2. 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.
4. 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.
6. 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
10. Europe market
Overall,Europeans are realising the value
proposition, quality and variety of choices
cruises can offer when making travel
plans.
11. 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.
12. 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.
13. Growing markets
Despiteemerging from a much lower
base, Asia Pacific and Latin America are
expected to achieve strong long- term
growth in cruise demand.
14.
15. 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.
16. Bahamas
Growth - 45%:
increased popularity of shorter and cheaper cruises
among cash-strapped travellers
consequent shift in capacity to that specific destination.
19. 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.
22. 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
24. 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.
26. 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
31. River cruises
Much smaller ships
~150 passengers
Cultural needs
32. Peter Deilmann Cruises
Offersprogrammes on the Rhine, Rhône,
Saône, Moselle, Danube, Vltava, Elbe,
and Oder rivers.
Themed cruises: hiking, biking, golf, music
and gardening.
33. MICE Cruises – A New Niche
Evolving
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.
34. Main Advantages of MICE
Cruises
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
35. Niche Cruises
Themed Cruises
Special Interest Cruises
Charter Cruises
36. Themed Cruises
diversifytheir consumer base
larger consumer base
encourage repeat sales
38. 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.
39. Charter Cruises
Oncharter cruises the entire ship is
organised around an interest-du-jour.
43. 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
46. Oasis of the Seas Sets a New High
for 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
49. 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.
