By
Rebecca Gibson |
In the past, cruise ship operators chose cellular-at-sea providers based on their ability to offer a low bandwidth network that satisfied the basic communications needs of their guests. However, significant developments in mobile technologies and the proliferation of smartphones have changed passenger expectations and operators now aim to provide a high quality network that not only improves guest experience but also directly increases their net revenue potential.
Wireless Maritime Services (WMS) was founded in 2004 and expectations of onboard connectivity have changed dramatically in the decade the company has been in operation, says Arora. “Previously, ‘getting away from it all’ while on holiday included turning off any mobile devices, but now smartphones and tablets have become such an integral part of passengers’ daily lives that this concept seems archaic.
“Mobile devices are no longer just a tool for making calls and checking e-mails; cruise guests use them to stay updated with news, post on social media sites and send images or videos to friends at home. In fact, many people are starting to base their choice of vacation on whether they will be able to access a reliable mobile network, or even whether they can watch their favourite TV shows, or use social media and music streaming sites.
“Meanwhile cruise operators are starting to use mobile services as a tool to engage with customers and provide them with real-time information updates and promotional offers while onboard.”
Despite the fact that operators are increasingly aware of these trends, Arora highlights that many still need to adapt their existing models to meet customer demand and deliver seamless mobile connectivity at sea. “Today less than 25-30% of passengers use any kind of mobile device while at sea, whereas business travellers staying in high-end hotels typically use three or four devices in their room and leisure guests use around six to eight devices,” he says, emphasising that onshore mobile use is far outpacing the progression of communications at sea. “Providing mobile and communication services gives land-based resorts more opportunities to generate additional revenue while the guests are on their premises. Often cruise operators lose this opportunity because passengers switch their mobile devices off the moment they step on the ship. WMS is working with various cruise line executives to develop innovative business models that unlock more revenue potential.”
As guests seek increased value for money, Arora predicts that pricing structures will also become a key priority for operators. “High roaming pay-per-use prices and high wifi pricing based on per-minute or per-hour packages are not sustainable long-term options,” he says. “The data-hungry nature of mobile applications and devices makes it imperative that providers like WMS develop creative solutions to reduce the cost of onboard mobile services and simultaneously increase usage rates.”
To help operators encourage higher mobile use among passengers, WMS is focused on expanding its 3G data services, which were first rolled out onboard Royal Caribbean International’s Allure of the Seas and Oasis of the Seas in summer 2013. Since then, the company has implemented fully operational 3G services on ships belonging to four cruise lines and is set to add more operators to its portfolio this year and in 2015. WMS has also partnered with carriers to launch mobile data packages that provide cruise guests with an improved network connection and a more reliable pricing structure.
“The packages help cruise lines to generate more revenue than the traditional pay-per-use model and figures show that each month, customers using these packages generate more average revenue per user than when guests pay based on actual use,” says Arora. “Feedback indicates that the guest experience has improved, while operators using both 3G services and the data packages have recorded a significant rise in both mobile usage and onboard revenue. In fact the most common complaint is that guests aren’t able to access our products on more cruise lines!”
While access to 3G data connectivity provides multiple benefits to the cruise passengers and the operators, Arora notes that it is no easy task to supply reliable services to ships at sea.
“WMS is the only operator to provide fully functional universal mobile telecommunications systems and an evolution-data optimised service onboard cruise ships,” he explains. “The satellite connection, which is the backbone of all offshore communications, is the biggest technical and economic challenge. Initially, the inherent requirements of 3G technologies posed some interesting technical challenges, but our highly skilled engineering team was able to overcome these issues.”
Balancing operational costs and the need for the high bandwidths that are required to carry large volumes of traffic on a communications network can also be difficult, he says. “I am hopeful that satellite capacity will be increased over the next couple of years, which will help to decrease costs to a level where satellite economics are no longer a constraint.”
Despite the challenges, Arora believes that a partnership approach to working with cruise operators, rather than the traditional customer-supplier relationship, is the key to success. “As technologies evolve and customer requirements become more complex, WMS will work closely with cruise lines to overcome industry challenges and develop innovative win-win solutions,” he concludes. “This will require new business models, technical expertise and significant investment. We are uniquely positioned to act on these opportunities and thankfully there are many visionary cruise line executives who also want to capitalise on this trend.”
This article appeared in the Autumn/Winter 2014 edition of International Cruise & Ferry Review. To read other articles, you can subscribe to the magazine in printed or digital formats.