A few weeks ago, I deviated from my retirement research to focus on another area of interest – the cruise industry. The Cruise Canada New England Alliance held its 2013 Symposium in my city and I was privileged to attend this three-day conference that featured discussions with executives from cruise lines, port authorities, and other industry stakeholders.
As I listened to the presentations, I could not help but think of the applicability to the retirement industry. This was a discouraging exercise.
Let’s backtrack. The Cruise Canada New England Alliance consists of port authorities of five separate regions—New York City, Boston, Maine, Atlantic Canada, and the Saint Lawrence. Between them, they represent nearly 40 ports of call in 3 U.S. states and 5 Canadian provinces. The Alliance was established in 1988.
All of the members share the goal of maximizing passenger traffic to their ports. After all, an influx of tourists can have notable financial benefits for a locale. For example, the Historic Charlottetown Seaport in Prince Edward Island estimates that cruise ship calls during 2012 generated $13.4 million for the province. Therefore, it might be reasonable to draw the conclusion that these port authorities are competing for passengers.
Yet, that is not the case. Before you can get cruise ships to commit to regular visits to your port, you must first convince the cruise lines that the region itself is worth considering. And, that is the goal of the Cruise Canada New England Alliance.
And, that also exemplifies a key difference between the two industries I follow. In the retirement industry, financial services companies have a number of products worthy of consideration for a retirement portfolio, and many can fit together as neatly as a cruising itinerary. However, there is a strong tendency to point out the disadvantages of competitors’ offerings rather than join forces to explain how to address the retirement issue in the first place.
Not every product is right for every investor who is saving for retirement. And, any product recommendation should not be considered by itself—that is, it needs to be considered for its role in the overall journey. In that area, the retirement industry has a lot to learn. In the meantime, I am continuing to weigh my options for my next Canada New England cruise.