Latest news with #CruiseArabiaAlliance
Trade Arabia
18-05-2025
- Business
- Trade Arabia
What's next for revenue management for cruise lines?
The Middle East cruise industry is poised for continued growth with the 2024-2025 season set to attract over one million cruise tourists to the Arabian Gulf through key ports including Dubai, Abu Dhabi, Doha, and Jeddah, a great testament to the region's expanding maritime tourism sector. Saudi Arabia is the fastest growing regional market, projected to reach $89.5 million by 2030 and expected to register the highest CAGR over the next five years, stated Crystal Pernici, Global Director, IDeaS Cruise RMS. Aside from well-known international cruise lines such as Royal Caribbean, MSC Cruises, Costa Cruises, TUI Cruises Virgin Voyages, and Celestyal Cruises, the region now has its very own first homegrown cruise brand, AROYA Cruises, which cruises from Jeddah in Saudi Arabia. The sector is supported by the Cruise Arabia Alliance, established in March 2024 by the maritime and tourism authorities from Dubai, Abu Dhabi, Bahrain, and Oman. This partnership aims to promote the Arabian Gulf as a premier global cruise destination by enhancing port infrastructure, improving passenger experiences, and attracting more cruise lines to the region. With the growth and development of the cruise sector in the region, the landscape is increasingly competitive. Interestingly enough, despite the industry's ability to deliver millions of memorable passenger experiences every year, cruise lines have been comparatively slow to adopt the shift in tools and philosophy needed to maximise revenue from their cabin accommodations. The result? A vastly competitive environment with cruise lines willing to undervalue ticketing to ensure a ship full of passengers who'll (hopefully) spend enough onboard to cover the difference and then some. It's a tough balancing act filled with missed revenue opportunities. And it's one we believe can be fundamentally shifted through the use of similar, tried-and-true revenue science principles widely adopted across airlines and hotels. One of the key challenges is the inability to effectively forecast demand. A cabin ticket can't be sold after the ship departs, resulting in cruise lines focus in filling ships and maximising onboard spending, rather than maximising revenue across cabin categories. Predicting premium cabin demand early could improve pricing and promotions. Revenue management systems, used in hotels and airlines, enhance financial performance by analysing demand and adjusting prices, distribution, and promotions for smarter, category-specific pricing. In addition to forecasting demand, cruise lines often need more defined market segments that group similar booking (and spending) behaviors. Revenue management can look at factors such as booking channel, product offerings (and conditions), source market and agency vs direct bookings which can serve as key indicators for segmentation-based forecasting. With enough insight into segment-based demand, cruise lines can develop strategies that ultimately lead to getting the most valuable mix of passengers on board as possible. But there's just one problem—it takes a ton of time-consuming, error-prone work to make this happen manually or extensive staffing and high labor costs that typically only the large lines can take of. Particularly at the scale and frequency needed to respond effectively for an entire fleet of ships booking months or years in advance. To pull off the necessary data crunching and subsequent shifts in selling strategy effectively, cruise lines need to enlist the power of advanced automated tools. By harnessing revenue management technology, cruise lines can navigate the tides of an ever-evolving industry, optimising performance across their vast and diverse itineraries. By ensuring each route and cabin is dynamically priced with precision, they can maximise profitability while delivering smooth sailing and unforgettable experiences for passengers.
Trade Arabia
16-04-2025
- Business
- Trade Arabia
DCT Abu Dhabi showcases cruise offering at SeaTrade Cruise Global
The Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) participated in SeaTrade Cruise Global 2025 in Miami, which took place from April 7–10. Representing the emirate as part of the Cruise Arabia Alliance, DCT Abu Dhabi joined key global stakeholders at the world's largest annual cruise industry event. Abu Dhabi's presence at the event reflects its commitment to building partnerships within the sector and showcasing the diverse experiences available to travellers, ranging from luxury resorts and pristine beaches to historical sites and global events. The emirate continues to be developed as a leading cruise destination, attracting international cruise lines and visitors. In 2024, Abu Dhabi welcomed over 693,000 cruise visitors through 158 port calls, an indication of its popularity with travellers and signalling further opportunities for growth and investment in the emirate's cruise sector. Haitham Ali Khamis, Section Head – Aviation, Cruise and Global Partnerships at DCT Abu Dhabi, said: 'Abu Dhabi's emergence as a leading regional cruise destination is the result of our continued collaboration with partners and our commitment to delivering tailored experiences that resonate with international travellers. With nearly 700,000 cruise visitors last year, our momentum is stronger than ever. Through our participation in SeaTrade Cruise Global, DCT Abu Dhabi aims to forge new partnerships, highlight the emirate's growing cruise offerings, and create more opportunities for visitors from around the world to experience everything Abu Dhabi has to offer.' Noura Rashed Al Dhaheri, CEO of Cruise Business at AD Ports said: "We are thrilled to participate in Seatrade Cruise Global, a premier event that brings together the global cruise industry. We believe this exhibition presents a valuable opportunity for us to showcase Abu Dhabi's unique offerings and strengthen our position as a regional force in the cruise industry, offering world-class facilities, and unparalleled access to the region's most breathtaking attractions, vibrant culture, and warm hospitality. We have evolved to become the preferred port of call for many leading cruise lines, and strengthening our industry partnerships will play a pivotal role in driving growth and ensure long lasting business relationships.' A number of new services have also been launched to improve the cruise journey for both visitors and crew members. These include the region's first-ever Cruise Crew Pass and Crew Parcel Pick-Up Service, designed to enhance crew experience with exclusive discounts and convenience. Additionally, a dedicated digital Cruise Guide has been introduced to help cruise passengers easily explore what Abu Dhabi has to offer. The Abu Dhabi Pass, available to all cruise visitors, offers discounts across top attractions, dining venues, and retail outlets, encouraging longer stays and a deeper engagement with the city's rich culture and hospitality. DCT Abu Dhabi is also focused on improving the visitor journey from the moment passengers dock. Enhancements at the Abu Dhabi Cruise Terminal include the opening of a new Visitor Information Centre at Zayed Port, which offers guidance, booking assistance, and insights into the emirate's diverse attractions. Visitors can also explore the nearby Zayed Port Heritage Village, offering a glimpse into the UAE's history and traditions. DCT Abu Dhabi's presence at SeaTrade Cruise Global aligns with its broader strategy to engage with global stakeholders and establish strategic collaborations. Recent initiatives include a partnership with Celestyal Cruises, that will see the Celestyal Discovery Homeport from Abu Dhabi for the 2025/2026 season and onwards. This gives visitors a unique opportunity of having the option of staying for a couple of nights before or after their cruise, as well as joint marketing projects (JMPs) with cruise agents in the UK and Russia. Furthermore, enhancement to the emirate's cruise offering such as the Abu Dhabi Cruise Terminal, guest-centric services, and the dedicated cruise beach stopover at Sir Bani Yas Island all contribute to the emirate's Tourism Strategy 2030. This long-term vision focuses on enhancing infrastructure, elevating hospitality standards, and developing cultural attractions, reinforcing Abu Dhabi's position as a premier global destination. -TradeArabia News Service
