Cruise Meetings Sea Cruise
Author: Carla Breer Howard
August 2007
Features
“So be my guest, you got nothing to lose
Won’t you let me take you on a sea cruise?”
–Sea Cruise, Frankie Ford (1959)
We are made of the sea. Our bodies are 70 percent saltwater, containing nearly the same salts that exist in the ocean, in nearly the same proportions. At our deepest cellular level, we are drawn to the shore, to the smell of salt air, to the sight of waters sparkling in the sunlight and also glimmering under the full moon.
And while one is sailing aboard a cruise ship, there’s a profound sense of being elsewhere, of being a little out of reach and of being carefree. It’s just the mindset for retreats, for strategic planning, for board meetings, for spontaneous networking and for rewarding extraordinary performance. If you want your meeting attendees to be calmly focused on the present and feel energized toward the future, go to sea.
OUT TO SEA: WHY YOU WANT TO GO
Cruising is popular. “It’s been growing like gangbusters,” says Jo Kling, president of Landry & Kling, the largest company in the country that focuses exclusively on arranging cruise meetings. “CLIA data is 8-percent a year on average for the past 20 years.”
Fort Lauderdale-based CLIA (Cruise Lines International Association) has a good overview on this growth. Its membership includes the 24 cruise lines that represent 97 percent of cruise capacity marketed from North America. Something else the organization has noted is the 592 percent growth in numbers of cruise passengers from 1980 to 2005, up to nearly 10 million who have stood by the rail and gazed out on the peaceful blue horizon.
And it’s the short cruises—the two-to-five day cruise category—that have seen the greatest gains in popularity, which means that the optimum number of cruising choices are to be found in itineraries that perfectly dovetail with the ideal out-of-the-office period for a meeting. “We’ve been growing at about 17 percent each year,” says Marianne Schmidhofer, director, charter, meeting and incentive sales for Norwegian Cruise Line/NCL America/Orient Lines in speaking of the line’s meetings business. After all, once you have your group on board, they are contained and focused on the subjects at hand.
There’s quite a laundry list of reasons to go. To begin with, your attendees will enjoy variety without inconvenience. You’ll be taking them to three-to-five different places without them having to unpack.
“You’re in a totally different world,” says Kling. “You’re outdoors and you’re going somewhere. You wake up tomorrow and you’re in a different place. Your room is tidied up twice a day. There’s ice in your refrigerator. The hotel people don’t introduce themselves when they’re taking care of your room, but they do on a ship.”
The all-inclusive nature of cruises makes them a good bargain, too (see smartmeetings.com). They not only cover accommodations, but also the roundtrip airfare, the transfers, all food and most beverages, as well as activities and meeting space with A/V.
“We understand from surveys of meeting planners that among their biggest concerns, most fall into doing more with less,” Kling comments. “You’ve either got to entertain more people on the same budget, or cut back on the budget to take care of the same number as last year. If there’s a cutback, the first place you should look is a cruise.”
For example, at a hotel, the first night’s welcoming reception is typically held standing around the pool for cocktails and some food stations. The second night is a dine-around. The third night is a black-tie event. On a cruise, instead, on the first night you can have that reception but then you get to gather at dinner also. The next day you’ve got your meetings, but you also have a spa, as well as lot of shipboard activities to choose from, like the rock walls, miniature golf, scuba certification, ice skating, wine seminars, first-run movies, casino gaming, art auctions, duty-free shopping—all in addition to the port visits.
You’re not paying for any breakfast, lunch or dinner. All the room service is free. “And, because it’s not a hotel,” adds Kling, “you can’t compare it to last year; it’s not apples to apples.”
Plus, it’s easier on you. There’s uncomplicated budgeting since nearly all of the costs are predetermined. You’re not fussing with hotel and air reservations, with transfers, or figuring out how to entertain the group each night. You can also cross off menu planning (and the complaints that inevitably arise). Participants get to select what they want from the menu, versus the typical hotel or convention center offering a set appetizer, two choices plus vegetarian for the entrée and one dessert. And you don’t have to decorate an empty ballroom. “Basically, all you have to do is provide the rooming list and give us the schedule and the rest is taken care of,” says Schmidhofer, speaking of NCL’s dedicated conventions and meetings department.
