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From ‘Likes’ to ‘Leads’:Cruise agents, social media & the impact of emerging technologies
A joint Amadeus North America – Cruise Lines International Association survey on opportunities for the cruise industry
Independent research commissioned with Schwartz Consulting Partners
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From ‘Likes’ to ‘Leads’
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Table of contents
An introduction to cruise agents, social media& the impact of emerging technologies ................................ 1-2
Overview of the cruise specialist accordingto Amadeus research .................................................................... 2
Social media and the cruise market ........................................... 3
Travel agancies and social media ............................................ 3-4
Cruise companies and social media ............................................ 4
Emerging technology and the next generation of cruise customers ....................................................................... 5
Adopting mobile applications and technology ..................... 6-7
Emerging technology and agent adoption ............................ 7-9
Company information .......................................................... 10-11
From ‘Likes’ to ‘Leads’
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v An introduction to cruise agents, social media & the impact of emerging technologiesLike many other industries, the cruise industry is constantly challenged to predict how
social media and mobile technology will be used and what tactics and initiatives will
take the best advantage of them.
To assist in this endeavor, the Cruise Lines International Association (CLIA) and Amadeus
North America commissioned a study to examine how the cruise lines, cruise travel
agencies and cruise customers are adopting emerging technologies. Schwartz Consulting
Partners, a Tampa-based marketing research company with expertise in travel and
emerging media research, provided analysis of the survey results.
CLIA and Amadeus polled more than 1,000 travel agencies in the survey. Of the
respondents, 13% were representatives of large travel agencies that sell a minimum of
300 cabins a year, 43% were representatives of medium-sized travel agencies that sell
between 50–299 cabins a year and 44% were representatives of small travel agencies
that sell between 1–49 cabins a year. Owners and managers accounted for 57% of the
respondents, with cruise specialists representing 24% and independent contractors
representing 19%.
All respondents were asked for their input regarding cruise industry trends related to
the following:
• Technology needs
• New generation of cruisers
• Vacation preferences
• Social media adoption
As a part of the study, Amadeus also spoke with marketing executives from a number
of major cruise line companies regarding their current and anticipated use of emerging
technology.
An earlier study commissioned by Amadeus and conducted by JD Powers reveals
that over 60% of travelers worldwide use social media travel-related sites. The results
of this study indicate that the cruise industry is responding to emerging technology
in a similar fashion. All major cruise lines have Facebook pages. Carnival and Disney
Cruises have amassed half a million Facebook followers each. Furthermore, 54% of cruise
specialists already use social networking for their business and reported that on average
13% of all stateroom bookings now come from leads generated via social media tactics
and initiatives.
From ‘Likes’ to ‘Leads’
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Overall, the survey shows that despite uncertainty regarding the details of exactly
how emerging technology will impact the industry, expectations are high as cruise
specialists, cruise lines and cruise customers gear up to understand and take advantage
of this new medium.
v Overview of the cruise specialist according to Amadeus researchThe cruise specialist market consists primarily of agencies with at least 70% of their
business devoted to selling cruises, tour packages and insurance to leisure customers. A
smaller portion of their business involves booking air, car and hotel reservations. To take
advantage of favorable pricing opportunities, most agencies are members of a travel
alliance, franchise or consortium. Travel agents with this set of characteristics are often
referred to as cruise specialists.
Cruise specialist general demographics (2010 statistics)
• 53 years old (average)
• 75% female
• 15 years of industry experience (average)
• 88% are agency decision makers
• 72% currently have ARC
• 58% are home based
Cruise specialist GDS and revenue information
• 56% have annual revenues less than $100K and gross sales less than $500K
• 32% book air via the GDS
• 54% book non-air segments direct with a supplier
• 54% use a GDS
Top reasons cruise specialists utilize a GDS
• Ability to compare and book cruises and excursions easily, efficiently and accurately
• Ability to book anywhere and at anytime
• Significant CRM capabilities
• Ability to create custom packages within the system
• Marketing and sales ideas to attract more business
• Ability to customize travel documents (itineraries and invoices)
• Ability to find the lowest fares
• Access to cruise related data from the GDS (port information, cruise line information)
• Integrated front-to-back solution
• Protection from bad checks, credit card fraud and default of cruise deposits
• Destination training for agents
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v Social media and the cruise marketFacebook, the world’s largest social network, has more than 641 million members
worldwide with a 35% annual growth rate. The age distribution comparisons between
Facebook members and cruise customers do not overlap significantly today, however,
the social networking generation represents a coming wave of new cruise consumers.
