Cruise Ship Companies Change Strategies in Mainland Alaska



It's Musical Chairs As Large Companies
Shift Tourism Strategies In Mainland Alaska


Holland America, Princess and Westmark are now changing their Alaskan land tour strategies. Large companies see "Alaska" as a strategic chessboard. But a single change on their part can have a domino effect in communities across the state. Larger companies make their decisions based on logistics and their business interests -- not on the unintended consequences (positive or negative) on Alaska's communities. Because of potential ramifications on our communities, Alaska's small businesses should stay aware of changes the large companies are making. 

Park area hotel.
Cruise ship passengers who are on an Alaskan land tour, wait for buses at their Denali National Park-area hotel.




Eagle City And Dawson: The elaborate bus trip (with pilot cars) up the 160 miles of long, partly dirt road known as the Taylor Highway, topped off by a great trip on the Yukon River, to Dawson City -- on the Yukon Queen II -- came to an end in the spring of 2012. According to the Fairbanks Daily News-Miner, Holland America is now stopping its bus runs between Dawson City and Fairbanks. They're now going to fly people between Fairbanks and Dawson. The Holland America spokesman told APRN contributor Tim Ellis, "We've been doing some research with our guests, trying to figure out where to take our product up there, the land-cruise tours, and what people were looking for. And we were getting a lot of research and answers about wanting to spend more time in destinations."

Tok Sees The Bright Side: Westmark, a division of Princess & Holland America, is closing its hotels in both Beaver Creek and Tok. Now that the buses aren't going to Eagle, the 2-story Westmark Tok Hotel, an ATCO structure that's been there since the 1980's and housed Westmark passengers overnight, will be closing. You might think that Tokites would be worried. But, says Madge Kelleyhouse, who has run the Tok Chamber Visitor Center for many years, "As far as most businesses, few will suffer." She added, "Westmark travelers came into Tok so late at night and left so early in the morning that they rarely came into contact with locals." In fact, someTok people think that with the Westmark closed down, local hotels will get increased business.


Delta Junction & Nenana: Both Delta and Nenana are on the Tanana River. Delta is on the eastern side of the state and Nenana is on the western side of the state, on the Parks Highway.  Both towns offer unique attractions. Nenana has a riverside Athabascan cultural center, and Rika's Roadhouse in Delta Junction is the state's most complete historic roadhouse complex, with all the original buildings intact, on location.The juggling of Holland America and Princess itineraries is affecting both communities. Delta Junction's Rika's Roadhouse restaurant won't be feeding bus travelers any more. Yet, over the past few years, Nenana has been gaining visitors through repeated buses stopping there, as they travel between Fairbanks and Denali Park.


Holland America-Princess Takes Over McKinley Chalet Resort: For those who don't live or work near Denali National Park, the name "Aramark" may not mean much. Aramark is a huge, Philadelphia-based corporation that is the current concessioner at Denali National Park. Aramark runs the school buses that travel into the Park, and operates some of the buildings in the Park. Until recently, it also ran a very large hotel out on the Parks Highway, by the entrance to the national park -- the 345-room McKinley Chalet Resort. Holland America Princess is taking over that hotel. Princess will now own 1,100 rooms in the Denali Park area.


Turnaround Railroad Spur In Healy For Holland America-Princess: The Alaska Railroad has been putting up posters in gas stations in the Denali Park/Healy area. The flyers show maps of a new proposed railroad spur that's being put in for Holland America-Princess. According to the Alaska Railroad's literature, "Growth in rail passengers to Denali National Park is projected to continue, and the proposed project would support passenger train service to this popular destination. The existing platform at Denali Park cannot accommodate longer passenger trains, so growth in rail visitors requires more, as opposed to longer, trains. Trains through Denali currently operate daily during passenger season, and continue on to either Anchorage or Fairbanks to be serviced and turned around. Beginning in 2014, ARRC (Alaska Railroad) will run passenger trains strictly for HAP (Holland America-Princess), rather than hauling HAP passenger cars on ARRC's daily Denali Star train. The proposed Healy improvements would allow trains to turn and be serviced at Healy, rather than traveling to Anchorage or Fairbanks for turning and servicing…" Holland America-Princess passengers traveling between Denali Park and Fairbanks will go by bus.
Healy Turnaround Track Expansion chart at a Healy
gas station.



Alaska & Canada Westmarks Being Renovated: There are going to be upgrades at the Westmark hotels that will be staying open. The Fairbanks Daily News-Miner reported that, according to a Holland America spokesman, the company will be upgrading the McKinley Chalet in Denali -- as well as the Westmark hotels in Fairbanks, Skagway and Whitehorse.


What Does All This Mean?
When you see large companies making changes because they're anticipating a new and larger target market, this means that things are finally moving ahead. For everyone.

Just like larger businesses, we smaller businesses have to ask ourselves, "How can we become more appealing to Boomers and Independents?"  Boomers are tailor-made for Alaska's small businesses. They think that traveling is not a luxury, but a necessity. Plus, they already have traveled quite a bit, and are confident they can make their own decisions, and travel independently. They like doing things exciting. They want to see the "real" Alaska.  They like having fun; it's not good enough to just be here.  They like being impulsive, and doing something unplanned or unusual. They want respect and attention. They like being comfortable. They've got money -- and they'll pay for an experience. They don't like being conned, or tricked: in other words, they'll be happy with reality, but not with exaggeration. And, finally, with Boomers, fellow Alaskans, the Military, independents from Outside and incoming independent travelers from around the world, one size does not fit all. They're niche travelers.  
(Adapted from The Association of Travel Marketing Executives, 13 Truths About Baby Boomer Travel)

To make our Alaska businesses a success, we have to match our businesses to our customers. This is what the "big guys" are doing, and what we have to do, too. We want to find, and match, our businesses to customers who will be satisfied with us. This is not as hard as it seems.  In many ways, we're almost there. That's because WE are the people they come to see -- they're here to see Alaska.

Inside the Tok Mainstreet Visitor Center.