Big Interview: Azamara boss looking to build on 'explosive' UK growth

By Hollie-Rae Merrick

Azamara chief executive outlines his UK plans for the line to Hollie-Rae Merrick

Azamara Club Cruises is looking to increase its presence in the UK market by targeting “high‑value customers” through luxury agents.

Larry Pimentel, the brand’s chief executive and president, says the company needs to push forward in increasing awareness in the UK and that first-time cruisers need to be a focus for the line.

His comments on the future of Azamara come as the brand unveiled Richard Twynam as its first dedicated managing director for the UK and Ireland.

Twynam, who takes up his position in the new year, has almost 20 years’ experience in the industry, having previously worked at Virgin Holidays Cruises and Kuoni. He will lead a 10-strong team including new commercial director David Duff.

As part of that, there will be a three‑strong sales team and a marketing and PR manager supported by a trade marketing executive for the first time.

The new team is being put in place as Pimentel looks to drive 
up guest numbers from the UK and Ireland, the brand’s second‑largest source market behind the US and Canada.

Pimentel expects UK passengers next year to account for a quarter of guests – a figure he aims to increase to one-third in two years’ time. The key to this, he says, is attracting more first-time cruisers, who accounted for 22% of passengers this year.

“Our growth has been quite explosive,” he adds. “We have 19% net yield growth – not many people can say they have that figure.

“If we look back to the beginning of my time [in 2009] 
we had 5,000 passengers from 
the UK; in 2014 we expect that 
to be 10,000. On two ships that hold less than 700 each, that’s pretty amazing.”

The upward trend continues. Pimentel says UK bookings for 2014 are up 41% over the past year and puts the brand’s success down to UK guests’ eagerness to explore destinations.

Pimentel says one of Twynam’s main tasks will be to drive the number of high-value customers booking Azamara sailings.

“I have no desire to be the market leader in low prices,” he stresses.

“It’s about getting to an even broader base of clients from other cruise lines and tour operators, and Richard has a background in that through Kuoni.

“He has seen it before and can use that experience to his advantage. He knows agents.

“We need to be even more focused on the trade. We already are very trade dependent and we want to be. It is easier to reach out to customers through the trade than directly. We are small so we don’t have the scope to go straight to customers.”

Pimentel: I want to build a fleet

Azamara Club Cruises is likely to add capacity in the future.

Larry Pimentel said that while no ship orders had been placed, his plan was to expand the line from its existing two ships, Azamara Quest and Azamara Journey.

“I didn’t join Azamara for just two ships; I want to build a fleet,” he said.

“There is always a desire for any chief executive to grow their business and to do so at the right time for the company – this is a view I take. We are proving the brand has return on investment capital and that a product like this can be profitable. That gives the board movement to grow the brand. There is no official word and I haven’t been given a green light yet, but I wouldn’t bet against new ships.”

Call centre move will not hinder drive for quality

The plan for Azamara Club Cruises, Celebrity Cruises and Royal Caribbean International to operate as individual businesses will allow Azamara to become even more focused on the UK, said Pimentel.

“The move will allow us as Azamara – through our team – to focus on the product.

“I’m very encouraged because for us it means a dedicated marketing team and sales people. This team will help to present us more in the marketplace.”

Despite some trade criticism of the company’s plan to base its guest and trade service call centres in Guatemala, Pimentel insisted he was optimistic.

He stressed that moving call centres overseas was always controversial, whatever the industry, and that the business was investing heavily in training its new staff.

“Some call‑centre moves haven’t been executed well.

“If we are going in a direction that doesn’t work, we change it – it’s as simple as that. This has been very well thought out and I’m positive about it.

“I have listened in to some of the test calls and the quality is quite superb.”

Thomas Cook joins Thomson in tech-driven bricks and mortar fight back

Thomas Cook has become the latest bricks and mortar traditional high street travel agent promising to emulate digital giant Apple with a new concept store.

The travel giant says its new store in Leeds, that will open this month ahead of the turn of year peak booking period, with exploit the latest technology to engage with customers.

The reveal about its plans came just a month after rival Thomson spoke of its intention to open a “groundbreaking” concept store of its own within 12 months.

The “shop of the future” would seek to emulate Nike, Apple and Audi, ditching brochure racks in favour of digital screens and the latest modern point of sale technology.

Other traditional operators including Kuoni and Virgin Holidays are also brand flagship stores in high street locations, the latter having incorporated Aurasma augmented reality among other technologies in its High Street Kensington location.

Cook said research has shown that 46% of customers still seek face-to-face interaction with their travel agent but providing an omni-channel retail environment is key for the future of travel.

Retail director, Joanna Wild, said: “Our new store will be more Apple than travel and uses technology and techniques championed by iconic, high-tech brands to place our customers at the heart of the experience; allowing them to choose how they access information and dictate the level of assistance they receive from us.

“We know that shopping habits are changing, with more and more customers researching their holidays online and transactions becoming quicker, but we also know that a holiday is a massive purchase for customers who want to be inspired and enjoy that purchase process, and of course they still value that human touch and having expert advice on-hand if they need it.

“This is where our concept store will stand out and we will use it as a test bed to see what elements we might want to introduce to other stores in future.”

The 1,400sq ft concept store, in Leeds’ White Rose shopping centre, will allow customers to research and book holidays however they choose, whether searching and booking on a tablet, consulting one of 25 staff, watching a video or checking in on Facebook to qualify for a special offer.

Cook said “the holiday vibe in-store will be created with ambient music and video, while social media technologies will enable customers to share personalised, holiday-related content” and it will be the first step “in truly networking Thomas Cook travel consultants across the country”.

Recently appointed head of retail for large shops Lucy Green, who is in charge of the project, said: “The aim is to build a store that allows customers to engage and interact with us in any way they want.

“Our research found customers want options, and they felt the only option at the moment was to come in and sit with a consultant for a significant amount of time. The research focused on what they would like the store to be, and how they wanted to engage with us.”

Green, who formerly worked for The White Company, added: “Up and down the high street you can see where retailers are fighting back by investing in their bricks and mortar to create showcases for their brands.

“Ultimately it’s about future-proofing them by creating a more profitable, omni-channel retail environment but it’s also in direct response to reaction from customers who are coming back to the high street for that personal service – especially for high value or significant purchases – with John Lewis being a perfect example.”