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Seatrade Cruise Med 2024 - Conference Wrap-Up: From the Conference Producer’s DeskSeatrade Cruise Med 2024 - Conference Wrap-Up: From the Conference Producer’s Desk

Seatrade Cruise Med 2024 - Conference Wrap-Up including a detailed summary of the event’s key themes, discussions, and takeaways.

October 30, 2024

11 Min Read
Seatrade Cruise Med 2024 - Conference Wrap-Up
Seatrade Cruise Med 2024 - Conference Wrap-UpPHOTO: SEATRADE CRUISE

Overview:

The Seatrade Cruise Med conference, which concluded last month, brought together over 90 speakers from over 25 countries and 22 cruise brands, showcasing a unified and optimistic outlook for the future of cruising in the Mediterranean and beyond. The conference underscored the critical importance of collaboration, sustainability, and the human element in driving the cruise industry forward. As industry leaders navigate challenges such as labour shortages, regulatory changes, and environmental impacts, adopting a synergic approach will be essential for fostering long-term growth. By embracing innovative practices, cruise tourism can enhance its resilience and positively impact the communities it serves. The path ahead is one of partnership and progress, ensuring that the cruise industry not only survives but thrives in a rapidly evolving world.

A positive future for cruise in the Med:

The conference was kicked off by regional representatives, who stressed the integrity of tourism to the Andalusian region, and emphasised collaboration with local communities—an apt introduction to a recurring conference theme. The state of the industry session outlined key strategies for cruise in the Med, focusing on sustainability and retaining its position as the world’s second-largest cruise market.

Industry leaders emphasised the green transition, particularly digitalisation for energy efficiency and alternative fuels. ‘Everybody is on the same path. We are committed to reducing our carbon footprint,’ said Meier, of TUI Cruises. Zanetti of Costa Cruises stressed the need for partnerships with private and public stakeholders to invest in technology and alternative fuels. Theophilides of Celestyal Cruises highlighted retrofitting technology as a priority for older ships and pointed to methanol as a future option for smaller vessels. Leaders also discussed attracting younger demographics to cruising. Zanetti emphasised the need to differentiate to appeal to various customer segments, a theme highlighted throughout the conference.

Savelli of Tourism Economics presented an optimistic outlook for Med cruising, noting macroeconomic improvements and 2024 orderbook growth. Luxury vessels represent 38% of current orders, with the segment projected to grow 46% in the next five years. The growth of mega ships is likely to concentrate in a few Caribbean ports, while the Med region, particularly Atlantic Islands, and Adriatic Sea will benefit from luxury ship growth. Contemporary vessels will still dominate the Med, with a 74% market share in 2024.

Sustainability & collaboration top-of-mind:

In line with the ‘Partnering for Progress’ theme, port association leaders opened the conference, highlighting their complex membership and discussing collaboration and best practices. A joint statement from Cruise Baltic, Cruise Britain, Cruise Europe, Cruise Norway, and MedCruise affirmed their continued collaboration on sustainable growth, destination management, and balancing cruise tourism with community needs.

Sustainability—environmental, social, cultural, and economic—was a central theme, mentioned by nearly every speaker as part of the industry's ongoing efforts.

A roundtable discussed decarbonisation and synergies between ports, cruise operators, and shipyards. Vahala from Meyer’s NEcOLEAP confirmed the first net-zero cruise ship will be delivered before 2030, emphasising the need to design for the entire product life cycle. Methanol and LNG emerged as key fuel alternatives. Vahala predicted a methanol-powered ship by this year, while Coppell from MSC Cruises highlighted LNG as a crucial mid-term transition fuel. Participants outlined plans to enhance efficiency and infrastructure, with Coppell emphasising the need for flexibility in fuel and technology to adapt as future fuel options emerge.

With net-zero cruising on the horizon, a parting message from Gill, UNITED WATERWAYS urged clear communication with stakeholders, local communities, and governments about the cruise industry's net-zero ambitions.

The conference stressed collaborative strategies for developing sustainable destinations, promoting long-term environmental stewardship and community benefits.

Key takeaways included forming strong partnerships and developing destination management plans, with few destinations currently having such plans. Effective communication among stakeholders is essential for creating tailored solutions to unique destination challenges, as there is no one-size-fits-all approach to sustainable tourism; each destination requires tailored strategies that consider local contexts and capacities.

