Leon Camarda: The Rise of Cruise Brands in Commercial Real Estate and Hospitality
In 2020, the cruise industry was hit hard by the COVID-19 pandemic. Headlines were filled with stories of stranded passengers and crew on ships like the Diamond Princess, raising concerns about viral spread in confined spaces. This led to a global shutdown of cruising.
But just three years later, things have turned around for the better as cruises are once again setting sail with increased demand from travelers. In fact, many cruise organizations are now expanding into commercial real estate and land-based hospitality ventures to attract even more customers.
Connect CRE recently had a conversation with Leon Camarda , Executive Vice President at Project Management Advisors Inc., about this trend of cruise brands venturing onto land to develop and operate commercial real estate properties.
Q: Can you explain how there is a connection between cruise lines and hospitality properties?
A: Many cruise brands have invested heavily in improving their offerings which has resulted in an attractive value proposition that sets them apart from traditional resorts or other land-based hospitality venues. As we see pre-pandemic cruisers returning to sea travel along with new investments being made by these companies, it’s clear that they’re capturing interest from both loyal customers as well as those who may be new to cruising altogether.
Cruises offer an affordable option for budget-conscious travelers while also creating healthy competition among different lines which leads to improved services across all levels within this sector. Additionally, partnerships between cruises and hotels/resorts allow for packaged deals that appeal greatly towards budget-minded individuals seeking all-inclusive experiences – further incentivizing collaboration amongst these entities looking towards attracting more consumers overall.
While such partnerships were already common practice before COVID-19 struck globally; renewed dedication towards enhancing customer experience will only lead us down paths where we can expect innovative collaborations designed specifically at catching consumer attention moving forward post-pandemic era .
Before coronavirus outbreak happened last year (2020), cruise lines were enjoying a sense of stability. However, when the pandemic hit, they had to rethink their strategies and find ways to recreate the cruise experience. This led to a lot of effort and creativity in pivoting which resulted in some significant discoveries about how people want to travel.
Q: Can you discuss entertainment districts being added at ports? How do these differ from other similar areas?
A: Port venues and entertainment districts are essentially private experiences that have been branded by different cruise lines for their travelers exclusively. These offer unique, exciting amenities such as water features or luxury retail shopping along with food & beverage options that reflect both local culture as well as brand identity.
These areas present an excellent opportunity for cruises since not only do customers get access into unique experiences; but it also creates a closed circuit where all customer spending is directed towards revenue generation for these companies – something which would otherwise be spread out across various local businesses within port towns traditionally visited by cruisers on land excursions during stops .
When deciding what should be included within such entertainment districts; Cruise Lines must consider its own value proposition while staying true towards brand promises made earlier on.
Q: What is your outlook regarding this particular hospitality sector?
A: The future looks incredibly bright moving forward into 2024-25 period especially when considering cruises alongside affiliated developments . As competition heats up amongst different players looking at creating next best venue possible ; passengers continue hopping aboard ships en masse due largely thanks increased accessibility financially speaking – particularly among economy-minded travelers who’ve seen improved models come online recently coupled with more affordable routes available now than ever before!
However , there will eventually come point where costs associated with elevated offerings investment may become too much handle leading back down path less attractive overall compared current situation we’re seeing today . With investments made improving ships themselves plus larger amenitized port venues generating higher costs passed onto end users long-term outlook remains uncertain even though there’s still plenty runway left for growth.
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