By Kathleen Cassedy

Whether it's for Carnival Cruise Lines, where Vicki Freed is Senior VP of Marketing and Sales, or as Chair of CLIA, her mandate is the same: "Attract more first-time cruisers!"

Vicki Freed's entire career has been with Carnival Cruise Lines, and she's still sailing and selling in high spirits. Her perspective, however, has changed since she joined the company in 1978 as a regional sales manager. After moving up the ladder, winning various sales accolades and awards along the way, she assumed her present position as Senior Vice President of Marketing and Sales five years ago. The new position has provided her with a broader vision, encompassing the entire cruise line, yet her sales techniques have stayed the same.

"Listening. That's the number one quality. If you have the ability to listen to what your customers need, you will know exactly what approach to take because people will give you clues to what's important to them," she says. "Then you can match what they're looking for in a product, or a supplier, or a vacation to the right person."

Last year, Freed assumed a second hat as chairman of the Cruise Lines Industry Association (CLIA), which widened her focus even more. CLIA, which has 23 cruise line members serving North America, and 22,000 travel agency affiliates, is responsible for educating and training travel agents about cruising, and generating consumer interest in this vacation alternative.

"I view CLIA as the forest, and we (the individual cruise lines) as the trees. By taking care of the forest, our trees will do very well. That is the purpose of doing something for the association, which is for our industry," explains Freed, who has been active with CLIA for more than five years, serving on both its marketing and management committees.

CRUISE VACATIONS GROW

The cruise industry had grown quite a bit since 1980, when 1.4 million people took a cruise. In 1998, more than 5.4 million people took cruises, up 7.8 percent from the year before. That number is expected to reach 6 million for 1999.

That is still a small number when you consider such holiday destinations as Las Vegas and Orlando, which are receiving tens of millions of leisure travelers each year. "For us to grow, we need to take some of those land-based vacation people and turn them on to cruising," Freed says.

Because only 11 percent of the U.S. population has ever cruised, CLIA initiated a $13 million national advertising campaign in 1997 to raise awareness about cruise vacations, and to motivate resort travelers to consider a cruise as a vacation alternative. The campaign, "You Haven't Lived Until You've Cruised," includes 30- and 60-second cable TV commercials that show people enjoying a cruise holiday, and similar print ads in consumer publications. CLIA also provides travel agencies with a 16-page Survival Guide for Cruise Marketing and Promotion, which provides support materials for selling cruises during the campaign.

"Our travel agent distribution needs the training, and we need them because they are the most effective way for us to sell our product," Freed says. "We work to ensure that our travel agents, who sell over 95 percent of cruise vacations, are comfortable selling us."

THE LARGEST CRUISE LINE

Carnival Cruise Line began in 1972 with one ship, the Mardi Gras, and shortly thereafter began marketing itself as the "fun ship" to appeal to all age groups. Since then Carnival has grown to 14 ships, accounting for 24,400 berths, making it the largest cruise line in the world. Five more ships are planned over the next four years.

Growth was propelled after Carnival became a public company in 1987 which provided capital for expansion. Today Carnival Cruise Lines is a subsidiary of Carnival Corporation, the world's largest cruise company, comprising five other cruise lines that are operated separately. They include full ownership of Holland America Line and Windstar Cruises, and interest in Costa Cruises, Cunard Line and Seabourn Cruise Lines.

Carnival Cruise Line's biggest competition is not from other cruise lines, but from land-based vacations. "When travel agents are selling all-inclusive trips to Jamaica, or seven-day packages to Cozumel, we also want them to suggest cruising to these people," Freed says. "Once agents really understand cruising as a vacation suggestion for their clients, then we talk to them about our brand, and why Carnival would fit a certain group of people."

CARNIVAL = FUN

Carnival Cruise Lines has continued its original fun theme in marketing because of fun's broad appeal. "Fun for a lot of people might be sitting on a deck chair and reading, especially baby boomers, who are so stressed out with busy lifestyles....Then if someone wants dancing until 4 in the morning, they can certainly do that," Freed says.

Choice is a major selling point for Carnival. "That's what people want these days. Our entertainment is the best at sea, our states rooms are spacious, our ships are beautiful, with wonderful atriums, and we have many activities, plenty of choice," Freed says.

Carnival ships sail to the Caribbean, the Panama Canal, Alaska, Mexico, Hawaii, and Freed is working on adding Bermuda to the regular itinerary. Most cruises are between 3 and 7 days, but can be up to 16 days long. "We're all over the board to appeal to all customers' schedules," she says.

CARNIVAL WATCHES TRENDS

Carnival stays on top of trends, such as providing for people's desire to work-out while onboard. "We've seen a big shift over the past 10 years from when the gym was a tiny room in the bowels of the ship," Freed notes. Today spas on Carnival ships overlook the ocean; they offer a full gym with latest equipment, three swimming pools, and exercise classes, and pampering treatments and therapies, such as massages, wraps, packs and facials.

