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The cruise industry is the most exciting growth category in the entire leisure market. Since 1990, the industry has had an average annual passenger growth rate of 7.4% per annum.
The cruise industry is young. Since 1980, over 150 million passengers have taken a deep-water cruise (2+ days). Of this number, 61% of the total passengers have been generated in the past 10 years. Thirty seven percent of total passengers have been generated in the past five years alone.
The cruise market potential is strong. Over the next three years, 51 million North Americans indicate an intent to cruise. To date, approximately 19.9 % of the U.S. population has ever cruised. By maintaining historical occupancy levels, the cruise industry will welcome 12.8 million guests in 2008.
The cruise product is incredibly diversified with literally a cruise vacation for everyone. Over the past 10 years, the industry has responded to extensive market and consumer research that has guided the addition of new destinations, new ship design concepts, new on-board/on-shore activities, new themes and new cruise lengths to reflect the changing vacation patterns of today’s market.
The cruise industry’s product delivers unparalleled customer satisfaction. Whether a frequent or first-time cruiser, the cruise experience consistently exceeds expectations on a wide range of important vacation attributes. On a comparative basis versus other vacation categories, cruising consistently receives top marks. The on-going challenge for our industry is to convert cruise prospects into new cruisers.
Cruising is an important vehicle for sampling destination areas to which passengers may return. 80% of cruise passengers agree that a cruise vacation is good way to sample destinations that they may wish to visit again on a land-based vacation. Nearly 40% of cruise vacationers state that they returned to vacation at a destination forst visited by cruise.. Cruisers are not exclusively cruisers; rather they are frequent vacationers who cruise as part of their vacation mix.
The North American cruise market is strong across all 50 states and Canada. Today’s array of airlift options and streamlined port processing have opened up cruising as a vacation alternative to more and more individuals. The addition of new North American embarkation ports provides cruise vacationers more options and opportunities to drive versus fly. In fact, 72% of Americans indicate that the convenience of over 30 “Close to Home” North American embarkation ports increases their likelihood to cruise within the next three years.
CLIA Member Lines capacity utilization/deployment. From a capacity standpoint, utilization is consistently over 100%. In 2007 the CLIA industry occupancy rate was 105.7% The Caribbean and Bahamas represents the number one destination with almost 37% of capacity development. The Mediterranean, Europe, Alaska, and Mexico follow the Caribbean in popularity.
CLIA has become one of the largest and most influential travel industry associations. Today, it has 24 member lines and nearly 16,000 travel agency members. It’s the largest association in terms of North American travel agency member representation.
The cruise industry has a very close working relationship with the travel agency community. A vast majority of cruise passengers use the services of a travel agent to book their cruise vacations. Cruises are profitable to sell and generate a high repeat rate. The most successful and productive agencies are those that place a premium on selling cruises and training their personnel. CLIA provides a wide portfolio of travel agency training programs considered among the best in the travel industry including live classroom seminars, seminars at industry conferences and events, online training, DVD training and textbooks. The “Gold Standard” of CLIA training is the Certified Cruise Counsellor program where agents can earn the designation of Accredited (ACC), Master (MCC), Elite (ECC) and Elite Scholar (ECCS) designations. Travel agents earn these CLIA Certification designations via a structured program of mandatory and elective training, ship inspections, actual cruise experience and required cabin sales targets. A CLIA Certified Cruise Counsellor is the travelers best resource for cruise vacation planning. Two-thirds of all travelers consider professional designation/accreditation as a cruise expert to be extremely/very important – but, as expected, is even more important to cruisers (75%) than non-cruiser/vacationers (56%) – particularly luxury (81%) cruisers.
NOTE: In this report, North American market designates only U.S. and Canada.
The cruise industry is the most exciting vacation category in the United States and Canada. Its average rate of growth has been far greater than any other category.
THE BIG PICTURE ANNUAL PASSENGERS (2 Day or More Market)
RECENT GROWTH TRENDS
Annual Passenger Growth
Actual (000’s) |
|
North America |
Foreign |
Worldwide |
| 1990 |
3,496 |
278 |
3,774 |
| 1991 |
3,834 |
334 |
4,168 |
| 1992 |
4,023 |
362 |
4,385 |
| 1993 |
4,318 |
410 |
4,728 |
| 1994 |
4,314 |
486 |
4,800 |
| 1995 |
4,223 |
498 |
4,721 |
| 1996 |
4,477 |
493 |
4,970 |
| 1997 |
4,864 |
516 |
5,380 |
| 1998 |
5,243 |
625 |
5,868 |
| 1999 |
5,690 |
647 |
6,337 |
| 2000 |
6,546 |
668 |
7,214 |
| 2001 |
6,637 |
862 |
7,499 |
| 2002 |
7,472 |
1,176 |
8,648 |
| 2003 |
7,990 |
1,536 |
9,526 |
| 2004 |
8,870 |
1,590 |
10,460 |
| 2005 |
9,671 |
1,509 |
11,180 |
| 2006 |
10,078 |
1,928 |
12,006 |
| 2007 |
10,247 |
2,316 |
12,563 |
Average Growth Rate 1990-2007 |
7.4% |
SOURCE: CLIA 2007 Year End Passenger Carryings Report as reported by CLIA member cruise lines only.
