THE STATE OF THE CRUISE INDUSTRY IN 2014: GLOBAL GROWTH IN PASSENGER NUMBERS AND PRODUCT OFFERINGS

Cruise Industry Investment in Ship Innovations; Varied Market Segments Yield Impressive Outlook

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Industry Policies/Regulatory
& Legislative Issues
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Fort Lauderdale, FL — January 16, 2014 Untitled Document

As the cruise line industry continues to strengthen its global presence and with the economy in an ongoing recovery mode, Cruise Lines International Association (CLIA) and its cruise line members are looking forward to a positive year of growth with a 2014 passenger forecast of 21.7 million worldwide guests on CLIA’s 63 member lines, according to data released today in the association’s annual State of the Cruise Industry findings. To meet demand, these member lines will introduce 24 new ships in 2014-2015 adding a total passenger capacity of 37,546, representing a capital investment of approximately $8 billion in ocean going and river cruise categories.

“The global cruise industry is at an exciting juncture with strong consumer interest in cruising and significant cruise line investment in a diversity of exciting ships that travel to the most exotic locations in the world and offer one-of-a-kind vacation experiences,” said Christine Duffy, CLIA President & CEO.

Industry Growth
CLIA 2013 global passenger numbers are estimated at 21.3 million, with a 2014 forecast expected to reach 21.7 million passengers. North America is the world’s biggest cruise market (55.1 percent passenger source share) – with significant growth of internationally sourced passengers – especially Europeans at 6.4 million.

Global Passengers
While North America remains the dominate source for cruise passengers, international source markets are demonstrating accelerated passenger demand for cruising:


2013* Top Ten CLIA Cruise Passenger Source Market Overview
*2013 Passenger estimates (ooo’s)

Country

2013 Passengers

Global Passenger Share

5 Year % Change

2013 Passenger Source Rank

United States

11,016

51.7%

15.1%

1

UK & Ireland

1,719

8.1%

16.4%

2

Germany

1,637

7.7%

80.5%

3

Italy

860

4.0%

26.1%

4

Australia

760

3.6%

130.3%

5

Canada

734

3.4%

1.3%

6

Brazil

732

3.4%

84.8%

7

Spain

600

2.8%

20.7%

8

France

520

2.4%

67.7%

9

Scandinavia & Finland

350

1.6%

184.6%

10

 



Cruise Ship Deployment    
The leading cruise destination in terms of ship deployments remains the Caribbean, accounting for 37.3% of all global itineraries followed by the Mediterranean (18.9%), Northern Europe (11.1%), Australia/New Zealand (5.9%), Alaska (4.5%), Asia (4.4%) and South America 3.3%).

In 2014, markets experiencing increased ship deployments include the Caribbean (+12%), Northern Europe (+5.2%), Asia (+31.6%) and Australasia at +22%.
    
New Ships
Globally, the 2014 CLIA fleet is comprised of 410 ships, up from 393 ships last year, and includes a wide variety of vessels – from large- and mid-sized to small and intimate.   The fleet covers all line categories: contemporary, premium, niche and destination focused, river cruises, expedition and adventure. Additionally, in 2014 and 2015, CLIA lines will introduce 24 new ships, representing a total capital investment of approximately $8 billion. Twelve additional new CLIA global and regional ships (Confirmed Orders and Options) for 2016 to 2018 represent an additional 33,192 passenger capacity and an investment estimated at $7.9 billion in ship development. 

New CLIA Global and Regional Member ships include:

Ships Launching in 2014: 16 Ships - $3.9 Billion Investment


Cruise Line

Ship

Passenger Capacity

AMA Waterways

AmaReina

164

AMA Waterways

AmaSonata

164

Avalon Waterways

Avalon Illumination

166

Avalon Waterways

Avalon Impression

166

Avalon Waterways

Avalon Poetry II

128

Costa Cruises

Costa Diadema

3,700

Norwegian Cruise Line

Norwegian Getaway

3,969

Pearl Seas Cruises

Pearl Mist

210

Princess Cruises

Regal Princess

3,560

Royal Caribbean International

Quantum of the Seas

4,180

Scenic Cruises

Scenic Gem

126

Silversea Cruises

Silver Discoverer (Pre-Owned)

120

Tauck River Cruising

ms Inspire

130

Tauck River Cruising

ms Savor

130

TUI

Mein Schiff 3

2,500

Uniworld Boutique River Cruise Collection

S.S. Catherine

159

TOTALS

 

19,540


Ships Launching in 2015: 8 Ships - $4.1 Billion Investment


Cruise Line

Ship

Passenger Capacity

American Cruise Lines

TBD

150-200 (2X)

