Monday, April 11, 2011

2011 Cruise Industry Market Share Report

2011 Cruise Industry Market Share Report
According to Cruise Market Watch

Market Share

The total worldwide cruise industry is estimated at $29.34 billion for 2011, a 9.5% increase over 2010.
2011 North American Cruise Market Share
In 2011 the total North American cruise market is estimated at $17.46 billion. This includes North American passengers (6% are from Canada) and foreign travelers departing from North American ports.
2011 Rest-of-World Cruise Market Share
An additional $11.88 billion is derived from the rest of the world.
  • ~$7.8 billion Europe (65.7%)
  • ~$2.7 billion Asia (22.8%)
  • ~$0.7 billion South America (5.6%)
  • ~$0.6 billion Australia (5.1%)
  • ~$0.08 billion Middle East/Africa (.8%)


As with any business, you begin by looking at your market.  Then you listen to what it has to say.  If you don’t someone else will.  This page is a first step in that process.

U.S. Cruise Market

Size of Cruise Market in United States
  • ~ are slightly older (46 vs. 45)
  • ~ have higher household incomes ($93,000 vs. $79,000)
  • ~ have higher education (69% college grad vs. 62%)
  • ~ are most often accompanied by spouses and a growing number by children under 18
  • ~ spent $1,880 per person for their cruise, air and all on-board expenses
  • ~ are considerably more likely to engage in every form of travel, taking 39% more vacations per year than non-cruisers
  • ~ can be segmented into destination, luxury, premium and contemporary
By year end 2011 the cruise market will reach 19.2 million annual passengers worldwide. Looking forward to 2014 that number is projected to reach 21.6 million
Sources: U.S. Market Demographics from TNS, Cruise Lines International Association 2008 Cruise Market Profile Study.

Market Segments

The graph below illustrates a number of variables that predict cruise behavior, and how they might aggregate to form market segments.
Explorers- The segment we love to love.  These folks take four or more vacations per year, have disposable incomes and take longer cruises, exotic cruises and cultural learning cruises.  Education and social causes are important to them.  So are making friends and socializing.  It’s a smaller and more saturated segment, but one that is lucrative and important to satisfy to retain their business. This group also represents future opportunity, as more couples become empty nesters and retired upscale boomers.
Admirals- These folks have selected their preferred cruise provider and seek a traditional experience.  They tend to ritualize their travel experience and don’t usually experiment unless their favorites start to become stale or so radically different the attributes they admired become unrecognizable.  Great cruise consumers,  they tend to be older and a good, loyal customer base but offer less opportunity for growth.
Marines- This desirable yet elusive segment is made up of upscale, motivated and active young professionals.  They are most likely to snorkel, para-sail, surf and rock climb. Whether new or experienced cruisers, they are always auditioning better ships.  They are intellectually curious, media-involved, and they perceive value in not only the appearance of being active but also the reality of learning and being challenged.  Cruise companies can grow well in this segment.  They are the logical target for active ship design strategies as well as expanding Internet marketing.
Little Mermaids – This segment is made up of upper middle class families.  They are experiencing an increase the pace of daily activity and a crunch for time.  With every non-working moment devoted to family errands (stopping at the Home Depot to pick up an attachment for the air pump for the kids pool or running to Target for a new basketball for the son’s friends birthday party) they are looking to maximize leisure activity as a family experience that includes opportunities for real quality-bonding.
Escapers – This is a desirable segment and probably the core of the cruise market.  They are just looking to get away.  All-inclusive is just fine.  No complications, no worries.   From their point of view, after having spent a hectic year in the rat race with traffic jams, bad tempered people and an abundance of things that need to be done, they have earned the pleasures of doing nothing but sitting by the pool, seeing a few sites and relaxing.  They are somewhat price sensitive but will always find the money for the trip they deserve.
Souvenirs - These folks have jobs (not careers) and lives (not lifestyles).  Because the exact line isn’t as much a priority for them as price, their cruise habits skew toward just taking a trip more than specific destinations or activities.  Lacking intense interest in the world outside they are primarily focused the internalized experience of the moment.  They tend to take a cruise vacation only when there’s a “really good deal” that everyone’s talking about.
Adrift – There is a group of people in every society who are disconnected from travel commerce, not curious about what’s going on in the world and not likely to posses the disposable income.  This segment is a realistic target for the attention of breweries and bait shops – not cruise line marketers.

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