Carnival Splendor cruise ship at the overseas passenger terminal at Circular Quay in Sydney, … [+]
Cruise retailer Harding has expanded its relationship with Carnival Cruise Line (CCL) through a deal that will see the UK-based company take over the on-board shopping offer for five additional ships between now and March 2023, bringing the total to 13.
By then, Harding Retail will become Carnival Cruise Line’s single largest retail partner, running store operations in more than half of the fleet. The five ships to sail currently have retail concessions on board with Germany-based Heinemann and LVMH-owned Starboard Cruise Services.
Harding CEO James Prescott said: “We have been working hand in hand to return to full service. The provision of additional vessels is testament to Carnival’s confidence in us.” Harding has partnered with CCL since 2015 and, with parent group Carnival Corporation, for more than 30 years.
Data-driven business model
Key to the expanded partnership is a new business model supported by a data and insights program that Harding has developed over the past five years. According to Harding, it allows the retailer to pinpoint the exact customer proposition and business model for a cruise line’s specific needs.
In a statement, Jeremy Schiller, vice president of retail operations for Carnival Cruise Line, said: “The Harding team has demonstrated a depth and breadth of cruise retail expertise and a collaborative approach that is key to long-term success.” The cruise line eased its Covid-19 protocols in mid-August, helping boost bookings which, through the end of 2022, “have been very solid” according to CCL president Christine Duffy.
That’s welcome news for Harding as it rolls out on new ships. While the retailer did not reveal further details of its new model or insights program, a spokesperson said Forbes.com: “We are now working in a partnership where our objectives are aligned and where we are able to create a retail proposition for guests based on what they want, rather than what we (profitably) are able to to sell While we can’t go into the commercial specifics, it’s fair to say that this is a long-term and genuine partnership that will benefit guests, the cruise line, the retailer and the brands.
Being data-driven and customer-centric is nothing new in High Street retail, but in travel retail and the cruise business it is still an evolving area. Harding has spent the past five years running over 20,500 guest surveys on dozens of cruise ships. “Adding this to the cruise line data that’s being shared is giving us some pretty powerful insights that we’re using to inform the retail proposition,” the Harding spokesperson said.
Headquartered in Sydney, Australia; Bristol, UK; and Miami, Harding has been able to expand its presence on more than 20 different cruise lines across the globe, including more than 100 cruise ships.
Under pressure
Carnival’s share price has been under pressure since the pandemic grounded the cruise business for months. On Tuesday the stock fell below $10, driven in part by a capital raise in July to address debt maturing in 2023. The company has a portfolio of nine major cruise lines including Princess Cruises, Holland America Line, P&O Cruises, Costa Cruises and Cunard.
On a positive note, in April, the Miami-based trade body Cruise Lines International Association (CLIA) forecast that passenger volumes were expected to recover and surpass 2019 levels by the end of 2023. Kelly Craighead, president and CEO of CLIA, said: As the industry resumes operations, volumes are projected to recover 12% above pre-pandemic levels by the end of 2026.
CLIA’s consumer research also revealed the surprising finding that Millennial cruisers are the most enthusiastic about taking another cruise, with 87% indicating they will take one in the next few years, followed by Gen X at 85%.
