Virgin Sets Sail with a Cruise Line Marketing Plan

Virgin Group--the UK-based company which has its brand on all kinds of products, from airlines to trains to financial services and more--has a long-term strategic plan for entering the cruise industry.

Virgin's brand is internationally recognized for its youthful energy, value, entertainment, and (watch out, competitors) industry disruption.

Because of the lead time in planning and building cruise ships to meet Virgin's specifications, the new venture won't be introduced until the end of this decade. The new line will be headquartered in Florida.

But as always, Virgin's marketing plan calls for disruption. Sir Richard Branson, founder, says:

"We plan to shake up the cruise industry and deliver a holiday that customers will absolutely love. They’ll be sailing on the latest ships offering a great quality, a real sense of fun and many exciting activities all delivered with the famed Virgin service."

Given widespread consumer perceptions of cruising as a vacation for older people, and perhaps a passive holiday at that, Virgin's marketing plan is likely to focus on younger target markets, highlighting the "sense of fun" for which Virgin is well known. 

Meanwhile, the three major cruise companies--Carnival Corp., Royal Caribbean, and Norwegian Cruise Line--are prepping their own marketing plans to attract Millennials and defend market share. In 5 or 6 years, the cruise industry will be making marketing waves with many more choices and price points for consumers of all ages and interests.

Cruise Marketing: When Is the Price Final?

In the spirit of marketing transparency, cruise lines should clarify whether passengers will pay a fuel surcharge for cruises booked for later this year and into 2010. Some cruise lines have eliminated the surcharges, which were tacked on during the period of $100+/barrel oil. Others are leaving the door open to possible surcharges if the price of oil surges.

The most surprising surcharge policy I found was in Cunard's "New Fuel Supplement Update" (dated June 2009)--click the supplement update link at left of the page to read. Even if customers pay in full for their cruises on the Queen Mary 2 (above) or another Cunard ship, they still may be hit with a fuel surcharge if oil prices spike above $70/barrel before their cruise begins (read the fine print for more info).

Disney Cruise Line says it doesn't plan to add a surcharge for new bookings on its cruises through 2010. Also Disney may refund fuel surcharges prepaid by passengers for 2009-2010 cruises, depending on the price of oil, as explained on its website.

USA Today reported that some cruise lines are reconsidering fuel surcharges as oil prices gyrate.

How can customers make informed decisions if they don't know when the price of cruise is final?