The cruise industry continues to see positive forward momentum as demand for all-included cruising experiences grows. The category itself is a bright spot in the travel industry seeing 31.7 million seaborne passengers in 2023, surpassing pre-pandemic levels by 7%. The outlook is even sunnier with cruise capacity expected to grow 10% through 2028 (CLIA). One area of opportunity for the cruise industry is digitization. Over 75% of cruise bookings are still completed offline (Phocuswire) which leaves room for improvement on streamlining and expediting the actual purchasing process when it comes to cruising. Complex itineraries, extensive add-ons and options as well all overall age demographics may be the cause but with technology, cruise lines can deliver an elevated purchasing experience that could possibly increase overall transactions and passenger loyalty.
The Preference for Offline Transactions
Phocuswire’s data suggests that the majority of cruise shoppers prefer to complete the transaction by offline means, usually with a travel agent either in person or over the phone. Cruise purchases by nature are more complex than other types of trips due mainly to all the components that make up a complete journey. Preference for offline transactions could be due to:
- Complexity of a multi destination itinerary
- Synchronizing air and ground transportation correctly for embarkment and disembarkment
- Multiple cruise options and add-ons that may seem overwhelming
- Understanding cabin location on the ship and the travelers own preferences
- Documentation for travel l
Demographics are also a factor in preferences for online transactions. The growing ‘first-time cruisers’ segment may find the entire research and buying process daunting as well as aged consumers who may be less apt to embrace technology.
Enhancing the Experience Through Technology
The overall preference for offline cruise transactions has created opportunities for innovation in the way cruise customers research and purchase cruises and cruise products. For cruise lines, streamlined purchases and elevated experiences before the trip can potentially generate more bookings through reputational marketing and increased customer loyalty. Overcoming the challenges in cruise purchasing can be achieved through dedicated platforms that deliver interfaces and menu systems that are optimized for the nuances of cruising vacations. Elements such as video tutorials, virtual checklists and on demand assistance can add value and convenience to the cruise customer’s experience and positively influence buying decisions. Layout, accessibility and functionality are key priorities for consumer facing technology when purchasing complex travel products such as cruises and associated cruise products. Mobile applications should also reflect ease and convenience to capture potential ‘spur of the moment’ and other high velocity purchasing decisions. Travel consumers in most other segments have shown strong preferences for online purchases and optimizing cruise related transactions will drive adoption higher in the category.
AI and Cruising?
One of the biggest challenges in booking a cruise is coordinating different modes of transportation along with the various aspects of the cruise itself. Recent innovations in Artificial Intelligence have proven that the technology can provide valuable benefits to the travel industry. For complex bookings such as cruises, AI can perform many different tasks and searches in a matter of seconds and can take inputs from users in a variety of formats. Travel consumers who may be apprehensive to technology can easily speak their requests into an AI interface and the platform can perform all the necessary functions, bookings and even handle payments in one session. AI infrastructure can also provide fast research of cruises, destinations, excursions and other options and accessories that can elevate the experience. AI’s easy to use and high level of engagement positions it as a perfect complimentary technology in the digitization of the cruise business.
Room for Improvement
A consistently growing market and ‘new to cruising’ demographic has created more opportunities for the cruise industry and one untapped avenue is the digital frontier. With over 3 quarters of cruises booked offline, the industry has room to improve the research and purchasing experience through technology. The complexities of booking a cruise push most consumers to traditional methods of purchasing travel but technology can easily streamline the process and provide elevated service and experiences for traveling consumers that prefer to utilize digital interfaces for travel. Category specific platforms that have easy to use ‘ladder’ or ‘tree’ type menu systems can cater to individuals who may not normally use online means. AI powered infrastructure can deliver concierge type services to cruise shoppers and can complete entire bookings, including air transportation, cruise add ons and shore excursions. Using technology to sell and market cruises and cruise products can open up new markets for cruise lines and potentially increase bookings as well as passenger loyalty. Digitization of the cruise research and purchases can also save companies time and money with automated purchasing and marketing solutions.