The twelfth edition of the International Cruise Summit in Madrid concludes with cruise lines confident in an extraordinary 2023 despite the international context of rising costs and staff shortages.
Being more proactive in communicating the reality of an industry committed to decarbonization and sustainability will be key to dispelling the reputational problems of cruise lines.
The twelfth edition of the International Cruise Summit, held on November 15 and 16 in Madrid, focused on the global problems related to rising costs and the lack of workers that are affecting the cruise industry as well as most economic activities.
The ICS 2022 was inaugurated by Marie-Caroline Laurent, Director General of CLIA Europe, and Luis Fernando Martín Izquierdo, Director General of Tourism of Madrid and Álvaro Rodríguez Dapena, President of State Ports and was attended by prominent directors and executives from cruise lines, ports, shipping agents and other companies in the sector from all over the world.
The cruise industry recovered strongly in 2022, although occupancy levels have not yet peaked. Over the past three years, new, high-capacity ships equipped with the latest environmentally friendly technologies have been added to the fleet. Furthermore, older, smaller, and less efficient ships have been scrapped,freeing up space.
Despite the fact that occupancy levels have not fully recovered and there are more places available, shipping companies are opting not to lower prices, which would devalue a product that offers an exceptional quality/price ratio, especially since they are facing an unprecedented rise in operating and fuel costs.
Combatting the myths that damage the reputation of cruises is a short and medium-term goal, highlighting not only their health safety, but also their commitment to reducing environmental impact, and their value to destinations, where each cruise passenger spends $750 in a week-long cruise.
There is still a lack of flights or frequencies on certain routes , and there is a growing preference for more ports of embarkation, as well as passenger transport by train or even bus.
The shortages are affecting various areas of the supply chain: from a lack of buses, drivers, and tour guides for excursions, to the difficulty in finding staff willing to work on board and in port operations. However, the industry expects that normalcy will gradually return as economic activity continues to grow.
Andrea Zito, CEO of the cultural expedition cruise line Swan Hellenic, was the personality interviewed this year by Virginia López Valiente, CEO of CruisesNews Media Group, the event's organizer. Zito highlighted the environmental education value of their cruises to Antarctica and the Arctic, and even their potential for personal growth.
Sustainability, a true mantra for cruise companies, which are building ships with the latest technologies in emissions reduction, water purification, programs to reduce single-use plastics, paper, and separation for recycling, has extended its influence far beyond the ships, in the companies' own offices, but also in the destinations, where a holistic approach is sought that considers not only good environmental practices at the port level but also throughout the entire value chain of the destination: tour operators, transport, and places to visit or activity companies.
They are also investing in research into new energy sources, such as hydrogen, ammonia, or methanol, with prototypes designed to become operational in the coming years.
As part of its own sustainability program, CruisesNews Media Group, the event organizer, donated the poster stands and surplus material to be reused in the activities of an NGO in developing countries.
Other highlights:
- The industry is formalizing agreements with certain countries, such as Honduras, Guatemala, and El Salvador, to train crew members who can join the workforce on Caribbean cruise ships.
- Janet Bava of Amawaterways explained how river cruises have found a new, longer travel model with strong consumer demand. The company is experiencing very strong sales of 48-night river cruises along all of Europe's major rivers.
- Finally, although 34% of cruise travelers are Generation C and Millennials, communication regarding the value of cruises must continue to be improved in order to increase that percentage as soon as possible.
The dates for ICS 2023 have already been announced; it will be held on November 14th and 15th at the Meliá Castilla Hotel in Madrid.
