Lessons from the Cruise Industry, specifically the Navigator of the Seas

Some lessons or reminders from Royal Caribbean's Navigator of the Seas

1 - Service design - have you taken a good look at your tourism service (all tourism businesses are service businesses) from the guests' point of view?  That's what the cruise industry seems to be doing very well. My wife and I commented how Royal Caribbean had thought of everything on the cruise we took with the family during the Holidays (see below). To analyze and assess the quality of your service, take a walk in your potential guests' shoes, from the moment they arrive, to the moment they leave. How can you make their experience better? Where are the fail points, if there are any. From the friendliness of the concierge staff (if you manage a hotel) to the cleanliness of the facilities, to the quality and variety of the food, etc.

2 - Animation/Entertainment.  Not everyone thinks of their tourism business as an entertainment business, but almost any tourism business could be considered an entertainment business, even if the entertainment is provided by the guests themselves. If you provide the right environment, in say, a restaurant, the patrons will entertain themselves accordingly. The obvious example is a club. If the decor and facilities are right and the music and the sound system rock, the drinks are good and at the right price (according to the type of establishment), the guests should have a good time.  In the era of social media there has been a lot of talk and much has been written about being remarkable, about creating products and services that are outstanding, because those are the things that drive conversations in cyberspace. That's great. But the key reason to strive for the extraordinary is to succeed.

3 - Staff. As important as everything else, if not more. One of the amazing things we noticed and commented about the staff on the Navigator of the Seas is that everyone seemed to have the same critical competency for tourism: a genuine love for people and a relentless customer satisfaction orientation. Almost anyone can learn how to wait tables or serve drinks or register a guest or clean up a room, but to, at the very least, give the impression of genuine caring for a guest, that's not so easy to find.

4 - FUN At many a tourism conference in Canada over the last 10 years, I heard different people mentioning the word fun. We have to put fun back in our tourism offerings. This is obvious for some destinations or businesses (e.g. Niagara Falls, The CN Tower), but fun is not only delivered by an attraction (e.g. Niagara's Fury attraction), it can be delivered by the ticket takers, the waiters, and others. During the cruise we had a bit of fun with the assistant waiter, Tayfan, a young man from Turkey, who was quite adept at magic tricks. Think of where in the path of your guests you can inject some fun (it can be little things, but they can make a big difference).

Royal Caribbean - 1.2.3.4  From the design of the ship to the selection of the staff, the Navigator of the Seas is a great example of all of the above.  The ship is huge. There were 3,670 guests on the ship (full capacity) and, I believe, about 1,200 staff. But you never felt crowded. Much thought (and experience) has been put into making the cruise a great experience for the guests. My guess is that this is a constant focus from the company (is it yours?). From the theatre, to the pool, to the food establishments to the animation staff to all other areas and activities Royal Caribbean has thought of all the different types of guests they can attract. Remember Bertrand Cesvet's engines of conversational capital? Royal Caribbean is very good at many of them - Exclusive Product Offering, Over-Delivery, Relevant Sensory Oddity and Tribalism.

Finally, the cruise also reminded me of something I have mentioned in a past blog post: that tourism is driven by PPE, Price, Proximity and Ease of Entry. The price for the 6 night cruise on the Navigator of The Seas can be as low as approximately $600 CDN per person (it's very difficult for any destination to compete with that considering everything that's included in the price). Over 60% of people on this trip were American. There about 180 Canadians on board followed by 80 Mexican guests and 80 UK guests. The rest were guests from various countries. The majority of Americans on board were Florida residents (my daughter met a young man travelling with his family. They live 15 minutes from the port in Fort Lauderdale. So remember, your most likely customers are those who live close or relatively close by (within province, nearby province or nearby country).

Think of your tourism business as theatre. The "show" is what will make your guests have a good (or not so good time). The "show" is what the guests come in contact, what they see, who they see and interact with. They should never be aware of what goes on behind the scenes (training, logistics, etc.), but it is the behind the scenes planning and support that can make the difference between something remarkable and something mediocre.

