Making waves: Cruiseline retail concessions a key target for Heinemann

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GERMANY.  Gebr Heinemann plans to bid hard for new cruise line concessions as they come up for tender over coming years.

The company – which, in 2017, won its first cruise retail tenders outside Europe on four Carnival Cruise Line ships (three in the US and one in Australia) – said this week at its annual results conference in Hamburg that it regards the cruise channel as a key growth opportunity.

Gebr Heinemann Executive Director Distribution Peter Irion said: “Today there are 25 million passengers in the sector and in the next five years it will grow to 35 million. There will be an additional 70 new vessels and the majority of those vessels can carry more than 4,000 passengers.

“It’s therefore an important strategic growth market for us – in both retail and distribution – not just in Germany where we have been in cruise retail in the past, but also globally.”

“We have a clear vision on which tenders, and which ships, we’d like to bid in the next 12-24 months” – Peter Irion

Leveraging airport experience

In view of the opportunities in such a burgeoning market, Irion noted: “We will now bring our cruise experience to the next level and will participate in tenders – some this year – that are coming from the big companies like Carnival, Royal Caribbean, and Norwegian Cruise Line.

“We will definitely want to bring the experience we have gained in airports – and with international passengers – to the cruise industry.

Peter Irion: “We believe Heinemann has a great offer because of our global approach. We can offer the same service across any region, so we have something to bring to the table.”

“How we grow the business depends on the outcome of the tenders that are out there. We have a clear vision on which tenders, and which ships, we’d like to bid in the next 12-24 months. We believe Heinemann has a great offer because of our global approach. We can offer the same service across any region, so we have something to bring to the table.”

Heinemann’s arrival in the cruise sector puts it up against cruise retail stalwarts such as LVMH-owned Starboard Cruise Services, Flemingo-led Harding Retail, and Dufry Cruise Services, intensifying already hot competition.

Gebr Heinemann is managing 1,220sq m of space across the four Carnival ships (Carnival Liberty pictured)

Commenting on the travel retail industry’s intensifying focus on the cruise market, Irion said: “The development we see on cruise ships is what airports have seen maybe 10-20 years ago. In the past the airports did the retail themselves and they have changed that model more towards (external) retailers. This is what we are now seeing in the cruise business.

“Having said that, the cruise business is very different from airports and you have to gain the knowledge, understand the passenger profiles, realise that they are not rushing through the shops in 20 minutes like at the airport. They can be there for four to 12 days, and that requires a very different approach.”

European gains

In Europe, Heinemann is also running retail onboard TUI Cruises’ Mein Schiff 6 – the company’s fifth operation in the fleet. On this vessel, Heinemann has set a successful benchmark with an innovative, ‘open marketplace’ cross-category shop design, Irion said.

“We will be implementing the marketplace concept on the new Mein Schiff 1 and Mein Schiff 2 , which will replace two older vessels of the same name in 2018 and 2019, as well as on two expedition ships operated by Hapag-Lloyd,” said Ricarda Frentzel-Beyme, Director Cruise Line at Gebr Heinemann.

 

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