Working with the Cruise Sector

Last Updated on: 11 September 2010

Credit: Port of Tauranga

During the 2010-11 cruise season, over 136,000 passengers and 55,000 crew visited New Zealand ports, contributing over $305 million directly to the economy. Forecasts indicate that future seasons will see even larger growth with 176,105 passengers expected during the 2011-12 season.

Cruise offers significant opportunities for New Zealand operators, but it is a unique sector and there are a few things to keep in mind.

Step One

For tourism businesses keen to work in the cruise market, it is important to first ascertain whether your product fits the cruise industry:

  • Is your product unique or specific to a particular region in New Zealand?
    Cruise passengers have very limited time ashore, with an average of eight hours to get to know a region. This means they tend to choose activities that are unique or iconic to that region. As a result, products such as Kiwi 360, which is unique to Tauranga, or the "one of a kind" Tranz Alpine rail journey, are popular. Tourism businesses keen to work with the cruise sector should consider and market whatever is unique or representative of their region.
  • Where does your product sit within the wider New Zealand tour offer?
    Cruise passengers tend to choose to do a different activity at each New Zealand port and will not want to repeat an activity within the same voyage. For example, cruise passengers will choose to do their wine-tasting tour at only one port, rather than in every wine-producing region of New Zealand. Operators need to think about where their product sits within the wider New Zealand tour offer in order to gauge its potential.
  • Are you Qualmark certified?
    While not obligatory, it can be helpful to apply for a Qualmark certification of your product. The Port of Tauranga and Tourism Bay of Plenty have jointly made a decision to only support the sale of Qualmark-rated products to cruise passengers who are not on organised shore excursions. While this currently only affects Tauranga and Rotorua operators, this may set a benchmark for other regions looking to provide quality-accredited products to cruise passengers.

Step Two

Once you have established that your products fit the cruise market, as outlined above, there are two options for marketing your product to cruise companies:

1. Working with Inbound Operators (IBOs)

Inbound Operators (IBOs) supply cruise liners with shore excursions for their passengers and are always on the lookout for new and exciting products.

To ascertain your potential to work with IBOs, you need to consider the following factors:

  • Are you export ready?
    To be considered by an IBO, operators need to understand international distribution and have commission structures in place. See our checklist for operators looking to sell offshore
  • Do you have an existing tourism product?
    If you already have a tourism product in operation, you are more likely to be contracted by an IBO as IBOs are better able to gauge the experience, take note of feedback from other sources and decide on its suitability for the cruise sector. Tourism products that are able to be adapted to the specific requirements of cruise lines, such as tour length and transfer options, have a higher chance of success.
  • Can you cater to large numbers of visitors?
    A ship to New Zealand carries on average 1,490 passengers, almost the equivalent of three jumbo jets. At such a volume, IBOs naturally steer towards tourism experiences that can move hundreds of visitors at a time.
  • Can you customise your product to the particular needs of cruise passengers?
    In order to gain the interest of IBOs, tourism businesses need to make their products compelling.  They can do so by customising their product, covering a gap in the market or ensuring that their product is unique and different to what cruise passengers can buy cheaper online.

    Interested operators should bear in mind the specifications of an ideal cruise tour (e.g. time of day, age of passengers, demographics and size of group) so they can customise and deliver a product which fits with the cruise schedule and passenger needs.

    Note that to some extent every tour needs to be customised to each ship, as the passengers on board will be different. For example, the clientele on board the Orion is different to the one on board the Rhapsody of the Seas; Americans may be interested in New Zealand's farming and back country, whereas Australians find that too familiar to be of much interest. 

    Half-day tours have proven to be very popular with cruise passengers, with the other half of the day free to spend as they wish.

    A tour of around four hours made up of two venue stops, including morning or afternoon tea, is ideal. This also enables passengers to return to the ship for lunch and gives the tour operator the ability to run the same tour again in the afternoon.

    Overall, the more popular tours tend to be those that take passengers to places which cannot be reached by public transport or walking, and those that offer a visit to more than one attraction.
  • Are you willing to accept the recommendations of IBOs?
    It is important that tour operators listen to the recommendations of IBOs, and recognise them as the experts in dealing with cruise lines.

    It is also important to keep in mind that the prices charged on board are determined by the cruise line's head office and include many value add-ons and considerations such as convenience (pick up and drop off at the wharf), peace of mind (guaranteed return to the ship on time or expenses-paid trip to meet the ship at the next port), insurance, quality assurance and a recourse to refunds and complaints.
  • Are you prepared to be patient?
    IBOs advise tourism businesses to be patient as the cruise industry can be quite fickle, but good service, consistency and reliability are good fundamentals for success in the cruise sector.

2. Selling directly to cruise passengers

Passengers are increasingly seeking out tours sold online or at local i-SITE Visitor Centres, so it is no longer as difficult to service the cruise market directly.

Tourism businesses keen to sell products directly to cruise passengers should:

  1. Update your website and ensure it is easily found by search engines. ( See our Websites and Online Marketing page.)
  2. Foster good relationships with your local i-SITE, ensuring frontline staff have experienced your products and know enough about them to sell them.
  3. Remember it is vital to update product availability on cruise ship days, so visitors can easily see if you have spaces available.

Join Cruise New Zealand

Cruise New Zealand is New Zealand's only cruise-specific organisation focused on destination marketing and management. Membership includes access to exclusive data and reports.

Find out more about joining Cruise New Zealand at www.cruisenewzealand.org.nz