Leon Camarda: The Rise of Cruise Brands in Commercial Real Estate and Hospitality
In 2020, the cruise industry faced a major setback due to the COVID-19 pandemic. Headlines were dominated by stories of stranded passengers and crew on ships like the Diamond Princess, raising concerns about viral spread in confined spaces. As a result, cruising came to a global halt.
However, just three years later, things have taken a positive turn as cruise lines are once again setting sail. In fact, many organizations are now expanding into commercial real estate and land-based hospitality ventures as another way to attract travelers.
Connect CRE recently had an insightful conversation with Leon Camarda , Executive Vice President at Project Management Advisors Inc., about this trend of cruise brands venturing onto land to build and operate commercial real estate properties.
Q: What is driving this connection between cruise lines and hospitality properties?
A: Many cruise brands have made significant investments in enhancing their offerings for travelers. This has resulted in them offering value propositions that surpass those of traditional resorts or other land-based hospitality venues. As we see pre-pandemic cruisers returning to sea travel along with new customers being drawn towards these enhanced offerings from cruises – it creates healthy competition among different companies vying for market share which ultimately benefits all consumers across the board.
Moreover, partnerships between cruises and hotels/resorts offer attractive bundled deals for budget-conscious travelers looking for all-inclusive experiences at discounted prices. This strategy not only incentivizes collaboration but also leads to further improvements in offerings from both parties – making it more appealing than ever before!
While such partnerships existed even before COVID-19 hit us; post-pandemic there will be renewed efforts towards improving traveler experience resulting into creative collaborations designed specifically keeping consumer interest top-of-mind .
Q: Can you elaborate on entertainment districts being added at ports? How do they differ from other similar areas?
A: These port venues or entertainment districts are essentially branded, private experiences for cruise travelers. They offer unique and exciting amenities like water features, luxury retail shopping, and food & beverage options that reflect the brand as well as local culture.
These areas present a great opportunity for cruise lines to not only provide their customers with an unforgettable experience but also create a closed circuit of spending – generating more revenue in return. Unlike traditional port towns where travelers would explore on their own; these entertainment districts keep them within the confines of this specialized area – providing ample opportunities to spend money while enjoying themselves! Cruise lines must carefully consider their unique value proposition and brand promise when deciding what amenities to include in these entertainment districts.
Q: What is your outlook on this particular hospitality sector?
A: The future looks incredibly bright for cruises and related developments over the next few years (2024-2025). With competition heating up among different players trying to outdo each other by creating better venues; it’s no surprise that cruisers are jumping aboard!
With increased focus towards budget-conscious travelers resulting into shifting value propositions ; cruising has become more financially accessible than ever before. In recent years we have seen new models being introduced along with assessments being made about routes taken by cruises – all geared towards meeting needs of economy class traveler .
However, it’s important to note that such investments will eventually reach saturation point leading into challenges around costs which could make cruising less attractive option compared against others . As ships get upgraded or newer ones built coupled with larger ports offering enhanced facilities – costs associated will go up which ultimately may be passed onto end users making it expensive affair down-the-line .
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