We've been hearing for quite a while that Carnival Cruise Lines was
going to open some retail stores. Now it's been confirmed. The line
has plans to open the first few in some malls in Houston, Dallas
and Chicago later in the year.
With the number of new ships being built, it shouldn't surprise
anyone that cruise lines are joining the supplier trend toward
broadening their appeal through direct marketing.
But it would be overreacting to suggest that the establishment
of some direct retail cruise outlets is the end of civilization, as
we know it. Carnival is saying it's prepared to refer the prospects
who visit their stores to a travel agent. The line also is
encouraging local agents to step up and indicate an interest in
tying in with the mall outlets.
Even if few travel agents derive additional business through
working with the Carnival outlets, agencies worth their salt
needn't fear this development.
Direct distribution has been a part of the landscape forever.
Customers always could buy airline tickets, hotel rooms, car
rentals and just about every other travel product directly from the
supplier.
Even in the tour business, only a handful of operators would
refuse direct business in favor of referring it to agents.
Good agents have lived with this circumstance for a long time.
They don't like it but it's a fact of life. My sense is that very
few good travel agents have lost customers to direct dealings with
suppliers and if they have, many of the customers have come back
because of inferior service.
Another interesting aspect of the Carnival move is their
intention to stay open evenings and weekends. Many suppliers feel
that agents should be open later during the week and on
weekends.
Agents resist the idea mightily. I've editorialized about it
frequently over the years and usually get more opposition than
support to the suggestion that agencies should be open at these
hours.
Agencies say they have enough trouble keeping good employees now
without making them work nights and weekends. Some agencies
consider Sunday hours to be particularly intrusive because they
want that time with their families.
It will be interesting to see how much activity Carnival will
generate with longer hours and how much of it will find its way to
local agencies.
Whatever unhappiness there is among retailers about the Carnival
move, it's part of the changing retail environment. If the Carnival
idea works, we can expect to see other suppliers going the "Disney
store" route.