Social media use among the 35–44 age group, as well as younger age groups, may be
seen as a predictor of significant opportunity. The age groups 44 and below will have
an expectation of being serviced in a manner that past cruise passengers have not
demanded. The cruise specialist and cruise lines that will succeed in the coming years
will be the ones that are able to engage with customers in the social media stratosphere.
v Travel agencies and social mediaApproximately 54% of agencies that participated in the survey actively use social
networks to generate cruise customer leads. Furthermore, 16% of small agencies get
at least 30% of their customers through social media tactics and initiatives. Inline with
social media demographics, this trend is also age based. For agencies that cater to cruise
passengers under the age of 45, between 18% and 20%, receive 33% or more of their
leads from social media sources like Facebook and Twitter.
0%
5%
10%
15%
20%
25%
30%
21%
26% 26%
1%
7%
15%
17%
8%
5%
0%
18%
28% 28%
1%
65 and older55-6445-5435-4425-3418-24Under 18
Facebook members Cruise passengers
Figure 1
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The following outlines the main uses of social media among cruise specialists
• 68% engage with customers
• 43% post offers or discounts
• 39% promote new products and/or services
• 19% provide travel advice
• 19% allow customers to share experiences
• 12% provide customer service
Over 70% of cruise specialists have their own Web sites, about half of which allow for
online booking. This however, does not predict social media adoption and success.
Against expectations, 72% of the specialists without Web sites use social networks as
an effective substitute, receiving as many or more bookings from social media tactics
or initiatives as agents who have Web sites. This number drops to 41% for agents with
marketing based Web sites and 30% with booking based Web sites.
v Cruise companies and social mediaCruise companies have seen a major shift in recent years for marketing and advertising
initiatives due to the emergence and power of social media. All of the major cruise lines
have established Facebook pages and many have Twitter profiles and blogs. The primary
use of social media among cruise line companies is for marketing and brand building
rather than direct sales. However, some companies do foresee an increase in sales
directly via Facebook. Cruise line advertising is also experiencing a shift from seasonally
targeted ad campaigns using traditional television and print media to more dynamic and
conversational consumer-focused interactions with social media as the primary platform.
Carnival
Disney
Royal Caribbean
Princess
Celebrity
Holland America
Norwegian
MSC
Cunard
Oceania
Seabourn
Uniworld
Crystal
Silver Sea
Windstar
Avalon
Azamara
Regent Seven Seas
Paul Gauguin
Hurtigruten USA
AMA Waterways
0 250,000 500,000 750,000
Facebook “likes” (as of May 3, 2011)
Figure 2
724,427
535,081
297,713
260,324
107,299
105,079
89,635
35,259
24,206
11,813
10,214
9,890
6,863
5,840
4,323
4,123
3,367
2,935
2,275
1,488
859
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v Emerging technology and the next generation of cruise customersAs the cruise consumer market gets younger, agents see the use and influence of social
networks increasing.
When cruise specialists were asked which potential enhancements in social media
marketing would most help the cruise industry, they were largely in agreement about
the significant benefits available for promotion and increased word of mouth from
customer sharing. In particular, the chart below elaborates on the potential benefits.
