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Cruise vacations bear brunt of economic downturn

ANDREA LOPESNew Delhi

Gautam Chadha

According to Gautam Chadha, chief executive, TIRUN Travel Marketing (which represents Royal Caribbean Cruises, Azamara Club Cruises and Celebrity Cruises in India), the unfavourable economic environment was costing cruise tourism. Cruising has been growing at an average rate of between 6-7 per cent since the last five years but even this modest figure is expected to drop this year. “There is a confused economic situation and a distinct slowdown. I expect this year is going to be flat,” added Chadha.

Speaking about the company’s strategy, he informed, “We saw great opportunity for growth in Europe and ramped up the number of ships in Europe. Our intent was that by 2012, 50 per cent of our clientele should come from outside of North America and we achieved that in 2012.” Already 50 per cent of the company’s ships are deployed outside North America and it has seasonal deployment of ships in Australia and New Zealand and an enhanced presence in Asia.

Sharing his thoughts on how the Indian market for cruising was faring, Chadha said that the Indian traveller was a strong buyer for the summer months. “There are explorers among us and we are beginning to see people looking for new things. The Far East is good business, people are opting for longer duration cruises via Vietnam, Laos and Cambodia,” said Chadha.

Asked if cruising was still looked at as an exclusive product for the affluent Indian traveller, he said, “I think it’s more the affording traveller than the affluent. Cruising has a price point, but one must remember that you can spend from US$100 to US$ 1000 per night on a cruise ship. It’s a new holiday opportunity since the last 15 years. Earlier it was resorts and spa vacations and then cruise ships came along. What people need to understand is that cruise ships are a value for money holiday option.”