Upscale cruising under a prolonged economic downturn

Selling Upscale Cruises in a downturn economy

Who I am?

• Selling cruises since 1994

• Since 1999, General Manager of Luxury Brands GSA in Spain & Portugal

• Actually Manager Un Mundo de Cruceros – Starclass

Since 2007, marketing upscale cruises (under a prolonged economic downturn )

UPSCALE CRUISING Seatrade Med 16 Sep 2014

Is it more or less difficult to sell cruises ?

Pricing vs Passengers (2007-2014)

SOURCE: Main Luxury Brands sales in Spain 2007-2014

UPSCALE CRUISING Seatrade Med 16 Sep 2014

Pricing

Upscale cruises in Spain are bought by nationals

Image is a barrier in a country with 25% unemployment

Financial investments are also affected by downturn. Hedonism is not priority

Message must be about an opportunity, instead price reduction

Add Ons are a good selling tool against price reductions

UPSCALE CRUISING Seatrade Med 16 Sep 2014

Are different sales and Marketing messages required to persuade the affluent to spend in a recession ?

UPSCALE CRUISING Seatrade Med 16 Sep 2014

• We have been too much focused in the product

• There is an important hardware in mass market vessels, but our guests are not there

• The global experience is not the same than a product designed to exceed expectations

• Need to learn customer motivations

• Search (again) for Aspirationals

UPSCALE CRUISING Seatrade Med 16 Sep 2014

Luxury clients are not deal-focused, but value focused.

Our definition of value may be different than that of the luxury client.

We must find the right experience for the right client

We must send our clients in the suite they'd be happiest, rather than the most affordable one.

UPSCALE CRUISING Seatrade Med 16 Sep 2014

10

Juan Rodero, General Manager ,UN MUNDO DE CRUCEROS

@jrodero10

THANKS…