Cruise Lines: The New Meetings Competitor

The 27 April 2005 edition of the Zeitgeist e-Zine

The world of Meeting Sales just got a little tougher.

As if the challenges of going head-to-head with your competitive set day in and day out isn’t daunting enough, a new competitor has entered the ring. They’re big. They’re glamorous. And they offer virtually every meeting facility and lodging strength you have...and then some.

Ladies and gentleman...beware the Cruise Lines.

Just as smart Destination Marketing Organizations are focusing on the times of the week and year that business is lightest, so are Cruise lines looking to shore up their flat periods. Holland America recently spent millions upgrading its entire fleet to add flat panel televisions and internet portals. Others are installing corporate meeting and retreat rooms, satellite phones and wi-fi. And two Seattle companies have just merged to bring their core competencies (high-end travel and corporate retreats) together to focus on designing cruise-based meetings.

And, from the planner’s perspective, what’s not to like about this concept. Corporate retreats are boring (you wanna spend a weekend in a suburban hotel?). Cruises are considered cool. And, now, the required amenities that once prevented corporate planners from considering these floating meetings exist.

And, from a destinational view, there is a more chilling aspect than just the “cool factor.” In many cases, it’s less expensive on the water. In a recent article in the Puget Sound Business Journal, a planner estimates that his high-end cost for room and food is $250 per attendee while a similar meeting in Atlanta would cost $475 a day. Past that, A/V costs are often less expensive on a Cruise ship because most vessels already have a stage and high-end lighting and sound ready to go for the evening performance. The ship is only too happy to let you use it during the day...for pennies.

Which gets us to the evening entertainment portion of the package. It’s already on board...and they’re eager to perform. And, there’s also that issue of attendees deciding that they’d rather explore the community, shop and look for other distractions. On a cruise, they’re easier to control when onboard.

Finally, cruises are often seen by attendees as a great way to include their mate for a desirable getaway where they don’t have to worry about complaints about the destination. A Cruise is always cool, regardless of the ports of call scheduled. It’s also a cooler place from which to ideate a new corporate vision than a hotel meeting room.

So, the solution to this new threat? Outside of continually upgrading our ability to create and manage a unique and exciting experience for our clients and their attendees, I’m not sure I have one. But I did want to alert DMOs to this new thrust from a new competitor.

If you’ve got an idea on how to compete, we’re all ears....

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In our last edition, I commented on the recent spate of CVB professionals getting bumped upstairs to take over their State’s Tourism Offices. And, it’s expanded even further as Indiana’s Lt. Governor just named another CVBer (Ellen Harper of the Vincennes/Knox County Convention & Visitors Bureau) to head that State's Main Street Program.

Of course, in my amazement at the recent trifecta in Oklahoma, Indiana and Kansas...I completely forgot about 3 other former CVB pros that are already leading their State Tourism efforts: Claudia Vecchio in Ohio and Randy Fiveash in Kentucky (both formerly with the Branson CVB) and Sara Otte Coleman in North Dakota (originally from the Bismarck/Mandan CVB, where I’ll be addressing their annual luncheon tomorrow). J’exuse...

And, Durham’s Reyn Bowman (a recent guest on DMOU) e-mailed me that this trend may have its genesis back in the ‘80s when North Carolina tabbed Asheville’s Dick Trammel. Damn...time flies, don’t it?

If I don’t have the chance to reconnect before National Tourism Week, here’s hoping that yours finds a way to resonate all that is great about this industry...and its impact on our communities’ collective Quality of Life.

Bill

Wanna comment on this or other topics. E-mail Me!

 

 

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