Another labor- and cost-savings point that Kling advances: “You’ll book the hotel long in advance, but you don’t arrange for the food service until you get much closer. You’ve lost any leverage for the menu selection. How do you know whether you’re getting the value? You don’t have choice on the menu; you’re committed. Plus, drinks are expensive in hotels.”
You’ve got great entertainment on the ship and it’s all included. Typically, there’s music in four or five different lounges, a Broadway-style production show and a piano bar. Some ships have a movie theater.
Like major hotel companies, several of the major cruise companies have designed their own premium bedding packages, complete with thick mattresses, poufy pillows and duvets as well as smooth, cosseting sheets.
Cruises are great for bringing along families. All ships now have children’s programs. “If people can bring their kids, the company feels the kids will be taken care of but they won’t have to pay for it; it’s a win-win,” says Kling. “When considering including family members, corporations are worried about the associated costs, the quality of activities and whether the parents are going to be distracted if there aren’t any. And there’s the issue of liability; it’s all borne by the cruise line,” she adds.
Security is greater on board that at a land-based facility, if that’s an issue. A chartered ship offers the maximum (no big-eared competitors!).
And, incidentally, the ship’s meeting facilities especially on the newer vessels will have state-of-the-art systems. They’re varied, including theater-style seating, classroom or boardroom layouts. The production theaters have systems that would be extraordinary to re-create in a hotel ballroom and yet they can be used for your spectacular awards ceremony at no extra charge. Most have e-mail and business centers, as well as a dedicated meeting coordinator on board. Some cruise companies offer to become your partner in promoting the meeting, providing you with brochures, videos and pre-printed postcards to excite your group.
In short, you look like a hero.
There are three ways to access a cruise. First are the individual certificates given as rewards, what Holland America dubs the Individual Incentive Program. These give recipients date flexibility and often allow them to upgrade to a different cruise. The second is to take part of the ship for your group as a block where you can get separate hospitality/registration, deliveries of welcome gifts in your group’s cabins, daily bulletins and even a dedicated TV channel.
Finally, you might want to consider a complete buyout, in other words, to charter the ship so it’s yours entirely. For this, it’s recommended that you make your arrangements at least two years in advance. You’ll get to help decide which ports to visit and what the menus will include (just in case you hate to give up control). With a charter, the cruise company will bend over backward for your program; virtually everything can be customized and branded.
Celebrity Cruises spells it out: your logo can go on the daily newsletter, and on the cruise charge card, on menu covers, on cocktail napkins, on photo coupons, on photographs, in the ice carvings, on assorted petit-fours, and can be etched on champagne or wine bottles that also bear a custom label. You can also have door plaques with participants’ names on them. You can rename the ship’s decks (using your company’s products or services), rename one company’s private island, fly the company flag and, best of all, get a customized itinerary. When it’s “your” ship, you can adorn the whole darn thing with your corporate identity. You can even arrange an airplane flyover, trailing your company’s message as you depart.
In return, however, they expect to get a big-time commitment from you. Because of the associated costs in taking the ship out of their inventory, many companies will be looking for an irrevocable letter of credit for the whole of the charter fee. And you pay for the ship, no matter how many attendees show up. Also, if you’ve decided to relocate the ship for a particular itinerary, you’ll be expected to pay for the time the ship is in transit.
There are some savvy cost savings by opting to fill-in, that is, if you manage to tack onto the end of a booked charter that will leave the company with some odd days left over, or the ship will be out of its usual area and needs to be “repositioned.”
Can your company deduct it? It depends. Incentives on land and sea are treated the same way by the IRS. Meetings for a corporation on a ship are not tax-deductible unless you use an American-registered ship, such as NCL’s Pride of America, Pride of Aloha and Pride of Hawaii, which currently cruise the Hawaiian Islands. The gathering must be primarily “for business purposes,” and this applies equally for corporate and association meetings. The maximum per person deduction is $2,000, and it does not apply to spouses or companions. Incidentally, according to NCL’s information, only 50 percent of all food and entertainment experienced at a hotel can be deducted.
DEEP BLUE SEA: THE ITINERARIES
Three- to five-day cruises that include or are based in our Western region can be found combining Southern California and Baja, Mexico, or visiting Mexico’s Yucatan on the Caribbean out of Florida. There are also itineraries for this time span in the Pacific Northwest, connecting Seattle and Astoria, Ore., with Victoria and Vancouver in British Columbia.
