized the importance of maintaining relationships with travel advisors who play a crucial role in selling to clients. The competition between direct-to-consumer channels and travel advisors has led to a fluctuating trend line in trade-booking share.
According to a 2023 report from Phocuswright, travel advisors made up about 70% of bookings in 2019 but saw their share drop to 52% in 2021. However, the dominance of the advisor channel is expected to rebound to pre-pandemic levels by 2025. The Royal Caribbean Group has seen success with direct-to-consumer channels, attributing it to consumer preference for digital engagement. CEO Jason Liberty emphasized the importance of providing a seamless purchasing experience across all channels, whether through websites, apps, or call centers.
While direct bookings have their appeal, travel partners continue to play a significant role in driving bookings to cruise companies. Carnival Corp. CEO Josh Weinstein noted that younger cruisers, many of whom are new to cruising, are more inclined to book directly online. However, trade partners remain crucial in attracting new customers to the cruise brands. Weinstein acknowledged the importance of trade partners in driving new-to-cruise bookings and providing guests with tailored experiences.
The cruise industry is experiencing a shift towards direct sales, driven by consumer preferences for online bookings and digital engagement. While travel advisors continue to be a vital part of the booking process, cruise lines are adapting to meet the changing demands of customers. Finding the right balance between direct sales and traditional travel advisor bookings remains a challenge, but ultimately, providing a seamless and frictionless booking experience for customers is key to success in the evolving landscape of cruise bookings.
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