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- Cruises - US - January 2012
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Many companies operating in the leisure travel industry, including cruise lines, struggled during the recession as Americans cut back on leisure spending due to high unemployment, declining median household incomes, and a lack of confidence in their future economic prospects. During this time, cruise lines deeply discounted their base fares and offered a variety of enticing promotions which kept the average capacity utilization above 100%. In 2011, improved macroeconomic conditions—as well as the arrival of new ships, which further increased capacity—served to drive sales. While increased revenues in 2010 and 2011 indicate that the industry is poised for future growth, it is also apparent that competition for cruise travelers will increase and cruise lines will need to focus their development and marketing efforts on consumer preferences to differentiate their brands.
The report addresses the following questions:
- How has the North American cruise market fared during the recession, and what is the forecast for 2012-16?
- What impact do macroeconomic conditions have on per passenger spending and annual revenues?
- What are the leading companies, and what major changes have occurred in recent years?
- What innovations have leading companies introduced to drive sales?
- How are leading companies marketing their brands, and how do consumers perceive them?
- How has the incidence of cruise travel fluctuated in recent years, and approximately what proportion of consumers plan to take a cruise ship vacation in 2012?
- What types of activities do consumers most enjoy when vacationing?
- What are the primary drivers for choosing a cruise ship vacation, and what factors discourage some consumers from going on a cruise?
Scope and Themes
What you need to know
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Executive Summary
The market
Figure 1: North American Cruise Industry sales and fan chart forecast of market, with best and worst cases at current prices, 2006-16
Market factors
Increased capacity will drive growth in passenger numbers
Figure 2: North American Cruise capacity, 2001-15* and utilization, 2002-10
Older adult population growth accelerates
Figure 3: Population by age, 2006-16
Declining median household income undermines growth
Figure 4: Median household income in inflation-adjusted dollars, 2000-10
Leading companies
Carnival and Royal Caribbean remain dominant brands
Figure 5: Share of North American Cruise Passengers, by Cruise Line, 2010
Brand perceptions
Figure 6: Overall brand perceptions of major cruise lines, September 2011
The consumer
Past three-year cruising incidence is relatively stable
Figure 7: Past three-year cruise ship vacation incidence, May 2003-June 2011
Most cruise with spouse/significant other and/or family
Figure 8: Most recent cruise companionship, by age, September 2011
Travel agents are used more than any other method to book cruises
Figure 9: How most recent cruise was booked, September 2011
Tropical destinations and Alaska remain most popular
Figure 10: Cruise ship destination, by household income, April 2010-June 2011
Sightseeing and beach travel most popular vacation activities
Figure 11: Vacation activities, April 2010-June 2011
All-inclusive packages are a key driver, cost perception is primary barrier
Figure 12: Motivations for having taken a cruise, September 2011
Figure 13: Reasons for never having taken a cruise, September 2011
Insights and Opportunities
Drive customer engagement and recommendations with passenger bloggers
Smartphone apps may be developed to enhance passenger experience
Vow-renewal offers could boost wedding revenues
Inspire Insights
Trend: A Simple Balance of Health
Trend: Cam Cam
Market Size and Forecast
Key points
Total cruising revenues rebound from 2009
Figure 14: Total revenues and forecast for the North American cruise industry, at current prices, 2006-16
Figure 15: Total revenues and forecast for the North American cruise industry, at inflation-adjusted prices, 2006-16
Fan chart forecast
Figure 16: North American Cruise Industry sales and fan chart forecast of market, with best and worst cases, at current prices, 2006-16
Per-passenger revenues increase in 2011 after two years of decline …
Figure 17: Total revenues of the North American cruise industry, per passenger, 2011-16
… but passenger daily spending remains below 2006 levels
Figure 18: Total revenues of the North American cruise industry, per passenger per cruise day, 2006-11
