80% growth in cruise biz

According to Richa Goyal, Director-Group Business Development, Stic Travel Group, the company witnessed 80% growth in its business in the cruise segment.

Talking about how the segment has evolved in the Indian market and is adding value to business of travel, Goyal says, "When an agent books airline tickets or hotels or transport for their client, the commission is often fragmented. Very often, in order to be competitive, agents are only able to keep margins on one or two categories. For example, they may keep no margin on ticket but keep margins on the hotel bookings. A cruise is an 'all inclusive' product, which within a single price provides the client transport from port to port, accommodation, meals, entertainment, etc. The travel agent will typically make at least seven to 15 per cent as commission on the total cruise price. This provides a travel agent with significantly better yields and incremental revenue on aspects of the holiday such as entertainment, meals that in the 'luxury FIT' segment would be challenging for the agent."

Regarding new products unveiled in the Indian market, she informs, “Holland America line has made a historical announcement of allowing name changes till 10 days prior to departure without any charges. This has been something we have been lobbying for a long time and will give great flexibility to our travel agent clients, especial

ly in cases

The biggest challenge is educate the agents and their clients on how to discern one cruise brand from another and one Alaska or Europe itinerary from another. Clients and agents tend to look at only the headline, such as Seven-Day Alaska Cruise for X-amount. But why one cruise line charges USD 50 or USD 100 more is something that both agents and clients do not try to understand. A lot of times a client does not mind paying slightly more provided he/she understands the reasons behind it or the value that is being offered, Goyal adds.