Table of Contents
Scope and Themes
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- Definition
- Data sources
- Sales data
- Consumer survey data
- Direct marketing data and creative
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market drivers
- Cruise incidence and frequency
- Top cruise routes
- Most popular cruise lines
- Cruise motivators and detractors
- Booking method – registered to receive notifications
- Race and Hispanic origin
Insights and Opportunities
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- Use online trip configurators to provide cost transparency
- Consider price comparisons to illustrate value
- Industry partnerships can offset consumer costs
Inspire Insights
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- Trend: Living Off-Line
Market Size and Forecast
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- Key points
- Price reductions primary driver of declines
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- Figure 1: Gross revenues per passenger and per passenger per cruise day, 2006-09
- Gross revenues and forecast of the North American cruise industry
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- Figure 2: Gross revenues and forecast offor the North American cruise industry, at current prices, 2006-12
- Figure 3: Gross revenues and forecast for the North American cruise industry, at inflation-adjusted prices, 2006-12
- Fan-chart forecast
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- Figure 4: Gross revenues and fanned forecast for the North American cruise industry, at current prices, 2006-12
- Fuel prices undermine profits
Market Drivers
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- Key points
- Rapid growth of 55-74 segment will contribute to demand
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- Figure 5: U.S. population, by age, 2005-15
- Appeal to married couples to drive sales
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- Figure 6: Marital status, by age, 2008
- Decline in birthrate suggests adult themes will become more important
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- Figure 7: Households, by presence of children, 1999-09
- Asians represent bright spot in down market
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- Figure 8: Median household income, by race /Hispanic origin of householder, 2009
Market Detractors
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- Key points
- Decline in median household income causes many to scale back
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- Figure 9: Median household income in inflation-adjusted dollars, 1999-2009
- Recessionary pressures drive many to vacation at or near home
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- Figure 10: Strategies for dealing with recessionary pressures, by household income, October 2010
- Weak performance of hotel sector reflects staycation trend
- High unemployment causes many to watch their budget
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- Figure 11: Unemployment and underemployment rate in the U.S., January 2007-October 2010
- Consumer sentiment remains low, driving increased frugality
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- Figure 12: Consumer Sentiment, March 2007-September 2010
- H1N1 travel advisory drove down some travel in 2009
- BP oil spill does not appear to have directly impacted the industry—yet
Leading Companies
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- Key points
- Carnival, Royal Caribbean, and Norwegian maintain industry dominance
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- Figure 13: Number of North American Cruises by Cruise Line, 2004-09
- Figure 14: Number of North American cruise passenger nights, by leading companies, 2004-09
- Carnival companies scheduled to bring four new ships online
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- Figure 15: Number of ships, by leading cruise lines, 2010
- Leading company profiles
- Carnival Corporation
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- Figure 16: Number of ships, by Carnival Corporation cruise brands, 2010
- Figure 17: Carnival Corporation annual revenues, 2007-09
- Holland America (owned by Carnival)
- Princess Cruises (owned by Carnival)
- Royal Caribbean
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- Figure 18: Royal Caribbean annual revenues, 2007-09
- Celebrity Cruises (owned by Royal Caribbean)
- Norwegian Cruise Line
Innovations and Innovators
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- New ships
- Carnival: Magic and Breeze
- Royal Caribbean: Oasis of the Seas and Allure of the Seas
- Princess Cruises
- Norwegian Cruise Line: Norwegian Epic
- Targeted promotions
- Targeting special interests
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- Figure 19: Special interest cruises appeal, by household income, July 2010
- Carnival Cruises
- Weddings and honeymoons
- Royal Caribbean
- 55+ and law enforcement
- Reports from family travelers
- Stress-free weddings at sea
- Eco-friendly
- Orbitz and Travelocity
Marketing Strategies
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- Overview
- Brand analysis: Carnival Cruises
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- Figure 20: Brand analysis of Carnival Cruises
- Carnival television advertising
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- Figure 21: Carnival Cruises television ad, 2010
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- Figure 22: Carnival Cruises television ad, 2010
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- Figure 23: Carnival Cruise Lines/Wilcox Travel Leaders television ad, 2009
- Carnival.com
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- Figure 24: Quantcast monthly traffic estimates for Carnival.com, September 2009-August 2010
- Figure 25: Quantcast U.S. demographic averages for visitors to Carnival.com, May 2010
- Carnival social media
- Brand analysis: Royal Caribbean
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- Figure 26: Brand analysis of Royal Caribbean
- Royal Caribbean television advertising
