In recent years, the cruise industry has transformed beyond recognition. At the start of this decade, global passenger numbers stood at an annual 19 million. Just six years later, 24 million people are expected to embark upon a cruise in 2016. Over the same period, cruise travel has outpaced general leisure travel by well over 20%, with demand shooting up a staggering 68% in the past ten years.
New boats, emerging markets, shifting demographics, and increased emphasis on variety, choice and innovation have all been fundamental ingredients in driving this transformation – but these markers of a blossoming industry also have their challenges. With the growth in size, the cruise industry has seen greater exposure in the media – and has stayed its course through a tide of increasingly critical public opinion. The lingering impact of the global financial crisis and a succession of high-profile incidents, not least the 2012 Costa Concordia tragedy, have seen the industry forced on to the back foot for much of this decade, and while guest numbers have risen amid a widening geographical footprint, reputation management has remained a key concern.
Leadership woes
Representing more than 95% of global cruise capacity, Cruise Lines International Association (CLIA) has had to reflect upon, accommodate and address these challenges. What was, for all intents and purposes, a North American body in 2010 now boasts 15 offices around the world, the result of a global realignment strategy instigated in 2013.
Thankfully, the past couple of years have been relatively quiet in terms of health and safety mishaps within the industry – but that doesn’t mean things have been quiet at CLIA. In fact, those looking for some drama could have done far worse than turning their gaze towards the top of the organisation to find it. In December 2014, president and CEO Christine Duffy – the person credited with transforming CLIA into a truly global association and forging a course through the choppiest of waters – surprised much of the industry by announcing that she would be leaving, after almost four years of service, to take over as president of Carnival Cruise Line.
The hunt for a successor was on and, after what global CLIA chairman Adam Goldstein referred to as “a thorough search process”, US Coast Guard Rear Admiral Thomas P Ostebo was installed as president and CEO in July 2015. A month later, CLIA announced that Ostebo would be stepping down with immediate effect for personal reasons.
Goldstein commented that Ostebo’s “desire to put his family first is a testament to his character”, but he and the global executive committee were now tasked with finding another individual capable of leading the next stage of CLIA’s evolution. In the meantime, Cindy D’Aoust, who had joined CLIA in December 2014 as EVP of membership and operations, was installed as acting CEO.
It turned out that the person Goldstein and his team were looking for had been there all along. After eight months in the interim role, D’Aoust was confirmed as permanent president and CEO in March this year.
Goldstein, in what he must surely hope is his final such public statement for some time, was unstinting in his praise: “Cindy has proven to be an extremely valuable and knowledgeable member of our executive team. Her extensive experience in the hospitality and travel industries combined with her leadership skills made her the right person to guide our global industry association on an exciting journey forward.”
The glocal framework
Fast-forward five months and D’Aoust believes that this somewhat roundabout route to the top job has worked to her advantage. “Having a phased transition was hugely helpful,” she tells World Cruise Industry Review. “Moving from EVP for North America to acting CEO to where I am now gave me the opportunity to meet experts all around the world.
“Strength lies in our collective leadership – not only within CLIA, but also across the industry at large. A good leader relies on the expertise they are surrounded by and leverages that. I’m very lucky to have access to so much talent and knowledge. It’s been the key to my success in the short term.”
This sense of collaboration and tapping into industry knowledge is a theme that D’Aoust returns to often during the course of our conversation. Her initial concern has been identifying the core priorities of the association and wider industry; in her eyes, the two are inseparable. Much of the time, this has involved more listening than leading. The result has been the outlining of three fundamental pillars that should support all the work CLIA undertakes: enhancing member value, creating a “glocal” framework and unifying the industry.
“It’s about proceeding with real clarity,” she explains. “When we talk about member value, that’s the cruise lines, travel professionals and agency community, as well as our executive partners. Then, it’s important that we build and maintain a global framework that allows us to share best practices around the world. Within that framework, we must ensure that it is local expertise that identifies and drives priorities within those individual markets. We also have a responsibility to not create more factions, but instead bring the industry together and look at new ways to collaborate.
“Those three considerations drive everything we do and enable us to quickly validate whether the priorities we identify in a market are consistent with our global agenda, while still providing the flexibility to address requirements at a local level.”
Keep up with the tide
Such clarity of purpose is to be applauded, but one wonders whether long-term strategy is possible in a sector that is changing at such a pace. Whether it is the explosion in European river cruising, the gravitational pull of China or the impending arrival of LNG-powered ships, the only predictable thing about the cruise industry in recent years has been its unpredictability. How does a representative body keep up, let alone lead?
“I don’t think that’s a challenge unique to cruising,” is D’Aoust’s measured response. “The speed of change we’re seeing around the world in all business areas is staggering, and that means it’s difficult and, often, problematic to try to forecast much beyond one to three years. The key is to have a living plan that you’re continually updating and refining based on the evolution of the market.”
A core component of this refinement is an ongoing emphasis on forging and leveraging partnerships with players across the industry that can help CLIA deliver better value to members. As examples, D’Aoust cites the certificate programme developed with Meeting Professionals International, for which she served as COO prior to joining CLIA, as well as ongoing collaborations with the Florida-Caribbean Cruise Association and Seatrade owner UBM.
Working with external bodies will be particularly important if the sector is to fully harness the immense potential of China, a market the CEO says could exceed North America within the next decade. “Just focusing on it as a destination will drive significant growth and, as that growth comes, we’ll be working with the government and various other interests, educating, advocating and promoting the common interests of the cruise industry,” she says.
Individual differences
A huge driver of this growth, at least initially, will be the 20,000 travel agencies and 30,000 travel agents within CLIA’s membership community. Amid all the talk of tech-savvy independent travellers and the spread of the millennial mindset, the role of the travel agent in the hospitality industry has come under some scrutiny in recent years. With so much information at our fingertips, do we still need to employ somebody to plan our holiday? Yes; now more than ever, D’Aoust believes.
“Travellers have become far more interested in tailoring an experience specifically to them and what’s driving our growth is the sheer variety on offer,” she explains. “But that variety also drives complexity. With so many options, there’s huge opportunity for travel professionals to really gauge what an individual is looking for, tailor the experience accordingly and demonstrate their value.”
The education of the travel-professional community is therefore vital. In July, CLIA renewed its certification programmes designed to help travel agents take their business to the next level at every stage of their career. These enhancements form part of the association’s Career Seascape, a one-stop professional development platform, and include updates to CLIA’s existing Accredited Cruise Counsellor, Master Cruise Counsellor and Elite Cruise Counsellor certifications, as well as a new certification – Certified Cruise Counsellor – for travel agents who are starting or exploring a career in travel.
“It’s about identifying where a person is in their career, and providing the suitable tools, templates, training, seminars, online courses and peer-to-peer formats to drive them forward,” D’Aoust explains. “It goes beyond merely knowing about the ships, itineraries and destinations; we can help you create an effective social media marketing campaign, build your website and develop a business plan that will underpin your success.”
On what success looks like for D’Aoust personally, the CEO is a little more circumspect. She reveals that a priority for the next phase of her tenure is to get out into the field more and meet face to face with members and partners around the world. After a couple of years characterised by significant structural realignment, she insists that CLIA must ensure its focus remains on the issues that impact the industry and not be distracted by internal organisational issues.
“The founding mantra of CLIA was ‘one industry, one voice’,” says D’Aoust. “That remains the best approach to supporting our members and creating the best experiences for our passengers.
It was the cruise lines that drove the development of CLIA, recognising that what’s good for one is good for all. We must continue to understand what is impacting them on a daily basis, and ensure we have the standards and policies in place to deliver real, tangible value.”
