February 14, 2022by Gary Noakes
Cruise bookings have shifted away from middlemen and become more direct due to the pandemic, travel data analyst GlobalData has claimed, while a cruise agent maintains the outlook remains buoyant for trade.
Cruise is recovering well after the pandemic
GlobalData said industry revenue from cruise intermediaries in 2021 increased 65% year-over-year, from $11.8 billion to $19.5 billion. However, cruise passengers grew at a significantly faster rate, with Clia figures showing cruise tourism grew by 95%, from 7.1 million to 13.9 million passengers over the same period.
The firm, however, does not believe the trend is irreversible.
Craig Bradley, associate travel and tourism analyst at GlobalData, said: “Unlike other travel and tourism sectors, the percentage increase in revenue for specialty intermediaries is not correlated with the growth of cruise lines in 2021, suggesting that cruise lines now prefer to cut out the middle-man and book directly with the cruise line.”
Bradley added: “There is a whole list of reasons travelers now prefer to go direct, all of which are a result of the pandemic. Some want more flexibility and peace of mind, while others have seen their confidence shaken due to a poor customer experience, especially when it comes to refunds.
“In addition, skills shortages in the industry are also problematic, with many cruise sales agents being laid off during the pandemic and subsequently moving into different careers.
“However, these issues can all be resolved, indicating that this may only be a temporary change, but cruise intermediaries need to act now to ensure they can capture demand by 2022.”
Despite GlobalData’s findings, cruise agents are also optimistic, with Cruise.co.uk reporting strong customer interest. A survey of more than 1,200 of its customers found that 73% of people who sailed on a cruise last year have already booked at least one cruise in 2022. Of these, nearly half will be returning on board within the next six months.
Tony Andrews, Deputy Managing Director of cruise.co.uk, said: “We are very encouraged by these figures, which clearly demonstrate that the majority of cruise passengers are eager to get back on the water.”
A total of 61% of bookings made at the start of 2022 depart from the UK on domestic or overseas crossings, compared to 50% for the same period two years ago.
Andrews added: “Cruise lines have really gone above and beyond to ensure that some guests still enjoy all the trappings of a break on board, while ensuring that onboard health and wellness measures provide the assurances that people are looking for.
“And the success of the season around Britain last year means we are seeing demand from seasoned cruisers as well as first-time sailors.”
