2023
9
UK Cruises Market Report 2023
2023-04-20T04:09:09+01:00
OX1157507
2195
162588
[{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
“The cruise industry will benefit from the growing number of over-55s living in the UK, particularly as they are in a relatively good financial position and have high budgets for…

UK Cruises Market Report 2023

£ 2,195 (Excl.Tax)

Description

There’s no question that  cruises are growing in popularity among UK holidaymakers following a difficult few years following the COVD-19 pandemic. However, the ongoing cost-of-living crisis is creating a challenge for businesses when it comes to attracting first-timers. To discover how your business can respond to these challenges and take advantage of the high growth potential of the UK cruise market, purchase our UK Cruises Market Report. The report includes analysis of consumer attitudes towards cruise holidays, UK cruise market share, market forecast, and much more. Read on to discover more.

UK Cruise Industry – Market Landscape

The cruise sector was one of the hardest-hit sectors of the travel industry during the pandemic, but its recovery looks promising. The prolonged period of travel restrictions has fuelled people’s desire to explore destinations once again. As a result, the UK cruise market size has grown, and going forward, the affluence of cruise lines’ core customers makes the sector more resilient against the cost-of-living crisis.

UK Cruise Market – Consumer Trends

The older generation remains a key target group, and the UK cruise industry will likely benefit from the growing number of over-55s living in the UK, particularly as they are in a relatively good financial position and have high budgets for cruising. 

  • UK cruise consumer behaviour: 33% of potential cruise passengers would prefer to book a cruise holiday via a travel agent than directly with the cruise line.
  • UK cruise consumer attitudes: 65% of those who have taken a cruise before are likely to book a cruise holiday in the next two years.
  • UK cruise market challenges: 53% of people are not interested in taking a cruise because they are too expensive.

UK Cruise Industry – Market Opportunities

The rising number of new ships coming to the market should help cruise holidays appeal to a wider audience. However, cost-effective options will be essential if the industry is to significantly increase first-timers. Purchase our complete UK Cruises Market Report for more market opportunities and expert recommendations.

Read on to discover more about our UK Cruises Market Report. Looking for more research about the UK travel industry? Take a look at our UK Touring and Adventure Holidays Market Report, or explore our extensive holidays and travel market research.

Quickly Understand

  • How the rising cost of living will impact the recovery of the UK cruise market.
  • Participation and future interest in cruise holidays.
  • Purchase drivers when choosing a cruise holiday.
  • Interest in cruise holiday types.
  • Budget for cruise holidays.
  • Barriers to cruising.

Popular Cruise Companies and Brands Covered in this Report

Companies: Carnival Corporation & plc., Royal Caribbean Group, Norwegian Cruise Line Holdings Ltd., MSC Group.

Brands: Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Cunard, AIDA Cruises, Cost Cruises, P&O Cruises, Roy Caribbean International, Celebrity Cruises, Silversea Cruises, TUI Cruises, Norwegian Cruise Line, Oceania Cruises, Regent Seven Seas.

Expert Analysis from a Specialist in the Travel Sector

This report, written by Marloes de Vries, a leading senior analyst in the holidays and travel sector, delivers in-depth commentary and analysis to highlight current trends in the UK cruise industry and add expert context to the numbers.

The cruise industry will benefit from the growing number of over-55s living in the UK, particularly as they are in a relatively good financial position and have high budgets for cruising. The rising number of new ships coming to the market should help to appeal to a wider audience, however, cost-effective options such as shorter cruises will be essential if the industry is to significantly increase the share of newcomers.

Marloes De Vries

 

Marloes de Vries
Associate Director – Travel

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for the UK cruise market
      • Figure 1: Category outlook, 2023-27
    • The market
    • Passenger volumes increased in 2022 but it remained a challenging year
    • Path to recovery looks promising for the cruises market
      • Figure 2: Forecast passenger volume of UK & Ireland sea cruise market, 2017-27
      • Figure 3: Forecast passenger value of UK & Ireland sea cruise market, 2017-27
    • Ageing population will favour the cruise industry
    • River cruise lines were challenged by low water levels in 2022
    • Companies and brands
    • New brands are entering the market
    • Royal Caribbean International will take delivery of the world’s largest cruise
    • MSC Cruises’ commitment to sustainability is at the heart of its global brand campaign
    • The consumer
    • Cruise market continues to show growth potential…
      • Figure 4: Participation and interest in holiday types, 2022
    • …but interest declined amid the rising cost of living
      • Figure 5: Interest in cruise holiday types, 2019-22
    • Older generation remains key target group
    • Strong desire to explore destinations
      • Figure 6: Factors influencing choice of cruise holiday, 2021 and 2022
    • Adults-only cruises and cruise & stay holidays are the most desired
      • Figure 7: Interest in cruise holiday types, by cruise experience, 2022
    • Greater willingness to spend more on a sea cruise
      • Figure 8: Amount willing to spend per adult on a sea or river cruise, 2022
    • High confidence in hotel brands at sea
      • Figure 9: Attitudes towards cruise holidays, 2022
    • Shorter cruise holidays will help to attract more first-timers
    • Cruise lines challenged to convince first-timers that they offer flexibility
      • Figure 10: Barriers to cruising, 2021 and 2022
  3. Issues and Insights

    • Continued income squeeze will make it more difficult to attract first-timers
    • Opportunities to improve online booking processes
  4. Market Size and Performance

    • Passenger volumes increased in 2022 but it remained a challenging year
      • Figure 11: UK & Ireland sea cruise market passenger volume and value, 2016-22
    • Strong interest in river cruises
  5. Market Forecast

