Getting on board a cruise ship for MICE events can deliver delegates the whole luxury package. Rob Gill looks at the options for events at sea
Organising a large conference or incentive trip is a complicated enough process on dry land, so it may be tempting to dismiss the idea of holding an event on a cruise ship as being more trouble than it’s worth. But there is increasing evidence that more companies and organisations are considering hosting events at sea because of the range of experiences cruises can offer, both in terms of destinations and the way that the ships can be configured to meet corporate objectives.
Ask those in the events industry about why clients are considering holding meetings at sea, and the phrase “wow factor” comes up time and again. After all, most of these floating hotels offer far more extensive facilities than the average conference venue, and then there is the advantage of visiting a different destination every day.
Mike Leeson, senior events manager at Chambers Travel Events, explains the attraction of cruises: “Clients are considering cruise ships as they offer something different from the usual conference platform, and they also keep a conference group together, on board the ship, for enhanced networking and team-building.”
This view is also shared by Iona Courtenay-Warren, head of events for Carlson Wagonlit Travel (CWT) Meetings and Events, who says there are a “host of reasons” to hold events on a cruise ship. “I’ve used a cruise ship for a client – we chose it because it got them exclusive use of the venue, it could be completely branded in their theme, and it really added a ‘wow’ factor to the event, as the ability to cruise to different, interesting locations for activities and dinner was really exciting,” she says.
UK INTEREST
Not all cruise lines are interested in the meetings market, but those that do focus on the sector have also reported increasing interest by companies based in the UK and Europe. For example, UK-based satellite technology company Inmarsat held a five-day partner conference for 200 delegates on Royal Caribbean’s Enchantment of the Seas earlier this year, with an itinerary sailing from Florida to the Bahamas, with stops at Coco Cay and Nassau, where optional activities for delegates included city tours, deep-sea fishing, diving with sharks and golf.
Nicki Tempest-Mitchell, UK and Ireland director of sales for Celebrity Cruises, says: “In the US, Celebrity has seen the events market grow by more than 25 per cent annually for the last four years. Now we see the international markets, led by the UK, showing even stronger growth.” She adds that onboard meetings, incentives, conferences and exhibitions (MICE) events prove popular with delegates’ spouses and partners, who get the opportunity to try all the facilities afloat.
Luxury line Silversea, which has eight ships in its fleet (including three explorer-style vessels sailing to destinations such as Antarctica and the Galapagos Islands) is also focusing on the corporate market, with an office in London catering for clients in Europe, the Middle East and Africa.
Maarten Tromp, Silversea’s director of corporate and incentive sales, says: “Even in difficult economic times, companies still incentivise and reward staff and clients. This is why cruises are so appealing, as we offer an experience, not just a hotel stay. We are currently seeing a strong increase in quotations but also in confirmed business, not only from the UK but in virtually all international markets that are served from the London office.”
DAUNTING RANGE
For those meeting planners who do not have detailed knowledge of the cruise industry, the range of ships and possible itineraries available can be daunting. Vessels range from Royal Caribbean’s enormous Oasis-class ships, such as Allure of the Seas, which can carry up to 5,400 passengers, to luxury yacht-style ships operated by companies such as Ponant, whose smallest vessel caters for a maximum of 64 guests.
The increase in interest from meetings planners and agencies is reflected in the results of a global survey of 735 meetings industry professionals, carried out by Site International Foundation, in co-operation with cruise trade organisation Cruise Lines International Association (CLIA). This found that 73 per cent of meetings industry professionals expected to use a cruise line for a client’s incentive group within the next three years, while 53 per cent said they were likely to organise a meeting or conference on board a ship over the same period. Only 5 per cent of respondents completely dismissed the idea of holding a meeting or conference on a cruise ship.
The survey also highlighted the main reasons why meeting organisers would not consider a meeting at sea. These included voyage lengths that did not fit in with the client’s timescale (46 per cent), perception-issues such as cruises being seen as “too frivolous or risky” (41 per cent) and a general aversion to being at sea (37 per cent).
A high percentage also steered away from cruise events due to being “unaware” of the meeting space that is available on ships and the price of the event being “too high”.