Hawaiian cruises start at seven days to make the rounds of Oahu, Kauai, The Big Island and Maui.
Alaskan voyages tend to start at eight days and the season runs only from May through September. June through August, when the average daily high temperatures can reach 75 degrees, is considered peak season.
Lastly, if you want to make sure there are no “defectors” from your meeting, you might want to consider the three-day, nonstop Norwegian Cruise Line voyage between Los Angeles and Vancouver. Similarly, several cruise lines operate five-day trips between Honolulu and West Coast ports like San Diego, L.A. or Vancouver.
WATERWORLD: THE CRUISE COMPANIES
Carnival Cruise Lines of Miami, Fla. is the big player in the cruising industry. The Carnival Corporation not only owns Carnival Cruise Lines—called “The World’s Most Popular Cruise Line”—but also Cunard Line, Holland America Line, Princess Cruises, Costa Cruises, Windstar Cruises and Seabourn Cruise Line. They maintain a staggering 22 ships under the Carnival flag.
Celebrity Cruises, also based in Miami, has for the past five years dominated Condé Nast Traveler’s annual survey of “The Best Cruise Ships in the World,” in the large ship category. In January 2007, their eight vessels were listed in the first through the fourth positions, as well as the eighth. They also received top ratings for food and service, as well as design and layout. Several new ships are in the pipeline for 2008 and 2009 launches.
Cunard Line, in the Los Angeles County suburb of Valencia, proudly boasts the features of the newly launched Queen Mary 2. Having had the pleasure of watching her enter under the Golden Gate Bridge, I can tell you she is a breathtaking sight.
The QM2 has 10 restaurants and 14 bars, a planetarium with virtual-reality rides and a cultural academy. There are also theatrical performances by members of London’s Royal Academy of Dramatic Art. Further, the shop has the only Canyon Ranch SpaClub on the high seas. For meetings, there’s the 10,225-square-foot Conference Centre, and additionally, myriad other spaces, all to comfortably accommodate anywhere from 12 to a convention of 1,000. These spaces have state-of-the-art equipment, as well as Wi-Fi Internet access in most public rooms.
The 133-year-old Holland America Line can accommodate groups from 15 to nearly 2,000. The company’s recent $225-million fleet-wide Signature of Excellence program has added the Culinary Arts Center demonstration kitchens, presented by Food & Wine. Some 60 top chefs are scheduled. Cabins include flat-screen TVs and HA’s signature Mariner’s Dream Beds. Their corporate clientele has included State Farm Insurance Companies, GM, Ford, Aventis Pharmaceuticals and Yamaha. The company’s Charter & Incentives Sales Department will also see to it that your program runs smoothly all the way through to completion. Group activity options include: Internet packages, spa packages, VIP turndown gifts, group drink packages, private group wine-tasting, private group dinners and group photo packages.
For very small groups, the Majestic America Line in Seattle operates classic river boats, including the 223-passenger paddle-wheeler, the 2003 Empress of the North (which appeared in our May issue story on Alaska). The cabin and public rooms charmingly recall the Reconstruction-era décor of the President Ulysses S. Grant period.
Norwegian Cruise Line of Miami is characterized by its Freestyle Cruising program. On the company’s 13 ships, there are no rules to follow nor schedules to keep. You never have to eat in the same place twice, as they say (so you can leave behind the bore who monopolizes the dinner conversation). Their meetings business really soared after the company began the new U.S. Flag brand, NCL America, which operates several ships cruising the Hawaiian Islands. This opens up the tax-deductible opportunity for both meetings and incentives. Two new ships, the Norwegian Pearl and the Norwegian Jewel (to come at the end of the year) are slated to operate in the Western Caribbean, voyaging to Cozumel, Mexico.
NCL is a company that will go the extra mile for your meeting, according to Marianne Schmidhofer. As an example, she cites “We had a client that was launching a new car. We had to empty the pool, place the vehicle into the pool and cover it with balloons. Then we had to hydro-lift it out in a presentation that took about 30 seconds, although the setup took hours and hours. It was very exciting.”
Schmidhofer continues: “We have a department that is dedicated to meetings, incentives and charters. Our sales people understand what the meeting planner’s needs are. Then, once it’s sold, they are not passed off. It goes to one of our dedicated program specialists and operations people who also understand the needs and the business. There’s a lot of experience in the department, not only on cruising but also on meetings and incentives. They’ve been here between three and 20 years.”