Number of passengers in 2010 well above pre-recession levels
Figure 19: Number of North American cruise passengers, 1990-2010
Longer cruises becoming more common in the industry
Figure 20: Number of North American cruise passengers, by length of cruise, 1990-2010
Market Drivers
Key points
Build it and they will come
Figure 21: North American cruise capacity changes and utilization, 2001-15
Growth of population aged 55-74 will contribute to future sales growth
Figure 22: Population by age, 2006-16
Declining spending power undermined growth between 2008 and 2010
Figure 23: Median household income in inflation-adjusted dollars, 2000-10
Consumer confidence shaky but may be on the upswing
Figure 24: Consumer confidence, March 2007-December 2011
Traveler sentiment declined in Q3 2011
Figure 25: Traveler sentiment index, March 2007-October 2011
Competitive Context
Industry faces competition from land-based resorts
In some cases, expansion may serve to cannibalize
Need for passport may discourage some from cruising, may put local land-based resorts at an advantage
Leading Companies
Key points
Carnival remains dominant but some other lines growing quickly
Figure 26: Number of North American Cruises, by Cruise Line, 200-5-10
Figure 27: Number of North American Cruise Passengers, by Cruise Line, 2005-10
Leading companies often win with innovation and luxury
Carnival Cruise Line
Figure 28: Carnival Cruise Line global revenues, 2008-10
Royal Caribbean International
Figure 29: Royal Caribbean Internatioal global revenues, 2008-10
Disney Cruise Line
Norwegian Cruise Line
Princess Cruises
Celebrity Cruise Lines
Innovations and Innovators
Cruise ship innovation key to driving sales, differentiating ships and brands
Brands using community to drive sales and loyalty
Royal Caribbean Crown and Anchor Society
Royal Caribbean neighborhood concept
Some use unique cabin configuration to drive sales
Norwegian Cruise Studio Staterooms
Royal Caribbean Royal Loft Suites
Companies use niche cruises to appeal to specific segments
Crystal Cruises themed cruises
Holland America Vampire Cruise
Royal Caribbean and Universal Studios partnership
Masculine activities and personalities can drive sales
Carnival Cruise Line and Food Network star Guy Fieri launching restaurants on ships
Royal Caribbean Poker Tournament
Brand Perceptions and the Advertising Landscape
Overview of the brand landscape
Brand perceptions key to understanding how cruise brands are positioned
Figure 30: Overall brand perceptions of major cruise lines–part 1, September 2011
Figure 31: Overall brand perceptions of major cruise lines–part 2, September 2011
Brand perception map
Figure 32: Cruise line brand attributes correspondence map, September 2011
Social media metrics
Figure 33: Social media presence of major cruise lines, Jan. 3, 2012
Brand analysis: Carnival Cruise Line
Figure 34: Brand analysis of Carnival Cruise Line, 2011
Carnival Cruise Line TV ads
Figure 35: Carnival Cruise Line, Milestones TV ad, 2011
Figure 36: Carnival Cruise Line, 150 reasons to cruise TV ad, 2011
Brand analysis: Royal Caribbean International
Figure 37: Brand analysis of Royal Caribbean, 2011
Royal Caribbean International TV ads
Figure 38: Royal Caribbean, have fun now TV ad, 2011
Figure 39: Royal Caribbean, Why not choose incredible, TV ad, 2011
Brand analysis: Disney Cruise Line
Figure 40: Brand analysis of Disney Cruise Line, 2011
Disney Cruise Line TV ad
Figure 41: Disney Cruise Line, Behind the scenes TV ad, 2011
Brand analysis: Norwegian Cruise Line
Figure 42: Brand analysis of Norwegian Cruise Line, 2011
Norwegian Cruise Line TV ad
Figure 43: Norwegian Cruise Line, The freedom of freestyle cruising, Line TV ad, 2011
Discounts through third-party vendors
Luxury Lines
Celebrity Cruise Lines
Figure 44: Celebrity Cruises, Modern Luxury print ad, 2011
Crystal Cruises
Figure 45: Crystal Cruises, World’s Best Cruise Line print ad, 2011
Seabourn
Figure 46: Seabourn, Believes print ad, 2011
Silversea
Figure 47: Silversea, All-Inclusive Luxury print ad, 2011
Holland America Line
Figure 48: Holland America Line, A Signature of Excellence print ad, 2011
Cruise Ship Vacation Incidence
Key points
Cruising incidence remains steady despite fluctuations in annual revenues
Figure 49: Past three-year cruise ship vacation incidence, May 2003-June 2011
Adults aged 55+ are more likely to have taken a cruise vacation
Figure 50: Cruise ship vacation incidence, by age, September 2011
Those from households earning $75K+ most likely to have gone on a cruise
Figure 51: Cruise ship vacation incidence, by household income, September 2011
Upper incomes and ages 25-54 are key segments
