Journal of Vacation Marketing

Volume 8 Number 3

The North American cruise market and Australian tourism Allan R. Miller and William F. Grazer Received (in revised form): 15th February, 2002 Anonymously refereed paper Towson University, Marketing Department, 8000 York Road, Towson, MD 21252, USA Tel: +1 410 704 2412; Fax: +1 410 704 3772; E-mail: [email protected]

Dr Allan R. Miller received his doctorate in marketing from the University of Tennessee at Knoxville. He is a certified travel counsellor (CTC), master cruise counsellor (MCC), certified niche specialist (CNS) and a certified Australia specialist. He has published articles on travel and tourism marketing and is an associate professor of marketing at Towson University, where he teaches travel and tourism marketing. Dr William F. Grazer received his doctorate in marketing from the University of Maryland at College Park. His specialities are in marketing research and advertising where he has published extensively. He is a professor of marketing at Towson University, where he teaches buyer behaviour analysis, marketing research and advertising.

ABSTRACT KEYWORDS: America

cruise,

Australia,

North

The purpose of this paper is to propose new itineraries in Australia for cruise companies that market to North American passengers. The current status of the North American cruise market is explored to include discussions of the cruise lines, cruise ships, relevant passenger characteristics and specific market segments. The industry is strong and recovering from the events of 11th September, 2001. However, cruise lines have deployed their ships from Middle Eastern destinations into the Caribbean and Alaskan markets, which have become saturated. New itineraries and destinations have to be developed.

Three recommendations are made for new Australian cruise itineraries. These recommendations are proffered with a discussion of the status of cruising in Australia.

INTRODUCTION Cruising is the fastest-growing segment of the North American tourism market, with an annual growth of 8.4 per cent since 1980. In 1980, there were 1,431,000 North American cruise passengers. This number had grown to 6,882,000 by 2000.1 The North American cruise market will continue to grow, as indicated in a Cruise Lines International Association (CLIA) survey. The CLIA survey shows that 68,840,000 individuals are interested in cruising in the next five years. Of these, 43.5 million people indicated that they will ‘definitely’ or ‘probably’ cruise in these next five years.2 However, three problems exist. First, the cruise industry has built new and bigger ships holding over 3,000 passengers. The number and size of these ships have taxed the capacities of the traditional Caribbean and Alaskan ports. Second, repeat cruise passengers are looking for new and exotic locations. Cruise lines are developing new itineraries to meet the demand. Third, prior to the events of 11th September, 2001, cruises to Europe, the Mediterranean and the Holy Land were increasing in number rapidly. South American, Asian and South Pacific itineraries have also been developed. This growth in the cruise market represents a significant

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potential for Australian tourism. A pre- or post-cruise land vacation can be sold in conjunction with cruises to Australia. Sydney, Perth, Melbourne, Cairns and Brisbane can act as major ports of entry and/or exit. These combination cruise/land packages represent a saving to the passenger as the air fare has already been paid for as part of the cruise. Australian cruises, such as the Great Barrier Reef cruise, can be utilised to attract both cruise and non-cruise individuals because of their convenience. Australia is rated as a safe destination by North American tourists.3 Consequently, an Australian cruise is a relatively safe vacation to an exotic area. It is also a convenient vacation as food, entertainment and transportation are included in the package. Shore excursions (cattle stations, wildlife parks, the Great Barrier Reef, Ayers Rock, the Sydney Opera House etc) and other travel are arranged for in a safe, convenient environment.4 The cruise also represents a method by which to introduce the passengers to the wonders and benefits of visiting Australia. North Americans have always rated Australia high on the list of places they would like to visit. Cruises are an excellent manner by which to attract tourists. Satisfied cruise tourists are likely to tell others, which increases the propensity for new cruise tourists as well as repeat tourists to extend or add an Australian land vacation. In this paper, the nature and structure of the North American cruise industry will be examined. This will include a discussion of the number of consumers, types of consumers and various market segments. The structure of the cruise industry will be examined, including the number and size of ships and the growth of the major cruise lines. Recommendations for new Australian cruise itineraries will be made and the resulting impact on Australian tourism will be developed. This will include a discussion regarding the status of cruises in Australia. METHODOLOGY For this study, the relevant travel and cruise literature was reviewed along with websites,

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e-mails, travel organisations, cruise lines, cruise line brochures and Australian tourism organisations. Personal interviews were also conducted with tourism officials, travel agents, Australian travel specialists, cruise counsellors, certified travel counsellors and some cruise line executives, who wished to remain anonymous. OBJECTIVES The objective of the study is to recommend new cruise itineraries in Australia for the North American cruise market. Currently, cruise ships have been redeployed from parts of Europe and the Middle East to the Caribbean and Alaskan waters. This results in a saturation of these ports. New, exotic destinations are required to reduce the overcrowding and to attract repeat passengers who desire different destinations. Australia is considered an exotic destination and is often overlooked by North American tourists. If an itinerary could be developed that would attract the North American cruise passenger, there would be a subsequent increase not only in tourism to Australia but also to follow-up cruises, new destinations and new land packages. A corollary objective of this study is to examine the status of the North American market. This is necessary in order to understand the need for additional itineraries.

