What do you Attribute to the Ever growing Cruise Industry?

I like reading cruise statistics and trends:

The global cruise industry generated revenues of 37.1 billion U.S. dollars in 2014, a figure which was expected to increase to approximately 39.6 billion by the end of 2016. The industry made significant recovery after revenue fell below 25 billion during the 2009 global recession. The number of passengers carried by the cruise industry has grown year-on-year and is expected to exceed 25 million in 2019. The average cruise passenger brought a revenue of 1,779 U.S. dollars, but, with expenses per passenger also high, the average profit was only 226 dollars in 2015.




Where do you see the industry heading?

7 Answers

They, like many industries who service the public, will hit a wall when the public believes they are not getting the best service or value for their travel dollar.

In any industry, perception is reality. If I go to a golf course and pay 100.00 for a round, I expect a certain amount of perks for playing that course. If I have to pay extra for range balls, cart and a snack, then I will take that into consideration should the opportunity to revisit the course comes up again. One course I go to gives me, free range balls, a ten dollar food and beverage voucher and a cart for 62.00 bucks. They know our names, what we do and how well we play.

Now cruising is no different, as the potential customer base is huge, Millions have not cruised before and their expectations are low.

Many have cruise in the old way and their expectations are high, but they are fewer of those than the newbies. The market will determine where the lines go with, beverage packages, dining packages, itineraries and customer service. And the public will vote with their wallets.

Cruising has become more affordable, and I think it's the perfect vacation. Your accommodations and food are there, and you can visit a few places without unpacking and repacking.

I think the cruise industry is in for a bit of a rude awakening and will soon find they have too much capacity to support their current pricing which all things considered is reasonable. But with all of the newer mega ships coming out that have 2 to 3 times the capacity of the ships 5 to 10 years ago and with none of the older ones being retired and add to that the newer cruise lines popping up as well there will be an over supply of cabins in the not too distant future followed by a shake out in the industry. Yep popularity is increasing but the capacity is growing faster than the demand.

Cool stats Debbie – thanks for the links!

Cruising may be the most fluid global industry in existence. When airfare to Europe is prohibitively expensive, more ships are in the Caribbean. When locals in Australia or Asia are filling ships at premium prices, more ships are homeported there. When North Americans are hesitant to visit overseas, more cruises become available for Alaska and Hawaii.

Cruising will definitely continue to grow, and overall prices will continue to increase. As for what that means to each of us individually, it really depends on where you live and where you want to cruise to.

The industry will change, as the USA used to be the #1 target for the cruise industry we see ships now being home ported in Asia and being designed for the Asian market. Given that the industry does not have to pay the min wage of the USA and can get cheap help, they will grow as a cruise is a better vacation value then a resort. Ships are getting bigger and cutting overhead (one set of officers for 5,000 guest). I think the industry will grow more over sea's then here in the states.

In addition to the points made previously, I think that those of us who have cruised for years are partly to blame :P for the popularity... and social media has made a massive difference.
The boom really took hold with the popularity of The Love Boat series. That is when cruising as we know it today captured the attention of **millions**. Prior to that, the perceived limitations of accessibility, availability, and cruising classes were deeply engrained in a not too particularly positive light.
- That TV show provided a rather unrealistic view of cruising but it came into our living rooms every single week. How could we not give it a try?

- The Internet and social media exploded cruising's popularity. There is free exchange of information, opinions, experiences to be had, and undeniable value benefit.

As with anything, information is power. As potential customers obtained more information, they replaced their mental images to include themselves as cruisers enjoying all that a ship had to offer in place of a class-driven perspective where only the Asters, Rockefellers, and the similar could afford a great cruising experience above the water line, so to speak.

Because cruising is the best vacation one can ever have! Plain and simple! LOL


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