Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Total US passengers and fan chart forecast of passengers carried, in millions, 2014-24
- Top takeaways
- Interest in and perceptions of cruises
- Younger travelers are the most recent cruisers
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- Figure 2: Most recent cruise, by age, September 2019
- Ocean cruises are seen as brag worthy, river cruises as memorable
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- Figure 3: Correspondence Analysis – Symmetrical map – Vacation perceptions, September 2019
- Traveler demands
- Extra transportation costs deter cruisers
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- Figure 4: Barriers to cruising, September 2019
- All-inclusives are valuable for groups
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- Figure 5: Attitudes toward all-inclusive packages, by number of children in household, September 2019
- Looking ahead
- Young cruisers have environmental demands
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- Figure 6: Environmental concerns about cruise ships, by age group, September 2019
- Domestic waters are an untapped market
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- Figure 7: Top desired river cruise destinations, September 2019
- What it means
The Market – What You Need to Know
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- The industry is positioned for steady passenger growth
- Caribbean destinations are the industry’s growth lines
- Value, destinations and vacation time drive consideration
- New ship orders demonstrate market optimism
The US Cruise Market
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- US industry continues steady passenger growth
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- Figure 8: Total US passengers and fan chart forecast of passengers carried, in millions, 2014-24
Market Breakdown
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- “Big Three” lines are driving global expansion
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- Figure 9: Global share of ocean cruise passengers, by cruise line, 2016-18
- Caribbean cruises remain strong among US passengers as other locations struggle
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- Figure 10: Cruise destinations traveled by US passengers 2010 and 2019
Market Perspective
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- Vacationers desire shorter trips
- Lists often inspire destinations
- Value drives leisure considerations
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- Figure 11: TURF analysis – reasons to try new things, August 2019
Market Factors
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- Rising HHIs make cruising more appealing
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- Figure 12: Median income, by census region, 2013-18
- Cruise liners are overflowing (with people, not water)
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- Figure 13: Occupancy percentage for the Big Three cruise lines, 2014-18
- Most cruise spending is less than $2,000
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- Figure 14: Average amount spent per passenger, 2019
- Increasing ship orders show confidence in growth
Key Players – What You Need to Know
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- Cruise brands continue to go big
- Digital cruise advertising could use improvement
- Expedition and theme cruises remain popular
- Cruise lines are greening
- An industry impacted by climate change
- Nowhere to hide at sea
- A look into the future
Leading Cruise Lines
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- Contemporary Brands
- Carnival Cruise Line
- Royal Caribbean International (RCI)
- Norwegian Cruise Line (NCL)
- Disney Cruise Line
- Premium Brands
- Princess Cruises
- Holland America Line
Digital Marketing for Cruise Lines
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- Carnival’s ad buys are creating the most impression value
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- Figure 15: Digital ad data among the big three cruise lines, November 2018-19
- Know where your customers are, and stand out
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- Figure 16: Spend, impressions and index data for top five sites over last 12 months, November 2019
- There’s still room for improvement
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- Figure 17: Site visitation habits, past 30 days, Spring 2019
What’s Happening
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- Expedition cruises meet luxury needs
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- Figure 18: Goals of a luxury trip, by value of investible assets, May 2019
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- Figure 19: Lindblad Alaska expedition cruise brochure, 2019
- Theme cruises tap into youth interests
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- Figure 20: Promo photo for “Golden Fans at Sea” cruise from Flip Phone Events/Crystal Cruises, 2019
- Ships are floating amusement parks
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- Figure 21: Interest in emerging activities, by age group, August 2019
- Tauck has a keen eye for trends
- Cruise lines starting to address environmental impacts
What’s Struggling
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- Climate change creates physical, image issues
- Stronger, more frequent hurricanes disrupt Caribbean market
- Droughts leave river cruises high and dry
- Is kryssningskam the next flygskam?
