If Seabourn Cruises could have changed the timing for the introduction of its new ship, the luxury line might not have decided to launch the Seabourn Odyssey this year, during the worst economic decline since the Great Depression.

But there is a silver lining in the dark cloud of this recession: For Seabourn as well as other luxury cruise lines, the low prices they have pushed onto the market have brought a younger customer, often a customer who is new to upscale ships.

“For people who wanted to try Seabourn and hadn’t yet, the value tipped them over,” said Pam Conover, CEO of Seabourn. “We are bringing on new guests and also new travel agents.”

Seabourn has been offering cruises this year at 65% off brochure price.

The line said the average age of passengers on the 450-passenger Odyssey’s inaugural season was 45, vs. 55 for the line overall.

In addition, the ratio of first-time guests was two-thirds higher than what is normal for the line.

Other luxury lines also said their average passenger age had dropped this year as a result of deep discounting.

“Our guests are still affluent, but they’re younger,” said Brad Ball, spokesman for luxury line Silversea Cruises, which has offered deals such as 50% off and free air.

“When prices were higher, we were getting more guests 50-plus, and now we’re seeing more 40-plus.”

A demographic shift

Conover and executives at other lines say that the recent price incentives and new ships have accelerated a demographic shift that’s been in the works.

“Our average age has been coming down for several years,” she said. “Ten years ago it was in the mid-60s. Now it’s in the mid-50s.”

Crystal Cruises also said that it has seen a shift to a younger passenger makeup over the past few years, a result of both price incentives — this year it did two-for-one pricing among other offers — and an increase in multigenerational travel.

“The average age has definitely gone down,” said Mimi Weisband, Crystal’s vice president of public relations. “We’ve seen such an increase in multigenerational travel. It might have been the matriarch going with the adult children in their 40s and 50s, who were going with their children.

“Now we have a lot of those adult children going on their own.”

Some of the luxury lines said seven-day itineraries were a factor in attracting younger and new cruisers. Conover said that the Odyssey’s week-long itineraries in Europe attract a younger crowd and more families than its longer cruises might. Silversea said the same thing.

Ron Kurtz, president of the American Affluence Research Center and founding president of former luxury cruise line Sea Goddess, said that itinerary design is the most important factor in segmenting the affluent market by age.

“The younger affluent are more attracted to itineraries that are shorter — seven nights vs. typical 10-night or longer luxury cruises," he said.

Kurtz added that younger travelers prefer fewer days at sea and port-intensive itineraries, particularly small ports where tendering is usually required.

Conover said the itineraries and increased product value changed its client demographic this year, but that the Odyssey itself was also part of the reason.

“The ship was designed to appeal to a younger group,” she said. “It has more restaurants, a bigger spa and a bigger pool area. The decor is more modern and contemporary. There is lots of outdoor space.”

New ships, new passengers

Gale Ward of Valerie Wilson Travel in Charlotte, N.C., had never sold Seabourn before taking a group of 26 on the Sept. 26 Odyssey sailing. She took advantage of a Seabourn promotion.

All but one couple had cruised before, she said, but all were new to Seabourn. She said pricing played a large part in their decision to take the cruise, but that the ship was also a factor.

“The pricing is certainly attractive for a luxury product,” Ward said. “And now that the new ship offers full verandas, which is a popular feature, our cruise clients and friends are more interested.”

Ward added that other features attracting her clients were the size of the Odyssey — “not too small and not too big” — and its look: “Sleek, modern, comfortable, but at the same time warm and friendly.”

Some agents who have long been sellers of luxury say that the new ships give them an opportunity to attract a new kind of client.

Susan Reder, president of Frosch Classic Cruise and Travel in Woodland Hills, Calif., a top producer for Seabourn, said that the ship gives agents the opportunity to attract the high-end land-based vacationer.

She compared the Odyssey to “a very high-end boutique hotel.”

“We all have to do a better job attracting the younger travelers who are Four Seasons, Rosewood, One&Only and St. Regis frequent visitors,” Reder said.

Silversea also has a new ship under construction, the 540-passenger Silver Spirit, which is set to debut in January. For Silversea, like Seabourn, bringing on new capacity means the line needs new cruisers.

The 32,000-ton, 450-passenger Odyssey will increase Seabourn’s capacity this year by 30%. The addition of a sister ship, the Sojourn, means a 67% capacity increase by next summer.

Conover said the line’s rate of new passengers had been flat over the last decade because the line was capacity-constrained and had a high level of repeat guests.
This year, a portion of the line’s 73% increase in new customers has come from travel agents selling Seabourn for the first time, like Ward.

Sustainability

But some industry veterans are skeptical that the new ships and lower prices will truly lower the average age of luxury cruisers.

“That is probably a premise the lines would like agents to believe but which is hard to accept,” said a former luxury cruise line executive. “Even at 50% discounts, the per diems of these lines are steep.

“Moreover, anything beyond a seven-day itinerary, which is most of their inventory, would be a difficult sale to younger people.”

Greg Nacco of Cruise Specialists in Seattle also said that while the increased value in the luxury sector has allowed “aspirational clients” to move from premium brands to luxury brands, they are mostly attracting luxury clients.

“The bulk of business we are seeing on the luxury lines are coming from past passengers who easily recognize and understand the value of what is being offered,” he said. “They have already sailed and experienced these ships, and at a higher price.”

Both agents and cruise executives expressed hope that the new breed of passengers will stay there when the prices go back up.

“I think they will,” said Ward of Valerie Wilson Travel. “It sets a standard, and they would be disappointed in a lesser product after experiencing luxury. Also they recognize the inclusive features of a luxury cruise as a really good thing.”

Conover is not worried, either.

“The challenge is to get someone to book a cruise with us the first time,” she said. “Two-thirds of those cruisers book with us again within 18 months.”