Cruise agents are confident discounting will create opportunities to attract new clients and help the sector drive up occupancy, despite the impact on their commissions – something on the minds of several cruise agents TTG spoke to last month.

While lines continue to slash prices on ex-UK sailings to appeal to money-conscious travellers, cheaper fares and greater capacity means more customers are ripe for converting.

“There is no denying the knock-on effects from the challenges cruise lines face in terms of filling capacity, especially out of the UK,” admitted Cruise Circle managing director Jason Daniels. “But to be honest, I’m not that concerned – the volume is still coming in.”

Cruise Select director Rachel Wright told TTG although the agency is earning less commission, having more cabins available across a wider range of price points was giving her business scope to tempt would-be cruisers to take the plunge – and potentially turning them into new, repeat clients who may spend when cruise fares rebound.

“We have a very high repeat rate so we know that if we get clients on the product, ocean or river, we know they will come back,” said Wright. “We all want commission, but it’s better to have something rather than nothing – let’s get people onboard and then get that repeat business this time next year when prices recover.”

Wright added she wasn’t fazed by the prospect of cruise fares remaining depressed throughout 2023 going into 2024. “Next year, when the Americans come back to Europe properly, I think prices will go up again.”

Cruise.co.uk managing director Tony Andrews believes the price drops are due to a different profile of consumer entering the cruise market post-pandemic. “At the end of the day, lines have got these extra assets and want to fill as many cabins as possible,” he explained. “So they are going to have to reduce prices to do that.”

Opportunity knocks

Like Daniels and Wright, Andrews thinks the cheaper lead-in fares present a “great opportunity” for agents to attract new-to-cruise clients. “We’ve got to accept prices have come down, which means less commission, but once you get a new client onboard, you’ve got a great chance of making more money out of them next year.” 

Despite seeing a 15% year-on-year drop in pricing during the past six weeks, chief executive of The Travel Village Group, Phil Nuttall, said he wasn’t worried. “If the average price is coming down, there is no need to discount,” he remarked. 

“There is great capacity for the UK which means there are more customers out there to approach.” TTG found a wide range of discounted cruise fares being advertised in June. These included a 17-night Spitsbergen, North Cape and Land of the Midnight Sun itinerary with Ambassador Cruise Line, departing Tilbury on 20 June for £499pp – just £29pp per night.

Elsewhere, MSC Cruises has been offering a 14-night Northern Europe sailing ex-Southampton for £819pp (£58.50pp per night), while P&O Cruises has marketed a 14-night Spain and Portugal itinerary onboard new ship Iona, also sailing out of Southampton, for £649pp – or £46pp per night.

Antonio Paradiso, MSC managing director UK and Ireland, said discounting played a “crucial role” attracting new customers, fostering healthy competition between lines and highlighting the sector’s value proposition.

Paradiso insisted MSC’s discounting was not based on excess capacity in the ex-UK market, but was an effort to make cruise more affordable and appealing to a wider demographic. “Ex UK sailings are in high demand due to the convenience of departing UK ports without the need for international flights,” said Paradiso.

Growing preference

Ambassador chief commercial officer Phil Gardner said discounting in the lates market had “long been prevalent” in the travel industry. “Looking at our occupancy numbers versus the [rest of] industry, as well as our customer surveys, it’s clear no-fly/ex-UK cruising is a growing preference among clients,” he said.

During its last financial year (12 months to 31 March), Ambassador saw occupancy levels reach 92%. “The pressure on lower income households is making our premium value, no-fly offering even more attractive,” Gardner added.

For P&O Cruises, value is key both to attracting new-to-cruise guests, and retaining existing ones. Director of sales Ruth Venn said: “We know that once guests experience a P&O Cruises holiday, they will return to book their next cruise with us which, in the long term, will support our business, the sector – and travel agents.”