Figure 52: Planning a cruise ship vacation in the next 12 months, by age, April 2010-June 2011
Figure 53: Planning a cruise ship vacation in the next 12 months, by household income, April 2010-June 2011
Cruise Line Recognition
Key points
Carnival most well-known overall, 18-24s more familiar with Disney
Figure 54: Cruise line recognition, by age, September 2011
Affluents more likely to be familiar with smaller, premium lines
Figure 55: Cruise line recognition, by household income, September 2011
Cruise Lines Ever Used
Key points
Majority of cruisers have used only a single line
Figure 56: Number of cruise lines ever used, September 2011
Adults aged 55+ more likely to have used most cruise lines
Figure 57: Cruise lines ever used, by age, September 2011
Royal Caribbean resonates with many upscale cruisers
Figure 58: Cruise lines ever used, by household income, September 2011
Cruisers without children more likely to use Norwegian Cruise Line
Figure 59: Cruise lines ever used, by presence of children in household, September 2011
Preferred Destinations and Vacation Activities
Key points
The Bahamas is the most frequently visited cruise destination
Figure 60: Cruise ship destination, by age, April 2010-June 2011
“Other Caribbean” destinations popular among $100K+ cruisers
Figure 61: Cruise ship destination, by household income, April 2010-June 2011
Sightseeing is the most popular vacation activity
Figure 62: Vacation activities, by gender, April 2010-June 2011
Many consumers are interested in fine dining
Figure 63: Vacation activities, by age, April 2010-June 2011
Spa visits popular among those from $150K+ households
Figure 64: Vacation activities, by household income, April 2010-June 2011
Most Recent Cruise Details
Key points
Companionship
Most cruise with a spouse/significant other
Figure 65: Most recent cruise companionship, by gender, September 2011
Many young adults cruise with parents
Figure 66: Most recent cruise companionship, by age, September 2011
Those from households with incomes of $75K+ more likely to cruise with a spouse/partner
Figure 67: Most recent cruise companionship, by household income, September 2011
Duration
Young adults more likely to take shorter cruises
Figure 68: Most recent cruise duration, by age and by household income, September 2011
How long since most recent cruise
Men are more likely to have cruised recently
Figure 69: How long ago most recent cruise, by gender, September 2011
Those from households earning less than $50K cruise the least
Figure 70: How long ago most recent cruise, by household income, September 2011
Booking method
Travel agents are most frequently used method to book cruises
Figure 71: How most recent cruise was booked, by gender, September 2011
Young adults most likely to book through a cruise website
Figure 72: How most recent cruise was booked, by age, September 2011
Motivations for Taking a Cruise
Key points
All-inclusiveness is the most enticing aspect of cruises
Figure 73: Motivations for having taken a cruise, by gender, September 2011
18-54s often attracted to cruises by desire to try something new
Figure 74: Motivations for ever having taken a cruise, by age, September 2011
Middle-income cruisers like the all-inclusive aspect and getting a good deal
Figure 75: Motivations for having taken a cruise, by household income, September 2011
Reasons for Never Having Taken a Cruise
Key points
Price is the main obstacle for most who have never cruised
Figure 76: Reasons for never having taken a cruise, by gender, September 2011
18-34s more likely to have simply not thought of going on a cruise
Figure 77: Reasons for never having taken a cruise, by age, September 2011
Affluent consumers most likely to prefer other types of vacation
Figure 78: Reasons for never having taken a cruise, by household income, September 2011
Impact of Race and Hispanic Origin
Key points
Whites and Asians most likely to have gone on a cruise
Figure 79: Cruise ship vacation incidence, by race/Hispanic origin, September 2011
Blacks and Asians most likely to say they plan to cruise in the coming year
Figure 80: Planning a cruise ship vacation in the next 12 months, by race/Hispanic origin, April 2010-June 2011
Princess and Celebrity more well-known among whites and Asians
Figure 81: Cruise lines familiar with, by Hispanic origin/race, September 2011
Hispanic cruisers more likely to have used Carnival Cruise Line
Figure 82: Cruise lines ever used, by race/Hispanic origin, September 2011
Appeal to Asians with sightseeing and shopping offers
Figure 83: Vacation activities, by race/Hispanic origin, April 2010-June 2011
Hispanics more likely to cruise with family