A DIFFERENT VIEW
These are the types of perceptions that the cruise industry wants to change, particularly for those operators that are more interested in the meetings and incentive market. Royal Caribbean, for example, says that it has the “largest percentage of public space” dedicated to meeting facilities in the cruise industry.
Stephen Winter, international sales director for small ship operator Ponant, says: “The advantage of holding an event at sea offers bookers the perfect package: one bill covers transportation port-to-port, dining and drinking, and meeting space. We believe the size of our ships actually makes us the right fit for most of our clients.”
Celebrity’s Tempest-Mitchell also argues that the all-inclusive nature of cruises means they can offer “better value” than a traditional land-based venue because services such as entertainment, meals and audio-visual equipment are included in the overall price. “Meetings on cruise ships can offer savings of up to 30 per cent compared to land programmes,” she says. “And they are even more cost-effective when you consider that our team also takes away the strain of managing all onboard meals, refreshments and entertainment.”
Another quandary that buyers and planners may face is deciding whether they want to charter a whole ship for exclusive use, or take an allocation of cabins on a public cruise and use some of the ship’s lounges, restaurants and entertainment facilities for their private events and sessions.
Silversea’s Maarten Tromp says that cruise ships offer flexibility to meeting planners depending on the size of their group and their requirements. He adds that organisers also need to think about their choice of destinations. “Chartering a Silversea ship provides the freedom to customise the voyage itinerary – including ports of call, duration of time in port, and daily scheduling – as well as the flexibility to arrange special events, design tailor-made tours, and even create menus that include particular dishes,” he says.
Another issue for meetings buyers is the lead time required to organise an event on a cruise ship. Again, it depends on a company’s specific requirements with cruise lines ideally wanting a whole-ship charter to be booked 12-to-18 months in advance.
CWT’s Courtenay-Warren advises clients to book as far in advance as possible to attain the best price for the event. “As with any major event, the longer the lead time the client can give us, the better,” she says. “Particularly with a unique venue such as a ship – it needs a lot of logistics to get to the right location for the client.”
But Chambers’ Leeson says events at sea do not necessarily require a longer lead time. “We are assisting with logistics for an event on a cruise ship out of Miami,” he says. “This is for March 2015, so is no different to the average lead time you’d expect for a land-based event.”
Despite evidence of growing demand for meetings on ships, the cruise industry still has plenty of work to do in educating those in the meetings sector. The Site International Foundation/CLIA survey found that the best way to persuade event organisers to use cruises ships more frequently would be educational trips on cruises (64 per cent of respondents) followed by corporate testimonials and case studies (52 per cent) and research about the effectiveness of cruises (50 per cent).
WHAT DOES IT COST?
There can few more impressive statements of intent for a company than to charter an entire cruise ship for an event or conference while sailing around some of the world’s most exotic destinations.
But how much does it cost to charter a ship for a few days? Ask cruise lines to give a ball-park figure and the answer comes back that it depends on numerous factors, such as the ship you want to use, the number of delegates you have, and what kind of entertainment and events you want to hold on board.
Prices will also be affected by the time of year of the trip, the region companies want to sail around and the destinations they want to visit when there.
Royal Caribbean gives some guidance about estimated costs for companies, for whole-ship charters: they range from a total of US$900,000 for a three-night trip on its smallest Sovereign and Vision classes of ships, which still cater for around 2,500 passengers, in low season (September-February), to US$10.1 million for a seven-night itinerary on its largest Oasis (over 6,000 passengers) ships in peak season from March to August.
These estimated costs are based on Royal Caribbean’s “standard product” and any forms of customisation, including special requests, are likely to cost extra. Chartering in areas such as Bermuda, Alaska, the southern Caribbean and Europe can also be more expensive. Silversea says events generally work out at around US$500 per person per day, but this depends on factors such as time of year and where the ship is cruising. Ponant says chartering its smallest ship, Le Ponant, with a capacity of 64 passengers, is priced from €25,000 per day.
Despite claims that events on ships work out cheaper than land-based alternatives, Chambers Travel Events’ Mike Leeson says: “In general, the costs for events at sea tend to be more expensive than land-based events, as third-party suppliers have to commit their services for a longer and more exclusive period of time.”