Social media areas that would most help business100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Under 35 35 - 44 45 - 54 55 - 64 65 and older
Promotions
Customer sharing
Social media booking
Will not help my business
Mobile apps
Ratings and reviews
DK/others
29% 29% 27% 26% 24%
22% 23% 22% 22% 24%
23% 20%18% 15% 12%
9% 9%14% 17% 20%
9% 9% 9% 9% 8%
6% 8% 8% 8% 9%
Agency use of social media
Social media influence on cruise sales
General use of social media
Customer online research
Online booking
1%
4%
3%
2%
7%
Agent expectations
Increase Stay the same Decrease
76%
76%
76%
72%
55%
23%
20%
21%
26%
38%
Figure 3
Figure 4
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v Adopting mobile applications and technologySome of the cruise lines are also already making preparations for the incorporation of
mobile technology into the cruise experience. In the near future, smart phone cruisers
may expect to engage with the cruise line during three phases:
• Pre-booking
• Pre-cruise
• On-board
During the pre-booking phase, more cruise line Web sites will be adapted for smart
phone viewing providing prospective cruisers the opportunity to research their vacations
using mobile devices. During the pre-cruise phase, cruise lines will use text messaging
and e-mail along with cruise line smart phone apps to provide cruisers with notifications
about events and updates leading up to their departure date. On-board, these same smart
phone apps will be used to allow cruisers to make dinner and excursion reservations
as well as to receive notifications about cruise events and even to communicate with
shipmates using their own cell phones. For the latter, ships are likely to employ Wi-Fi
technology that will allow cruisers to connect independently of their regular mobile
phone provider or platform and without having to incur roaming charges.
Agents differ, primarily by their customer demographic, in their view of the impact of
smart phone applications on their customers. Overall, interest in mobile applications
increases directly with the age of the average customer. The estimates for the younger
cruise segments are comparable to the findings from the earlier Amadeus/JD Power study,
which revealed that about 40% of airline passengers would use mobile applications that
deliver real-time information on flight and baggage status as well as airport directions.
Agents indicating mobile apps would help business
Under 35 38%
35 - 44 35%
45 - 54 32%
55 - 64 30%
65 and older 28%
0% 10% 20% 30% 40%
Figure 5
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When agents are asked about the likelihood of customer use of in-cruise mobile
applications, differences again appear according to the agents’ primary customer age
segment. In general, approximately half of all agents believe that cruise customers would
likely use mobile applications that notify them about cruise events. Most cruise agents
however, regardless of the age of their customers, do not believe that their customers
would be interested in mobile applications that enable them to transact business with
the ship cashier. This will change with the prominence of the younger generation of
cruisers who expect to be engaged via mobile technologies, as noted in the figure of
Facebook members versus cruise passengers. We would use the figure number here.
v Emerging technology and agent adoptionThe survey also examined the primary means of booking reservations used by cruise
specialists as well as managers and owners of travel agencies. Overwhelmingly, agents
who use automation systems (travel Web sites, third party booking engines or GDS)
reported significantly greater stateroom bookings than agents who rely mainly on more
traditional methods. This was reported across all types and sizes of agencies.
GDS*
Agency booking engine*
Consortia booking engine
Supplier Web site
Call supplier*
Third party booking engine
Consolidator / wholesaler
Cruise line Facebook
Travel Web site
Online affiliate programs
0 100 200 300 400 500 600
Average annual cruises sold
Do not prefer Prefer
153.7
157.8
188.1
241.9174.5
140.8
196.9140.7
117.1
193.8112.5
195.9
196.7
198.6
259.7
317.6
367
563
80.9
48.4
Figure 6
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While cruise specialists are widely accepting of emerging technology, they express a fair
amount of uncertainty about how they might best take advantage of these tools. When
cruise specialists were asked why they do not use automated services and emergency
technology the most frequent answer, given by 34% of non-users, was “I want to talk to
a real person.”
On the other hand, those agents who do use automation were asked about the main
benefits. The most frequent response, cited by 65% of users, was “ease of use.” Agents
that initially felt uneasy with the emerging technology and their presumptive belief of
depersonalization, were very pleased with the ease of adoption of the same technologies
into their businesses.
Furthermore, the survey revealed that the increasing use of social media is more often
seen as an improvement than a detriment to the ability to connect with customers. One
cruise line executive in the survey expressed the use of social media as a way of “putting
a more human face on the brand.” Another spoke of recent trends in online marketing
as “a dynamic and customer-led set of conversations with social media as the platform.”
