Royal Caribbean Cruises (Asia) capitalises on Singapore Fly-Cruise Development Fund to launch new itineraries and expand in emerging high-growth markets.
When Royal Caribbean International made its return to Asia in 2007, the cruise operator decided to partner with the Singapore Tourism Board (STB) to market new itineraries departing from Singapore.
STB, Civil Aviation Authority of Singapore (CAAS) and Singapore Cruise Centre (SCC) then launched the Singapore Fly-Cruise Development Fund (FCDF) to grow the Republic’s cruise industry by funding the development or promotion of fly-cruise products that begin or end in Singapore.
“One thing we really appreciate STB for is that they listened to what our business needs were and weaved their funding into our game plan,” recalls Kelvin Tan, Royal Caribbean’s Regional Director, Asia-Pacific. “The fund really gave us a boost and enabled our marketing dollar to go further.”
With a well-prepared business proposal which outlined new cruise products home-ported in Singapore as well as visitor targets they would achieve, it took Royal Caribbean a mere 2 months to apply for the fund.
Reaching New Markets With Government SupportAs the cruise industry was relatively new in some parts of the Asia-Pacific region, Royal Caribbean maximised their marketing budget by reaching out to trade partners rather than consumers. They promoted their products to travel agencies, hotels and airlines, positioning fly-cruise holidays as an attractive option for tourists.
Royal Caribbean’s marketing efforts paid off as cruise enthusiasts from most Asian markets signed up for vacations on board the first home-ported cruise ship, Rhapsody of the Seas. Bookings also came in from North America and Europe, even for the shorter sailings, and there was keen interest from the corporate incentives sector worldwide.
“At the end of the day, the STB brand name is very powerful and it helps Royal Caribbean to capitalise on it”, explains Kelvin. “Holding road shows together with STB does help to pull in some of the big-name travel agents which may otherwise prove difficult to reach.”
Sailing Success In The RegionFor its upcoming deployment in Asia, Royal Caribbean International’s cruise ship Legend of the Seas will be making more than 20 calls at Singapore - up from just 9 two years ago – and sailing to 10 destinations across Asia. One of its previous New Year cruise attracted foreign visitors from nearly 40 different countries – no mean feat, considering that the itineraries were not long.
“The key to this success”, enthuses Kelvin, “is that people are attracted to the idea of fly-cruise packages where they first fly to Singapore and enjoy themselves here before going on the cruise”.
Asia currently accounts for about 5% of the world’s cruise market. Interest in cruising has been growing steadily in the region and some 2.02 million cruise passengers are expected by 2015.
Royal Caribbean hopes to continue tapping the fund and expand its collaboration with STB to include a wider market. “We hope that the extra bit of push from the fund can help to bring even better results from those countries.”
How Royal Caribbean Cruises (Asia) Secured Funding - Presented a well-prepared business proposal outlining new cruise products home-ported in Singapore as well as international visitor targets they would achieve.
- Explained clearly how their new fly-cruise products would bring significant benefits to Singapore’s cruise industry.
- Worked closely with STB to develop a marketing plan that met both business needs and STB project deliverables.
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How FCDF Helped - Funded Royal Caribbean’s marketing and promotion initiatives.
- Enabled Royal Caribbean to capitalise on STB’s brand name and form partnerships with big-name travel agents in the region.
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