Travel Agencies Report Pressure on Chinese Cruise Market

Prices cuts are reportedly putting pressure on the Chinese cruise market, with travel agents trying to stay afloat amid a challenging situation.

According to various reports in the local media and all over Chinese social media, ticket pricing in China is under pressure with wide-spread reports of last-minute discounting to win back occupancy.

As the sales pace “suddenly dropped,” some prices have been cut by nearly 50 percent compared to the pre-pandemic period, according to a report from Travel Zone News

The price reductions follow a trend in the Chinese tourism market, the specialized news website added, with significant last-minute price cuts also being reported on air tickets and hotel rooms.

The local cruise market is also undergoing a shift in its sales methods, Pujian Culture and Tourism said, with the traditional, pre-pandemic charter system being dropped.

While agencies are still booking cabins via blocks and have been shifted away from full and partial ship charters, due to pricing issues in the past, cruise lines are now also issuing guidance on pricing and promotional policies.

In a weak sales environment, the policy may lead to travel agencies discounting cabins as a way to prevent further losses, the website noted.

Pujian Culture and Tourism also stated that new players coming to the market are offering price reducing that are impacting cruise sales in the entire country, and impacting other brands as well.

The situation is also said to be leading to a market confidence issue, as guests to wait to book their cabins in the hopes of taking advantage of last-minute deals.

In a broader analysis of the cruise industry in Shanghai and other Chinese ports, K News said that claims that the local market is facing challenges are “untenable.”

Mentioning cruise line sources, the website stated that the industry is steadily recovering and the overall situation may be better than in 2019.

Dr. Zinan Liu, chairman of Royal Caribbean Group Asia, told K News that the supply of premium staterooms are short supply and the longer itineraries are very popular.

Bookings have nearly doubled compared to the same timeframe in 2019, he noted, with balcony rooms and suites nearly sold out on many voyages.

MSC Cruises’ local manager Helen Huang also had positive news to share, saying that the company successfully operated nine cruises out of Shanghai this year, running at nearly 100 percent occupancy.