Cruise Lines Spend Big, Get Quirky to Lure Chinese Travellers

Posted by Eric Haun
Thursday, June 26, 2014

Looking to convince Chinese tourists that a ship can be a holiday destination and not just a way to get there, the world's leading cruise lines are spending billions of dollars on flashy new vessels and quirky on-board services.

Carnival Corp and Royal Caribbean Cruises Ltd are trying to pique interest with China-centric attractions such as a menu inspired by an ex-president. They are also tapping a national penchant for education with classes ranging from foreign languages to silver service.

Drawing cruise lines to China is the prospect of $11.5 billion in sales come 2018 compared with $6.8 billion last year, according to researcher Euromonitor. The market will soon be the second-biggest and could eventually surpass the United States, industry executives said.

"Competition is getting increasingly fierce," said Jiang Yushen, a deputy general manager at China's HNA Tourism Cruise Yacht Management Co, part of HNA Group Co Ltd. The challenge is Chinese consumers are still "fuzzy" about what cruising is all about, Jiang said.

Cruises in China tend to last around five days and include stops in neighbouring South Korea and Japan. Global cruise lines have upped investment in the market in the wake of a government initiative last year to develop ports and support local lines.

The year of "marine tourism" in 2013 ended with an almost 20 percent rise in Chinese passengers at 1.4 million - a figure likely to more than triple by 2020, according to data from the government and the China Cruise & Yacht Industry Association.

"The business shot up last year, but this year it is growing even faster," said Wang Yang, chief executive of Youlunhai.com. The travel agent sold around 5 percent of cruise tickets in China last year, Wang said.

Carnival brand Princess Cruises based a ship in the country for the first time in May. Next year, Royal Caribbean will move one of its new near-billion dollar Quantum class ships to China almost straight from the shipyard - unusual as most vessels Western lines base in the country have already been in service.

But as luxurious as the ships may be, cruise lines still have to convince people to get on board at the main ports of Tianjin, Shanghai and Xiamen.

"The biggest challenge is getting the message across to a wider consumer base," Dominic Paul, vice president international at Royal Caribbean, told Reuters.

The cruise line carried 300,000 Chinese passengers last year and targets an annual increase of 70 percent. It declined to provide investment or sales amounts.

Carnival also declined to specify investment or sales, but said it aimed to increase passenger capacity in the Chinese market by 140 percent from 2013 to 2015.

Education
To lure tourists to the sea - and beat back lower-priced local competition - global lines are working to cater to Chinese tastes, especially when it comes to food.

"Most of our customers start with the same question: What about the food?" said Youlunhai.com's Wang.

Princess Cruises said it offers the only 24-hour buffet in the Chinese market, as well a menu similar to that enjoyed by former President Hu Jintao during a meeting at the White House. The cruise line also has extra "educational components" with classes in silver service and how to host Western guests.

"Our research found that there was an even greater appetite among Chinese guests to learn," Princess Cruises President Jan Swartz told Reuters.

Youlunhai.com and rival travel agents are also playing their part in growing the market. Ctrip.Com International Ltd , which said it sells around 10 percent of all cruise tickets, offers discounts through social media platforms and collaborates with dating websites.

Swartz said Princess Cruises had made joint investments in marketing with local travel agents, and gave them discounts for the line's first cruises from its China base.

But there is some way to go to win over tourists like 41-year-old Wu Haifang, who said she was embarking on a cruise simply to get to another country for local food and shopping.

"I just want to go to South Korea and try their pickles, watch Korean TV and buy an electric rice cooker," said Wu, as she waited to board at Shanghai's Wusongkou terminal.

"My husband's company organized a cruise tour for its employees. I got a free ticket just by chance," she said.

(By Adam Jourdan; Additional reporting by SHANGHAI newsroom; Editing by Christopher Cushing)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

WEG to Showcase Drive Solutions at SMM

WEG, a global supplier of drive systems, will showcase its range of systems for the shipbuilding and offshore industry at this year’s SMM (Shipbuilding, Machinery & Marine Technology Fair) in Hamburg.

Fincantieri to Build Third New Princess Cruises Ship

Fincantieri says it has signed an agreement with Carnival Corp. to build  the new cruise ship for its Princess Cruises brand at a cost of about 600 million euros.

Burger Boat to Build New Passenger Vessel

Burger Boat Company announced that it has received a contract for the construction of an 89-foot (27-meter) steel passenger vessel for Wendella Sightseeing Company, Chicago, Ill.

Finance

Kurdistan Says Crude Cargo Near Texas Legally Sold

A $100 million cargo of crude oil in a tanker near Texas was legally shipped and sold by Kurdistan, lawyers for the autonomous region in Iraq told a U.S. court in a letter seen on Thursday,

Kirby Reports Record Q2 2014

Record 2014 second quarter earnings per share of $1.31 compared with $1.11 in the 2013 second quarter, which included a $0.07 benefit due to the reduction of the United earnout liability.

UK Oil Imports Exceed Exports for First Time in 30 Years

Britain imported more oil products than it exported last year for the first time in 30 years, an official report shows, and analysts say the country is likely to

Passenger Vessels

CFOA Schedules Annual Conference

The 2014 Canadian Ferry Operators Association (CFOA) annual AGM & Conference is scheduled to take place September 29-30 in Quebec City. The two-day conference

Burger Boat to Build New Passenger Vessel

Burger Boat Company announced that it has received a contract for the construction of an 89-foot (27-meter) steel passenger vessel for Wendella Sightseeing Company, Chicago, Ill.

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

News

Port Of Los Angeles & MBDA at USC Team Up to Promote Trade

The Port of Los Angeles and the U.S. Department of Commerce Minority Business Development Agency (MDBA) Center at the University of Southern California will

NSRP Risk Management Panel and SCA Joint Meeting

The National Shipbuilding Research Program (NSRP) Risk Management Panel will be meeting jointly with the Shipbuilders Council of America (SCA) November 5-6, 2014 in Virginia Beach, Va.

US DOE Approves Oregon LNG Export Project

The U.S. Energy Department said on Thursday it has approved Oregon LNG to export liquefied natural gas, as the Obama administration works through applications to

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1520 sec (7 req/sec)