Currency issues

The group also insisted that the strengthening dollar against the pound had not deterred the UK market, despite all the lines, apart from P&O, pricing their onboard amenities in dollars.

Poultney insisted the fall in sterling had had “no impact”, while Smith said all shore excursions for the line were fully booked.

White added: “P&O has sterling onboard and is a very British brand. In times of uncertainty people go to the brands and places they trust. So at times like this, we can remind people of the value cruise offers. In times of uncertainty, it challenges us to do better.”

The group acknowledged that last year’s predictions (pictured left) that US customers would stay away from the Mediterranean in 2016 had proved correct, but said the move had subsequently led to a huge opportunity for the UK trade.

“We did see a decline in [customers coming from the] US, but that was what contributed to a fantastic opportunity for us,” said Poultney, adding that the US market had now started to return. “This year has not been as extreme,” she said.

White agreed: “From Cunard’s perspective, we saw a decline in US volume for fly-Med last year, which is one of the stronger markets. The volume we’ve seen this year is much stronger.”

Looking at forthcoming trends within the sector, the group agreed that the focus was likely to remain on destination, and acknowledged that more overnights could be added. “Where the location demands it, we offer it,” said Poultney. “It enhances the experience.

“Our itineraries are as important as what we have onboard.”

Smith agreed and said Carnival Cruise Line had increased its duration in Cozumel, off Mexico's Yucatan Peninsula, for example by 14%. “People want to have time to really see a destination,” he added.

Asked what they thought of recent news that competitor cruise line Azamara had launched a series of “country-intensive voyages” (see Cruise, p18), with sailings focused only on one country, White replied: “It’s great – the more that every brand can differentiate itself, the more they will appeal to different customers. This will appeal to people that have never thought about cruise before, and the more we have of that, the better.”

Elsewhere, White was quick to dismiss concerns about capacity.

P&O alone is set to welcome a 5,200-passenger ship – the biggest ever to be built for the UK market – in 2020, in addition to a number of other new ships that Carnival Corp recently announced are set to enter the market over the next five years. Competitor lines including Celebrity Cruises and Royal Caribbean are also set to welcome new ships in 2018, 2022 and 2024.

However, White insisted: “The decision about capacity is a long-term view. If there wasn’t the belief, if there wasn’t the demand, they [Carnival Corp] wouldn’t be making these decisions. We’re only scraping the surface of what we can do at the moment.”

More capacity

The group also stressed their continued commitment to the trade. “In 18 months our newest ship will go on sale – that will be a 30% increase in capacity,” White said. “The trade will only become more important [to us]”.

Smith said Carnival Cruise Line was now working with more agents than ever, including “new agents [to us] – some of which are new to cruise.”

He added that Carnival Cruise Line had also focused in 2016 on agents it might not have considered previously. “We’ve been working with agents that don’t necessarily sell cruise, but that sell US specialists [where the majority of Carnival Cruise Line ships sail],” he said.

“Most people who go to Florida want something different, and we can offer three, five and seven-night cruises out of Florida. The potential is massive.”

Meanwhile, Lahmich said Holland America and Seabourn had focused on agents in 2016, with a 12% increase year-on-year in its trade distribution through individual agents.

“I think it’s down to the focus that Holland America put on [new ship] Koningsdam, such as when we took agents to Amsterdam to visit the ship. We had events throughout the year, and kept Koningsdam in everyone’s minds.” She revealed both Seabourn and Holland America would invite agents to become brand ambassadors for 2017, including those that have travelled with the lines on Koningsdam and Seabourn’s newest ship Encore, which was launched last month.

“We want to continue our investment in the trade,” she added.

White said 2016 would be an “incredibly difficult year to surpass for P&O and Cunard”, which he revealed had seen the biggest investment made in the trade in 10 years. “Both brands had record results, and the trade remains the single largest distribution channel for both brands. We are working with more agents than ever before.”

He said the varying itineraries offered by all six lines gave agents who specialise in particular regions more of an opportunity.

“If you look at every brand within the Carnival group, they’re all going to new areas. Deployment is more and more key, so you might have agents that haven’t sold cruise, but are experts in these areas,” he added. “There’s a huge opportunity there.”