THE NORTH AMERICAN CRUISE MARKET Twenty-two cruise lines are marketed primarily to the North American market. These companies, which are members of the CLIA, are shown in Table 1. These cruise lines have a total of 158,434 lower berths and sailed 6,882,000 passengers in 2000.5 These lines have as few as one ship (Regal Empress with 908 lower berths) and as many as 15 ships (Carnival with 29,928 lower berths). In addition, some cruise lines are owned by the same corporation. Royal Caribbean owns Royal Caribbean and Celebrity. Carnival Corporation owns Carnival, Costa, Cunard, Holland America, Seabourn

The North American cruise market and Australian tourism

Table 1: CLIA members which market to North American passengers  American Cruise Lines  American Hawaii Carnival Celebrity Costa Crystal Cunard Disney

First European Holland America Mediterranean Shipping Norwegian Norwegian Coastal Voyage Orient Princess

Radisson Seven Seas Regal Royal Caribbean Royal Olympic Seabourn Silversea Windstar

Source: CLIA, 2001  Filed for bankruptcy since the events of 11th September, 2001.

and Windstar. Orient and Norwegian are owned by Star Cruises, which is not a member of CLIA and does not market to North American passengers. Table 2 shows cruise lines with over 1 per cent market share, their ships, number of passengers and the per diem cruise fare. Major cruise destinations for these ships include Africa, Alaska, Australia/New Zeal-

and, the Bahamas, the Baltic Sea, Bermuda, the Black Sea, the British Isles/Ireland, Caribbean, Europe, Far East/Orient, Greek isles, Hawaii, Holland, the Mediterranean, Mexico, Scandinavia, the South Pacific and South-East Asia, as well as between Asia and longer transatlantic, transpacific and world cruises.6 Cruises are as short as two days and as long as 102 days.

Table 2: Major North American cruise lines, passengers and per diem fares, December 2000 Cruise line

Ship

Lower berth passengers

US$ per diem

Carnival

Carnival Destiny Carnival Paradise Carnival Triumph Carnival Victory Celebration Ecstacy Elation Fantasy Fascination Holiday Imagination Inspiration Jubilee Sensation Tropical Century Galaxy Horizon Millennium Zenith

2,642 2,040 2,758 2,758 1,486 2,040 2,040 2,044 2,040 1,452 2,040 2,040 1,486 2,040 1,022 1,750 1,870 1,354 1,950 1,375

231 214 231 N/A 201 155 223 155 208 170 208 208 200 208 143 360 265 210 267 201

Celebrity

continued overleaf

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Table 2: (continued) Cruise line

Ship

Lower berth passengers

Costa

Costa Allegra Costa Atlantica Costa Classica Costa Marina Costa Riviera Costa Romantica

820 2,114 1,308 776 974 1,356

Costa Victoria

1,928

Crystal Harmony Crystal Symphony QE2 Curonia Disney Disney Wonder Maasdam Nieuw Amsterdam Noordam Rotterdam Ryndam Statendam Veendam Volendam Westerdam Zaandam Melody Monterey Rhapsody Norway Norwegian Crown Norwegian Dream Norwegian Dynasty Norwegian Majesty Norwegian Sea Norwegian Wind Crown Odyssey Marco Polo Crown Princess Dawn Princess Grand Princess Ocean Princess Pacific Princess Regal Princess Royal Princess Sea Princess Sky Princess Sun Princess Paul Gaugin Radisson Diamond Song of the Flower Seven Seas Navigator

940 940 1,777 665 2,400 2,400 1,266 1,214 1,214 1,316 1,266 1,266 1,266 1,440 1,494 1,440 1,076 650 750 2,031 1,050 1,748 800 1,462 1,518 1,748 1,050 800 1,590 1,950 2,600 1,950 640 1,590 1,200 1,950 1,200 1,950 1,590 350 180 490

Crystal Cunard Disney Holland America

Mediterranean Shipping Norwegian

Orient Princess

Radisson Seven Seas

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US$ per diem 352 N/A 413 413 331 Mediterranean 416 Caribbean 174 Mediterranean 416 Caribbean 172 475 468 632 509 209 209 356 285 260 375 330 275 310 310 255 N/A 150 150 150 110 160 170 145 135 170 144 225 225 300 300 300 300 375 300 375 300 300 300 650 N/A N/A 650

