Magic Johnson Speaks To Cruise Industry About Minority Travelers

By ADRIAN SAINZ
Associated Press Writer

FORT LAUDERDALE, Fla. (AP) -- Magic Johnson was known for his uncanny vision on the basketball court, finding open players and easy scoring chances almost at will.

Now, as a businessman with a stake in the travel industry, Johnson sets his eyes on another opportunity - to make the leisure industry more accessible to minorities and tap into their spending power.

Johnson, at 6 feet 9 inches, was the tallest person in the room Friday as he spoke to a group of cruise industry members and travel agents at the cruise3sixty conference in Fort Lauderdale.

"When you think about minorities, yes, we're traveling, but we could do it even more often if we have more minority buyers and sellers in the industry," Johnson said. "We need more minorities selling travel."

The former All-Star point guard, through The Magic Johnson Travel Group, has created a network of home-based travel agents who serve minority customers.

Johnson's goal is to bring more jobs and money into minority communities by attracting more minority travel agents into the leisure industry. He said Hispanics and blacks have a combined spending power of $1.9 trillion but much of that spending is directed outside their communities, which need capital to build or improve homes and businesses.

"In general, that (travel) market is underserved and should grow," said Lynne Biggar, senior vice president and general manager of American Express Consumer Travel Network USA. "There's a lot of untapped opportunity."

Johnson has built successful businesses by bringing consumer opportunities to urban markets where minorities live. He has joint-ownership in 108 Starbucks coffee stores, owns movie theaters and formed a partnership with 24 Hour Fitness.

"Everybody thought they could not make money in urban America, and that is wrong," Johnson said. "You just have to know how to speak to that customer."

Johnson must realize that the cruise industry is a growth industry. Only 16 percent of Americans have taken a cruise, according to an industry study, and with 33 ships being added in the next four years, the industry needs to spur demand to keep up with the increased capacity of some 80,000 berths by 2011.

Ships have grown in size and are offering more diverse on-board activities such as rock climbing and surfing, and more unique destinations, from Rio de Janeiro to Shanghai, China.

Richard Fain, chairman and CEO of Royal Caribbean Cruises, said earlier this month that cruise lines must find a broader base of travel customers by targeting specific groups such as minorities in marketing efforts.

"When I look at some of these ships and some of these trips, and the ships keep getting longer and bigger and taller, this is what minorities want - a chance for a trip of a lifetime," Johnson said. "You just have to take it to them and explain to them how wonderful a time they are going to have."

this is interesting. there was an article this week on college students moving Spring Break to the cruise lines. Some of the cruise lines are not thrilled that college students are taking over their ships. I don't know how much cruise lines are interested in their "regular" passengers mixing with nontraditional cruisers.

Cruise ships ain't as angry as they wanna let on about having them on ... In another few years, there will be even more Spring Break Exclusive Cruises than already exist right now.

Some of these older ships are already (& going to be) looking for niches, as these new Megaships they're building come into the marketplace to go after the upscale clientele ... And that's why folks like Rosie O'Donnel - & Tom Joyner - can have entire ships devoted to specific markets, causes, etc. now.

Plus - The increase of AA's and others selling under the YTB Travel unbrella will pretty soon warrant the attention of a number of AA specific cruises - once enough of them get their heads together and put them together.

Don't be surprised if you don't see a growing number of HBCU Alumni specific cruises in the near future - possibly even spearheaded by Magic himself.

(FTR "BOG" - A few years ago, it was suggested to consider having one of your future NAA Conventions exclusively on a cruiseship ... But that was deemed too "controversial" for some people to fathom at the time.)