Reflecting North America’s shorter vacation patterns, the cruise industry’s hottest growth category has been the 2-5 day cruise category.
PASSENGERS:
| |
Passengers (000’s) |
1980 |
2007 |
% Growth |
2-5 Days |
347 |
3,854 |
1011.7 |
6-8 Days |
846 |
6,427 |
659.7 |
9-17 Days |
221 |
2,180 |
886.4 |
18+ Days |
17 |
100 |
488.2 |
TOTAL |
1,431 |
12,561 |
777.8 |
SHARE:
| |
Category Shares |
1980
| 2007
| % Point Change |
2-5 Days |
24.3% |
30.7 |
6.4 |
6-8 Days |
59.1 |
51.2 |
-7.9 |
9-17 Days |
15.4 |
17.3 |
1.9 |
18+ Days |
1.2 |
0.8 |
-0.4 |
TOTAL |
100.0% |
100.0% |
0.0 |
SOURCE: CLIA Year End Passenger Carryings Reports
From 1983 through 1991, there was a steady decline in the length of cruise vacations -- a reflection of more capacity being added in the short cruise market. The average length of cruises is now 7.1 days.
|
Average Length of Cruise
(Days) |
% of Total Passengers in
2-5 Day Category |
| 1981 |
6.7 |
29.6% |
| 1982
| 6.9 |
25.3 |
| 1983
| 6.9 |
21.6 |
| 1984
| 6.9 |
22.3 |
| 1985
| 6.8 |
26.3 |
| 1986
| 6.4 |
35.1 |
| 1987
| 6.4 |
32.8 |
| 1988
| 6.4 |
32.9 |
| 1989
| 6.4 |
33.8 |
| 1990
| 6.2 |
38.3 |
| 1991
| 6.1 |
37.4 |
| 1992
| 6.2 |
35.2 |
| 1993
| 6.4 |
36.7 |
| 1994
| 6.3 |
38.0 |
| 1995
| 6.5 |
33.7 |
| 1996
| 6.4 |
35.9 |
| 1997
| 6.5 |
33.6 |
| 1998
| 6.7 |
34.7 |
| 1999
| 6.6 |
35.8 |
| 2000
| 6.5 |
36.9 |
| 2001
| 6.4 |
37.2 |
| 2002
| 6.9 |
35.5 |
| 2003
| 6.9 |
32.9 |
| 2004
| 6.9 |
31.4 |
| 2005
| 6.9 |
34.0 |
| 2006
| 6.9 |
32.9 |
| 2007
| 7.1 |
34.6 |
SOURCE: CLIA year-end Passenger Carryings Report.
The cruise vacation industry is positioned well for continued growth with relatively modest market penetration (19.9% of Americans have cruised) as well as strong cruise interest and demand (Nearly 51 million Americans expressed interest in cruising within the next three years.
These market statistics as well as cruiser demographics, cruise characteristics and satisfaction, travel agency relevance, cruise interest & potential plans, cruiser histories and trip characteristics can be found in the CLIA 2008 Cruise Market Profile Study. The CLIA Cruise Market Profile Study is a biennial research project designed to track cruise awareness, perceptions, attitudes and future intent. Findings of this 2008 study are available on CLIA’s website at http://www.cruising.org/Press/research/index.cfm.
The South Atlantic and Pacific regions continue to be the largest source of passengers.
|
Regional Shares – 1990 vs. 2007 |
1990 |
2007
| Point change
|
New England
(CT, ME, MA, NH, VT, RI) |
5.78% |
6.82% |
1.04 |
Mid-Atlantic
(NJ, NY, PA) |
16.21% |
11.69% |
(4.52) |
East North Central
(IL, IN, MI, OH, WI) |
14.03% |
7.77% |
(6.26) |
West North Central
(IA, KS, MN, MO, NE, SD) |
4.50% |
3.29% |
(1.21) |
South Atlantic
(DE, DC, FL, GA, MD, NC, SC, VA, WV) |
24.16% |
34.66% |
10.50 |
East South Central
(AL, KY, MS, TN) |
2.86% |
2.85% |
(0.01) |
West South Central
(AR, LA, OK, TX) |
5.42% |
10.24% |
4.82 |
Mountain
(AZ, CO, ID, MT, NV, NM, UT, WY) |
3.86% |
6.23% |
2.37 |
Pacific
(AK, CA, HI, OR, WA) |
23.18% |
16.45% |
(6.73) |
| TOTAL |
100.0% |
100.0% |
0.00 |
SOURCE: 2007-Year End CLIA Passenger Carryings Reports.