- Accidents cause people to demand action
- U tries too hard to attract Millennials
- Social media exacerbates issues
Cruising’s Future
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- Driver: Surroundings
- 2020
- 2025
- 2030
- Driver: Value
- 2020
- 2025
- 2030
- Driver: Experiences
- 2020
- 2025
- 2030
The Consumer – What You Need to Know
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- Half of the US population has had a cruise experience
- Getting to the destination port, cruise length are the biggest issues
- Travelers are interested in domestic offerings
- Cruises rank as most “brag worthy” vacation
- Food and shows are important on-board amenities
- Passengers want more stops on the itinerary
- All-inclusives are A-OK
- Young cruisers sail with a conscience
- Cruise segments
Cruise History and Intent
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- Ocean cruises
- Half of US adults have ocean cruise experience
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- Figure 22: Most recent ocean cruise, September 2019
- Younger age groups are starting to cruise
- Cruise lines may want to focus on older kids
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- Figure 23: Most recent ocean cruise, by select demographics, September 2019
- Ocean cruise interest high, especially among women
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- Figure 24: Interest in ocean cruises, September 2019
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- Figure 25: Interested in ocean cruises, select demographics, September 2019
- Interest is vibrant across age and income levels
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- Figure 26: Interest in ocean cruises, by age group, by HHI, September 2019
- Ocean cruises are seen as a good family vacation option
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- Figure 27: Interest in ocean cruises, by age of children in household, September 2019
- River cruises
- River cruises aren’t as popular as ocean cruises
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- Figure 28: Most recent river cruise, September 2019
- River cruise demographics generally the same as ocean
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- Figure 29: Most recent river cruise, by select demographics, September 2019
- River cruises have room to grow
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- Figure 30: Interest in river cruises, September 2019
- River cruising needs to capitalize on its interest
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- Figure 31: Interest in ocean cruises, by select demographics, September 2019
- Cruisers open to repeating, though some stay in their lane
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- Figure 32: Inclination to repeat a cruise, September 2019
Barriers to Cruising
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- Money is the biggest barrier to cruising
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- Figure 33: Barriers to cruising, September 2019
- River cruises are good at addressing the concerns of their fans
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- Figure 34: Barriers to cruising, by preferred type of cruise, September 2019
- Transit cost is less of an issue at $75k…
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- Figure 35: Transit expense as a barrier, by HHI, September 2019
- …but other demands kick in
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- Figure 36: Barriers to cruising – select items, by HHI, September 2019
- Cruise length and reputation contribute to disinterest
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- Figure 37: Barriers to cruising, by cruise interest, September 2019
- Can’t sail what you don’t know
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- Figure 38: Lack of knowledge as a barrier, by age group, September 2019
- Cruises don’t fit with younger adult’s vacation schedules
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- Figure 39: Cruise length as a barrier, by age group, September 2019
River Cruise Destinations
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- US rivers pique the most interest
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- Figure 40: Top desired river cruise destinations, September 2019
- Heritage is a draw for cruisers
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- Figure 41: Top desired river cruise destinations, by race and Hispanic origin, September 2019
- Rural Americans want to sail the Heartland
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- Figure 42: Top desired river cruise destinations, by residential area, September 2019
- Family opportunities South of the Border
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- Figure 43: Top desired river cruise destinations, by parental status, September 2019
Perceptions of Cruise Vacations
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- Cruises are a brag worthy vacation experience
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- Figure 44: Correspondence Analysis – Symmetrical map – Vacation perceptions, September 2019
- Ocean cruises seen as fun, but time consuming
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- Figure 45: Perceptions of ocean and river cruises, September 2019
- Cruises fit with luxury goals
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- Figure 46: Perceptions of vacations as relaxing or memorable, September 2019
- Parents feel they have better options
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- Figure 47: Perceptions of vacation types, by parental status, September 2019
Cruise Ship Amenities
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- Dinner and a show rule the seas
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- Figure 48: Desired cruise ship amenities, September 2019
- Young cruisers want activities, older ones want passivities
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- Figure 49: Desired cruise ship amenities, by age group, September 2019
- Women look for a relaxing getaway
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- Figure 50: Desired cruise ship amenities, by gender, September 2019
- River cruisers look for less onboard
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- Figure 51: Desired cruise ship amenities, by preferred cruise type, September 2019
Attitudes toward Cruises
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- Attitudes depend on cruise preference
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- Figure 52: Attitudes about cruise itineraries, by preferred cruise type, September 2019
- Higher income passengers look for more off the boat
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- Figure 53: Attitudes about cruise itineraries, by household income, September 2019
- Cruises are generally seen as a value, but river cruisers aren’t wowed
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- Figure 54: Attitudes toward cruise value and glamor, by cruise preference, September 2019
- All-inclusive appeal increases with number of kids
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- Figure 55: Attitudes toward all-inclusive packages, by number of children in household, September 2019
- River cruisers are more environmentally conscious
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- Figure 56: Attitudes toward sustainability, by cruise preference, September 2019
- Youngest travelers most concerned with green travel
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- Figure 57: Environmental concerns about cruise ships, by age group, September 2019
Cruise Segments
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- Factors
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- Figure 58: Cruise segment breakdown, September 2019
- Segments
- Conscious Cruisers
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- Figure 59: Conscious Cruiser segment demographics, September 2019
- Aquatically Amused
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- Figure 60: Aquatically Amused segment demos, September 2019
- Sunset Sailors
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- Figure 61: Aquatically Amused segment demos, September 2019
- Land Lubbers
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- Figure 62: Land Lubbers segment demos, September 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Consumer survey data
- Behavioral data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 63: Estimates and projections of passengers carried, in millions, 2019-24
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Appendix – The Consumer
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- Figure 64: Table - TURF Analysis – Onboard amenities, September 2019
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- Figure 65: Table - TURF Analysis – cruising barriers, September 2019
- Methodology
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- Figure 66: Vacation perceptions September 2019
- Methodology
- Top cruise ship amenities
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- Figure 67: TURF Analysis – Onboard amenities, September 2019
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