Industry sails just out of reach of economic storm

DOOM and gloom have become a part of our economic fabric. So how come the cruise business is booming?

Some observers say the cruise industry is recessionproof. That might be stretching things — after all, anyone paying in rands for a dollar-denominated holiday is probably going to think twice.

Yet, the industry has shown an enviable resilience to the troubles of the global economy. That’s partly due to cruise lines taking a long view — building new ships takes years — but also because the market continues to grow as travellers seek value for money in tough economic times.

“It has been a struggle here,” said Ian Mathews, sales and marketing manager of local cruise agency Triton Cape Sea Travel, which represents lines such as NCL and “traditional” cruise line Fred Olsen. “We were quoting fares based on R15.50 to the dollar, then R17. But it’s getting easier now.”

One of cruising’s great benefits is its attractiveness for families. Ships offer lots of entertainment to keep kids and their parents occupied. There are also daycare centres and kids’ clubs when the folks want to be alone.

“It’s a safety thing too,” said Mathews. “Your kid is always somewhere on the ship.”

Cruising offered a hasslefree way of travel, said Cruises International MD George Argyropoulos. “Every morning you’re in a different port or some exotic destination but you have your cabin and fresh water. The ship is doing all the work.”

Still, cruise companies have had to be adept, wooing customers with big discounts or attractive packages.

MSC Cruises lets kids travel free if they share a family cabin with their parents, while other lines offer huge discounts on drinks and dining packages.

Specials offered by Royal Caribbean and Celebrity include fully inclusive flycruise packages ranging from R22 000 to R25 000 per person, while Crystal Cruises offers a R15 000 exchange rate “cash back” to customers.

Cruise companies also had the distinct advantage of being able to move their ships around the world, allowing customers to be sourced from different markets, said Imagine Cruising development director Peter Shanks.

“That is an advantage both in terms of balancing different economic demands and in adapting to security concerns in different regions at different times,” he said. “So this summer will see fewer Americans cruising to the eastern Med [and] the cruise lines have adapted their pricing and marketing to drive more demand from UK and the rest of Europe to offset the expected decline in US customers.”

In local waters, MSC’s popular coastal voyages and three-day trips to Inhaca and Maputo have proved the case. Packages are priced in rands rather than dollars and compete with other holidays.

MSC had only one ship in South African waters this season but occupancy rates had been 99%, said sales and marketing director Allan Foggitt.

“As the economy comes under more strain, we become more attractive as an exciting local holiday — but with an international flavour.”

The line has also noted spectacular growth from the emerging black middle class, so much so that plans are afoot to bring a bigger ship — 3 200 berths as opposed to 2 679 — to South Africa next season. —