ntil recently, cruises were the fastest growing sector of the travel industry. Experts were anticipating 2020 to be a successful year, with a further increase in the number of passengers expected to set sail this year. However, COVID-19 has dramatically changed everything, with the cruise industry being one of the most severely hit by the pandemic. Despite the numerous challenges, cruise companies have the chance to turn this crisis into an opportunity to come back stronger, greener, and further attract consumer preference.
To achieve this goal and make the most of the lessons learned from the pandemic, the cruise industry must focus on four strongly interconnected elements that will define the future of cruising and its resilience over time: environmental sustainability, modern infrastructures, a personalized customer experience through greater digitalization, and a value creation-oriented relationship with local communities.
Environmental Sustainability
With society’s increased environmental consciousness, sustainability is becoming top of mind for many consumers and will continue to guide their choices after the pandemic. Cruise operators have the chance to reinforce their ongoing efforts to reduce environmental footprint in anticipation of future consumer and societal demands.
In this context, the fleet renewal process accelerated in the past few months and will continue in the foreseeable future. This renewal process has led to the dismissal of a number of older and less sustainable (from both an environmental and economic point of view) ships, while companies look at ways to uphold their commitments and continue investing in alternative and greener power supply systems. In this particularly delicate economic phase, the industry’s long-term plans towards zero emission cruising will need the support of the entire ecosystem (public authorities, suppliers, business partners, industry experts) to become a reality and meet the emission targets set by international institutions. The R&D efforts towards more eco-friendly technologies must become a priority for public and private stakeholders at national and international level, who need to join resources and knowledge to achieve this important milestone.
Consumer demands for increased sustainability will also reflect on the onboard experience and excursion offers, which will need to comply with more sustainable behaviors (e.g. 100% waste recycling, zero food waste and ban of single-use plastics) and propose more ecological shoreside activities (e.g. cycling or walking tours, increased use of electric buses to reach the destinations).
Modern Infrastructures
The modernization of infrastructures, their ability to ensure a more efficient movement of people and to support the green transition of transports represent another important pillar for the future of the industry. An incredible opportunity is now offered by the significant investments that governments will make to foster the economic recovery, which should include the upgrading of infrastructures, with an eye on accessibility and port infrastructures.
This upgrade should aim at connecting ports more efficiently to airports and train stations, thus making them more easily accessible and allowing tourists to travel also to less popular destinations, mitigating the effects of mass tourism in major locations. It can also support cruise operators reducing their environmental impact by providing electric energy supply to ships at berth. The so-called cold ironing will allow ships to turn off their engines in port, resulting in much lower emissions to the benefit on the local communities and the environment.
In this context, cruise companies can partner with other interested players and institutions to identify the needs and design adequate infrastructural solutions, joining once again resources and knowledge to achieve the best result.
Personalized Customer Experience through Digitalization
With COVID-19, technology has taken a more prominent role in defining a customer experience that permits the current need for social distancing. As a result, digital interaction is no longer just a trait of onboard life, but a key component of bookings and embarkation activities.
With this evolution, the customer experience will become more and more appealing. In a single app, customers will have a broad array of services at their fingertips: from check-in operations, to customer service, to booking excursions and leisure activities, to food & beverage orders. Tailor-made experiences will be enhanced, making every holiday onboard different.
This uniqueness and additional diversification will help cruise companies stay ahead and respond to evolving consumer demands. Technology will also build longer-lasting relationships with consumers after they have disembarked by maintaining a high level of engagement and nurturing the recurring client base.
Value Creation-Oriented Relationships with Communities
The economies of destination locations rely on a flourishing cruise industry, even more so considering the economic fallout of COVID-19. Their cultural heritage and local ecosystems can be preserved by creating synergies with industry players that establish mutually beneficial partnerships aimed at generating long-term sustainable growth. Such growth can contribute to creating value in broader geographical areas by expanding value chains outside of port cities and renowned destinations. This can contribute to the broader economy while also improving the sustainability of tourism. In cooperation with the local communities, a more holistic destination management process aimed at a greater valorization of the cultural, historical, and gastronomical landmarks will create mutually beneficial opportunities.
Cruise players will need to quickly embrace change and act on these four pillars to set themselves apart from their competitors. The future success and livelihood of cruise companies will very much depend on the courage and vision they will demonstrate in listening to consumers and responding to the needs of society. Due to the pandemic, we will see more cruise operators recognize that a profitable business is tied to the company’s social purpose and that being part of an ecosystem means establishing meaningful partnerships to advance broader public objectives as an integral part of daily activities.
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Courage and Vision Drive the Cruise Industry’s Resilience
Photo courtesy of Costa Crociere S.p.A.