The North American cruise market and Australian tourism

Table 2: (continued) Cruise line

Ship

Lower berth passengers

US$ per diem

Royal Caribbean

Enchantment of the Seas Explorer of the Seas Grandeur of the Seas Legend of the Seas Majesty of the Seas Monarch of the Seas Nordic Express Rhapsody of the Seas Sovereign of the Seas Splendor of the Seas Viking Serenade Vision of the Seas Voyager of the Seas Olympic Countess Olympic Voyager Orpheus Stella Solaris Triton World Renaissance Seabourn Goddess I Seabourn Goddess II Seabourn Legend Seabourn Pride Seabourn Spirit Seabourn Sun

1,950 3,114 1,950 1,800 2,350 2,350 1,600 2,000 2,250 1,800 1,512 2,000 3,114 840 840 280 620 620 457 116 116 208 208 208 758

250 336 250 285 217 222 203 282 195 280 168 291 343 275 385 250 285 285 260 831 880 741 780 907 589

Royal Olympic

Seabourn

Source: Travel Trade, 2001.

Since the events of 11th September, 2001, many cruise lines have adjusted their itineraries by dropping European, Eastern Mediterranean and Holy Land cruises. These itineraries have been shifted to the Caribbean, Alaska, Canada and New England areas. Consequently, overcrowding in the Miami and Fort Lauderdale ports in Florida has resulted, causing the development of cruise ports in Galveston, Texas; Norfolk, Virginia; New Orleans, Louisiana and Baltimore, Maryland. Holland America has extended the traditional ‘autumn season’ Eastern Canada cruise into the spring and summer seasons.7 Celebrity Cruises is offering ten- and 11-day Caribbean cruises from Baltimore, Maryland between March and October.8 This summer (2002) will bring additional ships to Alaska and will result in overcrowded ports.

Most cruise lines are currently sailing above 90 per cent capacity. Bookings made in November and December 2001 are above those of the previous year. Cruises lines are having their greatest booking days in history. This is due, in part, to discounted cruise fares, increased travel agent commissions and special deals (for example, a three-day land package in Alaska included free with a minisuite booking).9 It is projected that even with 30,000 new berths coming on line, all berths will be filled.10 The major cruise lines are Carnival, Royal Caribbean, Princess and Norwegian. The market share of these corporations is shown in Table 3. As shown in Table 3, the largest cruise lines are Carnival with almost 30,000 berths, followed by Royal Caribbean, Princess, Norwegian and Holland America.

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Table 3: North American market share of major cruise corporations, December 2000

Carnival Carnival Costa Cunard Holland America Seabourn Windstar  Royal Caribbean Celebrity Royal Caribbean  Princess Princess Norwegian Norwegian Orient

Lower berths

Market share %

58,566 29,928 9,274 2,442 14,562 1,614 756 34,849 10,169 24,680 16,620 16,620 15,160 13,310 1,850

30.78 13.33 5.68 1.50 8.92 0.99 0.46 21.35 6.23 15.12 10.18 10.18 9.28 8.15 1.13

Source: Based upon Travel Trade, 2001.  In February 2002 Princess stockholders voted to delay a decision regarding a proposed merger between Princess and Royal Caribbean. If this merger is subsequently approved, the combined cruise line will be larger than Carnival.

The cruise lines will continue to build new ships in the next five years. Table 4 shows the new ships on order contracted for until 2005. A total of 39 ships are on order, containing an additional 82,804 lower berths. Moreover, the mass-marketed cruise lines are building these larger ships with more onboard facilities. Royal Caribbean’s Voyager of the Seas and Explorer of the Seas have iceskating rinks and rock-climbing walls. Princess ships have pioneered the idea of 24-hour alternative dining. Passengers on these ships have their choice of dining in any of three alternative restaurants in addition to the main dining rooms. Princess passengers can now also choose to dine at fixed times and at the same table with staff at one of the main restaurants, or they dine within a five-hour period of their own choosing at a different table in the other main restaurants. With