Happy travels,

Jaime

Sept 16, 2009 a conversational capital day for Toronto

I like the term "conversational capital." My friend Carmen Ciotola of Tourism Montreal first mentioned it to me when she introduced me to the book by Bertrand Cesvet (with Tony Babinski and Eric Alper. The book is called Conversational Capital, but with a subtitle that reads "How to Create Stuff people love to talk about." Thought the book clearly presents a framework to analyze something (or someone) from a conversational capital perspective, "create stuff people love to talk about" is easier said than done.

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Conversational Capital, according to the book refers to "a series of observations that can help generate and spread positive word-of-mouth." Examples in the book of brands/products/services that have generated enormous amounts of conversational capital are Cirque du Soleil, Apple, adidas, Red Bull, Schwartz's (smoked meat sandwich deli in Montreal). The book offers 8 attributes or engines of conversational capital, most of which must be present in your product, service, brand, artist or tourism attraction in order to create conversational capital. These engines are: Rituals, Initiation, Exclusive Product Offering, Over-delivery, Myths, Icons, Tribalism, Endorsement and Continuity. I won't go into detail about these engines here. Read the book in order to get the entire lesson. I am merely using Cesvet and friends' framework to talk about word-of-mouth (positive or negative) about a tourism destination and how difficult it is for destination tourism marketers to create word of mouth about their destinations, particularly cities.

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In my opinion, a city's tourism board per se cannot really create conversational capital for its destination (Let me interject here and mention that the book's website - ConversationalCapital.com - has a section on conversations where the book's readers can interact and debate about conversational capital - unfortunately every time I clicked on this section the browser freezes and I have to reboot it). A city's conversational capital (except perhaps for Las Vegas, Dubai, NYC and Paris) is created by what happens in the city. The city itself is nothing without its events, its people and its architecture (architecture is something that happens - e.g. the ROM's Crystal Gallery, Gehry's renovation of the AGO, the OCAD building). And this brings me to what happened yesterday, September 16, 2009 in Toronto.

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Three major events where happening at the same time last night in Toronto in and around the entertainment district. I drove into the downtown core to meet my wife because we had tickets to U2's 360 Tour concert at the Skydome (Rogers Centre for some, but for me it's always the Skydome). I heard on the radio what was going on downtown so I made a point to get downtown early. In addition to U2 performing, the Maple Leafs had their opening game at the ACC against the Boston Bruins and the Toronto International Film Festival had its ongoing shows and galas in the downtown core. Needless to say, the area was hopping. Front Street and side streets felt a little like New York City with people and cars everywhere. One could also feel the energy of hockey, music or film fans building with anticipation of their respective events. For tourism and tourism related businesses it was an outlier evening I'm sure. I saw line-ups at small coffee shops like Tim Horton, fast food places and restaurants along Front Street.

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These three events provide more visibility to Toronto than any ad campaign could (unless of course, Toronto places an ad during the Super Bowl). The challenge for Toronto tourism marketers is how to harness and encourage the conversation in order to increase the conversational capital. One Google search for "U2 Toronto 2009" comes back with 1.3 million hits and change. A Twitter search for "U2 Toronto" comes back with pages and pages of related tweets (you have to tolerate many spammers' tweets though - one problem Twitter is wrestling with). A Google news search for "U2 in Toronto" gave up about 62 results, many of major media outlets that covered the concert. Similarly if you search for "Maple Leafs" or "Bruins" you will get many hits. And the Toronto International Film Festival? Well I'll save you the time you could spend on searches about TIFF. TIFF is the single Canadian event (cultural or otherwise) that towers among any other in media coverage. Two years ago a study was mentioned in the Toronto Star revealed that TIFF is by far more covered by the media than Bay Street and it's light years ahead of any other Canadian event ( a Google search for "Toronto International Film Festival" results in over 26 million hits).

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When you look at the three events mentioned in terms of the engines converational capital all three have elements of all or most of the engines. A tourism marketer cannot create this. One of the tourism marketer's many obvjectives (but one at the top of my list) should be to look for those brands, events, personalities or businesses that create conversational capital about their destinations, support them and find ways to be a participant in the conversations and use them in the destination's marketing initiatives.

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Regards (by the way, Bertrand Cesvet will be the opening keynote speaker at next year's Canada-e-Connect conference in Montreal).

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Jaime Horwitz MBA