The number of cruise passengers has been growing almost twice as fast as the world international tourists arrivals in the last decade, according…
The number of cruise passengers has been growing almost twice as fast as the world international tourists arrivals in the last decade, according to a new
A direct competitor to sun & sand holidays, the cruise industry has an enormous momentum and it is believed that North American and European demand will surpass 12 million passengers by the end of 2010. The North American outbound market still offers medium term growth but all analysts agree that Europe represents the largest potential growth rates in the short term.
The cruise industry is characterized by a strong process of horizontal consolidation with four large dominant groups: Carnival Corporation, Royal Caribbean Cruise Line (RCCL), P and O, Princess and Star Cruises. The main cruise companies rely on travel agents for selling their product, while the specialized cruise companies prefer to maintain direct contact with the consumer.
Some future trends for this industry are:
Faster growth in European demand then North American demand, decreasing the average age of the passengers, increasing the demand the demand for short cruises and boosting the Mediterranean destination boom.
An increase in the size of the cruise ships, impeding some cruise ships from crossing the Panama Canal and increasing the investment required in port facilities. This trend towards larger cruise ships will also create more competition with resorts on land-some of these vessels including mini golf, aquariums and even ice rinks.
Consolidation of the cruise industry which will cause the disappearance of the medium sized independent shipping companies, therefore strengthening the position of the larger cruise operators.
The full study will be published in September as part of the WTO/s Tourism Market Trends series.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.