Having weathered well through some economic volatility and showcased good growth during 2017, the luxury vacation market continues to thrive.
Worth well over $1bn, it has successfully distinguished what a discerning traveler needs while continuing to evolve to meet an ever-growing set of expectations.
And the luxury cruise industry has proved itself to be no exception.
From forward-thinking partnerships with innovative lifestyle brands, to developing unique, carefully curated itineraries, cruise lines continue to advance their luxury product offerings to not only satisfy today’s cruisers, but also engage a new market of potential guests.
The start of The Ritz-Carlton story at sea
The launch of The Ritz-Carlton Yacht Collection is also in tandem with cruise industry growth - the demand for cruising has increased over 20% in the last five years, and Cruise Line Industry Association (CLIA) estimates that 27.2m people will cruise globally throughout 2018.
It won’t come as a surprise that there are synergies between cruising and guests of The Ritz-Carlton.
In 2016, over 400,000 Ritz-Carlton guests reported taking a cruise, indicating that there is a huge opportunity for our concept to appeal to The Ritz-Carlton customer base. And in fact, after opening The Ritz-Carlton Yacht Collection itineraries for reservations, we’ve seen that this experience is appealing to not only existing guests of The Ritz-Carlton, but also current luxury cruise customers and new-to-cruising guests – those who would not consider a mainstream cruise but would entertain an experience offered by a brand synonymous with a land-based luxury experience.
We therefore expect to have a positive impact on market growth.
Filling a gap in the market
It goes without saying that luxury cruisers expect a more intimate atmosphere on board than that of a larger ship which has to manage the needs of many guests.
However, several luxury lines now seek to increase the capacity of their ships while maintaining an intimate ambience, and consequently, there have been few new small-capacity ships entering operation in the luxury cruise market.
There has also been a drive to expand into the expedition cruising market by servicing the polar regions, and while this clearly appeals to an existing demographic, I do believe there is an underserved market seeking a different type of cruising experience.
With 190mtr yachts that will carry just 298 guests, the size and design of The Ritz-Carlton yachts places us in a new space between ultra-luxury ships and super-yachts. We are essentially recreating the yacht experience in a cruise world – the yacht has become a destination.
For example, an open-air marina platform offers direct access to the open sea. Public spaces have an open, residential feel. Culinary venues are intimate, and in-suite dining is offered 24 hours a day.
Developing the right itineraries
The Mediterranean has always been a haven for both the luxury cruise industry and yachting, and with good reason. The diversity of destinations is astounding, with a new region or a new country around every bend in the coast, and the coastline itself is breathtaking. The region is perfectly suited to sea-lovers because you can visit some of the most iconic cities in the world as well as colorful little villages in hidden coves.
There are nearly limitless opportunities to explore the history, art and cuisine of any number of local cultures.
As the first luxury hotel brand to offer a yacht collection, we can seamlessly complement the yachting experience with a stay at land-based Ritz-Carlton properties – ensuring a truly immersive travel experience from beginning to end.
Challenges ahead for cruise – but plenty to be excited about
One of the biggest challenges to growth is public perception. People who have never cruised before aren’t sure what to expect, and there are some myths out there about cruising that may deter potential new cruisers.
With a brand such as The Ritz-Carlton, which is already synonymous with land-based luxury, I believe that guests will identify easily with the ethos and experience offered at sea. They know what to expect before they even step on board, so there’s no nervous anticipation – and the notion that we can bring people into cruising who would have never considered it before is very exciting.
On the whole, there’s plenty to be excited about. I’m particularly interested in the number of untapped opportunities to elevate guest experience. Guests want more than material luxuries – they’re asking for transformational, personally fulfilling experiences. I am excited to see the market deliver that.
For a full version of Prothero’s In My World article please click here. For more information about the Seatrade Cruise Med 2018 conference click here.
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