Figure 84: Most recent cruise companionship, by race/Hispanic origin, September 2011
Blacks go the longest between cruise vacations
Figure 85: How long ago most recent cruise, by race/Hispanic origin, September 2011
Hispanics more likely to book through a cruise website
Figure 86: How most recent cruise was booked, by race/Hispanic origin, September 2011
Blacks like diverse entertainment and food choices on cruises
Figure 87: Motivations for ever having taken a cruise, by race/Hispanic origin, September 2011
Non-cruising blacks less likely to be aware of cruising as a vacation option
Figure 88: Reasons for never having taken a cruise, by race/Hispanic origin, September 2011
Custom Consumer Groups
Key points
Married couples more likely than singles to have gone on a cruise
Figure 89: Cruise ship vacation incidence, by gender and marital status, September 2011
Single travelers more likely to take a voyage with parents
Figure 90: Most recent cruise companionship, by gender and marital status, September 2011
Married travelers somewhat more likely to book with an agent
Figure 91: How most recent cruise was booked, by gender and marital status, September 2011
Married couples often motivated to sail by the all-inclusive aspect of cruise packages
Figure 92: Motivations for ever having taken a cruise, by gender and marital status, September 2011
Many singles avoid cruises because they do not have a travel partner
Figure 93: Reasons for never having taken a cruise, by gender and marital status, September 2011
Appendix A: Brand Perceptions, by Age
Overview
Carnival Cruise Line
Figure 94: Brand perceptions of Carnival Cruise line, by age, September 2011
Disney Cruise Line
Figure 95: Brand perceptions of Disney Cruise Line, by age, September 2011
Royal Caribbean International
Figure 96: Brand perceptions of Royal Caribbean International, by age, September 2011
Norwegian Cruise Line
Figure 97: Brand perceptions of Norwegian Cruise Line, by age, September 2011
Holland America Line
Figure 98: Brand perceptions of Holland America line, by age, September 2011
Princess Cruises
Figure 99: Brand perceptions of Princess Cruises, by age, September 2011
Regent Seven Seas Cruises
Figure 100: Brand perceptions of Regent Seven Seas Cruises, by age, September 2011
Celebrity Cruise Lines
Figure 101: Brand perceptions of Celebrity Cruise Lines, by age, September 2011
Oceania Cruises
Figure 102: Brand perceptions of Oceania Cruises, by age, September 2011
Appendix B: Other Useful Consumer Tables
Figure 103: Cruise lines familiar with, by gender, September 2011
Figure 104: Cruise lines familiar with, by region, September 2011
Figure 105: Cruise lines familiar with, by cruise ship vacation incidence, September 2011
Figure 106: Cruise lines ever used, by generation, September 2011
Figure 107: Most recent cruise duration, by generation, September 2011
Figure 108: Most recent cruise duration, by race/Hispanic origin, September 2011
Figure 109: How long ago most recent cruise, by race/Hispanic origin, September 2011
Figure 110: How long ago most recent cruise, by generation, September 2011
Figure 111: Most recent cruise was booked, by generation, September 2011
Figure 112: Motivations for ever having taken a cruise, by generation, September 2011
Figure 113: Reasons for never having taken a cruise, by gender and marital status, September 2011
Figure 114: Reasons for never having taken a cruise, by generation, September 2011
Figure 115: Most recent cruise details, by use, Carnival Cruise Line only, Royal Caribbean International only, September 2011
Appendix C: Trade Associations
- American Association of Retired Persons (AARP)
- American Express Company (The)
- American Society of Travel Agents
- Apple, Inc
- Carnival Corporation
- Cruise Lines International Association
- Crystal Cruises
- Cunard Line
- Disney Cruise Vacations
- DreamWorks Animation SKG Inc.
- Expedia Inc.
- Facebook, Inc.
- FOX Broadcasting Company
- Google, Inc.
- Holland America Line Inc.
- Home Box Office, Inc.
- MSN (USA)
- NCL Corporation
- Nickelodeon Networks
- Oceania Cruises, Inc.
- Orbitz Inc.
- P&O Cruises
- Princess Cruises
- Regent Seven Seas Cruises
- Royal Caribbean Cruises Ltd.
- Seabourn Cruise Line
- SeaDream Yacht Club
- Silversea Cruises
- Starbucks Corporation
- The New York Times Company
- Twitter, Inc.
- U.S. Bureau of Labor Statistics
- U.S. Bureau of the Census
- U.S. Department of Transportation
- Universal Studios Inc.
- University of Michigan, The
- US Department of Commerce
- USA Today
- Walt Disney Company, The
- Windstar Cruises
- YouTube, Inc.
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