Because non-smokers comprise 85 percent of Carnival's clientele, the cruise line introduced the first completely smoke-free ship, the MS Paradise, last December. (Smoking is not even allowed on deck or by the crew.) Arriving at this decision was based on the popularity in Carnival's other ships of nonsmoking dining and show areas, introduced five years ago.

Another trend is the high demand for cabins with verandahs, for which passengers are willing to pay extra. "Our objective now is to build as many verandahs as possible on all future ships," Freed notes.

VACATION GUARANTEES

Because people often hesitate to try a cruise because they fear they will be stuck if they don't like it, Carnival introduced a vacation guarantee in 1996. This allows a guest to disembark in the first non-U.S. port of call for any reason, and receive a refund for the unused portion of their cruise, along with reimbursement for air transportation back to the ship's home port. The guarantee provides travelers with the same choice they would have at a resort. They can leave, and not be penalized.

"We're thrilled with the success of the vacation guarantee," says Freed, who is surprised and disappointed other cruise lines did not follow Carnival's lead with their own guarantees. "We wanted them to because we felt that it would be stronger for the industry to say 'We believe in the industry so much that we are issuing a guarantee.'"

The guarantee has had an ancillary benefit for Carnival. "It's improved our onboard product and customer service since the staff knows people can leave," Freed says. For example, if passengers request an early dinner seating and there is no room, the maitre'd will work harder to accommodate them.

CARNIVAL'S MARKET

Carnival is a contemporary mass market cruise line that targets baby boomers. "Our market is people looking for that contemporary vacation kind of easy fun, relaxing, with a lot of choices," Freed says.

The average age of Carnival's passengers is 45, five years younger than the industry average, and 65 percent have a household income over $75,000, which is $7,000 more than the industry average.

Half of Carnival's passengers have taken a cruise before, of which 85 percent have taken a Carnival cruise. Following their Carnival cruise, they receive the glossy magazine, Currents, free for a year, which helps keep Carnival top of mind by providing updates on new ships, itineraries, and programs.

The meetings and incentive market is important to Carnival. While it represents only 15 percent of business, these groups tend to book the more expensive cabins, with ocean views. Yet a meeting on a Carnival ship will cost between 30 and 40 percent less than at a hotel, Freed says.

Seniors represent one third of Carnival's clientele. "They are fun-loving seniors," Freed points out. "People are always surprised by that, they don't expect Carnival to be getting seniors. They somehow associate fun with young."

About 15 percent of passengers are singles, who usually travel with companions. The majority of Carnival's passengers are couples, but a large portion are families. Carnival offers children's programs, called Camp Carnival, which start at age two. The programs are segmented by age groups, from toddlers to teens.

Carnival partnered with Mattel Inc. in 1997 to introduce Carnival Cruise Barbie, outfitted in casual cruise attire, featuring a Carnival logo on her sailor hat and carry-on bag. She's sold exclusively in the ship's gift shops, or can be ordered through Carnival's 800 number. The Carnival Cruise Barbie has been so successful that a new edition, with a sailor "officer" look, is planned.

DANCING STARFISH

"Carnival's whole marketing position is to sell fun," Freed explains. "Our commercials, which use animation of starfish, palm trees, and beach chairs, say, 'If you are looking for fun, we've got fun,'" Freed explains. Because fun means different things to people, animation was used because it can be broadly interpreted. "The commercials are meant to be light, fun, and [to encourage viewers] to join us on Carnival," Freed says.

Kathie Lee Gifford has been Carnival's spokesperson since 1984 when she was less well known. Now with her higher profile, Carnival closely monitors her popularity through market research. Commercials are run during TV shows that attract a younger audience, such as Dharma and Greg, Disney, and Letterman.

Carnival runs print ads in 200 newspapers, which are tracked through response to 800 numbers. Ads are also run in travel agent publications because "agents have a lot of clutter in the sense that they have so many products they can sell," Freed says. "We need to keep reminding them of our product."

SUPPORTING TRAVEL AGENCIES

As Carnival reaches out to prospects who prefer to buy their travel directly, either through an 800 number or the Internet, Carnival urges them to seek out a travel agent. "We encourage people [who booked directly] that if they want to have an agent help them with their plan, we will transfer the booking, and that's the 'through pass' to the agent. We're glad to pay the commission to the agent," Freed says. "We think agents do an outstanding job."

Carnival began accepting bookings from consumers on the Internet earlier this year, and also from travel agents, who may not want to subscribe to a CRS.

Freed oversees both marketing and sales, but notes that Carnival is really a sales driven organization. "Image and marketing are important, but at the end of the day, if the phones aren't ringing then none of that means anything," Freed says.

Her biggest challenge continues to be the same since she began. "We need to bring new people into the fold, not just recycle the old cruisers," she says. After 20 years in the business, Freed still enjoys working for Carnival and the industry. "I love the company and the great management team...It's a fun industry.

"You can have fun selling fun."