The most encouraging finding of this study and the reason the cruise industry should
feel confident that they will overcome this uncertainty is that ocean or sea voyages are
the overwhelming favorite of cruisers regardless of age or technical expertise. Agents
report that younger cruisers are more likely to select all-inclusive resorts, land-based
packages and resort vacation packages. Older cruisers are more likely to prefer European
and US river cruises and land-based escorted tours. But, most significantly regardless of
age group, the lead preference is the cruise vacation or ocean/sea voyage.
Destination preferences by age group
Under 45 45 and over
Cruise vacation or an ocean/sea voyage
All-inclusive resorts*
Land-based package*
European river cruise vacation*
Visit to friends/relatives
Resort vacation package*
Land-based escorted tour*
Non-package land-based trip
Vacation house rental
Vacation/business trip
Time shares
Non-package resort vacation
US river cruise vacation*
Camping trip
0% 40%20% 60% 80% 100%
94%94%
84%
67%
39%
43%
40%
23%
21%
23%
18%
18%
14%
9%
6%
76%
58%
62%
45%
34%
31%%
20%
18%
15%
14%
14%
15%
5%
Figure 7
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Amadeus is expecting another growth year in cruising with projections from the 2011
Seatrade Conference announcing that over 16 million passengers are expected in 2011;
an increase of over 1 million cruisers from 2010. Furthermore, according to CLIA studies,
the cruise industry has had an average annual growth rate of 7.2% every year since 1990,
with 2011 in position to continue that trend of passenger growth.
The fact that only 20% of North Americans have cruised and only 3% of North Americans
cruise on an annual basis presents a significant opportunity for the cruise industry to
prosper. Based on industry reports, it is estimated that 26 new ships will be joining CLIA.
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About Amadeus
Amadeus is a leading transaction processor for the global travel and tourism industry.
With an impeccable track record of delivering the best travel technology across the globe,
Amadeus has more than two decades of experience in IT innovations and solutions.
Amadeus enables the travel supply chain with cruise, airline, hotel and travel agency IT,
e-commerce, content and distribution solutions.
Local knowledge & global reach
We’re committed to North America more than ever before. You can also count on
Amadeus’ global footprint in 219 markets to help you serve areas outside North
America and expand into new territories.
Connect with us
In the US, call 1.888.AMADEUS, in Canada call 1.888.611.5554 or e-mail us at
salesinquiries@amadeus.com. www.amadeus.com
About CLIA
Cruise Lines International Association is the world’s largest cruise association and is
dedicated to the promotion and growth of the cruise industry. CLIA is composed of 26
of the major cruise lines serving North America and is an organization that operates
pursuant to an agreement filed with the Federal Maritime Commission under the
Shipping Act of 1984 and serves as a non-governmental consultative organization to the
International Maritime Organization, an agency of the United Nations.
CLIA was formed in 1975 in response to a need for an association to promote the special
benefits of cruising and in 2006 merged with the International Council of Cruise Lines
(ICCL), a sister entity created in 1990 dedicated to participating in the regulatory and
policy development process of the cruise industry. CLIA exists to promote all measures
that foster a safe, secure and healthy cruise ship environment, educate, train its travel
agent members, and promote and explain the value, desirability and affordability of the
cruise vacation experience.
CLIA is consistently rated the most effective travel association in terms of overall support
of the travel agency community, the value for the money, and the quality of its training
programs. For example, CLIA’s most comprehensive training is the Cruise Counselor
Certification Program, which requires agents to successfully complete a number of
compulsory training courses and exams, attend cruise conferences and conduct ship
inspections, among other things. CLIA also offers Management and Sales Institutes,
classroom training and training videos.
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Schwartz Consulting Partners is a full service market research consultancy based in
Tampa, Florida. Schwartz Consulting is an industry leader in contemporary market
research methods, with a special focus on travel and emerging technology. As cruise
marketing is becoming more increasingly customer focused, tracking of individual
customer experience is becoming increasingly essential for success. A single dissatisfied
customer on Facebook can be disastrous. Schwartz Consulting Partners recently
introduced ASK3, a short, three-question, application that is ideally designed for tracking
customer experience with online travel transactions. As a part of the booking process,
ASK3 takes only seconds, yet provides the kind of in-depth market intelligence today’s
online retailers need. More information is available online at www.jettsurvey.com/ask3
and at www.schwartzconsulting.com.
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