From ‘Likes’ to ‘Leads’ - Amadeus · PDF fileFrom ‘Likes’...

From ‘Likes’ to ‘Leads’:Cruise agents, social media & the impact of emerging technologies

A joint Amadeus North America – Cruise Lines International Association survey on opportunities for the cruise industry

Independent research commissioned with Schwartz Consulting Partners

®

From ‘Likes’ to ‘Leads’

®

2

Table of contents

An introduction to cruise agents, social media& the impact of emerging technologies ................................ 1-2

Overview of the cruise specialist accordingto Amadeus research .................................................................... 2

Social media and the cruise market ........................................... 3

Travel agancies and social media ............................................ 3-4

Cruise companies and social media ............................................ 4

Emerging technology and the next generation of cruise customers ....................................................................... 5

Adopting mobile applications and technology ..................... 6-7

Emerging technology and agent adoption ............................ 7-9

Company information .......................................................... 10-11


®

1

v An introduction to cruise agents, social media & the impact of emerging technologiesLike many other industries, the cruise industry is constantly challenged to predict how

social media and mobile technology will be used and what tactics and initiatives will

take the best advantage of them.

To assist in this endeavor, the Cruise Lines International Association (CLIA) and Amadeus

North America commissioned a study to examine how the cruise lines, cruise travel

agencies and cruise customers are adopting emerging technologies. Schwartz Consulting

Partners, a Tampa-based marketing research company with expertise in travel and

emerging media research, provided analysis of the survey results.

CLIA and Amadeus polled more than 1,000 travel agencies in the survey. Of the

respondents, 13% were representatives of large travel agencies that sell a minimum of

300 cabins a year, 43% were representatives of medium-sized travel agencies that sell

between 50–299 cabins a year and 44% were representatives of small travel agencies

that sell between 1–49 cabins a year. Owners and managers accounted for 57% of the

respondents, with cruise specialists representing 24% and independent contractors

representing 19%.

All respondents were asked for their input regarding cruise industry trends related to

the following:

• Technology needs

• New generation of cruisers

• Vacation preferences

• Social media adoption

As a part of the study, Amadeus also spoke with marketing executives from a number

of major cruise line companies regarding their current and anticipated use of emerging

technology.

An earlier study commissioned by Amadeus and conducted by JD Powers reveals

that over 60% of travelers worldwide use social media travel-related sites. The results

of this study indicate that the cruise industry is responding to emerging technology

in a similar fashion. All major cruise lines have Facebook pages. Carnival and Disney

Cruises have amassed half a million Facebook followers each. Furthermore, 54% of cruise

specialists already use social networking for their business and reported that on average

13% of all stateroom bookings now come from leads generated via social media tactics

and initiatives.


®

2

Overall, the survey shows that despite uncertainty regarding the details of exactly

how emerging technology will impact the industry, expectations are high as cruise

specialists, cruise lines and cruise customers gear up to understand and take advantage

of this new medium.

v Overview of the cruise specialist according to Amadeus researchThe cruise specialist market consists primarily of agencies with at least 70% of their

business devoted to selling cruises, tour packages and insurance to leisure customers. A

smaller portion of their business involves booking air, car and hotel reservations. To take

advantage of favorable pricing opportunities, most agencies are members of a travel

alliance, franchise or consortium. Travel agents with this set of characteristics are often

referred to as cruise specialists.

Cruise specialist general demographics (2010 statistics)

• 53 years old (average)

• 75% female

• 15 years of industry experience (average)

• 88% are agency decision makers

• 72% currently have ARC

• 58% are home based

Cruise specialist GDS and revenue information

• 56% have annual revenues less than $100K and gross sales less than $500K

• 32% book air via the GDS

• 54% book non-air segments direct with a supplier

• 54% use a GDS

Top reasons cruise specialists utilize a GDS

• Ability to compare and book cruises and excursions easily, efficiently and accurately

• Ability to book anywhere and at anytime

• Significant CRM capabilities

• Ability to create custom packages within the system

• Marketing and sales ideas to attract more business

• Ability to customize travel documents (itineraries and invoices)

• Ability to find the lowest fares

• Access to cruise related data from the GDS (port information, cruise line information)

• Integrated front-to-back solution

• Protection from bad checks, credit card fraud and default of cruise deposits

• Destination training for agents


®

3

v Social media and the cruise marketFacebook, the world’s largest social network, has more than 641 million members

worldwide with a 35% annual growth rate. The age distribution comparisons between

Facebook members and cruise customers do not overlap significantly today, however,

the social networking generation represents a coming wave of new cruise consumers.