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flexible dining, traditional dining and 24hour room service, passengers can dine when they want and eat what they want.11 At the other end of the spectrum, the niche (up-scale) cruise lines (such as Radisson Seven Seas, Seabourn and Silversea) are building smaller ships with more personalised services to attract the up-scale consumer. On these lines, tipping is not acceptable and wines are included with dinner. On Silversea ship cruises, all beverages, including alcohol, are included in the fare. Market share for the major cruise lines will continue to increase. Table 5 shows the ship berths on order for these lines. Carnival and Princess have the largest number of berths on order. Table 6 shows the projected berth capacity through 2005. Carnival, Royal Caribbean and Princess will continue to dominate the North American cruise market. It should be noted that prior to November 2000, Princess was owned by P&O lines. In November 2000 Princess spun off and issued their own stock for sale. However, these two organisations (Princess and P&O) are still related. As of the writing of this paper, there is a proposed merger between Princess and Royal Caribbean. On 14th February, 2002, Princess decided to delay the decision with respect to the bid of Royal Caribbean.12 The cruise lines operated in a changing market during the year 2001. Princess has decided to transfer the Pacific Princess, Crown Princess and the Ocean Princess out of their fleet. Holland America will transfer the Westerdam to Costa and obtain the Seabourn Sun, which will be renamed the Prinsendam.13 PASSENGER CHARACTERISTICS Recall that the North American cruise market has been growing at the rate of 8.4 per cent a year and almost 6.9 million North American passengers sailed in 2000. As shown in Table 7, over half of these cruises are between six and eight days in length. Both six- to eight-day cruises and longer cruises represent opportunities for Australian tourism. A week-long cruise calling at three or four ports represents an excellent means

The North American cruise market and Australian tourism

Table 4: Selected cruise lines’ new builds for the North American market, December 2000 Cruise line

Ship name

Tonnage

Lower berth passengers

Inaugural cruise

Carnival Royal Caribbean Celebrity Radisson Seven Seas Princess Silversea Royal Olympic First European Norwegian Celebrity Carnival Princess First European Celebrity Royal Caribbean Royal Caribbean Princess Carnival Holland America Carnival Norwegian Costa Cunard First European Princess Princess Carnival Holland America American Classic Costa Holland America Carnival Holland America First European Carnival Princess American Classic Costa Holland America

Carnival Spirit Radiance of the Seas Infinity Seven Seas Mariner Golden Princess Silver Whisper Olympia Explorer European Vision Norwegian Sun Summit Carnival Pride Star Princess European Stars Constellation Adventure of the Seas Brilliance of the Seas Coral Princess Carnival Conquest N/A Carnival Legend N/A N/A Queen Mary 2 N/A Island Princess Diamond Princess Carnival Glory N/A N/A N/A N/A N/A N/A N/A Carnival Miracle Sapphire Princess N/A Costa Magica N/A

84,000 85,000 85,000 46,000 110,000 25,000 25,000 58,600 80,000 85,000 84,000 110,000 58,000 85,000 136,000 85,000 88,000 110,000 84,000 84,000 91,000 86,000 150,000 80,000 88,000 110,000 110,000 84,000 72,000 105,000 84,000 110,000 84,000 80,000 86,000 110,000 72,000 105,000 84,000

2,100 2,000 1,900 360 2,600 360 838 1,500 2,000 1,900 2,100 2,600 1,500 1,900 3,100 2,000+ 1,950 2,794 1,800 2,112 2,300 2,154 2,600 2,000 1,950 2,600 2,974 1,800 1,900 2,720 1,800 2,974 1,800 2,000 2,124 2,600 1,900 2,720 1,800

Early 2001 February 2001 March 2001 March 2001 April 2001 May 2001 May 2001 June 2001 September 2001 October 2001 Late 2001 January 2002 March 2002 April 2002 Spring 2002 June 2002 October 2002 Autumn 2002 Autumn 2002 2002 2002 June 2003 2003 2003 June 2003 July 2003 Summer 2003 Summer 2003 Winter 2003 2003 2003 2004 2004 2004 Spring 2004 May 2004 Winter 2004 2004 2005

Source: Travel Trade, 2001.

by which to introduce the tourist to Australia. The longer cruise can attract the tourist who wants to visit the interior of Australia along with New Zealand and/or other parts of the South Pacific.

DEMOGRAPHICS Demographics for 1995–1999 cruisers are shown in Table 8. The over-60 market represents a great opportunity for Australian tourism. People

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Table 5: Berths on order for major cruise lines

Table 8: Demographic characteristics, 1995–1999 cruisers

Carnival Carnival Costa Cunard Holland America Royal Caribbean Celebrity Royal Caribbean Princess Norwegian

Demographics

35,550 16,356 7,594 2,600 9,000 11,800 4,700 7,100 14,300 4,300

Source: Travel Trade, 2001.

Table 6: Projected berth capacity of major corporations

78 22 48 52 30 42 28 15 30 55

Corporation

Lower berths

Source: CLIA, 2000

Carnival Cruise Lines Royal Caribbean Princess Norwegian

94,116 46,649 29,330 19,402

North American winters, this represents an excellent marketing opportunity.

