3 Ways for Cruise Lines to Better Target Chinese Travellers

TAGS: 

Family travel, Cruise industry, Chinese cruises

The cruise industry has seen booming success across Asia with an annual 41% compound growth rate in passenger volume from 2012 to 2016. Out of this growth trend, China is the main driver with a 76% compound annual growth rate during this period (CLIA Asia Cruise Trends Report, July 2017).

Top Asian Markets by Compound Annual Growth Rate 2012-2016:

This changed going into 2018, however, when the anticipation that this growth would continue at a similar rate was met with a sudden and rather unpredicted downturn. While some are hopeful that this slump won’t last, many are beginning to wonder if cruise travel may not be the best fit for the Chinese market. We believe that while the exponential growth of the cruise market over the last few years is evidence enough that Chinese travellers are interested in cruise travel, there are still steps that cruise lines can take to better target and attract Chinese travellers and ultimately minimize the effects and longevity of the current slump.

1

Focus on Attracting Younger Passengers

The future of the Chinese cruise industry depends on successfully attracting a younger demographic and maintaining their interest. Chinese cruise passengers tend to be older, which has also begun to create a perception that cruises may not be suitable for younger travellers. A younger generation of passengers will not only increase overall ticket sales but will also work to change this stereotype while ensuring long-term sustainable passenger growth. Marketing should therefore begin to be directed towards the emerging millennial market, FITs and couples, while simultaneously emphasizing cruise travel as a multi-generational experience suitable for any age group.

2

Understand and Maximize On-Board Spending

The average Chinese cruise traveller generally does not spend much money on-board, a direct contrast to the spending habits of Western cruise-goers. According to a 2017 survey by Tongcheng, over 80% of on-board spending for Chinese cruise travellers is spent on makeup and beauty products, jewellery and watches, and food, with over 60% of this spending on makeup and beauty related products alone. Alcohol, on the other hand, only accounts for 2.41% of on-board spending ( 同程, 2017中国在线邮轮出境旅游消费分析 ).

Chinese Passengers' On-Board Buying Habits:

This shows that while Chinese travellers are not spending much on alcohol, they are willing to spend comparatively more money on different on-board experiences like gourmet food or a luxury spa. While drink packages are usually highly lucrative for cruise lines, specialty spa and beauty packages or a VIP gourmet food experience may be more effective at increasing the on-board spend of Chinese travellers. Localizing on-board experiences like providing an exclusive KTV club, tea house or mah-jong area may also be more effective at increasing on-board spending as well as appealing to a wide range of ages.

3

Work Towards Maintaining Interest for Return Visits

With limited available routes and perceptions that cruises are better suited for older generations, innovative and creative marketing that goes beyond product and promotions is necessary. Cruise lines need to highlight how their particular experience is unique and changes with every cruise and season in order to dispel the static perception that if you’ve been on one cruise, you’ve experienced them all. In a digital age where the majority of younger Chinese generations live completely encapsulated in the online world, consumers want to stand out and experience something different and unique - something they have not seen their Weibo or WeChat friends posting about on social media. It is therefore necessary to effectively convey cruise experiences as dynamic, unique and exciting in an engaging and interesting way to successfully appeal to this digitally savvy Chinese traveller.Despite the current slump in the cruise industry, the potential for China-based growth is massive; however, it can only be realized through a deep understanding of the emerging Chinese traveller, including their behaviour and desires.

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