Since around 1980 when my father (now owner of Cruise Brothers) took over the his fathers travel agency and went into the cruise industry which had just recently started to rapidly expand and was no longer as exclusive and expensive. in the past ten years alone even with a bad economy the number of cruisers per year has more than doubled from 7 million to almost 15 million. Even in a down economy the cruise industry is flourishing with more than 20 ships ordered and will be built by 2015. With every new ship means more cabins which increases the need for agents to fill those cabins.
I was actually having dinner with my father a few days ago and he was talking about the success he has been having and the proof the cruise lines need him and his company. He then began to talk about all the new ships that were recently ordered. Extremely excited about theses ships being built he feels that he will be needed more. Those ships he went on to say was because of the interest rates and guarantees Germany has promised for the ships to be built. The cruise lines have taken advantage of this to build and build now is the time. People need work and with Germany backing the financing to give jobs to those looking for money building ships works for both parties.
I was interviewed by the local news and was on tv that night and next morning in 2008 or 2009 when the stock market was at the bottom. Royal Caribbean's stock was below $6.00 from its peak of $60.00 which was unbelievable. If I had money I would have bought it in a second and few people I worked with actually did, a few months later it was back up to $30.00. I was interviewed because of the almost complete halt of the cruise sales. I was asked how the cruise lines were holding out and what they were doing to stay afloat with the prices being as low as $299 per person for a 7 night cruise. I answered by stating that no matter what all those ships had to move from port to port. They need to have people on board to pay for gas, taxes, and things of that nature so no matter what they need those cabins filled. On board spending is also a main source of income. Being on a ship increase chances you are going to start to drink liquor, gamble and spend money on other things. The cruise lines make money with every body on board that is how they could drop the prices so low and survive.
The thing about cheap cruises is that it's not jus the cruise line affected. The travel agencies depend on one thing and that is commission which is based on price of cruise and that is it. So let's say a small agency that only get 10% commission around the board from each vendor. When selling a cruise that is only $299 per person with only 10% commission the agency only makes only $29.99 then that is split between the agent who sold the cruise and the agency. So as anyone can see price slashing is never a good thing for the agencies or agents. The cruise lines did try with different types of contests and commission bonuses. I also would like to add that I am part of one of the largest agencies in the country and because of that we have the highest commissions with long and tight ties with vendors.
Where there is a will there is a way. Marketing efforts had to be adjusted and in tough times companies must evolve or close up shop. One thing we did was have our own major trade show which was a major gamble. Vendors from all over hungry for business set up booths which they would sell using our name. The show was a hit, I remember the news that night with a couple who knew about the show but it had snowed the second day and they didn't really plan on a vacation anyway. As they were interviewed they were asked why they had come then... Their reply was amusing, they were shoveling their driveway and looked over at a neighbors house. The care and driveway were untouched because that family was on a cruise. So seeing that the couple hoped in the car and drove to our show to book a cruise as well. Proof that travel agencies will always be needed and that cruising is a growing trend. With more ships built cheaply and cabins to fill I see the cruise lines calling on travel agencies more and more to fill theses cabins and agents getting more perks wether full time or home based.
Their are a lot of cabins to fill and the number of them continues to grow. The faster they fill the higher the price keeping close ties with agencies like the Cruise Brothers is a must.
Thanks
Mark Gelfuso
Cruise Brothers
My personal branch www.cruisebums.com
