This week I have read a couple of articles about the Cruise Lines International Association’s (CLIA) "Cruise 3 Sixty" conference in Fort Lauderdale. I read an article in the Sun Sentinel (Cruise Execs Talk About Industry’s Future) and an article in Travel Weekly (CEOs Say Cruise Lines Must Wow Travelers).
CLIA’s Christine Duffy moderated the conference attended by the travel agent loyals. She discussed the future of cruising with the executives of the major cruise lines like Richard Fain (Royal Caribbean), Arnold Donald (Carnival), Kevin Sheehan (NCL) and Pierfrancesco Vaga (MSC Cruises).
To attract more first-time cruisers, CLIA is targeting the "Millennials" (consumers born between 1980 & 2000).
The Sun Sentinel quotes Ms. Duffy saying: "This demographic group offers a window into the next generation of travelers and provides opportunity for serious growth. They have a strong desire to travel and to share experiences."
In simple terms Ms. Duffy is talking about the next generation of young people from age 14 to 34 (like my children and nieces) who CLIA is targeting as the next wave of 25 to 55 year-old cruisers.
Who are these "Millennials?" What will they be interested in for their vacations?
Selling cruises to the the "Millennials" will not be an easy task.
First, they are poorer than prior generations. They have more debt and student loans. And it won’t be difficult to sell them cruises just because they will have lower incomes and less wealth. It’s because there will be a disconnect between what the Millennials are interested in and what the cruise lines are offering, and because the Millennials will have a greater social consciousness than the current cruisers.
Wow Gadgets Won’t Wow the Millennials
The articles report that the cruise industry is trying to attract more first time cruisers by offering the public "more innovative ships with ‘wow’ features."
A recent publication correctly called the Millennials "digital wizards." Like my kids, they have grown up with high tech gaming toys seemingly before they could walk or talk. I don’t see the Millennials being impressed by the "gee-whizz" and so-called "wow" gadgets being touted by Royal Caribbean (virtual balconies & the "North Star" device) or Princess (the "SeaWalk"). The Millennials are smart and their taste for technology is sophisticated. My kids have been mastering Apple products for 15 years. They are not easily impressed with what I or the 60 and 70 year old cruise executives think are "cool."
Some of the new attractions touted by the cruise lines are hardly wow gadgets in the first place. The bumper cars projected to appear on Royal Caribbean’s next ship are a silly, old-school idea. The Travel Weekly article even talks about "bowling alleys and self-leveling pool tables" and quotes Royal Caribbean’s Chairman Richard Fain saying: "All of that conveys what cruising has to offer. It says something about what the industry stands for.” Circa 1950 bumper cars, bowling alleys, pool tables for the Millennials? You have to be kidding me.
The Millennials are less privileged, more diverse, and more liberal than today’s cruisers. 4 out of 10 will not be white. They will be more sensitive to the plight of workers in the international community being over-worked and underpaid. They will be more attuned to environmental issues. They will have a greater understanding of the fragility of the air and water ecosystems that the cruise lines routinely abuse.
Human Rights, Not Bumper Cars
In the last three months, one cruise line in particular, MSC Cruises, has repeatedly made the news in the worst sort of way. Just this year, passengers and crew members have accused it of dumping garbage bags at seas in marine sanctuaries. The police and labor authorities raided one of MSC’s ship to investigate allegations of the cruise line abusing crew members. MSC has drawn the ire of environmentalists by sailing through the San Marco basin and damaging the port in Venice.
The traditional newspapers, like the Sun Sentinel and the Miami Herald, and travel publications like Travel Weekly, have given little attention to these type of horror stories.
The image of the cruise industry will be shaped by issues like crime on cruise ships (a Disney crew member allegedly molested a 13 year old girl yesterday), crime in ports of call (a NCL crew member was shot and killed this week in Roatan), treatment of crew members from around the world (Carnival & Royal Caribbean seem to be competing to see who can best screw the crew members), and the cruise industry’s pollution of the air and sea (have you seen the videos of MSC dumping trash?)
These are important issues that the Millennials will focus on. In the next 10 to 20 years, we will see the continued rise of social media and the presence of more contemporary publications focusing on issues of relevance to the Millennials.
Old school newspapers, which often blindly cater to the cruise industry, will continue to decline in readership and relevance.
The bumper-car-and-pool-table and gadget-promoting cruise lines will lose the Millennials as customers unless they understand what the future really holds and begin to address issues of crime, crew member rights and environmental problems.