Cruises exist on a different plane and operate under a different set of rules. Each vessel functions as a company within a company, constantly evolving as its 'software'—the crew—rotates and adapts.
More importantly, cruises operate miles from shore, under circumstances that are vastly different from their land-based counterparts. While the fundamentals of onboard revenue remain the same as those on land, there are several differences that make revenue onboard an art of its own.
These are the 5 top ways in which onboard revenue operates differently and how revenue managers adjust to it:
1. Niche Makes You Rich
Unlike their land-based counterparts, ships host guests from around the globe, each with unique preferences, languages, and cultures. Adding to the complexity, constantly shifting itineraries make it challenging to tailor sales strategies to any specific group.
One of the best tools the onboard teams have at hand to adapt to these rapid changes is the ability of revenue managers to “read the floor” and lead the onboard communication teams to adjust promotions and signage to fit the niche of each individual voyage.
2. It’s Always A Party
Guests take cruises to have a good time! This creates a unique dynamic where the lines between relaxing by the pool bar and shopping in the onboard stores blur. On some vessels, parties are even hosted in venues directly connected to retail shops or sales desks, seamlessly merging entertainment with shopping opportunities.
Savvy revenue managers see this as a golden opportunity to integrate revenue strategies into the cruise experience.
Whether it’s a champagne toast at the retail shop, a liquor taste event during a party or a fashion show as an entertainment event, onboard revenue ties in directly with the cruise experience in ways shoreside revenue can only dream of.
3. Dynamic Teams
Finding great talent is challenging enough, let alone training and developing teams to work harmoniously together. Now, imagine having to do that every six to ten months—that's the reality of working onboard.
Fortunately, crewmembers are a unique breed of rockstars with adaptability written into their DNA. This is one of the key reasons that cruise lines benefit most from having a revenue manager onboard who can act as the anchor for the rest of the revenue teams and the leader of the strategy onboard.
4. Inventory
There is no supply chain in the middle of the ocean, which creates a very different inventory dynamic onboard. Being away from a port of call for days at a time makes the logistics of inventory a big differentiator from land-based operations.
That’s why onboard revenue teams must carefully manage their inventories in ways their land-based counterparts might not have to.
To top it off, storage space onboard is significantly limited, which in turn also means that ordering excess inventory is not always an option.
To maintain a healthy inventory balance and maximize profits, onboard revenue teams strategically blend inventory planning, informed by past cruise data, with well-targeted promotions.
5. Marketing
Marketing onboard cruise ships is far from conventional. Revenue teams face the unique challenge of educating guests about products, services, and promotions within a limited timeframe and through very limited channels.
These constraints have pushed onboard marketers to develop innovative and engaging strategies to inform and persuade guests. From announcements over the PA system to eye-catching digital signage and onboard smartphone apps, revenue teams creatively leverage every available platform to boost sales and drive results.
Did we miss anything? Let us know in the comments below and happy cruising!
Written by Enrico Caschetta
Enrico is a seasoned content professional with over a decade of experience working with prominent cruise and retail brands, including Starboard Cruise Services, Onboard Media, Porthole Magazine, Spark Cooperative, and MSC Cruises. He now works as a consultant, helping cruise and luxury brands connect with their audiences.
To get in touch reach out to enrico@arcticcontent.com
Comments