 Will transfer Crown Princess  Will transfer Norway and obtain Superstar Leo (1,974 berths) Source: Travel Trade, 2001

Table 7: Length of cruise, 1999 Days

Passengers (000)

2–5 6–8 9-17 18+ Total

2,104 3,012 766 12 5,894

% 35.8 51.1 12.8 0.3 100.0

Source: CLIA, 2001

in this age group not only have higher disposable incomes, they also have more time to spend on vacations since many are retired. Also, this age group has a higher propensity to visit warm-weather climates during the cold North American winters. Since Australian summers occur during

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Marital status Married Single Gender Females Males Age 25–39 40–59 (mean 50 years) 60+ Household income (US$) 20,000–39,000 40,000–59,000 60,000+ Mean: $79,000

% of category

SEGMENTS The CLIA has determined that there are six segments in the cruise market. These segments and their major characteristics are shown in Table 9. It would appear that the explorer segment would find Australia an appealing destination. Marketing messages should stress Australia as a new destination with the opportunity to explore and learn.14 The ship buffs also represent an attractive segment, especially for longer cruises. These people love cruising and have the time and resources to take a long cruise. These segments are recognised by the Australian Tourism Commission as a potential market for Australian tourism. In addition to the cruises, many passengers also purchase extensive land, sea and air packages.15 The cruise industry is rapidly recovering from the effects of 11th September, 2001. Growth in berths and passengers is expected. Ships have been redeployed and new destinations are needed. Australia is an attractive

The North American cruise market and Australian tourism

Table 9: Cruise market segments Segment

%

Characteristics

Restless baby boomers Enthusiastic baby boomers

33 20

Luxury seekers

14

Consummate shoppers Explorers

16 11

Cost may be an impediment to trying different vacations. Convinced and excited about cruising; live a stressful life; want escape and relaxation; look forward to vacations. Can afford and are willing to spend money for deluxe accommodations and pampering. Look for best value (not cheapest); committed cruisers. Well-educated; well-travelled; curious about different destinations. Like to explore and learn. Most senior segment. Cruise extensively.

Ship buffs

6

Source: CLIA, 2001

destination for North American tourists because it is considered safe and constantly ranks high in places desired to be visited.16 RECOMMENDATIONS Based on the growth potential and needs analysis, the cruise industry should consider Australia as a destination. In this section, three recommendations for cruise itineraries are made (Figures 1, 2 and 3). The justification for these itineraries will be developed in this section. However, an understanding of the status of the cruise industry in Australia is needed. Cruising in Australia Australia represents a growth opportunity for the North American cruise industry; and the cruise industry represents a growth opportunity for Australian tourism. Table 10 shows the North American cruises scheduled to visit Australia between 5th November, 2000 and 23rd March, 2002.17 Seven-day Australian cruises on the Norwegian Star to 28-day cruises that call on Sydney are available. Many cruises are a combination of Australian and New Zealand excursions. Princess uses the Regal Princess for Australian cruises. Figures 4 and 5 show typical itineraries for the Regal Princess and the Legend of the Seas. The majority of ports and time spent on these cruises are in New Zealand and not in

Sydney–Darwin itinerary

Figure 1

Sydney Brisbane Hamilton Island Cairns (overnight) Darwin

Sydney–Perth itinerary

Figure 2

Sydney Melbourne (overnight) Port Arthur Hobart Adelaide (overnight) Albany Perth

Great Barrier Reef itinerary

Figure 3

Cairns Townsville Port Moresby (Papua New Guinea) Samarai Islands Port Douglas Brisbane Sydney

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Table 10: North American cruise line ships scheduled to visit Australia

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Date

Cruise ship

Days

Embark

Disembark

5.11.00 Sunday 11.11.00 Saturday 18.11.00 Saturday 22.11.00 Wednesday 28.11.00 Tuesday 6.12.00 Wednesday 19.12.00 Tuesday 7.01.01 Sunday 12.01.01 Friday 13.01.01 Saturday 21.01.01 Sunday 25.01.01 Thursday 27.01.01 Saturday 29.01.01 Monday 1.02.01 Thursday 1.02.01 Thursday 1.02.01 Thursday 2.02.01 Friday 4.02.01 Sunday 6.02.01 Tuesday 8.02.01 Thursday 8.02.01 Thursday 11.02.01 Sunday 12.02.01 Monday 16.02.01 Friday 17.02.01 Saturday 17.02.01 Saturday 17.02.01 Saturday 21.02.01 Wednesday 23.02.01 Friday 25.02.01 Sunday 26.02.01 Monday 27.02.01 Tuesday 2.03.01 Friday 9.03.01 Friday 11.03.01 Sunday 16.03.01 Friday 20.03.01 Tuesday 31.03.01 Saturday 10.11.01 Saturday 25.11.01 Sunday 29.11.01 Thursday 5.12.01 Wednesday 7.12.01 Friday 9.12.01 Sunday 13.12.01 Thursday 15.12.01 Saturday 19.12.01 Wednesday 23.12.01 Sunday 27.12.01 Thursday 3.01.02 Thursday

