Starboard predicts banner year for 2005

Gavin Lipsith

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The dominant cruise concessionaire has been boosted by a strong winter season and believes the growth will continue in the second half of the year

Starboard Cruise Services is anticipating another year of strong growth in the cruise retail market, and has revealed that it is continuing to develop its product assortment to "reach deeper into the socio-economic strata of society". Starboard CEO Rob Norris told RavenFox.com that the company had a good winter season and that he expected a strong end to the year as a result of good summer reservations.

"2005 should be another banner year for the cruise industry," he said. "The ships went out with occupancy up 100% during the winter season and the yields are trending up."

Norris said that Starboard's concessions onboard Carnival Cruise Lines and Royal Caribbean Cruises—the two largest cruise lines with a combined share of more than 35% of the global cruise passenger market—would insure organic growth, and that the company was interested in securing more contracts. He added that the trend for larger vessels was creating new challenges.

"As ships are getting more numerous and larger, cruise lines have to reach deeper into the socio-economic strata of society. Therefore, passengers with a slightly above average income are now sailing as opposed to the rich and famous of olden days. There are more families cruising now as well. This in turn calls for different merchandise lines to cater to the new passengers."

The company has seen "important growth" in its watches and fine jewellery lines over the past two years, said Norris, representing a new trend for buying "self-gratifying" items. He noted a shift away from fragrances, liquor and tobacco towards these categories, and said that Starboard was still working on its cosmetics offer.

"We feel our cosmetics business is underdeveloped," he told RavenFox.com. "We have revamped our assortments and we are currently working on our presentation and have recently implemented a new training program."