Crystal Cruises Catches A Big Payoff From Major Investment in Onboard Partnership With Sushi Mogul
Is it worth it to spend big on bringing one of the world’s best known restaurant brands – Nobu -- on board? And then to continue spending significantly on very expensive ingredients for dishes like yellowtail sashimi with jalapeno?
Crystal Cruises, always ranked at the top in the luxury cruise category, thinks the ROI from its investment in raw fish is already ‘in the bank’ even before the official March 1 launch
After several years of Nobu-influenced restaurants aboard the Crystal Serenity, Crystal added two restaurants serving Nobu specialties to its original vessel, Crystal Symphony as part of a massive renovation.
The Nobu name will now be even more prominent in Crystal’s marketing, said spokeswoman Mimi Weisband, who added: “We had an ad in the Wall street Journal where Knob’s photo was larger than the ship’s.”
Nobu, of course, is chef Nobuyaki Matsuhisa, the so-called “sushi mogul” who has a worldwide empire of almost two dozen restaurants– his establishments attracting the wealthy and the celebrated. In 2003, Crystal launched its partnership with Nobu on the then-new Crystal Serenity.
While the onboard restaurants – called Silk Road and The Sushi Bar -- are not called Nobu because of that brand’s partnership structure, they feature Nobu-trained chefs, showcase Nobu specialties and pour Nobu-labeled sake – all served on and in Nobu china.
Nobu, said Weisband, “had to evaluate us and be convinced that we were going to execute to his standards.”
When Nobu became part of the Serenity launch, said Weisband, it lent immediate credibility to the ship as a true luxury product.
From the beginning, said Weisband, “Nobu was a large part of our marketing. The Nobu brand stands for quality and consistency – and commitment to excellence. It aligns with our branding.”
Despite the significant expense, there is no extra charge to dine at these restaurants. The payoff comes in several ways, here’s what Weisband has to say about ROI from roe:
“Guests in penthouses can order dishes via room service – an incentive to trade up.”
“With Nobu on both ships, it’s much easier to market. Before people would ask ‘which ship is Nobu on?’”
“The restaurants have broad appeal across demographics; there is a sophistication connected with this because of the popularity of sushi.”
“The Nobu name is known all around the world, attracting international clientele to crystal. Our Korean sales reps were among the most excited about this announcement.”
Melissa Bradley’s On My Mind message in the Sept-Oct issue of Indagare—family focused travel--just happened to be what was on my mind as I reviewed some of the most recent surveys on consumer travel behavior in a struggling economy.
All the evidence—whether you are looking at the Amex-Harrison Group study we reviewed in our last issue, or the Ipsos Mendelsohn Affluence Report completed in September,--shows Family First when it comes to disposable dollars.
For travel in particular, Bradley says, ” More than just being inspired by reading about beautiful places, Indagare’s members have expressed a desire for guidance, especially when it comes to life’s most cherished journeys: those with their families”
“ What’s important on such trips,” she adds, “ is spending uninterrupted quality time with loved ones.”
We believe family focus is going to be front of mind for a long time to come, long after the punishing economic climate has subsided. Provider brands will be hard pressed to provide much more than kiddie or junior, or young adult activities. Smart travel agents will have to rise to higher levels of creativity and performance on the family front to sustain customer loyalty and earn the benefits of word of mouth in the neighborhood.
At the American Express Publishing –HarrisonGroup presentation last month Cara David, co-director of the study and Senior Vice-President, Strategic Insights, Marketing and Sales, American Express Publishing said, ”We will see significant reductions in intended spending for jewelry, fashion, accessories and other personal items.”
At the same time, spending for the family – automobiles, travel, children’s clothing and home décor – are trending up, even over June numbers, according to David.
We’ll be tracking the trend carefully, and we are seeing evidence of some smart marketing in that direction—including Indagare, of course—that will be featured in upcoming hospitality brand interviews Hershel Sarbin
Our lead story in this issue, covering the Latest Quarterly Survey from American Express Publishing/Harrison Group on Affluence and Wealth in America, is a most informative visit to spending in a troubled economy.
One thing that struck us, as we listened to the October 2 presentation, was how the term affluent covered so much territory - There is “ Bedrocks” Affluent, “Upper Middle Class” Affluent, “Pinnacle” Affluent, “Super” Affluent and finally, just plain Wealthy – all together, some 20 million households.
Karen Weiner Escalera, a veteran luxury marketing and public relations executive who heads up KWE Group in Coral Gables, recently took a look at the current economic situation and offered her outlook and advice; here’s a summary:
AVOID DISCOUNTING:
• As former Ritz-Carlton executive Joseph Freni, famously said in a previous downturn, “When times are tough, raise your rates.” Instead, highlight ways to save by traveling smart (off- season and midweek for resorts; weekend and holidays for urban hotels).
• A recent survey of millionaires by the authors of the book, “Middle Class Millionaire” revealed that close to 90% of U.S. millionaires with household incomes of $1 million to $10 million say they would increase their spending if offered a special value add.
UP THE SERVICE ANTE:
• Seek to elicit the “wow factor” among consumers. According to an Accenture study, more than half of consumers reported their expectations for better service increased over the past five years. One third said they were higher than a year ago. Guests require their every desire – expressed or unspoken – be met.
• Gather all the information you can about guests’ likes and dislikes and add to the database – down to packets of gum for the gum chewer and up to a crib from Neiman Marcus to the loyal guest/expectant mother. But beware of overly attentive service, which can become obtrusive or overbearing – a “no-no” for younger travelers in particular.
A new report, The NEXT gen Traveler—co-authored by PhoCusWright and Ypartnership—declares that "next generation" travelers, heavy users of the latest technology, are highly educated, affluent, and are equally likely to be Echo Boomers (18-28) as Baby Boomers (43 to 61), thereby debunking the belief that the usage of new technology is concentrated among younger travelers. They have a zest for travel and spend, on average, over 50% more on travel services annually than their less tech-savvy.
Nat Ives, in Ad Age Online Sept 6, cites new data from Ipsos MMR which assures that well-off readers read print publications just as much now as they did 5 years ago.
Also, survey respondents making more than $100,000 annually said their average hours online had grown to 22.1 each week from 10.7, while the time they said they spent watching TV sunk to 18.6 hours from 23.7 in the 2003 survey. Read the full Ives story at http://adage.com/mediaworks/article?article_id=130685. Lux 360 attended the client briefing this week and will provide additional perspective in our Sept. 30 issue, interviewing Ipsos MMR President Bob Shullman.
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