Shorter cruises skew towards the South Atlantic Region while longer cruises skew to the Pacific Coast Region.
|
2007 Regional Contribution (%) By Cruise Length |
2-5 Days |
6-8 Days |
9-17 Days |
18+ Days |
Total Days |
New England
(CT, ME, MA, NH, VT, RI) |
6.29 |
7.42 |
6.16 |
3.78 |
6.82 |
Mid-Atlantic
(NJ, NY, PA) |
9.62 |
12.54 |
14.26 |
7.70 |
11.69 |
East North Central
(IL, IN, MI, OH, WI) |
7.29 |
8.61 |
6.10 |
5.10 |
7.77 |
West North Central
(IA, KS, MN, MO, NE, SD) |
2.58 |
4.02 |
2.49 |
2.35 |
3.29 |
South Atlantic
(DE, DC, FL, GA, MD, NC, SC, VA, WV) |
41.89 |
30.66 |
30.40 |
21.46 |
34.66 |
East South Central
(AL, KY, MS, TN) |
4.22 |
2.28 |
1.32 |
1.51 |
2.85 |
West South Central
(AR, LA, OK, TX) |
11.35 |
10.14 |
7.68 |
9.58 |
10.24 |
Mountain
(AZ, CO, ID, MT, NV, NM, UT, WY) |
4.31 |
7.50 |
6.60 |
8.88 |
6.23 |
Pacific
(AK, CA, HI, OR, WA) |
12.45 |
16.83 |
24.99 |
39.64 |
16.45 |
| TOTAL |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
SOURCE: 2007-Year End CLIA Passenger Carryings Report
| |
2007
TOTAL
PASSENGERS |
% OF
NORTH
AMERICA |
2006
TOTAL
PASSENGERS |
CHANGE
AMOUNT |
CHANGE
PCT |
2005
TOTAL
PASSENGERS |
2004
TOTAL
PASSENGERS |
| Alabama |
89,513 |
0.87% |
80,609 |
8,904 |
11.05% |
84,357 |
140,352 |
| Alaska |
7,550 |
0.07% |
6,810 |
740 |
10.87% |
5,561 |
6,770 |
| Arizona |
306,181 |
2.99% |
286,288 |
19,893 |
6.95% |
267,956 |
207,527 |
| Arkansas |
41,123 |
0.40% |
41,063 |
60 |
0.15% |
37,940 |
43,811 |
| California |
1,282,999 |
12.52% |
1,195,262 |
87,737 |
7.34% |
1,141,452 |
1,185,355 |
| Colorado |
73,844 |
0.72% |
71,373 |
2,471 |
3.46% |
69,668 |
82,480 |
| Connecticut |
99,247 |
0.97% |
99,611 |
-364 |
-0.37% |
99,937 |
107,462 |
| Delaware |
21,875 |
0.21% |
22,891 |
-1,016 |
-4.44% |
19,088 |
20,487 |
| Dist. of Columbia |
7,074 |
0.07% |
7,591 |
-517 |
-6.81% |
6,384 |
13,493 |
| Florida |
2,274,707 |
22.20% |
2,279,295 |
-4,588 |
-0.20% |
2,101,896 |
1,461,909 |
| Georgia |
336,585 |
3.28% |
347,899 |
-11,314 |
-3.25% |
345,679 |
228,912 |
| Hawaii |
22,496 |
0.22% |
22,293 |
203 |
0.91% |
18,721 |
16,922 |
| Idaho |
18,456 |
0.18% |
19,312 |
-856 |
-4.43% |
24,639 |
22,083 |
| Illinois |
268,476 |
2.62% |
228,741 |
39,735 |
17.37% |
210,253 |
235,328 |
| Indiana |
84,790 |
0.83% |
83,171 |
1,619 |
1.95% |
81,067 |
94,287 |
| Iowa |
33,764 |
0.33% |
33,905 |
-141 |
-0.42% |
31,244 |
31,416 |
| Kansas |
42,639 |
0.42% |
44,362 |
-1,723 |
-3.88% |
41,869 |
40,847 |
| Kentucky |
43,749 |
0.43% |
42,338 |
1,411 |
3.33% |
45,279 |
52,161 |
| Louisiana |
120,788 |
1.18% |
88,709 |
32,079 |
36.16% |
84,056 |
98,392 |
| Maine |
16,429 |
