While 2014 has not been the best of times for some of the leading cruise lines, it’s been a good one for Costa North America. Part of that is relative, as the Costa Concordia sinking in January 2012 had a wrenching impact on the company. But V.P. Sales & Marketing Scott Knutson, CTC, says there’s more to Costa’s comeback than that.
Scott Knutson
Knutson told Open Jaw that a number of factors have contributed to a solid performance for Costa North America. “Europe, both Northern and the Med, have experienced tremendous demand. These are our key markets and we've benefitted as the only contemporary product in those regions that offers a full international immersion that many vacationers crave,” Knutson says.
He also credits an approach to promotions that differs from other lines. “To try and break from the pack we concentrated our promotional efforts on offers that would help in the buying decision vs. later on onboard. We've utilized upgrades and reduced deposits so the client can weigh an OBC vs. ‘I can get a better cabin than I can afford and not plunk down an extra car payment now.’ The value of a cruise vs. a European land vacation is also very attractive and tapered-off airfares haven't hurt either.”
Clearly explaining the differences of the Costa product to travel agents is another factor Knutson cites for the line’s current success in North America. Last fall, Costa met with over 1,500 travel agents in 13 cities in its "Better Than Ever 65 Year Anniversary Tour."
Costa Fascinosa
“While some of it was product oriented, the main message was to consider adding Costa to your lineup,” Knutson says. “We suggested it, not at the expense of another line, rather as a completely new offering on the product shelf, one that many prospective vacationers would be very interested in.”
Knutson says that while “there is clearly a vast segment of the market who seek fun and sun on a floating amusement park,” there are many others seeking something different. So Costa positioned itself as “the largest niche line in the world.”
Knutson of Costa Deliziosa
“We urged agents to consider the multiple niche desires that most international travellers possess. There is a fast-growing movement of prospects who are foodies, wine lovers, spa aficionados, romantics, destination collectors, culture seekers, history buffs, even those wanting a religious pilgrimage. What if there was a product that delivered every one of those on the same vacation and at a fraction of the cost of a similar land experience?”
Knutson says that message struck home with many agents. “It was very gratifying to see a renewed sense of energy and purpose as agents left those presentations.”
The Costa V.P. says that despite the dramatically negative press coverage in the wake of the Concordia incident, both travel sellers and veteran travellers kept a cool head. He gave a specific nod to Canadian retailers and their clients.
“In terms of travel partner feedback we are very fortunate that most professional agents and seasoned travellers understand that rare and uncharacteristic occurrences don’t define a person, country or company. Our Canadian friends and their clients have always tended to be a little more receptive to international travel, perhaps due to their adventurous nature, and Costa is a willing and grateful supplier option.”
Going forward, Knutson says Costa will continue to rely on agents to present its attributes to potential cruisers. “As an underdog in the shadows of the North American brands, agent partners are absolutely key to telling Costa’s unique story.”
