The Competitive Environment of Shore Excursions · of Shore Excursions Ellen Lynch Director, Shore...

The Competitive Environment of Shore Excursions

Ellen Lynch Director, Shore Excursions Holland America Line Seabourn

Cruising Australia – 1987!

Through excellence, we create once-in-a-lifetime experiences every time. - Holland America Line mission statement

HAL/SBN brand overview

Market changes

What are we doing about the change

How does it impact you?

Carnival Corporation - The Family

#16 in 2016

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Holland America Line – Simply Premium

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Seabourn Moments

Itinerary Planning

PROFITABILITY

Yorkey’s Knob

Townsville

Our Commitment to Cruising Australia

Adelaide

Brisbane

Cairns

Darwin

Freemantle

Melbourne

Sydney Albany

Bunbury Kangaroo

Island

Hobart

Exmouth

Geraldton

Port Lincoln

Burnie

Geelong

Eden Esperance

Hamilton Island

Penneshaw

Port Arthur

Port Douglas

Sherrard Island

2013/ 14

2014/ 15

HAL: Oosterdam, Volendam

Ports 17 18

Calls 43 55

SBN: Sojourn, Odyssey

Ports 17 “17”

Calls 31 TBA Bold: HAL&SBN 2013/14/15 Ital: HAL in 2014/15 Red: SBN only

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0% 20% 40%

AUSTRALIA

UNITED STATES

CANADA

GREAT BRITAIN

NEW ZEALAND

GERMANY (Deutschland)

NETHERLANDS

JAPAN

OTHER

Guest Mix for 2012 HAL Australia Voyages

9% 11% 20% 21% 24%

29% 23% 5% 5%

8% 4% 7%

4% 8%

4% 3%

2% 3%

5% 3% 3%

10% 6%

16%

6%

6% 13% 17%

3% 2%

4%

3%

3% 2%

6%

9% 13%

24%

12% 10%

13%

22% 61% 59%

25%

52% 46% 36%

21%

Bar Beauty and Massage Communication Miscellaneous Photo Retail Shop Shore Excursions

HAL 2012 Australian Trade Overview

USA

CANADA

AUSTRALIA

GREAT BRITAIN NETHERLANDS

GERMANY

NEW ZEALAND

# of Guests

6,511 1,786 7,071 1,102 286 404 561

Total OBR $ pPCD

% OBR $ pPCD

by Category

What do guests buy?

Varies by…

– Itinerary

– Length of cruise

– Ship class

– Brand

– Time of year

– Nationality

– Trends

Tour Development

Know the guest

International/Domestic

Independent groups

Back to Back cruisers

Cruise Price

Physically Challenged

Repeat guests

Itinerary

Avoid redundancies

Know competing port

options

Tour Mix

• Classics, i.e. city tours

• Unique/exclusive Local, i.e. food, family,

customs - “insider

information”

Soft adventure

Must do experiences

All price points

Price ceiling Not if the guest perceives

value

Tour prices $27 → $11,499 pp

Duration 45 min. → 8 days!

Tours per port 0 → 39

Longest 1 day tour 18 hours

What are we looking for?

Local and international appeal

Guides, guides, guides

It’s all about the delivery –

Quality transportation

Brand specific/exclusivity

Flexibility – we’re not easy

to work with!

The Collections of Holland America

• Socially & environmentally significant Excursions

• ‘Feel good’ or ‘altruistic” experience

• Marine Protected Areas

• Exclusive

• First class style

• Smaller groups

• Seven Wonders

of the World

• Other national

treasures

• Tours that make

you go “Wow”

• Been there done

that?

• Designed for

repeat guests

• Beyond the well

known attractions

• Private transport

• Car, minivan,

boat, floatplane,

etc.

• Guest

customizes their

itinerary

Uniquely Seabourn

Exclusive experiences

Expectations are high

Private Arrangements

– Dedicated Private Arrangements Coordinator

– Uncompromising service

– Customized itineraries

Independent Attractions

Package attractions

Maximize time ashore

We work hard to sell our

tours!

Challenges

Changing demographic

Multi-language guests

Independent travelers

Safety

Insurance

Pricing

– GST

– Foreign exchange

– Require net rates/volume

External Competition

External Competition

Shore Excursion

Internet Competitors

Independent Tour Companies

Groups Going Direct

Embedded Sales Automation Programs

Guests Selling to Guests

Guests Booking Directly w/ Tour Operators

Guests Booking Through Online Consolidators

Travel Agents Booking Directly for Guests Guests Choosing Alternatives

Pre-cruise

Emails/Blasts

eBrochures

Print brochures

Shore Excursion Call Center

Website

Groups sales

Social Media

Sales Force

Analytics team

Website

Videos

Shorex

Port

32% more likely to

book after viewing

Website redesign

Value message –

why buy from us?

Shore Excursions – Online Reviews

Past guest reviews provide authenticity to the shore excursion program

Shorex Promotional Emails

1. Increase prebooked participation

and demand

2. Mitigate erosion of our sales

3. Currently blasted in North America

“New

promo code

capability”

15 person shore excursion call center

100K+ calls annually

Alternative to the website

Agents can upsell

North American/Australian/Dutch

toll free lines - Australia since

February 2013

Shore Excursion Call Center

Group Shore Excursion Website

Online requests

Custom, exclusive transport

Group tours visible only to

the group

Social Media

Facebook, Twitter, YouTube & Pinterest

Onboard

Tour Talks

Tour videos

Order Forms

Vendor Rack Cards

Flyers

iPads

Shore Excursion Desk

Port Lecturer

Guest

Name

Itinerary

Current

Shorex booked

iPads

Mobile Shorex POS System

Photos sell tours!

Flexible selling

– We go to the guests

Onboard Guest App – coming soon!

Pre cruise/cruise

Guests control schedule

Purchasing

To summarize……

Flexibility

Test new ideas

Leverage technology

Listen to our guests

Know our guest

Listen to our partners

Communicate our message

The Competitive Environment of Shore Excursions · of Shore Excursions Ellen Lynch Director, Shore...

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