0.16% |
15,749 |
680 |
4.32% |
17,866 |
17,130 |
| Maryland |
145,006 |
1.42% |
147,584 |
-2,578 |
-1.75% |
144,475 |
167,872 |
| Massachusetts |
441,034 |
4.30% |
502,505 |
-61,471 |
-12.23% |
557,371 |
418,577 |
| Michigan |
144,113 |
1.41% |
151,685 |
-7,572 |
-4.99% |
161,549 |
187,896 |
| Minnesota |
95,948 |
0.94% |
96,665 |
-717 |
-0.74% |
79,641 |
82,835 |
| Mississippi |
37,958 |
0.37% |
30,183 |
7,775 |
25.76% |
28,849 |
31,903 |
| Missouri |
106,324 |
1.04% |
104,121 |
2,203 |
2.12% |
96,232 |
95,060 |
| Montana |
9,251 |
0.09% |
8,199 |
1,052 |
12.83% |
7,534 |
8,306 |
| Nebraska |
18,168 |
0.18% |
20,010 |
-1,842 |
-9.21% |
19,841 |
22,013 |
| Nevada |
69,687 |
0.68% |
72,832 |
-3,145 |
-4.32% |
71,756 |
137,607 |
| New Hampshire |
46,490 |
0.45% |
48,910 |
-2,420 |
-4.95% |
48,147 |
32,736 |
| New Jersey |
298,535 |
2.91% |
321,612 |
-23,077 |
-7.18% |
347,987 |
349,162 |
| New Mexico |
29,717 |
0.29% |
30,349 |
-632 |
-2.08% |
29,534 |
24,930 |
| New York |
444,176 |
4.33% |
461,650 |
-17,474 |
-3.79% |
461,363 |
501,950 |
| North
Carolina |
218,785 |
2.14% |
211,685 |
7,100 |
3.35% |
213,610 |
192,035 |
| North
Dakota |
7,335 |
0.07% |
17,291 |
-9,956 |
-57.58% |
11,578 |
4,591 |
| Ohio |
172,372 |
1.68% |
174,564 |
-2,192 |
-1.26% |
180,553 |
206,328 |
| Oklahoma |
47,631 |
0.46% |
46,412 |
1,219 |
2.63% |
44,145 |
48,202 |
| Oregon |
60,834 |
0.59% |
57,514 |
3,320 |
5.77% |
54,218 |
52,137 |
| Pennsylvania |
361,903 |
3.53% |
390,662 |
-28,759 |
-7.36% |
407,762 |
373,365 |
| Rhode
Island |
35,232 |
0.34% |
39,875 |
-4,643 |
-11.64% |
42,739 |
36,278 |
| South Carolina |
111,447 |
1.09% |
109,201 |
2,246 |
2.06% |
103,735 |
113,497 |
| South Dakota |
6,625 |
0.06% |
6,924 |
-299 |
-4.32% |
6,209 |
7,209 |
| Tennessee |
98,047 |
0.96% |
91,481 |
6,566 |
7.18% |
89,983 |
94,613 |
| Texas |
758,752 |
7.40% |
729,437 |
29,315 |
4.02% |
651,775 |
543,662 |
| Utah |
76,364 |
0.75% |
65,562 |
10,802 |
16.48% |
63,874 |
59,325 |
| Vermont |
6,650 |
0.06% |
6,531 |
119 |
1.82% |
6,580 |
7,271 |
| Virginia |
144,922 |
1.41% |
149,202 |
-4,280 |
-2.87% |
146,497 |
177,729 |
| Washington |
181,118 |
1.77% |
162,855 |
18,263 |
11.21% |
172,340 |
139,639 |
| West Virginia |
15,789 |
0.15% |
14,825 |
964 |
6.50% |
14,271 |
17,667 |
| Wisconsin |
64,989 |
0.63% |
65,865 |
-876 |
-1.33% |
61,671 |
67,965 |
| Wyoming |
4,707 |
0.05% |
4,297 |
410 |
9.54% |
3,752 |
4,687 |
| TOTAL U.S. |
9,452,194 |
92.24% |
9,357,760 |
94,434 |
1.01% |
9,064,483 |
8,314,171 |
| PUERTO RICO |
119,351 |
1.16% |
126,382 |
-7,031 |
-5.56% |
120,781 |
121,975 |
Alberta |
69,667 |
0.68% |