AIDA

Prima

3,250

Compagnie du Ponant

Le Lyrial

265

Norwegian Cruise Line

Norwegian Escape

4,200

P&O

Brittania

3,611

Royal Caribbean International

Anthem of the Seas

4,180

TUI

Mein Schiff 4

2,500

TOTALS

 

18,006

Ships Launching in 2016-2018: 12 Ships - $7.9 Billion Investment


Cruise Line

Ship

Passenger Capacity

AIDA

TBD

3,250

American Cruise Lines

TBD

TBD (2X)

Carnival Cruise Lines

Carnival Vista

4,000

Holland America Line

Pinnacle Class

2,660

Norwegian Cruise Line

Norwegian Bliss (Breakaway)

4,200

Regent Seven Seas Cruises

Seven Seas Explorer

738

Royal Caribbean International

Oasis Class 3

5,400 (2X)

Royal Caribbean International

Quantum Class

4,180

Seabourn Cruise Line

TBD

TBD

Star Cruises

TBD

3,364

TOTALS

 

33,192


Travel Agent Initiatives
A key factor in the cruise industry’s growth is its travel agent partners.   Duffy stressed CLIA’s continuous commitment to its more than 13,500 global travel agency members who reach over 50,000 agent members. “Travel agents are the primary distribution channel for cruise sales and remain critically important to the cruise lines – with a majority of cruise bookings made by travel agents,” added Duffy.

In 2014, CLIA’s agent initiatives will include continuing the redesign of its agent educational curriculum and agent certification programs to ensure that both education and certification remain highly relevant for the agent community.   In addition, CLIA will actively promote CLIA certification to consumers, reminding them of the benefits and importance of working with a certified CLIA professional.

Highlights of a December 2013 survey of 500 CLIA agents showed positive indicators and  optimism for 2014 customer cruise interest and sales, including:

  • More than 60 percent of survey respondents say their 2013 overall travel sales ranged fromgood (steadily improving over the recent past) to excellent (their best year ever).
  • 92 percent anticipate that their overall business in 2014 will be good or better than 2013
  • More than 70 percent expect their cruise sales to range from good to excellent in 2014
  • 87.7 percent reported similar or increased new cruiser sales
  • Consumers, according to agents, continue to have strong interest in all types of cruising.  High interest in contemporary cruising was expressed by 76.7 percent of clients, followed by premium cruise lines (67.7percent) and destination/niche cruise products (66.2 percent).   One of the most dramatic finds was the high interest in river cruising by 61.3 percent of clients.
  • CLIA training continues to be a priority for member agents. Eighty-two percent have taken CLIA training and 80 percent say that training is extremely important to their business
Cruise Industry Trends
Top 2014 cruise trends identified by CLIA, its member lines and travel agents include:

  • Improved technology to lower the cost of onboard communications and provide more efficient passenger servicing
  • First-time passenger growth coming from younger generation travelers – especially  Millennials
  • More luxury cruising (luxury category ships, onboard upgrades) stimulated by an improving economy and increased consumer confidence
  • Growth of multigenerational  and celebration travel as well as social/affinity groups
  • More all-inclusive options and packaging in accommodations, services and amenities
  • Active vacations at sea with extreme and soft-adventure excursions, longer stays in ports for added sightseeing and high-energy onboard facilities
  • Exotic locations driving new itinerary competition and cruise ship deployment    
  • Hot destinations for 2014 according to CLIA cruise line members include:  Trans Pacific, World Cruises, U.S. Rivers, South America, Antarctic, Middle East, Canada/New England, Africa and Exotic Rivers

CLIA Globalization
After its first successful year as a global association, CLIA, serving as the voice and advocate of the worldwide cruise industry, has increased its presence in Europe with additional associations established in German and Spain, with Italy to follow later in 2014.

“The primary objective then and now is to support a ‘One Industry, One Voice’ approach to policy development, advocacy, communication, issues management and industry promotional activities,” said CLIA President & CEO Christine Duffy. “CLIA global lines continue to bring to market an exciting offering of vessels that are stimulating an impressive interest in cruising as well as securing the cruise industry as one of the most in-demand sectors of the vacation market worldwide.”  

New for 2014 is the formation of a CLIA Global Ports Committee comprised of itinerary planning and port development executives of the cruise lines and chaired by Giora Israel, Senior Vice President of Ports and Destination Development for Carnival Corporation. The committee will focus on creating opportunities to develop dialogue with port operators, port authorities, government, and port-related service providers on issues of mutual interest.

“Ports are making major commitments to the success of the cruise industry with significant capital improvement in modernizing existing ports and building new ones that are technologically and environmentally advanced, while also being very cruise and passenger friendly,” said Duffy. “This committee will help to more fully integrate port development and operations with the larger picture of the cruise industry.”

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