RoyalCaribbean International touts its Gold Anchor Service and the fact that their meetings facilities, which can be configured for theater-style, classroom or boardroom layout, as well as their conference centers and main showrooms, all meet the technological specifications of most land-based conference centers. Their enormous fleet of 21 ships attracts active travelers who are drawn to the company’s offerings like glacier trekking and rock climbing.
CITY BY THE SEA: EXCURSIONS ASHORE
Just a few examples of the excursions that are now offered by cruise companies include Carnival’s Extreme Canopy, Dolphin Swim and Las Moras Ranch Tour with Horseback Riding on its Pacific Mexico itineraries. In Alaska, Carnival will get you on a Harley-Davidson Motorcycle Tour, the Rain Forest Canopy & Zip Line Adventure and the Yukon Wilderness Express Train.
RoyalCaribbean will take you snorkeling and kayaking in Cabo San Lucas’ clear waters or in a Zodiac-like craft to explore the coves and harbors at Southern California’s Santa Catalina Island. In Puerto Vallarta, Mexico, you can swim in the natural pools and try the waterslide over the stone in El Eden Jungle, or race past fruit plantations and rustic towns on your 21-speed mountain bike.
Holland America’s Alaska offerings, out of Juneau, include saltwater salmon fishing, dog sledding on the Mendenhall Glacier by helicopter and a gold-panning adventure combined with an Alaska Salmon Bake.
Aboard NCL in Hawaii, you can arrange for a scenic river boat ride up the Wailua River to stop in the Fern Grotto, a trip to Volcanoes National Park and the Mauna Loa Macadamia Nut Factory. Or go atop Mauna Kea, one of the world’s premier astronomy locales, with 13 telescopes representing 12 nations all scanning the heavens in this peerless spot. Well, you get the idea.
MASTER AND COMMANDER: THE SPECIALISTS
Especially for your first few cruise meetings, you will want to turn to a specialist in this field. They can simply save you money and missteps. Once Landry & Kling Cruise Event Services has a complete dossier on your meeting, for example, they will identify the ship that is going to work for your purposes and then negotiate the deal.
“Very often when you’re starting planning something,” says Jo Kling, “and the person at the cruise lines says ‘no’ about a request because it’s not going to be convenient for them, we know whether it’s a real ‘no’ or if we should take it to the next level.” As cofounder of her 25-year-old, Coral Gables-based company that focuses exclusively on cruise meetings and incentives, Kling understands the importance of the push. “The essence of a really good incentive is that it’s an experience that they would not have on their own. So if you were doing a cruise that’s exactly the way the cruise gives it out to the leisure market, your top performers will go home saying ‘I could have bought this cruise myself instead of working so hard for the past year.’”
Instead, of course, you want them to say, “It was such an incredible experience; I would do anything to qualify next year.”
“If the trip falls short of that, it’s a waste of money!” Kling points out. The great thing about exceptional incentive programs is that it gets people’s attention—especially the spouses. “Besides the sense of personal achievement,” she says, “there’s the perception out there that you’re a winner. You’re traveling with the highest level of achievers in your company; you don’t want to be missing from that group next year.
“You’re also visible to management because they’re along. They use these opportunities for meetings on strategy and future plans that keep attendees tuned into a corporation.”
Specialists also can advise on how to make the best use of the ports of call. They’ll know what’s the best way to entertain the group in each one. For tighter budgets, they can advise on getting the maximum splash in one locale and which locale will get you the most for your money.
These companies can be called upon to confirm the group’s cabin assignments, dining requests, air or motor coach transportation, transfers, parties, conferences, meetings, A/V equipment needs, the details of product launches, in-room amenities, prepared gratuities, pre-booked shore excursions, private cocktail parties, customized stateroom gifts and the set up of trade shows.
They help with reviewing pricing, as well. “Comparative quotes from us are apples-to apples,” says Kling. She notes that there are some “weird things” in cruise pricing, so it’s all in knowing what’s negotiable. Also the terminology is a lot different. “Cruise lines quote us on a net basis, and we have a service fee,” she acknowledges. “We like to be very transparent so we adjust for that purpose. We ask ‘How do you like to see a quote?’ Some organizations like to see the whole as a lump sum, but others want it all broken out.” Their clients have included AFLAC, GE, Colonial Life, Cadbury and Harley-Davidson.
