This article first appeared in the Spring/Summer 2015 issue of International Cruise & Ferry Review. To read the full article, you can subscribe to the magazine in printed or digital formats
The success of the Singapore Cruise Centre (SCC) parallels that of the Asian cruise market. SCC’s International Passenger Terminal at HarbourFront is located in one of the fastest-emerging shipping sectors in the world. It is a region where the rising affluence of China, India and economies that form part of the Association of Southeast Asian Nations (ASEAN) has propelled demand for greater leisure choices and new destinations.
According to the Cruise Lines International Association (CLIA), 2.1 million Asians will take a cruise this year. That’s a 21% increase from 2014 (1.7 million) and a 61% surge from 2012 (1.3 million).
Christina Siaw, SCC’s CEO, says: “The next development for the Asian cruise industry will be cruise lines dedicated to this market to cater to the burgeoning middle class. It’s already happening with the major cruise companies like Carnival Corporation and Royal Caribbean Cruises Ltd. in China.”
If the much-anticipated joint ventures between Carnival and China Merchants Group and between Ctrip and Royal Caribbean are anything to go by, it would appear that her forecast would be close to the mark. These companies are said to be developing the infrastructure that will accelerate the region’s cruising growth – not just through the creation of domestic lines, but also by readying regional destinations for itineraries. All this will benefit SCC.
Siaw explains: “Cruising is a very aspirational type of vacation. If you asked a person from China ten years ago whether they wanted to go on a cruise, it would not have been their first choice. They would more likely go to a regional country like Japan. That’s because it would only be their first or second time out of their country.
“Now they want to try something new. The average Chinese person has very short holidays so in many ways a mini-cruise suits them.”
SCC’s HarbourFront terminal is well poised to serve the growing number of cruise lines that call at its port, which is minutes away from the republic’s tourist attractions. Built in 1991 by the Port of Singapore Authority (PSA) at a cost of S$50 million, and refurbished extensively in 2012, HarbourFront is SCC’s main cruise and ferry gateway, serving the majority of the six million passengers who pass through the group’s terminals every year.
In the 23 years it has been operating its HarbourFront port, SCC has won 23 awards across the board. By 2006, SCC welcomed the ten millionth cruise passenger and in recent years, it has chalked up annual throughput of up to one million. Siaw does not believe in sitting on her corporate laurels.
“We are in the centre of an emerging cruise market in Asia,” she explains. “The industry here is taking off in a fairly spectacular way. The increase is fuelled by China and India, particularly China. The country has overtaken the US and Germany as the number one travel source market, and we obviously want to make sure that we are ready to cater to the new demand.”
Siaw speaks from more than two decades of experience. Prior to SCC, she held positions in companies in Hong Kong and Macau, including Cathay Pacific Airways, Zuji Enterprises and Macau.com. She took over the helm at SCC in 2011 with the intention of growing the company in key markets. Last year, the port processed 552,000 cruise passengers and it has the capacity for one million. In Siaw’s words: “The cruise industry in Asia is on the cusp of strong growth and we want to be well positioned for it.”
She puts the success of SCC down to its customer-centric approach. Whether it be a multimillion-dollar upgrading programme or a routine training drill, Siaw makes sure employees keep faith with her ‘customer is king’ mantra.
In 2012, SCC unveiled its S$14 million infrastructure upgrade which expanded the terminal’s operating area by 26%, sacrificing some retail space and doubling the number of immigration and check-in counters. The expansion boosted passenger clearance by 50%. And, as Siaw knows, happy people tend to spend more money.
“Shopping is a very popular activity of our customers,” she says. “Whether it’s duty-free luxury goods, snacks or souvenirs, people enjoy the choices on offer and the savings they can get from tax-free shopping at our terminal.
“Before or after a passenger takes their holiday, we have to maintain the high standards that the cruise lines provide. We don’t want them to be in a bad mood before taking their holiday and we certainly don’t want them to come off their holiday with a bump. So we create the best environment that we can.”
Getting the hardware right is only part of the story. The software at SCC goes for more regular upgrades to ensure that the customer-facing parts of the port are in harmony with its shiny new exterior.
Staff are trained to speak Malay, Mandarin and Bahasa Indonesia, instructed on customer profiles and given annual intensive customer service courses, to ensure seamless customer interaction. Each staff member has, on average, 34 hours of training every year.
“Training is not the only thing we do, but our entire philosophy is built around the customer,” Siaw says. “Last year we spent more hours training our staff than any other year.
“We believe that our people are the single most important asset contributing to our success. We invest substantially in customer service training, both in the classroom and on the job.”
The investment and hard work have not gone unnoticed. SCC has consistently won accolades from the national productivity and standards body of Singapore, which rates it among the highest in the country for service excellence.
SCC’s long-entrenched relationship with Asia-based Star Cruises is further testament to its success. Executives at Star have commended the facility for its efficient turnaround and how it deals with last-minute changes to scheduled plans. The relationship is one that Siaw wants to emulate across the terminal’s entire client base. “Our future is bright because of the prospects for Asia. If we position ourselves correctly, we can benefit from the growth of cruising in Asia,” she says.