RCL keeps building bigger ships, is focused on Asia and is highly visible in China, helping the cruise market to double in a short time.
While between 2010 and 2017 the growth of this market was the highest in the world, Tercek thinks the cruise industry is hitting a wall when it comes to sourcing Chinese passengers.
The 'bakugai' phenomenon, where a tsunami of Chinese arrive in a port like Fukuoka only to go shopping, has peaked and will not continue to grow, he said.
Tercek also revealed it has been a struggle to get repeat passengers.
The RCL executive listed geopolitical issues, logistics, itineraries and port availability as posing challenges to the growth of cruise tourism in North Asia.
Port costs in the region are inconsistent, Tercek said, ranging from very expensive in Shanghai to no charges at some Japanese ports. These costs impact itinerary development.
Tercek also warmly acknowledged that all the North Asian destinations RCL ships visit have been making infrastructure accommodations to manage growth.
Turning to excursions, the most impactful word in travel is 'local' as people look for the authentic and real, Bruce Krumrine, VP shore excursions, Princess Cruises, Holland America Line and Seabourn, told the Seatrade session.
'We don’t serve the same thing every day. We work with local experts to craft authentic experiences. What our guests tell us is important. They want travel that is authentic, meaningful, personal and exclusive,' Krumrine said.
His three brands have 10 ships in Asia that carry a total of 470,000 passengers. They've come a long way since starting in the region 30 years ago, thanks to collaboration with partners and stakeholders.
Krumrine said passenger ratings show there is already a high level of service across Asia.
Shore excursions that currently create a buzz include those with culinary themes, artists and crafts people, wellness and UNESCO World Heritage Sites. These are also areas that provide opportunities for development, he added.
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