Port operations face the challenge that 80% of cruise passengers visit just 115 of the world’s ports, about 20% of available destinations. Batsoulis introduced an innovative Allocation Algorithm for berth distribution, suggesting wider adoption, though Xuereb of Global Ports Holding stressed no single solution fits all ports.

Protecting UNESCO World Heritage Sites is crucial for Princess Cruises passengers, said Bosco, while Iaccarino from MSC Cruises stressed the responsibility of cruise lines to educate guests on best practices. Garcia of Intercruises noted that younger generations seek meaningful engagement and positive impact in destinations, an opportunity the cruise industry should embrace as it welcomes new-to-cruise guests.

The evolving landscape of cruise tourism:

A session on the economic and social impact of cruise tourism highlighted the industry's evolving role in fostering economic and environmental balance in port cities and communities. Speakers from Royal Caribbean Group, Virgin Voyages, Global Ports Holding, MedCruise and Cruise Saudi, emphasised the importance of collaboration among cruise lines, local authorities, and communities to align stakeholder interests. The discussion focused on a shared goal of promoting tourism while minimising negative impacts, despite the complex and often contradictory regulatory landscape.

Cruise operators discussed how incoming EU and IMO regulations will impact port operations, stressing the need for ports and destinations to prepare for sustainable practices as capacity and tonnage are expected to move in and out of regions in coming years, whilst operators navigate the new landscape. Nobile from Marella Cruises noted that speed and distance remain crucial factors in itinerary planning, while Trescastro from Virgin Voyages also cited sustainability as a key decision driver. Daya acknowledged that Disney, with only one seasonal ship in Europe, is less affected by EU regulations but emphasised that guest satisfaction significantly influences itinerary decisions.

Improving passenger experience was identified as a key reason to modernise ports and implement digital solutions, as the cruise industry lags behind aviation in digital standards. Panter from SmartSea outlined plans for a maritime data backbone to tackle inefficiencies in cruise ports due to unstandardised data. Cognolato from ASSITERMINAL highlighted challenges with multiple IT systems, stressing the need for a common data language for industry-wide standardisation. Discussing MSC Cruises' new PortMiami terminal, Pronzati demonstrated that a modern cruise terminal – embracing the potential of digitalisation and other technologies, such as biometric gates – is no longer simply a vision.

A timely session on new port requirements coincides with the EES system’s November 10th implementation and ETIAS in 2025, which has recently sparked debate on cruise travel’s impact. Tests by TUI Cruises in Kiel and Copenhagen Malmo Port (CMP) indicated smooth operations. CMP shared its strategy with Danish border officials, suggesting minimal infrastructure changes and limited guest delays for those ready for implementation.

A key challenge is the varied approach of EU member states, highlighting the need for collaboration among all ports and local governments. Operators like TUI Cruises and MSC Cruises shared insights from trials, highlighting signage and passenger separation as terminal challenges. Hermann described the EES as ‘passenger forward’, noting key crew challenges that need addressing. Participants urged ports and cruise lines to collaborate with local stakeholders and conduct live trials to ensure smooth EES integration.

The conference highlighted strategies for ports and destinations to stand out in the evolving landscape, including enhancing social media presence and leveraging ‘Instagrammable moments,’ as well as adopting AI technology.

It was made clear, that social media is increasingly crucial for promoting destinations and cruise experiences. The emphasis is on quick, visual content that captures the attention of today’s guests, significantly influencing their decisions regarding cruise itineraries and shore excursions. Destinations that effectively highlight lesser-known gems on social platforms can leverage this trend for greater visibility.

Pitches from technology innovators demonstrated how AI can streamline operations, from environmental monitoring and transparency to reducing congestion in ports and enhancing the onboard experience. Innovation, technology, and social media, when harnessed effectively, can benefit ports and destinations, enhancing their appeal to cruise lines and guests while increasing visibility with local communities and stakeholders.

No one-size-fits-all approach:

The conference highlighted key players and factors influencing future itineraries. In his opening keynote, industry veteran Giora Israel stated that itinerary planning is an art, directly impacting the marketability of cruises and passenger satisfaction. As such, Israel went on to provide insights into the key criteria for selecting home and transit ports, respectively.

Israel emphasised that there is no one-size-fits-all approach in the cruise industry; understanding the niche needs of various cruise lines and their source markets is crucial. Ongoing economic and geopolitical fluctuations will impact cruise itineraries, necessitating that cruise lines remain adaptable by shifting routes in response to opportunities or instability. Different nationalities, along with their varying demographics and psychographics, exhibit distinct preferences for cruise itineraries and excursions shoreside. As such, the need to understand varying source markets is paramount for both home and transit port selection.

