On The Deck: Soren Langelund

The rise and rise of small shipping cruising is a phenomenon that has not gone unnoticed. The trend has precipitated a rise in growth which has been supported by higher price points and generous agent commissions. Take a step back and while one part of the industry is having a noticeably tumultuous time with the trade – there is a sector which is firmly embracing it. Founded four years ago, eWaterways is one company which has definitely supported this movement. We spoke to Soren Langelund, co-founder and COO to discuss the trend and why it’s been so successful.

Can you describe your role within the company and what that entails?

I’m co-founder of eWaterways and my role involves everything that’s to do with the operational side of the company. So, from contracting to IT maintenance and building systems; I also look after the sales teams too!

Could we get a brief history of the company?

We started the company about four years ago. It stemmed from Daniela (Wagner) and I working for a number of different companies where we’ve experienced huge growth that has ended up with the owners selling the company for huge profits. I’ve been with two companies which have been bought by Cendant for instance. So Daniela and myself, both independently, came to the conclusion that it was a good time to try something on our own. We started a management consultancy company and came across an opportunity to represent niche small companies. There was no aggregator.

How much opportunity was there?

There are around 26,000 small ships in the world which are licensed to carry cruise passengers. They go from three cabins up to 150-200. It is a significantly higher inventory than all of the big ships put together. That was where our opportunity came from. The smaller companies lack the funds to pay for an international marketing platform so we managed to sign up 1,200 cruise ships that covered all areas of the world.

What’s the mix of vessels eWaterways represents?

Our biggest demographic is definitely river cruises but we also sell coastal itineraries too. There’s also expedition cruises along the arctic, Antarctic and Amazon too. These range from the luxury vessels all the way through the really gritty stuff. So Compagnie du Ponant vessels going all the way through to Atomic Icebreakers!

How strong is the small ship sector right now?

It is by far the fastest growing area within cruise. This year in rivers there are 23 ships being launched. We see an ever increasing number of people that have previously cruised on big ships that get tired of cruising with 3,000 of their best friends. They want a far more intimate experience. They don’t have waterparks but they do have Michelin style restaurants.

Do you think in the past that not enough people knew about small ship cruising?

In the past I don’t think that there was anyone really beating the drum for river cruising. That hasn’t really changed until we’ve seen a more concerted effort from people at the PSA to raise the profile of river cruising. It’s had a very big take-up from international agencies as a result of the press these events have generated.

How can your agents be successful?

We can install our agencies with their own white label sites if they wish. We will do that for free. For companies such as Flight Centre – they’re using our technology which we rebrand as theirs too. We have about 400 companies that are using our content but in their liveries. It’s one way of supporting our partners. Another way is our core team which is our agency support. They know everything that your agents will need to know. Then we have a portal which will is also a brilliant source of information.

What are commissions like with eWaterways?

The niche cruise industry is not discounted to the extent that the bigger ship companies have done. So if you can get US$60 for making a booking on a big ship booking, there is no decent profit there. On top of this the big ship firms have been driving business away because of commission cuts. We thought this would happen because of what happened in the big hotel chains. Our product isn’t discounted and also generally has about 10-12% commissions attached so agents can generate hundreds and even thousands of pounds per booking.

How do you spot a potential small ship customer?

It’s all about knowing your customer. If you know your customer then you’ll know what their preference for travel is. If you’ve got a couple and the wife loves to go on the high seas but the husband is always getting sea sick then maybe river cruise would be a better option! The mobility level of your client is also very important – do ships have lifts? Is there a decent lounge? You need to know the product and your clients.