Monday, July 30, 2012

Growth of the Cruise Line Industry


The market talks to each other, influences each other. So progress gets amplified.

The more people who have cruised, the more who will tell others, 

the more who will want to cruise too.


Worldwide, the cruise industry has an annual passenger compound annual growth rate of 7.38% from 1990 – 2015. Growth strategies to date have been driven by shorter cruises, more local ports, more destinations and new on-board/on-shore activities that match demands of consumers.  The industry is also expanding rapidly internationally and has yet to maximize all its online potential.  “Mega-ship” building is increasing “buzz” about cruising as well as the number of available passenger berths, while further lowering the cost-of-sailing per passenger with economies of scale.   These activities help increase penetration in a core North American market that still has growth potential. Only 52.9% of the target North American market (or 23.1% of the whole U.S. population) has ever taken an ocean cruise.  All the cruise ships in the entire world filled at capacity all year long still only amount to less than ½ of the total number of visitors to Las Vegas
Capitalizing on the capacity growth will be based on sound marketing strategies and brand diversification using a segmentation model of the marketplace,identifying the right pods and then communicating the right value proposition to them.  These and other strategies for industry growth will continue to propel the industry into the future.
Shipbuilding Summary
A total of 7 new ships were added in 2012 with a total passenger capacity of 18,499.  From 2013 to 2014, a net of 8 more new cruise ships will come online adding 24,508 lower births, or 5.8% to passenger capacity.  The ships from 2013 to 2014 will add $2.3 billion in annual revenue to the cruise industry.
2013-2014 New Ships
Cruise LineShip NameDeliveryLower Berths
PrincessRoyal PrincessSpring 2013                 3,600
NCLNorwegian BreakawaySpring 2013                 4,000
AIDAUnnamed Spring 2013                 2,192
Hapag-Lloyd Europa 2Spring 2013                   516
PrincessUnnamed Spring 2014                 3,600
NCLNorwegian GetawaySpring 2014                 4,000
Tui CruisesUnnamed Spring 2014                 2,500
Royal CaribbeanUnnamed Fall 2014                 4,100
Total             24,508

One billion tourists key to creating jobs and stimulating the economy

The one billion international tourists expected to travel this year are a vital force for economic growth and social welfare said UNWTO Secretary-General, Taleb Rifai, opening the ITB Travel Trade Show (Berlin, Germany, 6 March 2012). 



“By the end of 2012, one seventh of the world’s population will have crossed international borders as tourists in a single year,” said Mr. Rifai in his keynote speech at the official opening of ITB.
This “extraordinary number” will contribute to more jobs, higher income possibilities and countless opportunities for development, so critical at this time of economic uncertainty, he added.
"With growth comes responsibility," continued Mr. Rifai. Tourism, if properly planned and managed, can be one of the most promising sectors for achieving a more economically, environmentally and socially sustainable future, he said.
“Imagine how business models would be transformed if one billion people demanded sustainable practices from hotels and tour operators. Imagine how many would benefit if one billion people bought local produce or hired a local guide. These are small actions, but given the size of our sector, their impact would be huge.”
Referring to the challenges facing international tourism as it reaches one billion, the Secretary-General spoke of the many people still facing barriers to travel. “Complicated, lengthy and overpriced entry formalities are making it extremely difficult for tourists, especially from emerging economies which are leading growth in terms of outbound markets, to travel,” said Mr. Rifai, adding that obstacles such as  burdensome visa processes are not just a barrier to travelers, but to “growth, job creation and free trade.”
The Secretary-General called on the tourism sector to unite around the issue of travel facilitation as a means to stimulate demand and, as a result, create jobs. “Travel facilitation must top our agenda and we must speak together on this if we are to be heard at the highest levels of decision-making,” he said. “It is in this belief that UNWTO has joined the voices of the sector such as the World Travel & Tourism Council (WTTC), the International Air Transport Association (IATA), the International Civil Aviation Organization (ICAO) and the World Economic Forum (WEF), to advance this important issue.”
Berlin, 06 Mar 12