RCI: Delivering a digital agenda for cruise

Targeted at new-to-cruise and millennial customers, Bayley explains the move is part of a wider strategy to attract customers who are new to Royal. “We’re talking more about it as a holiday option [rather than a cruise],” he says. And it’s a move which seems to be working – when the newly refurbished Mariner of the Seas sets sail again in June, the line is anticipating that more than 40% of passengers will be new-to-cruise. In fact, Bayley says Royal Caribbean is seeing a “shift in new-to-cruise coming to the business” across the fleet.

“About three years ago we saw that number increase, and it’s been steady since then,” he says.

The reason, Bayley explains, is a change in how Royal approaches its marketing. “In the last three years we’ve shifted from traditional to digital channels – 70% of our total marketing budget is digital in the UK.”

Royal’s focus on digital is not just limited to its marketing. The company has also invested “hundreds of millions of dollars into the Excalibur programme” – a new app, which is designed to simplify customer experiences, both prior to boarding and once they’re on the ship. “We want to convert the customer guest experience into a digital universe,” Bayley says. “Customers will board the ship and the technology will recognise their face and their phone in their pocket. They’ll be able to arrange their entire schedule on their phone.”

Guests will be given a flavour of the new technology next month, Bayley says, with facial recognition debuting on Symphony of the Seas. “Everything is going online,” he adds. “When we complete the Excalibur programme by the end of 2018, 50% of RCCL ships will be transformed.”

I ask if the move is in response to Medallion, the wearable onboard technology introduced by rival Carnival Corp last year. Bayley smiles in response, saying only: “If we want to remain relevant to customers of today and the future then you have to move the entire business to the platform that customers feel comfortable with. Any business needs to be at the forefront of that.”

But is there a danger Royal could risk alienating older clients?

“We’re mindful of the older generation”, Bayley insists. “And they don’t have to do the facial recognition if they don’t want to. They can be as digital as their hearts desire, and for those that don’t want to even pick up a device, well that’s fine too.”

With Royal’s move to pre-booking onboard experiences, I ask Bayley whether the line might ever consider following Thomas Cook in allowing customers to pre-book sunbeds. He chuckles. “We’d always look at these ideas but the Royal ships are awfully big, and they’ve got an awful lot of things to do. I can see such a scheme working on more traditional ships perhaps, but it’s not something that’s right for us.”

Something else which Bayley insists isn’t right for Royal is a move to all-inclusive sailings. With Norwegian Cruise Line claiming the move has proved popular in its European markets, I question whether Royal might consider a similar move. Bayley won’t comment on NCL, but he acknowledges: “We’re always watching and monitoring what our competitors do.

“I would say though that our proposition is truly exceptional.” So is that a no then? “I don’t think we would look at all-inclusive,” he smiles, and adds: “Also, it can be a false economy – by bundling everything together, you take away the choice of options that people like to have.”

And certainly in the UK at least, it seems Royal is performing strongly enough as it is. Bayley says Harmony of the Seas, which launched last year, was the best booked shop prior to its launch – and Symphony of the Seas has now surpassed this, with the UK the number two market after the US.

“The UK is performing really well, and Independence of the Seas [which relaunches in May after its refurbishment] is also doing great,” Bayley says, adding that some 1,500 agents will be invited onboard during its relaunch in May.

And despite the uncertainty surrounding Brexit, and its impact on currency, Bayley insists he is upbeat about Royal’s future in the UK. “The UK is key” he concludes. “Aside from the political and commercial concerns of Brexit, we will always maintain a long-term approach to the UK.”