Cruise holidays making inroad in Scandinavia?
By Anders Johannessen
2003 turned out to be the best year ever for the Nordic cruise market. Although sales got off to a slow start as a result of the SARS epidemic in the Far East, not to mention the numerous outbreaks of the Norwalk virus on board cruise ships and the war in Iraq, the number of bookings suddenly escalated in late summer, and this trend has not yet abated.
"We have a feeling the bubble is going to burst this year," says Magnus Wrahme, General Manager, Nordic Countries, at Royal Caribbean Cruises in Oslo. He refers to the long-awaited increase in bookings coming out of Scandinavia and the Baltic. "No one thought 2003 was going to be a good year at first, and the first six months were a little tough, but bookings really improved during the summer and we ended up with a 35% increase over 2002," he reports. Wrahme sounds quite confident that a similar or greater growth rate will be achieved in 2004. He also believes that sales will increase as much as 40-50% annually over the next five years. "There is a vast growth potential," he says, noting that out of a hundred Scandinavians who purchase a vacation from a leisure travel company each year, only one goes on a cruise. In other words, cruises amount to just 1% of the Nordic leisure travel industry. This is set to change, however, because the 'baby boom' generation in Scandinavia is generally well off, in good health and very active. They are also experienced travellers who enjoy being pampered. With their kids having left home, these 'empty nesters' now have more time and money on their hands. These characteristics all add up to them being perfect potential cruise passengers.
Scandinavians changing their minds about cruising
There is a phrase in a recent Royal Caribbean International (RCI) commercial that says: "People are changing their minds about cruising - and we're the reason why." Wrahme believes this is very much the case in the Nordic countries: "The misconception of a cruise vacation as being stuffy, boring and too expensive is finally beginning to fade, even in the Nordic countries, where this mentality has prevailed for a long time," he says, and continues: "I believe one of the major reasons behind this change in attitude is the introduction of the Voyager and Radiance-class ships, all of which offer an incredible array of activities and dining choices, and perhaps a slightly more informal atmosphere." Last year a record number of Norwegians went on a Caribbean cruise with RCI. Since Magnus Wrahme joined the company in 1998, the Oslo office's turnover and passenger figures have doubled. He is confident that the popular Royal Caribbean brand will retain its leading position in the Nordic market, which he expects will grow from the current number of 50,000 - 60,000 passengers annually to about 100,000 during the next five years.
Norway remains Royal Caribbean's number one market in Northern Europe with a 45% share. Sweden comes second with 25%, followed by Denmark with 15% and Finland with 10%. The remaining 5% of the bookings come from the other Baltic countries. These numbers reflect the general breakdown of the Nordic cruise market. "We have built up a very strong image in Norway these past few years, by promoting not only our own brands but
the concept of cruising in general as well." On the same day that he was being interviewed by CBR, Wrahme had been on the radio, donating 24 cabins on Jewel of the Seas as contest prizes. In May 2004, Jewel of the Seas, the last of the Radiance Class, will make a couple of 2-day cruises from Oslo, in order to give first-timers a taste of the cruise experience. The fact that these trips were sold within just three weeks is proof of their popularity.
NCL on the rebound
Other cruise lines have discovered the potential of the Nordic market as well. Princess Cruises recently began planning a new marketing campaign with the intention of gaining a stronger foothold in Denmark, Sweden and Norway. After some turbulent years, Norwegian Cruise Line (NCL) is also getting back on its feet with the 'Freestyle Cruising' concept and new ships.
"NCL certainly is on an upswing, although there is no particular leader in the Swedish market at the moment," says Anders Svensson at the travel agency Globetrotter in Stockholm. The company will send 4,000 Swedes on a cruise this year, and 2004 looks promising indeed, with a 50% increase in bookings during January and February, compared to the same period last year. In 2003, about 15,000 Swedes purchased a cruise vacation and this number is expected to grow to perhaps as much as 20,000 in 2004. Svensson foresees a 40-50% annual increase in cruise passengers during the next few years, confirming Magnus Wrahme's estimates.
Although Svensson agrees that the more relaxed cruise experience that are being offered by NCL's 'FreestyleCruising' and Princess Cruises' "Personal Choice Dining" concepts might help attract passengers who otherwise would have considered a cruise too formal, he is also mindful that different cruise lines attract different people: "Some will always prefer Silversea or Queen Mary 2 to Fred. Olsen or NCL," he concludes.
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