The document analyzed the cruise line industry and provided recommendations for a new cruise line entering the market. It found that the worldwide cruise market is estimated at $34.6 billion annually. The top 5 cruise lines by passengers carried are Carnival Cruise Line, Royal Caribbean International, Princess Cruises, Norwegian Cruise Line, and Holland America Line. It was recommended that a new cruise line should have large ships carrying over 2,000 passengers, depart from ports in the Northeast, New Orleans, Texas or West Coast, sail to destinations like the Bahamas, Mexico, Alaska or nowhere voyages, and keep voyages 7 days or less. Entering the market was deemed viable if the new line could achieve high occupancy levels around standard

1. Market
Analysis:
Cruise Line
Industry
Katie Steyn
Final Project
AN14, General Assembly

2. Key Objectives
• What specs should we offer?
• Ship size (Capacity)
• Departure port
• Destination (Itinerary)
• Voyage length
• Should we enter the market?
• Achieving high occupancy levels
• Profitability

3. Market Overview
Worldwide market estimated at
$34.6 billion
Direct spending by passengers
and crew at all cruise ports in the
world estimated at $17.5 billion
OUR DATA:
• 145 Vessels
• 20 Cruise Lines
• 9 year period (2004 – 2012)
• 83.7 million passengers
26
24
18
17
15
13
5 5
4 4 4 4 4
3 2 2 2 2 2 2
CarnivalCruiseLine
RoyalCaribbean…
PrincessCruises
NorwegianCruiseLine
HollandAmericaLine
CelebrityCruiseLine
CostaCruiseLine
CunardLine
DisneyCruiseLine
MSCItalianCruises
RegentSevenSeas…
SeabournCruiseLine
SilverseaCruises
CrystalCruises
AIDACruiseLine
AzamaraClubCruises
FredOlsenCruiseLine
OceaniaCruises
SeaDreamYachtClub
WindstarCruises
Source: http://www.marad.dot.gov/resources/data-statistics/#Cruise

4. Fleet Overview
Line
Fleet
size
Average Ship
Capacity
Carnival Cruise Line 26 2281
Royal Caribbean International 24 2569
Princess Cruises 18 2411
Norwegian Cruise Line 17 2062
Holland America Line 15 1529
Celebrity Cruise Line 13 1947
Costa Cruise Line 5 2232
Cunard Line 5 2488
Disney Cruise Line 4 1826
MSC Italian Cruises 4 1988
Regent Seven Seas Cruises 4 570
Seabourn Cruise Line 4 227
Silversea Cruises 4 362
Crystal Cruises 3 970
AIDA Cruise Line 2 1481
Azamara Club Cruises 2 694
Fred Olsen Cruise Line 2 1100
Oceania Cruises 2 769
SeaDream Yacht Club 2 110
Windstar Cruises 2 176

5. Competitive Landscape
CCL
•Carnival
•Holland
America Line
•Cunard
•AIDA
•Costa
•Ibero
•P&O
•P&O Australia
•Princess
•Seabourn
RCI
•Royal
Caribbean
International
•Celebrity
•Pullmantur
•Azamara Club
•CDF Croisières
de France
NCL
•Norwegian
Cruise Line
Other
•Disney Cruise
Line
•Crystal Cruises
•Fred Olsen
Cruise Line
•MSC Italian
Cruises
•Oceania
•Regent Seven
Seas
•SeaDream
Yacht Club
•Silversea
Cruises
•Windstar
Cruises
Market Share by Passengers
Source: http://www.cruisemapper.com/wiki/749-largest-cruise-line-companies

6. Supply- By Cruise Line, by Year
*Q1 2012 sailings omitted

7. Supply- by Voyage Length
3280
9349
16685
3305 3199
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
1-3 nights 4-6 nights 7 nights 8-10 nights 11+ nights
NumberofVoyages(2004-2012)
Voyage Length
Min 1 night
Max 70 nights
Average 7 nights
Mode 7 nights

8. VOYAGE LENGTH BY CRUISE LINE
Min Nights Max Nights Average Nights
Fred Olsen Cruise Line 7 27 14.64
Oceania Cruises 3 27 13.39
Crystal Cruises 6 35 11.59
Seabourn Cruise Line 3 31 11.24
Azamara Club Cruises 2 18 11.00
AIDA Cruise Line 4 23 10.08
Silversea Cruises 4 22 9.82
MSC Italian Cruises 2 18 9.42
Holland America Line 1 70 8.98
Cunard Line 3 28 8.87
Princess Cruises 1 45 8.79
Regent Seven Seas Cruises 3 27 8.78
Celebrity Cruise Line 2 18 8.42
Costa Cruise Line 2 18 8.16
Windstar Cruises 6 15 7.58
SeaDream Yacht Club 2 15 7.17
Norwegian Cruise Line 1 23 7.04
Royal Caribbean International 2 18 5.97
Carnival Cruise Line 2 18 5.44
Disney Cruise Line 2 15 4.79

9. Occupancy Achievement
Standard Occupancy: 2 guests per stateroom

10. Average
Occupancy
rates-
by cruise line
• Profitability of children
• Customer experience
versus occupancy
• Operating costs for
smaller vessels
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Occupancy Rate