VICTORY AT SEA: THE RIGHT CHOICE FOR YOUR GROUP
To get started, you must determine what your business needs will be for this gathering.
As Kling puts it, “It’s distinguishing the level of service experience and sophistication of the people who are attending.” Then you need a history; where have your attendees been as a group recently? Where has the management been? What is your purpose in gathering people together? What’s the right environment for all this to happen in? What are your people accustomed to? “If your last meeting was at the Four Seasons,” says Kling, “then the expectation is at that level. If you’re an electronics retailer and these are 25-year-old guys, and you’re trying to reward them because they made their sales goal, they’ve probably not traveled all that much and so a 3-day trip will be a good fit.”
It’s making sure the ship that’s selected will have the right business facilities and meeting facilities for your needs on board. If you’re doing an awards banquet, you need it to accommodate your group of 400, plus the 400 that includes their spouses and partners; you’ve got to get everyone in the room together. “It’s better to have half a ship so you can control the dining room,” Kling advises, so you can have everyone dine at the same time (two seatings). That’s also so you can have the entertainment over, so you can have the showroom when you need it.”
If you haven’t experienced the pleasures of cruising firsthand, you may want to consider our invitation on page 27 to join us in Hawaii this fall. Carnival also has its Learn the Ropes seminars at sea to give you a quick sample.
Not to worry, though, there’s experienced help at hand, and you can be sure the experience will be so worth it.
DAY CRUISES
No time for a sea cruise? Try one of these day cruises, and your meeting will be in shipshape.
Red & White Fleet, San Francisco
Offers three cruises: the Golden Gate Bay Cruise, a one-hour sail along the San Francisco waterfront and under the Golden Gate Bridge; the Ferry Building Line Cruise, a 90-minute journey around Treasure Island, past AT&T Park, Alcatraz and under the Bay Bridge; and the California Sunset Cruise, a two-hour cruise including a buffet-style meal. Private charters available.
The America Yacht, San Diego
Built in 1995, the ship is a replica of the schooner that won the race around the Isle of Wight in 1851. America can accommodate up to 90, with 3- to 4-hour sails around San Diego Bay for lunch, the afternoon and dinner. Also offers ocean-going and whale-watching cruises. Can be set up for meetings, catered receptions and overnight stays in San Diego—or chartered out to other Southern California ports.
Lake Tahoe Cruises Zephyr Cove
Features entertaining cruises aboard two classic vessels, the Tahoe Queen and the M.S. Dixie II. The Tahoe Queen, departing from South Lake Tahoe, is a traditional paddlewheeler with three decks, offering sightseeing cruises, sunset buffet, weekend dinner/dances and more. The M.S. Dixie II, departing from Zephyr Cove, Nev. (also South Shore), has a breakfast buffet, champagne brunch, dinner, dinner/dance and sightseeing cruises. Both are available for charter.
Hornblower Cruises & Events, San Diego
Offers a fleet of nine luxury yachts, including the Inspiration Hornblower, the largest charter vessel in Southern California (capacity 1,200). The catamaran-style yacht, which debuted in 2006, has two huge enclosed ballroom-like decks with bay-view windows and seating for up to 600 guests on each deck. Available for charters, dinners, meetings and team-building events on San Diego Bay.
Comparative Cost Analysis—Land-Based v. Cruise Meetings
The packages that most cruise lines can provide for corporate events often end up being less expensive than the à la carte nature of the land-based meeting. Here is a break-down of how typical meeting facilities measure up cost-wise to major cruise-line “all-inclusive” services.*
X – indicates that this feature is generally included in the quote response to your RFP
Land Meetings Cruise Meetings Accomodations -- X Air and Transfers -- X Food and Beverage - Meals -- X - Cocktails -- X (sometimes) - Snacks -- X Meetings Services - Choice of # of mtg rms X (sometimes) X - A/V equipment -- X - Coffee/snack breaks -- X - Theater seating/Lighting
and sound production -- X Entertainment -- X
*based on information provided by Carnival, Celebrity and Royal Caribbean cruise lines
RESOURCES
Horseback riding at Holland America’s Half Moon Cray
