Cruising pays big bucks to agents
The third largest operating expense for cruise companies in 2013 were paying Australian travel agent commissions and port charges with agent commissions for both international and local cruises, totaling $121 million, a new study has revealed.
While the study focussed on cruise passenger spend – $371 a day in Australian ports fuelling a $3.2 billion contribution to the economy – it also revealed agent commissions were a costly factor for cruise companies.
From a total of $963 million spent by cruise companies in 2013, 12.6% of total costs went to agent commissions, alongside fuel expenditure at $276 million (28.7%), food and beverages $143 million (14.8%) and port charges spend of $97.5 million (10%).
Topping the list for big spenders were international cruisers who spent an average $756 a day on accommodation, shopping, dining and transport before they board their ship. During their cruise they spend $204 a day in the ports they visit, mostly on shopping and tours.
Meanwhile, Australian cruisers spent an average $450 a day before setting sail, and around $156 a day in domestic port visits.
The study commissioned by Cruise Lines International Association Australasia (CLIA) found passengers spent more than $700 million across the country last year with Sydney, Fremantle and Melbourne taking home the biggest piece of the pie in terms of highest daily spend for international passengers pre-cruise ($762, $669 and $612 respectively).
Cairns however topped the list of highest spend from both international passengers and domestic passengers during a cruise ($366 and $187 respectively).
According to the report, in addition to the $3.2 billion economic output, the cruise industry generated $1.59 billion in value added contribution, $940 million in wages and employed 14,000 people across Australia last year.
“This is the first independent report to draw on cruise line data and passenger surveys to show us how much cruise lines, passengers and crew spend across the country,” CLIA Australasia chairman, Gavin Smith said.
Direct expenditure by cruise lines and their passengers and crew totalled $1.72 billion last year, while cruise ship calls in Australia grew by 11% from 673 in 2012 to 746 in 2013.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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