PORT EVERGLADES, Fla. -- After taking a back seat to the mass
market for many years, the ultraluxury cruise market is forging
ahead, offering new profit opportunities to travel agents,
according to Silversea Cruises president William Smith.
Fast growth in the number of ultraluxury berths is keeping pace
with rapid expansion of the luxury hotel segment and the markets
for other luxury goods, said Smith, interviewed here aboard his
line's new, 382-passenger Silver Shadow.
"If you look at the sales and distribution of luxury goods,
high-end products are extremely strong," reflecting the economy's
overall prosperity, said Smith.
Growth in this market offers agencies an unprecedented
opportunity to expand their high-end business, he said. Silversea's
own growth since 1994 and 1995, when it launched its first two
ultraluxury ships, is being topped over a 10-month period by two
more ships, representing a 130% inventory expansion, said
Smith.
In the mid-1990s, Silversea launched the 16,800-ton,
296-passenger sister ships, Silver Cloud and Silver Wind. Besides
the recent delivery of 28,250-ton Silver Shadow in September,
Silversea is slated to enter sister-ship Silver Whisper into
service in July.
Similar tonnage growth is under way currently at other
ultraluxury operators, said Smith.
The luxury-cruise passenger base has swelled with the addition
of aging baby boomers and affluent vacationers around the world who
are benefiting from global economic growth.
Smith said the market for luxury cruises has also been expanded
by the increasing number of seven- to 10-night luxury cruises,
making the cost for such a vacation more affordable.
Although Silversea's market is composed of vacationers with a
household income of $250,000 and higher (average passenger age is
62), the market is not limited to the wealthy, said Smith.
"There's a growing segment of people who may not be wealthy but
are affluent-minded and understand luxury," he said.
Smith said that the juncture of economic prosperity with the
growth in ultraluxury cruise inventory offers many agencies the
opportunity to sell high-end products, which previously have been
the domain of only about 3,500 agencies.
"Our major emphasis right now is directed at identifying those
agents who have the potential to sell those products and teaching
them how to do it," he said.
Silversea's 12 district sales managers are working with agents
who are new to the luxury market, said Smith, teaching them to
explore a luxury cruise with couples who may be planning a 40th or
50th anniversary or are looking for a once-in-a-lifetime trip.
"Many times making the sale is as simple as saying, 'This cruise
is going to cost you $20,000 -- and here's what you're going to get
for it,' " he said.
Silversea offers an entire package, with brochure per diems
ranging from $850 to $1,000 for a package including air fare,
precruise hotel stay, port taxes and charges, gratuities and
on-board beverages.
About 60% of passengers opt for the inclusion of air fare, he
said.
Another major commission opportunity lies in the large number of
passengers who opt for post-cruise vacations, starting in the port
of debarkation and typically lasting one to two weeks, Smith
said.
Because Silversea has developed its land-tour capabilities in
tandem with this post-cruise vacation demand, Smith said, Silversea
now is promoting its tours as stand-alone packages for sale by
travel agents.