Abstract
This report covers all cruises of two days or more marketed and/or sold in the North American market. Its general theme is that, although long-term growth is assured, the North American upward curve is likely to flatten as the market matures and as cruise companies broaden the range of their sourcing for passengers.
Discussed are market value, size and areas of segmentation; the financial performance of the major cruise companies; the marketing initiatives and plans of the key brands; the industry' s growth curve and current new building program; the key market drivers; and developments in the public perception of the cruise product. The report is a close-up look at the cruise market and the major players within this industry sector, and includes analysis based on unique consumer survey findings.
North America accounts for two thirds of cruise passengers worldwide; has topped 10 million passengers for the first time in 2006; and is set to reach 14 million passengers annually by 2011. Although less than 18% of North Americans have taken a cruise, the market generates $19 billion in revenue and contributes $32 billion to the US economy. An aging-and increasing-population should ensure long-term growth, but the market continues to face challenges from state legislators and environmental groups concerned about people and marine pollution issues.
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Abbreviations and terms
- Terms
- Executive Summary
- Snapshot of the market
- Build the ships and still they come
- Upping the ante
- North American market share eroding
- Destination still the key
- Texans take to cruising
- Market penetration still low--but for how long?
- Billion dollar industry
- The big three soon to be big four?
- Survey research--happy consumers; growing core of cruisers; keep perfecting the all-inclusive vacation
- A very bright future
- Market Drivers
- Overview
- Supply the key driver
- Figure 1: North American passengers by state (top six), 2001-05
- Figure 2: North American passengers by region, 1990-2005
- Figure 3: North American passengers from North American ports, 2003-06
- Figure 4: Awareness of number of close-to-home homeports, 2004 and 2006
- Figure 5: Perceived benefits of more North American homeports, 2006
- Figure 6: Impact of close-to-home ports on likelihood of cruising in next three years, 2004 and 2006
- To the core
- Changes in ethnic make-up
- Cruising to nowhere not the answer
- Figure 7: Factors influencing last vacation decision (out of 10), 2006
- Figure 8: Top cruise destinations (by passenger) from North American ports, 2003-06
- Hurricane fears or economic downturn?
- Figure 9: Cruise destinations marketed in North America, 2002-06
- Europe--the Caribbean alternative
- Alaska setback
- Hawaii, Bermuda and Mexico to follow Alaska lead?
- A broader view of Panama Canal cruising
- Market Size
- World plays catch-up with North America
- Figure 10: Ocean cruise passengers worldwide, 2003-06
- Figure 11: Worldwide cruise supply and demand, 2006-11
- Figure 12: New ships currently on order/option to 2011
- Figure 13: North American cruise industry capacity/carryings, 2003-05
- Figure 14: Capacity marketed in North America, 1990-2006
- Figure 15: North American cruise passengers, 1990-2006
- Figure 16: Global income/expenses of North American cruise industry, 2003-05
- Figure 17: Impact of cruise industry on U.S. economy, 2002-05
- Figure 18: Passenger/crew spending in the U.S., 2004-05
- Figure 19: On-shore spending generated by 2,000-pax cruise ship, 2003-05
- Market Segmentation
- Figure 20: New ships by sector, 1990-2009
- Figure 21: New berths by sector, 2003-09
- Figure 22: Trends in ship capacities across worldwide fleet, 2000-09
- Figure 23: Brands, their owners and market sectors
- Figure 24: Cruising costs, 2006
- Figure 25: Average cruise length taken by North Americans, 1981-2005
- Figure 26: Cruise duration trends and number of passengers--North America, 2003-05
- Figure 27: Regional shares by cruise length, 2003 and 2005
- Supply Structure
- Overview
- Figure 28: Cruise passenger nights by company and brand, 2003-06
- Figure 29: Largest cruise brands (berths) in North America, 2007-11
- Major cruise brands
- Carnival Corporation
- Figure 30: Carnival Corporation financial results, 2003-05
- Charters hit first quarter carryings
- Figure 31: Carnival Corporation, Q1-Q3 2005-06
- Figure 32: Carnival Cruise Lines (CCL) fleet/orderbook, 1 January 2007
- Draws back from size war
- First European venture
- Figure 33: Costa Cruises fleet/orderbook, 1 January 2007
- Winter in the Mediterranean
- Figure 34: Cunard Line fleet/orderbook, 1 January 2007
- Classy service
- Atlantic rovers
- Forty years on
- Figure 35: Holland America Line fleet, 1 January 2007
- Signature of excellence
- Figure 36: Princess Cruises fleet and orderbook, 1 January 2007
- Widest destination choice
- First world cruise in five years
- Repeat business high
- Balcony dining introduced
- Figure 37: Seabourn Cruise Line fleet, 1 January 2007
- New president
- Figure 38: Windstar Cruises fleet, 1 January 2007
- Degrees of difference
- Other Carnival brands
- Royal Caribbean Cruises (RCC)
- Figure 39: Royal Caribbean Cruises financial results, 2002-05
- Figure 40: Royal Caribbean Cruises--Q1-Q3 2005 and 2006
- Fourth quarter profit predicted
- Oceania bid?