Norwegian Star Norwegian Star Norwegian Star Regal Princess Norwegian Star Regal Princess Norwegian Star Silver Cloud Norwegian Star Legend of the Seas Silver Cloud Crown Odyssey Norwegian Star Legend of the Seas Crown Odyssey Seabourn Sun Seabourn Sun Silver Cloud QE2 Silver Wind Crown Odyssey QE2 Regal Princess Legend of the Seas Silver Cloud Crown Odyssey Rotterdam Rotterdam Regal Princess Rotterdam Regal Princess Legend of the Seas Norwegian Star Silver Cloud Norwegian Star Regal Princess Silver Cloud Norwegian Star Norwegian Star Regal Princess Wind Song Regal Princess Silver Shadow Legend of the Seas Wind Song Regal Princess Norwegian Wind Silver Shadow Legend of the Seas Regal Princess Norwegian Wind

6 7 7 14 11 14 11 14 11 16 12 13 14 14 13 20 29 14 39 25 17 25 14 14 14 14 23 28 21 22 14 16 9 14 11 14 14 11 7 19 14 14 14 16 14 14 19 16 14 14 14

Sydney Sydney Cairns Sydney Sydney Auckland Sydney Sydney Sydney Singapore Auckland Sydney Sydney Sydney Cairns Sydney Sydney Auckland Auckland Sydney Sydney Sydney Sydney Auckland Sydney Auckland Auckland Auckland Sydney Sydney Auckland Sydney Sydney Auckland Sydney Sydney Sydney Sydney Cairns Bangkok Bali Sydney Bali Singapore Cairns Auckland Singapore Sydney Sydney Sydney Sydney

Sydney Cairns Sydney Auckland Sydney Sydney Sydney Auckland Sydney Sydney Auckland Cairns Sydney Auckland Sydney Hong Kong Singapore Sydney Singapore Hong Kong Auckland Hong Kong Auckland Sydney Auckland Auckland Hong Kong Singapore Hong Kong Singapore Sydney Singapore Sydney Sydney Sydney Singapore Bali Cairns Sydney Sydney Cairns Auckland Sydney Sydney Auckland Sydney Sydney Auckland Auckland Auckland Auckland

The North American cruise market and Australian tourism

Table 10: (continued) Date

Cruise ship

Days

Embark

Disembark

6.01.02 Sunday 17.01.02 Thursday 18.01.02 Friday 20.01.02 Sunday 24.01.02 Thursday 31.01.02 Thursday 1.02.02 Friday 3.02.02 Sunday 7.02.02 Thursday 11.02.02 Monday 14.02.02 Thursday 17.02.02 Sunday 28.02.02 Thursday 3.03.02 Sunday 17.03.02 Sunday

Legend of the Seas Norwegian Wind Crown Odyssey Legend of the Seas Regal Princess Norwegian Wind Crown Odyssey Legend of the Seas Regal Princess Wind Song Norwegian Wind Legend of the Seas Norwegian Wind Legend of the Seas Legend of the Seas

14 14 21 14 14 14 14 14 14 10 14 14 17 14 14

Auckland Auckland Sydney Sydney Sydney Sydney Auckland Auckland Auckland Christchurch Auckland Sydney Sydney Auckland Sydney

Sydney Sydney Auckland Auckland Auckland Auckland Auckland Sydney Sydney Auckland Sydney Auckland Tahiti Sydney Auckland

Source: Cruise View, November 2000

Australia. New Zealand tourism is the main beneficiary even though these cruises are marketed as Australian cruises. These cruises call on various ports in Australia and either embark or disembark in Sydney. The port call serves as an introduction to Australia for many people who combine the cruise with hotel stays and/or land packages. Recently, Holland America announced that its newly acquired ship, the Prinsendam, will sail to Australia between November 2002 and March 2003. This ship is scheduled to enter service in June 2002.18 Besides the North American cruise lines that call on Sydney, the Australian ship The Fair Princess (P&O) has a series of cruises in the South Pacific. Captain Cook’s Explorer has two-night cruises that can attract the land vacationer.19 The Pacific Sky, another P&O Australian cruise ship, has ten-night cruises in the South Pacific. There are also twonight Murray River cruises on the Australian ship Proud Mary. Captain Cook also has three- and four-night cruises to the Great Barrier Reef from Cairns. These cruises would attract the traditional vacationer who wants to visit the Great Barrier Reef and the younger land visitor who wants to explore

Itinerary for Regal Princess, 14 days Source: Cruise View, 2000

Figure 4

Auckland, New Zealand Bay of Islands, New Zealand Tauranga, New Zealand (Rotoura) Christchurch, New Zealand At sea Wellington, New Zealand Christchurch, New Zealand Dunedin, New Zealand Fjordland National Park, New Zealand At sea (two days) Hobart, Tasmania At sea Melbourne and Victoria, Australia At sea Sydney and New South Wales, Australia

the Great Barrier Reef. The four-day trip calls on Fitzroy Island, Cooktown, Lizard Island and Ribbon Reef, while the threeday cruises call on Fitzroy Island, Hadley Reef and Dunk Island. Coral Princess also

