Competition in the tour operator market is intense but careful bundling offers a way to differentiate

Packages can be a crucial weapon in any independent tour operator’s arsenal, but what works for one set of customers may not work for another. Take packaged cruise holidays, for example, an industry growing at compound annual growth rates of 7% (1990-2018), according to Cruise Market Watch.

Yet cruising is certainly no longer the preserve of the wealthy or retired couple, so for firms with sights set on driving new business it is not enough to simply offer a one-size fits all format. Today, like any packaged travel offering, cruise packages must:

·         Be properly researched with a range of target audiences in mind

·         Clearly highlight the preferences of that target group

·         Innovate in order to access a new set of customers.

Recognising this, UK-based Cruise Nation has taken the hint. It’s recently launched a variety of cruise line packages that taps into the notion that everybody’s idea of a perfect trip varies greatly. So-called ‘Smart Packages’ allow users to tailor make a holiday that could include land, air and sea travel. Given European travellers desire for a deal, Cruise Nation’s smart packages have a strong focus on freebies.

Find new customers

The aim of the team at Cruise Nation is to target both new-to-cruise customers as well as established passengers.“We believe that the main highlight of our new combination cruises is that they are tailored specifically to our customer’s demands,” says Phil Evans, MD and founder of Cruise Nation. Whereas Americans may be content with a seven-night on-board Caribbean cruise, British cruise travellers want to spend more time on the islands. The firm’s new packages take this into consideration.

Royal Caribbean is another cruise operator that is rethinking the way it targets new customers. Given the growing trend for children to have a say in the family holiday, it recently launched a digital e-brochure that offers videos and interactive content to showcase the firm’s most popular family-friendly features and itineraries.

In addition, every stateroom on a certain class of ships is fitted with iPads, which can be used to find your way around, to research and book activities on and off the ship and so on. Writing on the company blog, Royal Caribbean’s President of Digital Marketing, Jeff DeKorte, who will be talking about cross-platform marketing strategies in Miami, points to “many, many more innovations in the works”.

Expand the experience  

Given the intense competition, innovation is essential. Cruise operators must:

·         Stay relevant by actively monitoring popular destinations and travel trends

·         Keep the type of guest and the experience top of mind. As an example, the combination cruise line packages for Brits could include two-to-three itineraries rolled into one, rather than just a straight up Caribbean cruise better suited to the American market.

·         Be flexible. “As an independent cruise tour operator, it’s very important that we offer holidays which not only stand out from our competitors but also rival land-based all-inclusive packages,” says Evans.

·          Plan ahead by monitoring upcoming global events like the FIFA World Cup which could see football fans take to the seas.

Jeff DeKorte will be speaking at Online Marketing Strategies for Travel 2014: The Americas and the Caribbean June 2-13