Biometric-powered boarding passes
for embarkation. Radio-frequency identification (RFID) for touchless payments.
Even in-cabin, voice-activated virtual assistants for onboard recommendations.
Personalized experiences on cruise ships are surging, and technology is turning
the tide.
As cruise lines sail into the
future, the proliferation of technological innovations has reshaped the
accessibility of passenger data and, with it, the ability to tailor the
passenger experience. More than 9 in 10 organizations (91%) have deployed data-driven personalization to drive business
growth.
Take a look at how technology has
enabled the cruise industry to not only deliver immersive onboard journeys and
unparalleled personalized experiences but also redefine luxury cruising.
The era of personalization and abundant choices
We’re currently in the era of
travel personalization. Now more than ever, cruise passengers demand innovative itineraries with new destinations and unique
attractions. However, as the number of potential packages grows, the abundance
of choices has left consumers feeling overwhelmed.
From prospective ports and onshore
activities to available onboard amenities and dining options, modern travelers
are inundated with travel decisions before booking - or even selecting - a
cabin.
Data-driven personalization can
help with that. As per a 2023 State of Personalization report, 78% of business leaders identify first-party data -
including passenger travel history, purchase habits, and website behavior - as
the most valuable insights into the amenities passengers actually prefer.
In hopes of combating itinerary
overload, 64% of consumers will allow brands to collect their personal data simply to
provide more personalized options. In fact, over half (56%)
of consumers become repeat passengers following a personalized experience, a 7%
increase year-over-year.
Leveraging data analytics for personalized luxury
Passenger data is just about
everywhere along the customer journey, with collection beginning long before
boarding and extending far after embarkation. For the cruise lines harnessing
data to gain insights into consumer preferences, the collection process can
take many shapes.
Take Viking Cruise’s My Viking Journey online portal and onboard TraceSafe devices, for instance. The
portal enables customers to browse shore excursions and book reservations
pre-boarding, while TraceSafe is equipped with radio-frequency identification
to track onboard activity.
There’s also Resorts World
Cruises’ iTravel Cruise Enterprise Reservation powered by IBS Software. As a singular point of contact to engage
passengers throughout their itinerary, iTravel collects
passenger data to deliver customized offers and promotions for onboard
shopping.
So how does technology enhance
the luxury cruise experience? Data analytics gleaned through the above
technologies enable cruise lines to cater to diverse luxury preferences. With
the knowledge of passenger-preferred cabin and cuisine choices, cruise lines
can create tailored, high-end journeys.
Crafting tailored onboard itineraries and enrichment
In a study of traveler
behavior in the cruise industry
post-COVID, three predictors of passenger satisfaction are service
responsiveness, assurance and tangibility. Personalized itineraries are a
dynamic take on responsiveness, crafting tailored activities around proven
passenger profiles.
Data-driven personalization offers
several coveted benefits to luxury cruise passengers, the primary being
preferred entertainment options, sought-after spa treatments, and exclusive
enrichment programs - all of which power a more satisfactory traveling experience
on cruise lines.
A fantastic example of luxury
cruise lines crafting tailored onboard experiences is Silver Nova, the newest Silversea ship. It boasts rotating dining options tied to upcoming itinerary
destinations, including a daily-changing menu inspired by the specific port
passengers are about to visit.
Even premium cruise lines, such as
Holland America, have embraced data-driven personalization. The brand’s
shipboard Navigator app provides passengers with itinerary schedules and tailored
recommendations for dining, onshore excursions and onboard amenities such as
massage services.
Exploring the synergy between technology and luxury
Of course, the synergy between
technology and luxury extends far beyond mobile applications like Holland
America Navigator. While artificial intelligence (AI) powers most of the
personalization process, virtual reality (VR) and augmented reality (AR) have
emerged as strong contenders to engage users in the customer journey and
showcase luxury cabin options and onboard amenities.
To see this synergy at work, toy
with MSC Cruises’ “immersive configurator” - a VR catalog enabling prospective
passengers to take a virtual tour through MSC ships and browse available
cabins. The VR-powered tool was found to enhance the customer experience and improve engagement.
Through continuous customer
interactions, like accessing ship deck plans, tech-driven AR and VR tools
become a digital gold mine for consumer data. Ongoing first-party data
collection allows cruise lines to seamlessly collect insights for onboard
activities, marketing initiatives and more.
Not to mention, AR and VR-powered
configurators enable passengers to conceptualize how adding additional luxury
experiences (i.e., particular cabins and amenities) can impact final pricing.
Such tools allow customers to access clear pricing strategies for enhanced
luxury experiences.
Increased spending linked to demand for elite experiences
Personalization is the key to a
truly luxurious cruise experience, but it doesn’t come cheap. Fortunately, the
trend of increased spending on cruises alongside the heightened focus on luxury
experiences indicates that consumers are willing to spend more for the travel
perks they prefer.
A whopping 80% of business leaders agree consumers spend more on personalized experiences, with
data-driven transactions netting 38% more on average. By molding onboard
experiences around passengers’ unique preferences, brands drive higher
satisfaction and brand loyalty.
Likewise, the alignment between
increased luxury spending and technology adoption for personalized experiences
has generated significant growth in the cruise industry. According to the U.S. Cruise Market Report, revenue is expected to double to $21.1 billion in 2023.
Before the COVID-19 pandemic,
growth in the cruise industry was primarily supply-driven or dependent on new
ships and port destinations. Instead, today’s double-digit growth is reliant on
serving passenger preferences, both with personalized itineraries and exclusive
luxury perks.
Navigating the future of luxury cruising and analytics
With insights gleaned from
passenger data, modern cruise lines are pioneering a new era of cruising that
harmonizes abundant consumer choices with personalized onboard experiences,
promising an exciting future for travelers seeking unmatched adventures on the
open seas.
As cruise lines continue to
innovate, they must sail forward with data analytics that elevate the
passenger experience into uncharted waters. The convergence of technology and
personalization is reshaping the definition of luxury, ensuring that each journey
is as unique as the individual traveler.
The data doesn’t lie: The future
of luxury cruising has never looked more lavish.