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Figure 5

Itinerary for Legend of the Seas, 14 days Source: Cruise View, 2000

Auckland, New Zealand At sea Christchurch, New Zealand Dunedin, New Zealand Fjordland National Park, New Zealand Dusky Sound, New Zealand Doubtful Sound, New Zealand Milford Sound, New Zealand At sea (two days) Hobart, Tasmania At sea Melbourne and Victoria, Australia At sea Sydney and New South Wales, Australia

has three-day cruises that sail the Great Barrier Reef. Their ships sail from Cairns to Townsville or from Townsville to Cairns.20 It is suggested that North American cruise lines interface with Captain Cook and/or Coral Princess cruises to combine an Australian cruise with the Great Barrier Reef cruise package. Land packages Cruise tours, land packages and combinations are offered by all of the cruise lines. Princess offers a four-day land package in conjunction with its 14-day Sydney/Auckland cruises on the Regal Princess. This package begins in Cairns and explores the Great Barrier Reef on a catamaran. On day three, the tourist flies from Cairns to Sydney to spend the remainder of day three and day four in the city before embarkation on the cruise. Other cruise tours include Ayers Rock and Alice Springs. A seven-day, precruise Princess land package visits Cairns, Silky Oaks, Dunk Island and Sydney.21 Princess also combines its cruises with the opportunity to leave the ship for an overland jaunt and then rejoin the ship at a later port.22

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Examples of these overland tours include a trip to south-western Australia which takes the tourist to the wine-growing region of the Margaret River, the Karri Forest and the Valley of the Giants. Tourists to Australia have the opportunity to ‘rub elbows with the locals, hit the Overland Trail, dive into the Great Barrier Reef and/or head for the Outback’.23 These tourists also have the opportunity to explore Sydney in depth with a ‘cruise-plus’ hotel package prior to or after the cruise. It affords the tourist the opportunity to visit the Rocks, Circular Quay, the Botanical Gardens and the Opera House after travelling 6,000 or more miles. These types of packages are very attractive to North American cruise passengers because of the destinations. Selected 2002 itineraries Three interesting Australian itineraries have been announced for 2002. Two itineraries are one-time Singapore to Sydney cruises as shown in Figures 6 and 7.24 The third itinerary is a Great Barrier Reef cruise. These itineraries form the basis for the three recommended itineraries (Figures 1, 2 and 3), and indicate that they are tenable and realistic. The Crown Odyssey sails along the north coast of Australia while the Silver Shadow sails along the south coast. It is suggested that cruise lines consider developing two-week cruises that are based upon the above itineraries (Figures 6 and 7). The first recommendation (Figure 1) is sailing from Sydney to Darwin with stops in Brisbane, Hamilton Island and Cairns. This enables the North American tourist to visit many destinations without the numerous internal flights, and having to pack and unpack with each internal flight. The ship will cruise and visit the Great Barrier Reef, which most North Americans desire to visit. In Brisbane, the traveller can visit the Queensland Cultural Center, Australian Woolshed or the Lone Pine Koala Sanctuary. The ship should berth overnight in Cairns so that the passengers can visit Kuranda or the Tjapukai Aboriginal Cultural Park.25

The North American cruise market and Australian tourism

Prior to embarkation or after debarkation in Darwin, the vacationer can then visit Alice Springs and/or Ayers Rock. The second recommendation (Figure 2) is a southern Australian itinerary from Sydney to Perth based upon the cruise ship itinerary for the Silver Shadow. The ship will call on Melbourne (overnight), with stops in Port Arthur, Hobart, Adelaide (overnight) and Albany. The passengers will be able to visit the Melbourne Museum and/or Aquarium, take day trips to the Yarra Valley, ride the Puffing Billy and visit Phillip Island to see the Penguin Parade. The passengers will also have time to visit Kangaroo Island to see the wildlife while in Adelaide.26 The third recommendation (Figure 3) is a Great Barrier Reef itinerary based on Figure 8. The itinerary of the Silver Cloud indicates that cruise lines are recognising that North American tourists want to visit the Great Barrier Reef. This cruise also stops in Papua New Guinea, an exotic destination that will attract the ‘explorer’ segment. Embarkation or debarkation in Sydney gives the tourist the opportunity to visit other destinations in Australia and to combine this cruise with another cruise. Additional itineraries of this nature should be developed. The three suggested itineraries fulfil the requirements of this paper’s objective. BENEFITS TO AUSTRALIAN TOURISM In addition to the tourists provided by the cruise lines, cruises are often combined with land packages. This benefits hotels, restaurants, transportation and attractions. Many passengers after being introduced to Australia will decide to return and book longer, more intensive vacations. The positive word of mouth generated by these cruise passengers will also attract additional tourists. Other industries including souvenirs, clothing and other retail stores will also benefit from increased tourism. CONCLUSION The North American cruise market represents an opportunity for growth in Australian