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- Figure 27: Royal Caribbean television ad, 2010
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- Figure 28: Royal Caribbean television ad, 2010
- Figure 29: Royal Caribbean television ad, 2010
- Royalcaribbean.com
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- Figure 30: Quantcast monthly traffic estimates for Royalcaribbean.com, September 2009-August 2010
- Figure 31: Quantcast U.S. demographic averages for visitors to Royalcaribbean.com, May 2010
- Royal Caribbean social media
- Direct marketing strategies by top cruise lines
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- Figure 32: Cruise industry direct mail positioning trend, 2005-September 2010
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- Figure 33: Cruise industry email volume trend, July 2007-August 2010
- Affluent Baby Boomers primary target of direct mail efforts
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- Figure 34: Estimated direct mail volume of top cruise line mailers and distribution, by age, January 2010-September 2010
- Figure 35: Estimated direct mail volume of top cruise line mailers to top 10 states* and distribution by state**, January 2010-September 2010
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- Figure 36: Carnival direct mail communication, August 2010
- Figure 37: Royal Caribbean direct mail communication, August 2010
Cruise Incidence
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- Key points
- Passenger volume up slightly in 2009, despite recession
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- Figure 38: Number of North American cruise passengers, 1990-2009
- Cruises especially popular with affluents and married couples
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- Figure 39: Cruise ship vacation incidence, by household income, July 2010
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- Figure 40: Cruise ship vacation incidence, by marital status, July 2010
- Incidence of cruising remains steady, despite recession
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- Figure 41: Past three-year cruise ship vacation incidence, by total, May 2003- June 2010
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- Figure 42: Past three-year cruise ship vacation incidence, by household income, April 2009-June 2010
- 55-74s will remain key segment
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- Figure 43: Plans for cruising in the next 12 months, by age, April 2009-June 2010
Cruise Frequency
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- Key point
- Consider focusing loyalty efforts on families with kids under 18
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- Figure 44: Past three-year cruise ship vacation frequency, by number of children in household, July 2010
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- Figure 45: Past three-year cruise ship vacation frequency, by age, July 2010
Top Cruise Routes
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- Key points
- Sharp decline in Mexico cruises, the Bahamas become more popular
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- Figure 46: Number of North American Cruises, by destination, 2004-09
- Figure 47: North American cruise passengers, by destination, 2004-09
- Many 25-34s prefer the Bahamas, but Europe more popular with the elderly
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- Figure 48: Areas traveled to on cruise ship vacation(s), by age, April 2009-June 2010
- Affluents often prefer Caribbean destinations
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- Figure 49: Areas traveled to on cruise ship vacation(s), by household income, April 2009-June 2010
Most Popular Cruise Lines
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- Key point
- Carnival, Royal Caribbean, and Norwegian remain dominant players
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- Figure 50: Cruise lines traveled with, by total, May 2003-June 2010
- Carnival, Royal Caribbean and Disney have high appeal among parents
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- Figure 51: Cruise lines traveled with, by marital status and presence of children, April 2009-June 2010
- Most successful firms popular among the middle-income segments
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- Figure 52: Cruise lines traveled with, by household income, April 2009-June 2010
Cruise Motivators
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- Key point
- All-inclusive, multiple destination and ethnic foods appeal most to women
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- Figure 53: Reasons for going on a cruise, by gender, July 2010
- Multi-destination trips and food choices have high appeal among affluents
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- Figure 54: Reasons for going on a cruise, by household income, July 2010
- All-inclusive pricing could motivate many past customers to cruise again
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- Figure 55: Potential motivators to take a cruise vacation, by age, July 2010
Cruise Detractors
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- Key point
- Cost concerns a primary barrier
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- Figure 56: Reasons for never having taken a cruise, by household income, July 2010
- Time and cost concerns common deterrents among past travelers
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- Figure 57: Lapsed cruisers - reasons for not taking a cruise in the last three years, by household income, July 2010
Booking Method—Registered to Receive Notifications
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- Key points
- Many do research online but book with an agent
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- Figure 58: Method for booking last cruise, by gender, July 2010
- Use price promotions to entice affluents
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- Figure 59: Registered to receive cruise deal notifications, by household income, July 2010
Race and Hispanic Origin