Social media use among the 35–44 age group, as well as younger age groups, may be

seen as a predictor of significant opportunity. The age groups 44 and below will have

an expectation of being serviced in a manner that past cruise passengers have not

demanded. The cruise specialist and cruise lines that will succeed in the coming years

will be the ones that are able to engage with customers in the social media stratosphere.

v Travel agencies and social mediaApproximately 54% of agencies that participated in the survey actively use social

networks to generate cruise customer leads. Furthermore, 16% of small agencies get

at least 30% of their customers through social media tactics and initiatives. Inline with

social media demographics, this trend is also age based. For agencies that cater to cruise

passengers under the age of 45, between 18% and 20%, receive 33% or more of their

leads from social media sources like Facebook and Twitter.

0%

5%

10%

15%

20%

25%

30%

21%

26% 26%

1%

7%

15%

17%

8%

5%

0%

18%

28% 28%

1%

65 and older55-6445-5435-4425-3418-24Under 18

Facebook members Cruise passengers

Figure 1


®

4

The following outlines the main uses of social media among cruise specialists

• 68% engage with customers

• 43% post offers or discounts

• 39% promote new products and/or services

• 19% provide travel advice

• 19% allow customers to share experiences

• 12% provide customer service

Over 70% of cruise specialists have their own Web sites, about half of which allow for

online booking. This however, does not predict social media adoption and success.

Against expectations, 72% of the specialists without Web sites use social networks as

an effective substitute, receiving as many or more bookings from social media tactics

or initiatives as agents who have Web sites. This number drops to 41% for agents with

marketing based Web sites and 30% with booking based Web sites.

v Cruise companies and social mediaCruise companies have seen a major shift in recent years for marketing and advertising

initiatives due to the emergence and power of social media. All of the major cruise lines

have established Facebook pages and many have Twitter profiles and blogs. The primary

use of social media among cruise line companies is for marketing and brand building

rather than direct sales. However, some companies do foresee an increase in sales

directly via Facebook. Cruise line advertising is also experiencing a shift from seasonally

targeted ad campaigns using traditional television and print media to more dynamic and

conversational consumer-focused interactions with social media as the primary platform.

Carnival

Disney

Royal Caribbean

Princess

Celebrity

Holland America

Norwegian

MSC

Cunard

Oceania

Seabourn

Uniworld

Crystal

Silver Sea

Windstar

Avalon

Azamara

Regent Seven Seas

Paul Gauguin

Hurtigruten USA

AMA Waterways

0 250,000 500,000 750,000

Facebook “likes” (as of May 3, 2011)

Figure 2

724,427

535,081

297,713

260,324

107,299

105,079

89,635

35,259

24,206

11,813

10,214

9,890

6,863

5,840

4,323

4,123

3,367

2,935

2,275

1,488

859


®

5

v Emerging technology and the next generation of cruise customersAs the cruise consumer market gets younger, agents see the use and influence of social

networks increasing.

When cruise specialists were asked which potential enhancements in social media

marketing would most help the cruise industry, they were largely in agreement about

the significant benefits available for promotion and increased word of mouth from

customer sharing. In particular, the chart below elaborates on the potential benefits.

Social media areas that would most help business100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Under 35 35 - 44 45 - 54 55 - 64 65 and older

Promotions

Customer sharing

Social media booking

Will not help my business

Mobile apps

Ratings and reviews

DK/others

29% 29% 27% 26% 24%

22% 23% 22% 22% 24%

23% 20%18% 15% 12%

9% 9%14% 17% 20%

9% 9% 9% 9% 8%

6% 8% 8% 8% 9%

Agency use of social media

Social media influence on cruise sales

General use of social media

Customer online research

Online booking

1%

4%

3%

2%

7%

Agent expectations

Increase Stay the same Decrease

76%

76%

76%

72%

55%

23%

20%

21%

26%

38%

Figure 3

Figure 4


®

6

v Adopting mobile applications and technologySome of the cruise lines are also already making preparations for the incorporation of

mobile technology into the cruise experience. In the near future, smart phone cruisers

may expect to engage with the cruise line during three phases:

• Pre-booking

• Pre-cruise

• On-board

During the pre-booking phase, more cruise line Web sites will be adapted for smart

phone viewing providing prospective cruisers the opportunity to research their vacations

using mobile devices. During the pre-cruise phase, cruise lines will use text messaging

and e-mail along with cruise line smart phone apps to provide cruisers with notifications

about events and updates leading up to their departure date. On-board, these same smart

phone apps will be used to allow cruisers to make dinner and excursion reservations

as well as to receive notifications about cruise events and even to communicate with

shipmates using their own cell phones. For the latter, ships are likely to employ Wi-Fi

technology that will allow cruisers to connect independently of their regular mobile

phone provider or platform and without having to incur roaming charges.

Agents differ, primarily by their customer demographic, in their view of the impact of

smart phone applications on their customers. Overall, interest in mobile applications

increases directly with the age of the average customer. The estimates for the younger

cruise segments are comparable to the findings from the earlier Amadeus/JD Power study,

which revealed that about 40% of airline passengers would use mobile applications that

deliver real-time information on flight and baggage status as well as airport directions.

Agents indicating mobile apps would help business

Under 35 38%

35 - 44 35%

45 - 54 32%

55 - 64 30%

65 and older 28%

0% 10% 20% 30% 40%

Figure 5


®

7

When agents are asked about the likelihood of customer use of in-cruise mobile

applications, differences again appear according to the agents’ primary customer age

segment. In general, approximately half of all agents believe that cruise customers would

likely use mobile applications that notify them about cruise events. Most cruise agents

however, regardless of the age of their customers, do not believe that their customers

would be interested in mobile applications that enable them to transact business with

the ship cashier. This will change with the prominence of the younger generation of

cruisers who expect to be engaged via mobile technologies, as noted in the figure of

Facebook members versus cruise passengers. We would use the figure number here.

v Emerging technology and agent adoptionThe survey also examined the primary means of booking reservations used by cruise

specialists as well as managers and owners of travel agencies. Overwhelmingly, agents

who use automation systems (travel Web sites, third party booking engines or GDS)

reported significantly greater stateroom bookings than agents who rely mainly on more

traditional methods. This was reported across all types and sizes of agencies.

GDS*

Agency booking engine*

Consortia booking engine

Supplier Web site

Call supplier*

Third party booking engine

Consolidator / wholesaler

Cruise line Facebook

Travel Web site

Online affiliate programs

0 100 200 300 400 500 600

Average annual cruises sold

Do not prefer Prefer

153.7

157.8

188.1

241.9174.5

140.8

196.9140.7

117.1

193.8112.5

195.9

196.7

198.6

259.7

317.6

367

563

80.9

48.4

Figure 6


®

8

While cruise specialists are widely accepting of emerging technology, they express a fair

amount of uncertainty about how they might best take advantage of these tools. When

cruise specialists were asked why they do not use automated services and emergency

technology the most frequent answer, given by 34% of non-users, was “I want to talk to

a real person.”

On the other hand, those agents who do use automation were asked about the main

benefits. The most frequent response, cited by 65% of users, was “ease of use.” Agents

that initially felt uneasy with the emerging technology and their presumptive belief of

depersonalization, were very pleased with the ease of adoption of the same technologies

into their businesses.

Furthermore, the survey revealed that the increasing use of social media is more often

seen as an improvement than a detriment to the ability to connect with customers. One

cruise line executive in the survey expressed the use of social media as a way of “putting

a more human face on the brand.” Another spoke of recent trends in online marketing

as “a dynamic and customer-led set of conversations with social media as the platform.”

The most encouraging finding of this study and the reason the cruise industry should

feel confident that they will overcome this uncertainty is that ocean or sea voyages are

the overwhelming favorite of cruisers regardless of age or technical expertise. Agents

report that younger cruisers are more likely to select all-inclusive resorts, land-based

packages and resort vacation packages. Older cruisers are more likely to prefer European

and US river cruises and land-based escorted tours. But, most significantly regardless of

age group, the lead preference is the cruise vacation or ocean/sea voyage.