November 13, 2020
The cruise industry must focus on four strongly interconnected elements that will define the future of cruising and its resilience over time: environmental sustainability, modern infrastructures, a personalized customer experience through greater digitalization, and value creation.
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ntil recently, cruises were the fastest growing sector of the travel industry. Experts were anticipating 2020 to be a successful year, with a further increase in the number of passengers expected to set sail this year. However, COVID-19 has dramatically changed everything, with the cruise industry being one of the most severely hit by the pandemic. Despite the numerous challenges, cruise companies have the chance to turn this crisis into an opportunity to come back stronger, greener, and further attract consumer preference.
To achieve this goal and make the most of the lessons learned from the pandemic, the cruise industry must focus on four strongly interconnected elements that will define the future of cruising and its resilience over time: environmental sustainability, modern infrastructures, a personalized customer experience through greater digitalization, and a value creation-oriented relationship with local communities.
Environmental Sustainability
With society’s increased environmental consciousness, sustainability is becoming top of mind for many consumers and will continue to guide their choices after the pandemic. Cruise operators have the chance to reinforce their ongoing efforts to reduce environmental footprint in anticipation of future consumer and societal demands.
In this context, the fleet renewal process accelerated in the past few months and will continue in the foreseeable future. This renewal process has led to the dismissal of a number of older and less sustainable (from both an environmental and economic point of view) ships, while companies look at ways to uphold their commitments and continue investing in alternative and greener power supply systems. In this particularly delicate economic phase, the industry’s long-term plans towards zero emission cruising will need the support of the entire ecosystem (public authorities, suppliers, business partners, industry experts) to become a reality and meet the emission targets set by international institutions. The R&D efforts towards more eco-friendly technologies must become a priority for public and private stakeholders at national and international level, who need to join resources and knowledge to achieve this important milestone.
Consumer demands for increased sustainability will also reflect on the onboard experience and excursion offers, which will need to comply with more sustainable behaviors (e.g. 100% waste recycling, zero food waste and ban of single-use plastics) and propose more ecological shoreside activities (e.g. cycling or walking tours, increased use of electric buses to reach the destinations).
Modern Infrastructures
The modernization of infrastructures, their ability to ensure a more efficient movement of people and to support the green transition of transports represent another important pillar for the future of the industry. An incredible opportunity is now offered by the significant investments that governments will make to foster the economic recovery, which should include the upgrading of infrastructures, with an eye on accessibility and port infrastructures.
This upgrade should aim at connecting ports more efficiently to airports and train stations, thus making them more easily accessible and allowing tourists to travel also to less popular destinations, mitigating the effects of mass tourism in major locations. It can also support cruise operators reducing their environmental impact by providing electric energy supply to ships at berth. The so-called cold ironing will allow ships to turn off their engines in port, resulting in much lower emissions to the benefit on the local communities and the environment.
In this context, cruise companies can partner with other interested players and institutions to identify the needs and design adequate infrastructural solutions, joining once again resources and knowledge to achieve the best result.
Personalized Customer Experience through Digitalization
With COVID-19, technology has taken a more prominent role in defining a customer experience that permits the current need for social distancing. As a result, digital interaction is no longer just a trait of onboard life, but a key component of bookings and embarkation activities.
With this evolution, the customer experience will become more and more appealing. In a single app, customers will have a broad array of services at their fingertips: from check-in operations, to customer service, to booking excursions and leisure activities, to food & beverage orders. Tailor-made experiences will be enhanced, making every holiday onboard different.
This uniqueness and additional diversification will help cruise companies stay ahead and respond to evolving consumer demands. Technology will also build longer-lasting relationships with consumers after they have disembarked by maintaining a high level of engagement and nurturing the recurring client base.
Value Creation-Oriented Relationships with Communities
The economies of destination locations rely on a flourishing cruise industry, even more so considering the economic fallout of COVID-19. Their cultural heritage and local ecosystems can be preserved by creating synergies with industry players that establish mutually beneficial partnerships aimed at generating long-term sustainable growth. Such growth can contribute to creating value in broader geographical areas by expanding value chains outside of port cities and renowned destinations. This can contribute to the broader economy while also improving the sustainability of tourism. In cooperation with the local communities, a more holistic destination management process aimed at a greater valorization of the cultural, historical, and gastronomical landmarks will create mutually beneficial opportunities.
Cruise players will need to quickly embrace change and act on these four pillars to set themselves apart from their competitors. The future success and livelihood of cruise companies will very much depend on the courage and vision they will demonstrate in listening to consumers and responding to the needs of society. Due to the pandemic, we will see more cruise operators recognize that a profitable business is tied to the company’s social purpose and that being part of an ecosystem means establishing meaningful partnerships to advance broader public objectives as an integral part of daily activities.
