Cruise operators are planning to set sail into the domestic market
BEIJING - Five years ago when Costa Crociere S.p.A first entered China, the cruise travel industry was an untapped market.
Today, the Genoa-based cruise operator, which has a 70-percent market share in China's cruise travel sector, has to compete with other operators - all aiming for a slice of the strong momentum from Chinese tourism.
A luxury cruise liner from the largest Italian travel group Costa Crociere S.p.A stops at Tianjin International Cruise Home Port. In 2010, there were 95 cruises departing from Chinese coastal cities and 128 international cruise visits, a 19 percent increase from the number recalled in the previous year. [Photo/China Daily]
In 2010, there were 95 cruises departing from the coastal cities of China and 128 international cruises visited those cities, demonstrating a 19-percent year-on-year increase, according to industry figures.
The number of people from the Chinese mainland traveling abroad in 2011 is projected to experience a year-on-year increase of 4 to 5 percent, according to the World Tourism Organization.
Needless to say, the Chinese consumers will emerge as winners.
Already, they are spoiled for choice with a dizzying array of itineraries to choose from. First-timers can opt for a three-to-six night trip to places such as South Korea, Japan or Southeast Asia to experience a taste of cruise life.
Meanwhile, the more seasoned traveler can undertake the flight and cruise package - which allows them to explore exotic, far-flung places and to depart from an overseas port.
So far this year, Costa Cruise has seen strong cabin bookings from Chinese passengers.
The number of domestic passengers who booked the Costa Arabian Sea itineraries, which depart from Dubai, grew 10 times from December 2010 to February 2011, compared with the whole of the 2010 fiscal year, according to Chenjun Leo Liu, China general manager of Costa Crociere.
"We expect our Mediterranean Sea itineraries to become another key growth driver," he said.
In 2010, Costa Cruise saw almost all of its cabins for short destinations in Asia fully booked.
The Miami-based Royal Caribbean Cruises Ltd (RCCL), another operator, is touting the "travel slow" concept, whereby passengers travel to understand another culture, while having the luxury of time to arrange their own itineraries.
The concept of slowness has been widely perceived and embraced among the Chinese, Liu Zinan, RCCL's managing director for China told China Daily.
To illustrate this, he said: "Life can be easy and laid back on a cruise. Pick and choose what you want to do. You can start your day with a Bloody Mary; enjoy a book on the deck with the breeze and sun as companions; dress up for cocktail parties or balls; join the gym for a session of body-pumping; go on a shopping and beauty therapy trip; or try your luck in the casino."
To capture the imagination of Chinese travelers, cruise operators such as Costa employ appealing themes during cruises such as The Night of Romance or The Night of Italy.
For 2011, Costa has plans for 41 cruises in China including six port calls from Hong Kong and 35 from Shanghai.
The itineraries starting in Shanghai will have one-day calls at most travel destinations in Japan and South Korea, while those starting in Hong Kong will include cruises to cities in Taiwan or Vietnam.
Meanwhile RCCL plans to launch three- and four-night itineraries departing from China on the aptly named Legend of the Seas ship to satisfy Chinese customers' preference for short trips and onboard corporate conferences.
To support the endeavor, the company will increase the number of crew members speaking Chinese, Chinese nameplates will be a common sight soon, and an onboard Chinese menu will be revealed.
"That is why more and more Chinese mainland tourists choose to travel on a cruise," said RCCL's Liu.
There are also great hopes for a new trend in the cruise market, catering for the needs of retirees who plan to take a cruise. According to industry statistics, 70 percent of senior citizens in China plan to travel abroad.
At present, 20 percent of the guests boarding Royal Caribbean Cruises are above 50 years. "Their participation is a strong base for the cruise market," said RCCL's Liu.
In addition, a cruise is also a popular way for companies to hold annual conferences or reward their employees, said Costa's Liu.
"We're seeing a lot of growth in the MICE (meetings, incentives, conferences and events) segment," he said. In the last few years, Costa has run a number of successful charters for well-known enterprises and organizations as a way to host conferences and reward their employees.
"We anticipate that the market will continue to see healthy growth in 2011 and 2012 due to a tremendous market potential from the infancy of cruise travel in China," Costa's Liu said.
The cruise operator carried 100,000 passengers in China last year. With more ports - and port expansion projects - as part of the 12th Five-Year Plan (2011-2015), the company expects to benefit from such developments.
"This will benefit tourists, adding more destinations and a wider range of options," he said.
In line with this growth story, Costa Cruises will continue to ramp up its Asia attractions and is set to introduce one of its most coveted vessels, the Costa Victoria, which can accommodate 2,394 passengers and has 964 cabins.
RCCL's Liu said that the booming Chinese economy, post-Olympics and Shanghai World Expo, will inspire more Chinese to travel to other parts of the world to embrace other cultures and geography.