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- Key points
- Asian and black respondents more likely to be planning on taking a cruise
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- Figure 60: Plans for cruising in the next 12 months, by race/Hispanic origin, April 2009-June 2010
- Destinations preferences partially tied to cultural orientation
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- Figure 61: Areas traveled to on cruise ship vacation(s), by race/Hispanic origin, April 2009-June 2010
- Asians tend to prefer “other” lines, black respondents choose Carnival
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- Figure 62: Cruise lines traveled with, by race/Hispanic origin, April 2009-June 2010
- Special interest cruises tend to appeal more to minorities
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- Figure 63: Special interest cruises appeal, by race/Hispanic origin, July 2010
Cluster Analysis
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- Aimless Cruisers
- Characteristics
- Opportunity
- All Aboards
- Characteristics
- Opportunity
- Uncommitteds
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 64: Cruises clusters, July 2010
- Figure 65: Reasons for going on a cruise, by cruises clusters, July 2010
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- Figure 66: Special interest cruises appeal, by cruises clusters, July 2010
- Figure 67: Method for booking last cruise, by cruises clusters, July 2010
- Cluster demographics
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- Figure 68: Cruises clusters, by gender, July 2010
- Figure 69: Cruises clusters, by age group, July 2010
- Figure 70: Cruises clusters, by household income, July 2010
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- Figure 71: Cruises clusters, by race/Hispanic origin, July 2010
- Cluster methodology
Custom Consumer Groups
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- Lifestyle groups that over-index on cruise travel often enjoy adventure
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- Figure 72: Cruise ship vacation incidence, by Mosaic Lifestyle Group, April 2009-June 2010
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- Figure 73: Number of cruises taken in last three years, by Mosaic Lifestyle Group, April 2009-June 2010
- Frequent travel groups tend to spend more per trip
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- Figure 74: Per-person expenditures on last cruise, by Mosaic Lifestyle Group, April 2009-June 2010
- Caribbean and Mexico popular destinations with high value groups
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- Figure 75: Cruise destinations, by Mosaic Lifestyle Group, April 2009-June 2010
- White Collar Suburbia most likely to have plans for future travel
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- Figure 76: Cruise ship vacation incidence, by Mosaic Lifestyle Group, April 20090-June 2010
Appendix—Other Useful Consumer Tables
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- Gender
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- Figure 77: Cruise ship vacation incidence, by gender, July 2010
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- Figure 78: Special interest cruises appeal, by gender, July 2010
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- Figure 79: Potential motivators to take a cruise vacation, by gender, July 2010
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- Figure 80: Reasons for never having taken a cruise, by gender, July 2010
- Age
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- Figure 81: Cruise ship vacation incidence, by age, July 2010
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- Figure 82: Cruise lines traveled with, by age, April 2009-June 2010
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- Figure 83: Reasons for never having taken a cruise, by age, July 2010
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- Figure 84: Reasons for going on a cruise, by age, July 2010
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- Figure 85: Lapsed cruisers - reasons for not taking a cruise in the last three years, by age, July 2010
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- Figure 86: Special interest cruises appeal, by age, July 2010
- Income
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- Figure 87: Plans for cruising in the next 12 months, by household income, April 2009-June 2010
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- Figure 88: Past three year cruise ship vacation frequency, by household income, July 2010
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- Figure 89: Potential motivators to take a cruise vacation, by household income, July 2010
- Race and Hispanic origin
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- Figure 90: Method for booking last cruise, by race/Hispanic origin, July 2010
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- Figure 91: Registered to receive cruise deal notifications, by race/Hispanic origin, July 2010
- Other comparisons
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- Figure 92: Cruise ship vacation incidence, by household size, July 2010
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- Figure 93: Special interest cruises appeal, by marital status, July 2010
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- Figure 94: Plans for cruising in the next 12 months, by marital status and presence of children, April 2009-June 2010
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- Figure 95: Areas traveled to on cruise ship vacation(s), by marital status and presence of children, April 2009-June 2010
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- Figure 96: Special interest cruises appeal, by education, July 2010
Appendix—Other Useful Data Tables
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- Figure 97: Estimated mail volumes of top cruise line mailers, 2005-September 2010
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Appendix—Trade Associations
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