Marquee value of ports and destinations are vital considerations for home ports, as evidenced by high hotel occupancy rates linked to pre- and post-cruise tourism. The difference between having an airport and providing airlift is essential for determining port viability based on the source market. Israel noted that European markets often utilise charter flights, while American markets rely on scheduled flights.

When considering transit ports, Israel stressed the importance of demographics, seasonality, and cruise length. Along with unique appeal and marquee value, the variety of shore excursions is critical for transit port selection; for instance, accommodating multi-generational travel during holidays is essential. Looking ahead, ports must have the capacity to grow, to offer multiple shore excursion options and accommodate larger ships, as cruise lines aim to increase vessel sizes over time.

Notably, Israel highlighted the emerging trend of multi-homeporting, which allows cruise lines greater flexibility in itineraries and improves passenger flow management, thereby enhancing the overall cruise experience.

Diving deeper into the role of source markets in developing successful cruise products, a session explored the diverse booking habits, desired destinations, and preferences of guests from Germany, Spain, Italy, the UK, and the US. The discussion contrasted passenger preference, with Tauschke from TUI Cruises noting that Germans prefer active, self-guided experiences, such as cycling, even in challenging weather. Conversely, Americans favour structured, pre-planned excursions, with a growing preference for smaller, intimate groups post-pandemic.

Luxury cruising was also addressed, emphasising exclusivity and personalised experiences. Luxury travellers tend to avoid crowded ports, favouring smaller boutique locations that larger vessels cannot access.

Throughout the conference, there was a strong emphasis on the need for personalised, sustainable, and well-structured experiences tailored to evolving market preferences and the challenges posed by inflation and geopolitical events.

Experts discussed the importance of storytelling and authenticity in destination experiences, noting that the narrative behind these experiences fosters lasting connections for passengers. Building partnerships with local communities and tour partners is essential for ensuring authentic experiences, while ongoing collaboration among stakeholders is vital for effective destination immersion and the social sustainability of offered tours.

Ultimately, active guest feedback, including surveys and real-time engagement after excursions, is crucial for adapting offerings to maintain relevance amid changing preferences and catering to diverse source markets.

In a workshop, attendees networked with expedition and boutique lines, focusing on the niche needs of this sector. Tasked with designing their own destination experiences, participants learned that serving cruise lines is not one-size-fits-all; crafting compelling experiences that resonate with the right audience is key.

The ‘New Players in the Med’ session featured executives from three new cruise lines—Orient Express Silenseas, Alma Cruceros, and Neonyx Cruises—who described their products and future partnership needs. Each newcomer brought unique offerings, differing ethos, source markets, and capacities. Rougier of Orient Express Silenseas, remarked, ‘I’ve seen a lot of ships, but I’ve never seen anything like this!’

A people-centric industry:

The conference emphasised the critical importance of the human element at the heart of the cruise industry, pivotal for advancing sustainability goals, increasing diversity, and nurturing the next generation of skilled workers.

Speakers highlighted labour shortages in the industry, stressing the need for a consistent talent flow and long-term employee retention. A major focus is increasing diversity, particularly at managerial levels, and providing clear career succession planning for both shoreside and onboard staff, and structured training programmes, are essential for creating qualified talent pipelines. Collaboration with local universities and governments is key to recruiting talent, as panellists cited examples from universities in Barcelona, Scotland, and Saudi Arabia that offer students practical experience in cruise operations, preparing them for careers in the sector.

Health and wellbeing of crew was highlighted as a key focus area for the industry over coming years, as Harris from Ocean Technology Group stressed the relevance of crew competence and safety in the context of innovative fuels and propulsions. Seafarer education and training must be reviewed to prepare deck and engine crew, as well as officers, for alternative fuels and ensure onboard safety. Three cruise line doctors also provided insights into ongoing efforts to improve onboard health and wellbeing, crucial for crew retention and operational efficiency. Considering the pandemic's legacy, continuous preparedness and protocol development for future health crises are essential, with mental health now recognised as equally important as physical health, requiring industry-wide initiatives.

Finally, it was only apt the conference wrapped up with a focus on professional women in cruise, leaning into leadership advice from inspiring female port executives. Local students from Málaga University attended the session, seeking advice as they aspire to careers in the industry.

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