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.
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
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
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
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.
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
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.
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 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
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.