February 23, 2021
Promo Distributors Eye Cruise Industry’s Return
Anticipated wider-spread vaccination availability and other factors have certain cruise executives anticipating a gradual reemergence for the industry later this year. Some promo pros see opportunity in that.
In 2020, COVID-19 crippled the cruise industry and promo’s sales to the end-market plummeted.
Now, however, with coronavirus vaccinations starting to roll out there are signs of life stirring and some promotional products distributors that work with cruise clients see a distant light on the horizon for that industry and for promo’s business with it.
“Promo’s sales to the cruising market will remain minimal this year, but should be better than in 2020,” says Tad Webster, president/COO of Los Angeles-based distributor Brandinc (asi/145212). Brandinc works with certain household name cruise lines.
Webster relates how companies in the market suffered great financial hardship because of COVID, forcing cruise operators to temporarily shutter their fleets for public health reasons. Cruise Lines International Association, the world’s largest cruise industry trade association, estimates that between mid-March and September 2020, the suspension of cruise ship operations resulted in the loss of more than $77 billion in economic activity, 518,000 jobs and $23 billion in wages.
Still, Webster and some executives in the cruise industry see the beginning of a reemergence for cruising starting in the second half of the year before gaining greater steam in 2022. “It will be slow but gradual business through the third quarter,” says Webster. “Many cruise lines are experiencing great bookings for 2022 and beyond.”
Informed by the insights and guidance of leading experts, strict protocols adopted by CLIA members can help mitigate the risk of COVID-19 at sea. #WeAreCruise pic.twitter.com/paCCU2Dn4t
— Cruise Lines International Association (CLIA) (@CLIAGlobal) February 12, 2021
Given that, proactive promo distributors could consider rekindling relationships with cruise clients and/or prospecting within the niche as cruise lines begin to prepare for a return to operations.
“My cruise clients are already asking for sales aids and gifts that are relevant to the struggle and challenges the industry is migrating through,” says Webster. “The most requested items are branded masks/filters, hand sanitizer and related on-board gifts.”
Opportunities for branded mask sales could accelerate with a broader return to cruising. An executive order from President Joe Biden mandates that masks be worn on public transportation, which travel industry experts assert extends to cruise ships. Cruise lines could help facilitate compliance by providing passengers with at least a couple branded masks each along with a welcome package of logoed keepsakes.
While considerable uncertainty remains for the cruise industry, some leading cruise line executives are starting to feel more optimistic.
“What I will predict is this: I think that certainly by the end of this year, most, if not all, of our fleet, I’m optimistic, will be in action,” Carnival Corp. CEO Arnold Donald shared during a webcast “Fireside Chat” with John Lovell, president of Travel Leaders Group. “I think there’s a really high probability that all of them will be back by early next year if things continue to progress the way they have.”
Part of the cautious optimism Donald and certain other executives feel is a result of advancing COVID-19 treatments and vaccinations. The latter could have an especially important role to play. Some cruise lines, including Crystal Cruises, Victory Cruise Lines and American Queen Steamboat Company, have already announced they will require both crew and passengers to be inoculated against the virus in order to board. Others, like Norwegian and Royal Caribbean, are requiring that crew members be fully vaccinated but haven’t yet committed to requiring passengers to be inoculated.
Some cruise industry leaders think requiring passengers to be vaccinated and wear masks will hurt business and compel would-be cruisers to turn to other means of recreation for their vacations. Still, others say they believe the opposite is true: That vaccination requirements will help engender the peace of mind necessary for travelers to be willing to return at volume to cruise ships.
“We are encouraged by the progress being made with the COVID-19 vaccines and what this means for our Crystal family and the travel industry as a whole as we eagerly look forward to exploring the world again,” Crystal Cruises Interim President/CEO Jack Anderson said when that company’s vaccination requirement was announced.
Anderson continued: “We know that peace of mind is the greatest luxury; and the vaccine requirement is simply the best way to ensure the safest possible Crystal experience for all on board. This sentiment is underscored by conversations with our guests and travel partners and a recent Cruise Critic survey of cruisers that revealed that more than 80% of respondents would cruise if a vaccine were required.”
For sure, the cruise industry has a long way to go to get back to “normal.” But it appears momentum is poised to begin building, and distributors that seek to serve as consultative partners now could be in position to grow sales in this niche – and help in its recovery.
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