- Figure 41: Royal Caribbean International/RCI fleet/orderbook, Jan 1, 2007
- Different routes to growth
- Mega flexibility
- Figure 42: Celebrity Cruises fleet/orderbook, 1 January 2007
- On-board product overhaul
- Ship swap
- Star Cruises Group
- Figure 43: Star Cruises Group financial results, 2002-05
- Figure 44: Star Cruises Group, Q1-Q2 2005 and 2006
- MSC bid for NCL?
- Figure 45: Norwegian Cruise Lines (including NCL America sub-brand) fleet/orderbook, 1 January 2007
- Youngest fleet
- Ten-pin bowling on new ship
- Hawaiian gamble
- MSC Cruises
- Fourth-largest cruise company
- Figure 46: MSC Cruises fleet/orderbook, 1 January 2007
- U.S. expansion postponed
- Luxury ship-within-a-ship
- Cruise brands not owned by top four companies (Carnival Corporation, Royal Caribbean Cruises, Star Cruises Group and MSC)
- Contemporary sector
- Figure 47: Disney Cruise Line fleet, 1 January 2007
- Med sells out in North America
- Premium sector
- Figure 48: Oceania Cruises fleet, 1 January 2007
- Luxury sector (by capacity)
- Figure 49: Regent Seven Seas Cruises fleet, 1 January 2007
- All drinks now included in price
- New ship on horizon
- Figure 50: Crystal Cruises fleet, 1 January 2007
- Figure 51: Silversea Cruises fleet, 1 January 2007
- New source markets
- Key partnerships
- Figure 52: SeaDream Yacht Club fleet, 1 January 2007
- Bid for Seabourn ship?
- Sail-cruising sector
- Figure 53: Star Clippers fleet, 1 January 2007
- Destination (soft adventure/expedition/coastal cruises) sector
- European programs
- Coastal start-up
- Budget sector
- Residential cruise sector
- River cruise sector
- Shipbuilding
- Changing nature of cruise fleet
- Issues against mega-ships
- Figure 54: Trends in new ship prices, 2004-11
- Figure 55: Cruise shipbuilders' market share of current orderbook, 2006
- Advertising and Promotion
- NCL--Against the tide
- Figure 56: Norwegian Cruise Line--1, 2006
- Figure 57: Norwegian Cruise Line--2, 2006
- Trumped on TV
- Hawaiian wedding
- Carnival tries to corner the "fun" market; the Queen Mary II sells a "once
in a lifetime" experience
- Figure 58: Carnival Cruises, 2006
- Figure 59: Queen Mary II television travel show, 2006
- Royal Caribbean promises unlimited action
- Figure 60: Royal Caribbean--1, 2006
- Figure 61: Royal Caribbean--2, 2006
- Figure 62: Royal Caribbean--3, 2006
- Figure 63: Royal Caribbean--4, 2006
- Figure 64: Royal Caribbean' s Celebrity Cruises, 2006
- Retail Distribution
- Figure 65: Use of travel agents when booking cruises, 2002-06
- Figure 66: Use of travel agents for booking non-cruise vacations, 2002-06
- Figure 67: Information sources influencing last vacation choice, 2002-06
- Figure 68: Would consider using Internet for cruise planning/booking, 2004
- Figure 69: Cruise distribution channels providing best service, 2006
- Figure 70: Typical contact method, 2002-06
- Figure 71: Cruise distribution channel providing best prices (perception), 2006
- Figure 72: CLIA travel agency affiliates, 1990-2006
- ICCL absorbed into CLIA
- Appreciating travel agents
- Online training for agents
- The Consumer
- Introduction
- Summary of consumer survey highlights
- Cruises taken in the past three years
- Figure 73: Incidence of taking cruises and number taken in past three years, by gender, May 2005-June 2006
- Figure 74: Incidence of taking cruises and number taken in past three years, by age, May 2005-June 2006
- Figure 75: Incidence of taking cruises and number taken in past three years, by income, May 2005-June 2006
- Figure 76: Incidence of taking cruises and number taken in past three years, by race/ethnicity, May 2005-June 2006
- Figure 77: Incidence of taking cruises and number taken in past three years, by cohort, May 2005-June 2006
- Why people go on cruises
- Figure 78: Incidence of taking a cruise in past five years, December 2006
- Figure 79: Reasons for having taken a cruise, by gender, December 2006
- Figure 80: Reasons for having taken a cruise, by age, December 2006
- Figure 81: Reasons for having taken a cruise, by income, December 2006
- Why people don' t go on cruises
- Figure 82: Reasons for not taking a cruise, by gender, December 2006
- Figure 83: Reasons for not taking a cruise, by age, December 2006
- Figure 84: Reasons for not taking a cruise, by income, December 2006
- Figure 85: Reasons for not taking a cruise, by race/ethnicity, December 2006
- What would entice non-cruisers to go on a cruise
- Figure 86: What would entice you to go on a cruise, by gender, December 2006
- Figure 87: What would entice you to go on a cruise, by age, December 2006
- The Future
- Bright future--interest in cruising up 43%
- Figure 88: Projections for core market in next three years, 2004 and 2006
- Figure 89: Projections for affluent adults 25+ with HHI of $60K+ and with HHI of $80K+, 2004 and 2006
