Regent Cruises leads the way to recovery

Regent Seven Seas Cruises has climbed out of the GFC bigger and better than before, attributing its’ 2009/10 growth to better decisions made during the crisis.

Regent Seven Seas Cruises, Sr. Vice President National, Key and International Accounts, Alex Sharpe, in Sydney on Monday, said the GFC was a blessing in disguise with bookings better than ever before.

“It was a blessing in disguise and we made big decisions then and tested our new ownership,” he said.

“Our rates are back to 2008 levels, and we couldn't be more pleased and set the bench mark where we want to be.”

The cruise line’s biggest changes included US$85 million refurbishment of its existing fleet, as well as introducing new pricing structures, which Mr Sharpe cites as key factors without which would not lead to the substantial increase in business over the past 12 months.

Mr Sharpe said the company chose not to heavily discount prices and instead began an all-inclusive campaign extending it beyond food and beverages to shore excursions which was a hit with new and former guests.  Even though shore excursions were previously the number one expenditure on board, Mr Sharpe said it was a point-of-difference to give it away for free compared with other luxury liners.

“We created a buzz in the marketplace. Truly captured the imagination of the consumer,” Mr Sharpe said.

He said the company also relied heavily on its travel agent partners, which attributes 95 per cent of their business, and ensured that the new pricing structure, as well as all the new inclusions, was commissionable.

“When we included more, we made sure those things were commissionable, and also wrap in Government taxes and fees to make our product more commissionable,” he said.

“We want to get closer to agents and support them, and buy loyalty to become travel agent friendly”

“At a time when people were cutting commission, we added commission, giving agents a reason to sell up.”

Australia represents the third largest overseas market for Regent Seven Seas, after Canada and the UK.

“It's amazing what we've been able to do in this market.  It is a luxury product and fits very well with Australians,” Mr Sharpe said.

“We are starting to get to the tipping point that our brand is well known in this market, and being the most inclusive luxury brand in this market combined with the inclusive shore excursions did that,” he said.

Limited capacity excursions are now being offered at an extra charge, but the free unlimited shore excursions have not reduced in quality, according to Mr Sharpe.

Mr Sharpe reported yields up 9 pre cent in 2010, with rates expected to increase throughout the year.

“There is tremendous value for those that book early,” he said.