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Market Research (Cruise Market Overview) Market Research (Cruise Market Overview) Presentation Transcript

  • MARKET RESEARCH(CRUISE MARKET OVERVIEW) Aurimas Šumbrauskis 2013 Portugal
  • Overview  In 2009, the global recession caused an unprecedented drop in travel and tourism value sales globally, leaving no region unscathed.  Asa highly discretionary item, travel is usually the first to be cut off to conserve cash.
  • Reaction Cruises responded by discounting: higher passenger volumes but lower margins
  • Value-for-money RESULT: the fact that pricing declined significantly and cash-strapped passengers did not spend much onboard impacted total sales. As a result, cruises quickly switched the focus of marketing strategies from discounts to tempting value-for-money offers.
  • Crysis
  • What about Asia?  Asia Pacific: positive 3.6% real GDP growth rate in 2009  Dynamic emerging economies such as China, India, and Indonesia. A key growth market for the global cruise industry: population over 3.5 billion people increased desire to travel
  • Growth
  • Winners and Losers
  • Europe market  Overall,Europeans are realising the value proposition, quality and variety of choices cruises can offer when making travel plans.
  • Europe market  It is also worth noting that cruise demand in Europe has not yet reached its full potential given its total population surpasses that of the USA and holidays are longer.
  • Europe market  Additionally, the region offers unique and easily accessible cruise destinations. Indeed, industry experts believe the total number of passengers carried in Europe is expected to jump from 4.9 million to 10 million by 2020.
  • Growing markets  Despiteemerging from a much lower base, Asia Pacific and Latin America are expected to achieve strong long- term growth in cruise demand.
  • Mediterranean  Although it seems positive at first, the non-stop growth in cruise capacity is pressuring overall pricing in the Caribbean and forcing cruises to deploy capacity to other regions such as the Mediterranean in search of higher operational margins.
  • Bahamas Growth - 45%:  increased popularity of shorter and cheaper cruises among cash-strapped travellers  consequent shift in capacity to that specific destination.
  • Highly Consolidated Industry  Passengers  Profit
  • Additional revenue
  • Discounts  Discounts → volume  But the lack of ancillary revenues, such as sales of alcohol onboard and excursions at land destinations, signalled a more cost-conscious cruise traveller.
  • Revenue structure
  • Global market share
  • Carnival – the leader  11 brands: Carnival Cruise Lines, Princess Cruises, Holland America Line, Costa Cruises, P&O Cruises, Cunard Line, Seabourn Cruise Line, Ocean Village, AIDA, P&O Cruises Australia and Iberocruceros
  • Segmentation
  • Best Value for Money  Additionally, the all-inclusive, multi-destination package offered by cruises is more attractive during periods of economic slowdown, when hotels are forced to aggressively discount to boost demand.
  • Cruises at a Glance
  • Breaking the Stereotype  Stereotype: elderly, rich and famous clients.  Main demographic group: 50-60 year-old passengers FUTURE: Younger generation that is interested in more dynamic activities such as adventure and eco-tourism, water sports and mountain hiking. HOW:  new ship designs  cruise themes tailored to young people  increasingly adopted social networking tools
  • Going to YOUTH
  • Additional revenues  Alcohol  Casino  Land excursions  Spa treatments  Entertainment  Nightclubs  Restaurants
  • River cruises
  • River cruises  Much smaller ships  ~150 passengers  Cultural needs
  • Peter Deilmann Cruises  Offersprogrammes on the Rhine, Rhône, Saône, Moselle, Danube, Vltava, Elbe, and Oder rivers.  Themed cruises: hiking, biking, golf, music and gardening.
  • MICE Cruises – A New NicheEvolving  greater dynamism and interaction  open spaces  close interaction with natural settings  off-board activities  visits to a wide variety of destinations during a single MICE event.
  • Main Advantages of MICECruises  Mobile five-star hotel  Large savings on land transport  All-inclusive meals and beverages  Free help and guidance from cruise members  Easier to maintain a schedule since all participants are onboard  State-of-the-art facilities with fully- equipped conference rooms/theatres
  • Niche Cruises  Themed Cruises  Special Interest Cruises  Charter Cruises
  • Themed Cruises  diversifytheir consumer base  larger consumer base  encourage repeat sales
  • Themed Cruises TOP3?  Wine  Culinary  Health and wellness.
  • Special Interest Cruises  specifictype of activity  that appeals to a select group of people  K9 college cruises  chocolate cruises  motorcycle cruises  running cruises  equestrian cruises.
  • Charter Cruises  Oncharter cruises the entire ship is organised around an interest-du-jour.
  • Waste Still a Concern for CruiseIndustry
  • Green Cruises and Ports
  • Cruises are Big Sellers TravelAgents
  • Cruise sellers  Cruises and tour packages have the highest revenue per transaction.  Nearly 90% of cruises continue to be sold by travel agents in the USA.  Cruises are difficult to sell for themselves, given the number of destinations and amenities involved, but also and, most importantly, because cruisers always look for expert advice
  • Traditional Distribution ChannelsPoint to Social Media
  • Oasis of the Seas
  • Oasis of the Seas Sets a New Highfor Social Media  Most searched term on google.com on the day the Oasis of the Seas sailed into Fort Lauderdale‟s Port of Everglades for the first time  More than 200,000 people tuned in over any 24- hour period to watch video of the Oasis captain when the ship was crossing the Atlantic from Finland  As of June 2010, more than 14 million visitors have made their way to OasisoftheSeas.com
  • Trends?
  • Cruise sales in Lithuania Cruise Tourists in biggest Lithuanian travel Agency 250 211 200 150 129 100 76 74 69 50 0 2008 2009 2010 2011 2012
  • Issues in the future  Large investments  Larger number of tourists  New routes  Unique onboard experiences  Eliminate check-in lines, delays in arrivals and/or departures  Enhance cruise traffic  Revision in bureaucracy which prevents cruises from fully developing their potential in foreign territories, mainly with regards to the hiring of temporary crews.
  • New ships
  • All Eyes on Asia Pacific
  • Winners and Losers 2009-2014
  • Factors Impacting Future CruiseSales
  • Factors Impacting Future CruiseSales
  • SWOT
  • AČIŪ!Thank YOU!