11. Occupancy rates by cruise line- Year over Year
Cruise Line 2004 2005 2006 2007 2008 2009 2010 2011 2012 Trend
AIDA Cruise Line 0.97 1.03 1.02 1.02 1.00
Azamara Club Cruises 0.97 0.93 0.95 0.84 0.85 0.88
Carnival Cruise Line 1.13 1.14 1.13 1.13 1.14 1.15 1.16 1.19 1.17
Celebrity Cruise Line 1.03 1.05 1.05 1.04 1.05 1.05 1.05 1.05 1.04
Costa Cruise Line 0.99 1.05 1.05 1.01 0.98 1.06 1.03 1.08 1.02
Crystal Cruises 0.61 0.77 0.80 0.78 0.74 0.63 0.76 0.71 0.75
Cunard Line 0.94 0.94 0.92 0.96 0.96 0.93 0.93 0.95 0.95
Disney Cruise Line 1.49 1.51 1.46 1.49 1.49 1.48 1.48 1.45 1.49
Fred Olsen Cruise Line 0.94 0.97 0.96
Holland America Line 1.00 1.00 1.02 1.01 1.02 1.03 1.03 1.02 1.00
MSC Italian Cruises 0.97 0.88 0.89 1.03 1.07 1.03 1.01 1.04 1.01
Norwegian Cruise Line 1.06 1.06 1.05 1.08 1.07 1.11 1.11 1.10 1.09
Oceania Cruises 0.79 0.86 0.90 0.97 0.95 0.91 0.98 0.92 0.92
Princess Cruises 1.04 1.04 1.03 1.03 1.03 1.02 1.02 1.02 0.99
Regent Seven Seas Cruises 0.80 0.86 0.85 0.86 0.86 0.91 0.94 0.98 0.98
Royal Caribbean International 1.07 1.08 1.09 1.09 1.09 1.07 1.08 1.08 1.09
Seabourn Cruise Line 0.87 0.87 0.91 0.88 0.90 0.84 0.87 0.95 0.89
SeaDream Yacht Club 0.72 0.81 0.87 0.90 0.89 0.86 0.77 0.78 0.83
Silversea Cruises 0.87 0.87 0.92 0.86 0.84 0.79 0.87 0.83 0.84
Windstar Cruises 0.80 0.89 0.93 0.95 0.85 0.86

12. Voyage Destination – Supply v. Demand
Destination Occupancy Rate
Bahamas 1.17
Mexico (Pacific) 1.12
Western Caribbean 1.12
Bermuda 1.10
Eastern Caribbean 1.10
Alaska 1.07
Nowhere 1.05
Canada/New England 1.05
Southern Caribbean 1.04
Hawaii 1.03
Pacific Coast 0.99
Trans-Panama Canal 0.96
Transatlantic 0.92
South America 0.90
South Pacific/Far East 0.88
Eastern Caribbean: As far South as St. Martin, as far west as Haiti.
Southern Caribbean: South of St. Martin to northern coast of South America as far as Aruba.
Western Caribbean: West of Haiti, includes ports in Mexico, Central America and Columbia.
Nowhere: Cruises that begin and end at the same port with no intervening calls.

13. Occupancy Rates by Destination- Year over Year
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
ALASKA
BAHAMAS
BERMUDA
CANADA/NEWENGLAND
EASTERNCARIBBEAN
HAWAII
MEXICO(PACIFIC)
NOWHERE
PACIFICCOAST
SOUTHAMERICA
SOUTHPACIFIC/FAREAST
SOUTHERNCARIBBEAN
TRANSATLANTIC
TRANS-PANAMACANAL
WESTERNCARIBBEAN
GRANDTOTAL
OCCUPANCY

14. Departure Port – Supply v. Demand
Departure Port Occupancy Rate Departure Port Occupancy Rate
Port Canaveral 1.21 Montreal 0.97
Long Beach 1.17 Quebec City 0.97
Mobile 1.16 Halifax 0.95
Jacksonville 1.15 Philipsburg 0.93
New Orleans 1.13 Gloucester 0.92
Galveston 1.13 Cozumel 0.91
Tampa 1.12 Bridgetown 0.90
Charleston 1.12 St. Martin 0.88
Gulfport 1.11 Charlotte Amalie 0.85
Miami 1.11 Curacao 0.84
Baltimore 1.11 Anchorage 0.80
New York 1.09 St. John's 0.72
Seattle 1.09 West Palm Beach 0.58
Cape Liberty 1.09 Freeport 0.52
Los Angeles 1.08
San Juan 1.07
Boston 1.07
San Diego 1.07
Houston 1.06
Vancouver (CN) 1.05
Whittier 1.04
Norfolk 1.04
Fort Lauderdale 1.04
Honolulu 1.04
Seward 1.03
Philadelphia 1.03
St. John's (CN) 1.03
San Francisco 1.01
Capacity assumes 2 guests per stateroom

15. Key Objectives: Specs
• Ship size
• Large (2000+)
• Departure port
• Northeast
• New Orleans
• Texas
• West Coast
• Destination (Itinerary)
• Bahamas
• Mexico
• Alaska
• Nowhere
• Voyage length
• 7 days or less

16. Key Objectives: Should we enter the market?
• Achieving high occupancy levels
• Yes, when following suggested specs
• Profitability
• Additional data set(s) required
• Average per passenger per day is projected to
be $200.85
• $152.39 ticket price
• $48.47 on board spending
Source: http://www.cruisemarketwatch.com/articles/cruise-market-watch-announces-2013-cruise-trends-forecast/

17. Thank You! Questions?