UK market to return to growth 2015, young people greatest challenge - Leven

Details

Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 19 April 2015 19 April 2015

The British cruise market should resume growth this year after a drop in 2014, said Stuart Leven, Managing Director of Royal Caribbean International UK & Ireland. "I wasn't surprised by the drop at all. There was less capacity deployed ex UK last year," he told Cruise Business onboard the new Anthem of the Seas.

The British source market is of strategic importance for the Royal Caribbean Cruises Ltd'S (RCCL) contemporary market unit, he said, adding that Oasis class tonnage could not be deployed in Barcelona without strong support of the British source market. Half of the customers the company sources from the UK sail from Southampton, while the other half goes on fly cruises. Europe, where the company has seven ships this summer, is the most favoured fly cruise destination, followed by the Caribbean. "We will bring Dubai back in December. It has been a favourite among British passengers," Leven pointed out.

The greatest challenge Royal Caribbean International and the entire cruise industry is facing is to bring new generations to cruising. The perception that cruising is expensive and only for old people remains alive and well and it has turned out to be very difficult to change. New ships are an important aspect in driving the business forward, but you cannot expect new hardware alone solve the industry's challenges. "If you think that hardware alone is enough, you are kidding yourself," Leven stated, adding: "We sell holidays. Last night, there were about 100,000 people on board our ships."

The industry will need to invest very significant resources in educating the younger generations about the attractions of cruise holidays, but at the same time the industry itself will have to understand how these young people live their lives. And here a fundamental change has taken place in a rather short time. "There was a time when people wanted escapism from gadgets. The millennials don't do that," Leven said. Communication with friends and relatives at home is essential to these people and they also live in "now" – decisions are made on the go. The cruise industry needs to understand this and its implications if it hopes to widen its customer base to young people.

Looking ahead to the year 2020, Leven said that the UK cruise market will be bigger then what it is now. "About 30 million package holidays are sold in Britan every year. And just under 1.7 million cruises. There's our potential," he concluded.