Travel talks: Gavin Smith - cruise line boss

Gavin Smith. Photo / Greg Bowker

Royal Caribbean brings in some of the biggest ships in the world to New Zealand ports. The cruise line's boss for this region, Gavin Smith, has worked in the industry for almost his entire working life. Sydney born and bred he supports the Wallabies and the Roosters.

He grew up in Bondi and started his career at P&O where he worked in sales and then as managing director in Australia for eight years until 2007. He spent about 18 months with a retail travel firm before his role as Royal Caribbean's regional vice-president for Asia Pacific. In that time the number of passengers carried on its ships in the region has increased from 20,000 a year to 250,000.

"It's not me waving a magic wand, it's me being in the right place at the right time," said the 48-year-old who is also chairman of the Australasian Cruise Association.

What are the biggest challenges facing your business?

The first challenge is finding a place to park cruise ships that will from next year be up to 348m in length and can carry 4500 passengers. Cruise lines are also competing with the "fly and flop" destinations of the Gold Coast and Fiji which are favoured by Kiwis. It's always been a hard value proposition so the cruise industry in New Zealand has skewed to the older person who has more time and money. "And unlike the Aussies the Kiwis don't have a strong interest in doing coastal New Zealand and the South Island."

How will the fall in the Kiwi dollar against our main tourism partners affect your operation?

Royal Caribbean attracts 50,000 American passengers to New Zealand and Australia each summer so they will enjoy their currency going further. Company revenue is reported in the local currency so it looks worse from this region although costs are perceived as lower.

What's the worst part of your job?

His company has about 100,000 guests travelling a week and they are subject to the whims of immigration authorities airlines and the weather. "The greatest difficulty is letting families down." The industry also has to deal with cases of norovirus which attract a lot of publicity but are isolated. "What doesn't get reported is the land-based outbreaks."

What's the best part of your job?

When the many moving parts click and families and couples enjoy good times together.

What initiatives do you have under way this year?

Congestion in Auckland and Sydney means the company is bringing in bigger ships and to appeal to the upper end of the market bringing Azamara Club Cruises whose ships carry about 650 passengers, mostly American empty nesters who want longer stays in ports.

Is the industry in good shape?

Cruise industry growth has been "phenomenal" during the past decade outpacing every other main travel segment. China is attracting the biggest and newest ships and this allows them to cruise Australasian waters during the Northern summer. However, there were signs potential travellers were repaying their mortgages rather than going on holiday. "Our challenge is overcoming a weaker economy and a cooling in economic activity by consumers."

How is your business affected by new technology/digital disrupters?

Innovations on board including wireless technology and physical attractions are making cruising more attractive. "We're also seeing the evolution of global pricing and merchandising of product and changes to distribution dynamics."