Cruiseport Boston

Presentation for

Advisory Commission on

Travel & Tourism

June 23, 2014

2

3

Cruiseport Boston Vision

The vision for Cruiseport Boston and Black Falcon Cruise Terminal (BFCT)…

•Provide a welcoming gateway into the City of Boston•Offer our passengers a best in class customer experience•Achieve the highest levels of operational efficiency, safety and security•Create flexible and adaptable facilities•Ensure our business model is financially sustainable

…to meet the current and future needs of a vibrant and growing cruise industry in order to sustain jobs and support a key economic engine in the Port of Boston

4

Cruiseport Boston Overview

Black Falcon Cruise Terminal (BFCT)•Busiest cruise terminal in New England (owned and operated by Massport)•~$187M in annual economic benefit to region•~2,000 jobs supported

•2013: record-breaking year: 382,885 passengers, 116 ships •2014: expecting more than 320,000 passengers, 115 ships•2015: expecting nearly 370,000 passengers, 122 ships•Passenger volume expected to double by 2025

•Four (4) ships homeport (T/A) in Boston, offering cruises to Bermuda, Canada, Europe and Caribbean (end of season only)•52% homeport, 48% port-of-call (PoC)

•$11M in upgrades completed in 2010; $3.5M in additional upgrades being completed in 2014

5

Cruiseport Boston Overview

6

Before

After

Cruiseport Boston Customers

7

Cruiseport Boston Itineraries

8

Cruiseport Boston Itineraries

2014Norwegian Cruise Line (Fridays)•Norwegian Dawn: 22 Boston to Bermuda

2 Canada/New England 1 Caribbean Repositioning

Holland America Line (Saturdays)•Maasdam: 11 Canada/New England•Veendam: 9 Canada/New England

1 Transatlantic Voyage

1 Repositioning to San Diego

Royal Caribbean (Sundays)•Brilliance of the Seas: 6 Canada New England

1 Caribbean Repositioning

9

Cruiseport Boston Itineraries

2015Norwegian Cruise Line (Fridays)•Norwegian Dawn: 22 Boston to Bermuda

4 Canada/New England (+2) 1 Caribbean Repositioning

Holland America Line (Saturdays)•Maasdam: 11 Canada/New England•Veendam: 9 Canada/New England

6 Bermuda (+6)1 Transatlantic Voyage

1 Repositioning to San Diego

Royal Caribbean (Sundays)•Brilliance of the Seas: 9 Canada New England (+3)

1 Caribbean Repositioning

10

11

Cruiseport Boston Activity

Homeport activity peaks in June and July with vast majority of PoC activity occurring in September and October (foliage itineraries)

Pa

ss

en

ge

rs (

PA

X)

12

Traveler Dynamics

International travelers far more likely than US travelers to combine cruising with pre-/post destination visits

Cruiseport Boston Opportunities

Pre-/Post-cruise packages (Homeport)•Hotels•Parking or shuttle transport to/from the cruise terminal•Destination/excursion spending by fly-in passengers, especially international travelers

Shore Excursions (PoC)•Intercruises Shoreside & Port Services handles shore excursions for 90% of the cruise lines that call Boston

– ~50% of excursions are booked onboard– ~25% are booked in the cruise terminal through Intercruises– ~25% of cruise passengers go out on their own (fastest growing

group, but lowest satisfaction w/ destination experience)

13

Takeaways for Travel + Tourism

Know the Market•Homeport Cruises

– ALL homeport cruises currently arrive/depart Friday–Sunday, and probably will indefinitely, so land-sea packaging has to involve weekdays

– Canada/New England cruisers are largely non-local fly-in travelers, so reach them before they book if possible

•Port of Call Cruises – Intense 6-7 hour excursion opportunities, so likely limited to one

hour travel time from BFCT

Help Grow the Market•Word of Mouth

– Still one of the most effective means of marketing…spread the word about cruising to/from Boston to your contacts

14

Takeaways for Travel + Tourism

Communicate and Connect•Cruise Lines/Intercruises

– Sell your experience on the ship, not after it arrives

•Other Homeport Destinations– Cruiseport Boston’s homeport business depends heavily on the

quality and capacity of other anchor ports in our itineraries (e.g. Quebec City, Montreal) so seek opportunities to co-develop and co-market pre- and post-cruise land excursions with these partners

•Airlines– Most Canada/New England cruisers are fly-in rather than drive-in

cruisers, and many are international travelers, meaning they are more likely to spend time and $$ on pre- and post-cruise land excursions…getting their attention at or before they book their flights is important

15

Cruiseport Boston

Presentation for

Advisory Commission on

Travel & Tourism

June 23, 2014