Destination preferences by age group

Under 45 45 and over

Cruise vacation or an ocean/sea voyage

All-inclusive resorts*

Land-based package*

European river cruise vacation*

Visit to friends/relatives

Resort vacation package*

Land-based escorted tour*

Non-package land-based trip

Vacation house rental

Vacation/business trip

Time shares

Non-package resort vacation

US river cruise vacation*

Camping trip

0% 40%20% 60% 80% 100%

94%94%

84%

67%

39%

43%

40%

23%

21%

23%

18%

18%

14%

9%

6%

76%

58%

62%

45%

34%

31%%

20%

18%

15%

14%

14%

15%

5%

Figure 7


®

9

Amadeus is expecting another growth year in cruising with projections from the 2011

Seatrade Conference announcing that over 16 million passengers are expected in 2011;

an increase of over 1 million cruisers from 2010. Furthermore, according to CLIA studies,

the cruise industry has had an average annual growth rate of 7.2% every year since 1990,

with 2011 in position to continue that trend of passenger growth.

The fact that only 20% of North Americans have cruised and only 3% of North Americans

cruise on an annual basis presents a significant opportunity for the cruise industry to

prosper. Based on industry reports, it is estimated that 26 new ships will be joining CLIA.


®

10

About Amadeus

Amadeus is a leading transaction processor for the global travel and tourism industry.

With an impeccable track record of delivering the best travel technology across the globe,

Amadeus has more than two decades of experience in IT innovations and solutions.

Amadeus enables the travel supply chain with cruise, airline, hotel and travel agency IT,

e-commerce, content and distribution solutions.

Local knowledge & global reach

We’re committed to North America more than ever before. You can also count on

Amadeus’ global footprint in 219 markets to help you serve areas outside North

America and expand into new territories.

Connect with us

In the US, call 1.888.AMADEUS, in Canada call 1.888.611.5554 or e-mail us at

[email protected]. www.amadeus.com

About CLIA

Cruise Lines International Association is the world’s largest cruise association and is

dedicated to the promotion and growth of the cruise industry. CLIA is composed of 26

of the major cruise lines serving North America and is an organization that operates

pursuant to an agreement filed with the Federal Maritime Commission under the

Shipping Act of 1984 and serves as a non-governmental consultative organization to the

International Maritime Organization, an agency of the United Nations.

CLIA was formed in 1975 in response to a need for an association to promote the special

benefits of cruising and in 2006 merged with the International Council of Cruise Lines

(ICCL), a sister entity created in 1990 dedicated to participating in the regulatory and

policy development process of the cruise industry. CLIA exists to promote all measures

that foster a safe, secure and healthy cruise ship environment, educate, train its travel

agent members, and promote and explain the value, desirability and affordability of the

cruise vacation experience.

CLIA is consistently rated the most effective travel association in terms of overall support

of the travel agency community, the value for the money, and the quality of its training

programs. For example, CLIA’s most comprehensive training is the Cruise Counselor

Certification Program, which requires agents to successfully complete a number of

compulsory training courses and exams, attend cruise conferences and conduct ship

inspections, among other things. CLIA also offers Management and Sales Institutes,

classroom training and training videos.


®

11

Schwartz Consulting Partners is a full service market research consultancy based in

Tampa, Florida. Schwartz Consulting is an industry leader in contemporary market

research methods, with a special focus on travel and emerging technology. As cruise

marketing is becoming more increasingly customer focused, tracking of individual

customer experience is becoming increasingly essential for success. A single dissatisfied

customer on Facebook can be disastrous. Schwartz Consulting Partners recently

introduced ASK3, a short, three-question, application that is ideally designed for tracking

customer experience with online travel transactions. As a part of the booking process,

ASK3 takes only seconds, yet provides the kind of in-depth market intelligence today’s

online retailers need. More information is available online at www.jettsurvey.com/ask3

and at www.schwartzconsulting.com.

From ‘Likes’ to ‘Leads’ - Amadeus · PDF fileFrom ‘Likes’...

Documents

Transcript of From ‘Likes’ to ‘Leads’ - Amadeus · PDF fileFrom ‘Likes’...