    • The five-year outlook for the UK cruise market
      • Figure 12: Category outlook, 2023-27
    • Path to recovery looks promising for the cruises market
      • Figure 13: Forecast passenger volume of UK & Ireland sea cruise market, 2017-27
      • Figure 14: Forecast passenger value of UK & Ireland sea cruise market, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Millions of households had to make changes to make ends meet in 2022…
    • …and consumer spending power will continue to be impacted throughout 2023
    • Consumer confidence increased from a low in August 2022 but remains relatively weak
      • Figure 15: The Financial Confidence Index, 2009-23
    • Holiday bookings and intentions to book hit pre-pandemic levels…
    • …but many consumers are expected to be more price-sensitive
      • Figure 16: Holiday bookings in the last three months vs plans to book a holiday in the next three months, 2022-23
    • Rising operational cost put upward pressure on pricing
    • Ageing population will favour the cruise industry
    • River cruise lines were challenged by low water levels in 2022
  7. Market Share – Leading Cruise Companies

    • Carnival Corporation & plc takes a cautious approach to expanding its fleet as it seeks to accelerate profitability
    • Royal Caribbean Group sees high booking levels while it will take delivery of the world’s largest cruise
    • Norwegian Cruise Line Holdings’ capacity will exceed pre-pandemic levels by 19% in 2023
    • MSC Group’s new luxury lifestyle brand will take delivery of its first ship in 2023
      • Figure 17: Key facts for the top four global cruise companies, 2023
  8. Launch Activity and Innovation

    • Investments in technology to enhance the customer experience
    • American Cruise Lines added complimentary high-speed Starlink Wi-Fi to its fleet
    • Facial recognition technology increasingly deployed
    • Technology unlocks new forms of advertising
    • Celebrity Cruises enters the metaverse with its Celebrity Beyond vessel
    • Princes Cruises promotes Sun Princess ship through a holographic display
    • Sustainability has moved up the agenda
    • MSC Cruises’ commitment to sustainability is at the heart of its global brand campaign
    • Saga orders e-bikes to offer guests a more sustainable way of sightseeing
    • Brands outside the cruise industry are expanding their brands to the waters
    • Orient Express will launch its first cruise ship in 2026
    • Four Seasons launches luxury cruise line
    • Ritz-Carlton Yacht Collection sets sail
    • First new British cruise line launched in a decade
  9. Participation and Interest in Cruising

    • Cruise market continues to show growth potential…
      • Figure 18: Participation and interest in holiday types, 2022
    • …but interest declined amid the rising cost of living
      • Figure 19: Interest in cruise holiday types, 2019-22
  10. Profile of Cruisers

    • Those who cruised during the pandemic were younger and more affluent…
      • Figure 20: Cruise holiday behaviour, by age and household income, 2022
    • …but older generation remains key target group
      • Figure 21: Participation and interest in taking a sea or river cruise, by age, 2022
    • Encouraging repeat bookings is essential in the short term
      • Figure 22: Experience profile of those interested in cruises in the next five years, 2022
  11. Purchase Drivers when Choosing a Cruise Holiday

    • Strong desire to explore destinations
      • Figure 23: Factors influencing choice of cruise holiday, 2021 and 2022
    • Opportunity to sell premium accommodation options
      • Figure 24: Factors influencing choice of cruise holiday, by age, 2022
  12. Interest in Cruise Holiday Types

    • Adults-only cruises and cruise & stay holidays are the most desired
    • Themed and multigenerational cruises appeal more to existing cruise passengers
      • Figure 25: Interest in cruise holiday types, by cruise experience, 2022
    • Budget cruises will appeal more to younger audiences
      • Figure 26: Interest in cruise holiday types, by age, 2022
    • High interest in taking a cruise to celebrate a special occasion
      • Figure 27: Interest in a cruise to mark a special occasion, by age, presence of children and household income, 2022
  13. Budget for Cruise Holidays

    • Greater willingness to spend more on a sea cruise
      • Figure 28: Amount willing to spend per adult on a sea or river cruise, 2022
    • Younger generation shows high interest in cruises but willingness to pay lags behind
      • Figure 29: Amount willing to spend per adult on a sea or river cruise, by age and cruise experience, 2022
  14. Attitudes towards Cruising

    • High confidence in hotel brands at sea
      • Figure 30: Attitudes towards cruise holidays, 2022
    • Travel agents continue to play a big role in the booking process of cruises…
    • …but number of online booking tools is expanding
    • Shorter cruise holidays will help to attract more first-timers
    • Facial recognition can improve the guest experience
      • Figure 31: Attitudes towards cruise holidays, by cruise experience, 2022
  15. Barriers to Cruising

    • Cost remains the biggest barrier…
    • …while concerns about COVID-19 are fading
      • Figure 32: Barriers to cruising, 2021 and 2022
    • Cruise lines challenged to convince first-timers that they offer flexibility
      • Figure 33: Barriers to cruising, by cruise experience, 2022
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  17. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 34: Lower bound, central and upper bound forecast passenger volume of UK & Ireland sea cruise market, 2022-27
      • Figure 35: Lower bound, central and upper bound forecast passenger value of UK & Ireland sea cruise market, 2022-27
    • Value forecast UK & Ireland sea cruise market at constant prices
      • Figure 36: Value of UK & Ireland sea cruise market at 2022 prices, 2022-27
    • Market drivers and assumptions
    • Forecast methodology
  18. Appendix – Historical Booking Data

      • Figure 37: Holiday bookings in the last three months, by month, 2017/18-2022/23
      • Figure 38: Plans to book a holiday in the next three months, by month, 2017/18-2022/23

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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