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Monday, March 21, 2011

Seatrade: Does the Little Guy Survive?



This is the floor-plan of the Cruise Shipping Miami Conference (formally known as Seatrade) assembling each year in Miami, Florida.  This years’ gathering took off without a hitch on March 14th through March 17th, 2011. 
On the Floor, there is a significant matter on hand, the competition is stiff and the variety of businesses is limitless. Subjects vary in range from future designs of ships to where they are headed; from  new trends being created to new onboard luxuries and entertainment possibilities; and, from newly invented technologies to new emerging source markets.   Can a small supplier or port agent gain the needed attention in order to fulfill their hopes and wants without going in the red due to the high costs of renting a booth, hotel stay, food and transportation? Price per 100 sq. ft. unit is US $3,975.00 (price drastically increases for larger rentals, 6% extra fee is added if you have 2 or more open sides, plus, several other unknown hidden costs found upon arrival).  Suddenly, the price exceeds $20,000; hence, a small supplier needs to attract a lot of traffic in order to win enough contracts to greatly surpass this price. Competition can quickly eliminate the little one trying in hope to stay alive against large companies. With gumption, fortitude and flair, is it possible to attract direct individual appointments outside the show to present materials in a more economical manner and survive, or, is hobnobbing with the bigwigs at an FCCA Gala the answer to prayers in getting attention to a new brand?!  With over 900 represented companies and hundreds of booths, it is easy to become obsolete.  The small vendor has unfair disadvantages competing against the one who can meet the expense to go just to be seen or to thank their clients.

Today, cruise companies have become powerfully large successfully hurting the smaller and more elite companies who once had specific reachable markets. Sheer size empowers them to use bullying tactics to go after what they want using the excuse of economical challenges to force ‘costs‘ to go south.   Small agents and suppliers alike were obliged to reduce their own costs or receive a one way ticket out.  Companies like Intercruises Shoreside & Port Services’ doors were globally opened to an ‘absorbing’ storm swallowing smaller agents and disabling them as contenders.  And, companies like Festival Cruises went belly-up when they couldn’t afford to keep operations above water. So, with the reduction of costs, a recession and expensive rates at conventions, it is getting real tough for the small guy.

The largest of its kind for 26 years, Seatrade draws a variety of companies from software to gadgets, from architecture ship-builders to cruise company bigwigs, and, from shipping agents to water systems.  Whatever your imagination creates it is being talked about, promoted and hopefully sold.  As mentioned, hopefully.  The competition is tough, fast paced and expensive to display.  Many want to be on the inside action of supplying the fast developing cruise industry with their new products, while others are there with the intention to buy what they stipulate is uniquely different.

Highlighted topics of this year’s World Tourism Conference Summit were: 
New and Emerging Source Markets
Deployment Strategies
China Cruise Industry Update
Cruise Shipping FOCUS ON Series: exhibitor presentations highlighting new products, services and information
State of the Cruise Industry 2011
Spotlight on Europe
US Coast Guard Forum
Luxury at Sea (products)
Newbuilding and Revitalization
Mexico: Home Porting Initiatives
Where in the World?
Taste and Trends
Where Ships meets Shore
Niche Cruise Products
Air Emissions Regulations: Too Far Too Fast or Long Overdue?
Travel Agent Thursday @ CSM and Relationship Management
Cruise Copenhagen Network
Cruise Canada New England Alliance
Tourist Offices For Flanders
Philippine Department of Tourism
Greek National Tourism Organization

Destinations such as China, Mexico, Honduras, Philippines, Canada, Ireland, Denmark, Egypt, Turkey and the South Pacific are to a great extent striving to increase cruise ship capacity while Greece was distinctively trying to prove they want the cruise business given that they are now open for foreign vessels to home port in Piraeus. They are looking for serious investors from the cruise companies to bring- in-the-money. 

Seatrade is a positive and ongoing convention that works well putting cruise industry personnel together under one roof allowing for a larger creative think-tank process in order to globalize the community; however, the little guys need to be part of the scheme, or,  somewhere we lose our way during the journey.

Joyce Gleeson-Adamidis

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