Itinerary for Crown Odyssey, January 2002 Source: Orient Lines, 2000

Figure 6

Singapore, Republic of Singapore At sea Semarang, Java, Indonesia (Borobudur) At sea Bali, Indonesia Darwin, Northern Territory, Australia At sea (two days) Great Barrier Reef (cruising) Cairns, Queensland, Australia Hamilton Island, Australia At sea Brisbane, Queensland, Australia At sea Syndey, New South Wales, Australia

Itinerary for Silver Shadow, December 2001 Source: Cruise View, 2001

Figure 7

Singapore, Republic of Singapore At sea (two days) Padang Bay, Bali, Indonesia At sea (three days) Fremantle, Western Australia (Perth) At sea Albany, Western Australia At sea Adelaide, South Australia At sea Melbourne, Victoria, Australia At sea Sydney, New South Wales, Australia

tourism. Cruise passengers can visit Australia in a safe, comfortable environment and be introduced to the many wonders of Australia. In this paper, the North American cruise market was examined. It was suggested that Australia markets to tourists in the ‘explorers’

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Figure 8

Itinerary for Silver Cloud, September 2002 Source: Cruise View, 2001

(6)

Cairns, Queensland, Australia Townsville, Queensland, Australia At sea Port Moresby, Papua New Guinea Samarai Islands, Queensland, Australia At sea Port Douglas, Queensland, Australia

(7) (8) (9) (10) (11) (12)

and ‘ship buff’ segments. Both parties, that is the cruise industry and Australian Tourist Commission, can mutually benefit from a shared promotional campaign(s). Cruise lines need additional itineraries and ports for their newer and larger ships. Australians can profit from the increased numbers of tourists that cruise lines can provide. This is recognised by the Australian Tourist Commission, which feels that the above-stated market segments represent a viable market.27 Cruise line executives recognise that logistical problems exist in having cruises that sail great distances. However, an increase in Australian cruises would alleviate some of these problems.

(13) (14) (15) (16) (17) (18) (19) (20) (21) (22)

REFERENCES (1) Cruise Lines International Association (2001) ‘The Cruise Industry: An Overview’, Marketing Edition, August, New York. (2) Ibid. (3) Australian Tourist Commission (2001) website: www.atc.harte-hanks.com/atc/koala. (4) Princess Cruises (2001) Brochure, ‘Exotic Cruises and Cruise Tours. Fall 2001–Winter/Spring 2002’. (5) Cruise Lines International Association, ref. 1 above.

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(23) (24) (25) (26) (27)

Cruise Lines International Association (2001) CLIA Cruise Manual 2000, CLIA, New York. Holland America (2001) ‘Cruise Planner 2002’. Celebrity Cruises (2001) ‘Caribbean Supplement to the 2002 Caribbean Brochure’. Princess Cruises (2002) ‘Receive a free 3-night tour with Princess’, e-mail, 19th January. Abels, Joel (2002) ‘2002 crystal-balling’, Travel Trade, 14th January, pp. 1 and 3. Travel Trade (2001) ‘Guide to cruise line newbuilds’, Cruise Trade, January. ‘Princess shareholders vote fate of merger’, Baltimore Sun, 15th February, 2002, p. 3C. Cruise Trade (2001) 6th August. Cruise Lines International Association, ref. 6 above. Australian Tourist Commission, ref. 3 above. Ibid. Cruise View (2000) ‘Interactive Computer Program’, November, Cruise View, Littleton, CO. Holland America (2002) Brochure, ‘Voyages of the Prinsendam’. Captain Cook’s Cruises (2000) Brochure, ‘Small Ship Cruising, Australia and Fiji. 2000/2001’. Official Steamship Guide International 2001, Winter Edition, Transportation Guides, Knoxville, TE. Princess Cruises, ref. 4 above. Captain’s Circle (2000) ‘Australia just do it’, Captain’s Circle. Princess Cruises. Winter 2000. Ibid. Orient Lines (2001) Brochure, ‘Cruise the world 2001/2002’. ‘Australia: Come and Say G’day’ (2001) Australia Tourist Commission, Los Angeles, CA. Kruger, N. and Llewellyn, M. (2001) ‘Fromers, Australia 2001’, IDG Books World Wide, Foster City, CA. Australian Tourist Commission, ref. 3 above.