60,149 |
9,518 |
15.82% |
44,416 |
45,496 |
British Columbia |
200,499 |
1.96% |
162,947 |
37,552 |
23.05% |
156,595 |
126,725 |
Manitoba |
13,536 |
0.13% |
11,075 |
2,461 |
22.22% |
8,196 |
7,975 |
New Brunswick
| 5,573 |
0.05% |
4,711 |
862 |
18.30% |
4,445 |
3,390 |
Newfoundland |
4,211 |
0.04% |
3,279 |
932 |
28.42% |
3,461 |
1,687 |
Nova Scotia |
7,394 |
0.07% |
6,117 |
1,277 |
20.88% |
4,962 |
4,783 |
Ontario |
258,456 |
2.52% |
244,556 |
13,900 |
5.68% |
187,441 |
178,732 |
Prince Edward Island |
994 |
0.01% |
756 |
238 |
31.48% |
1,066 |
524 |
Quebec |
108,315 |
1.06% |
94,623 |
13,692 |
14.47% |
71,397 |
60,901 |
Saskatchewan |
6,516 |
0.06% |
5,518 |
998 |
18.09% |
3,745 |
4,249 |
North West Territory |
152 |
0.00% |
158 |
-6 |
-3.80% |
202 |
154 |
Yukon Territory |
275 |
0.00% |
193 |
82 |
42.49% |
177 |
139 |
| Total Canada |
675,588 |
6.59% |
594,082 |
81,506 |
13.72% |
486,103 |
434,755 |
| Total North America |
10,247,133 |
100.00% |
10,078,224 |
168,909 |
1.68% |
9,671,367 |
8,870,901 |
| Foreign |
2,315,449 |
|
1,927,600 |
387,849 |
20.12% |
1,509,035 |
1,589,936 |
| Total World |
12,562,582 |
|
12,005,824 |
556,758 |
4.64% |
11,180,402 |
10,460,837 |
STATE /
PROVENCE |
TOTAL
PASSENGERS |
% OF
TOTAL |
1-5 DAY |
6-8 DAY |
9-17 DAY |
18 DAY PLUS |
PAX |
% OF |
PAX |
% OF |
PAX |
% OF |
PAX |
% OF |
AMT |
TOTAL |
AMT |
TOTAL |
AMT |
TOTAL |
AMT |
TOTAL |
1
| Florida |
2,274,707 |
22.20 |
985,173 |
27.78 |
989,531 |
19.06 |
292,720 |
20.19 |
7,283 |
12.49 |
2
| California |
1,282,999 |
12.52 |
378,443 |
10.67 |
616,585 |
11.87 |
272,986 |
18.83 |
14,985 |
25.71 |
3
| Texas |
758,752 |
7.40 |
279,825 |
7.89 |
389,101 |
7.49 |
85,786 |
5.92 |
4,040 |
6.93 |
4
| New York |
444,176 |
4.33 |
113,606 |
3.20 |
250,390 |
4.82 |
78,578 |
5.42 |
1,602 |
2.75 |
5 |
Massachusetts |
441,034 |
4.30 |
170,451 |
4.81 |
226,987 |
4.37 |
42,653 |
2.94 |
943 |
1.62 |
6
| Pennsylvania |
361,903 |
3.53 |
136,770 |
3.86 |
177,910 |
3.43 |
46,337 |
3.20 |
886 |
1.52 |
7
| Georgia |
336,585 |
3.28 |
188,810 |
5.32 |
126,064 |
2.43 |
21,078 |
1.45 |
633 |
1.09 |
8
| Arizona |
306,181 |
2.99 |
79,829 |
2.25 |
179,516 |
3.46 |
44,779 |
3.09 |
2,057 |
3.53 |
9
| New Jersey |
298,535 |
2.91 |
79,874 |
2.25 |
160,982 |
3.10 |
56,505 |
3.90 |
1,174 |
2.01 |
10
| Illinois |
268,476 |
2.62 |
104,661 |
2.95 |
135,865 |
2.62 |
27,187 |
1.88 |
763 |
1.31 |
11
| Ontario |
258,456 |
2.52 |
29,752 |
0.84 |
157,600 |
3.03 |
67,718 |
4.67 |
3,386 |
5.81 |
12
| North Carolina |
218,785 |
2.14 |
105,469 |
2.97 |
96,647 |
1.86 |
16,137 |
1.11 |
532 |
0.91 |
13
| British Columbia |
200,499 |
1.96 |
44,460 |
1.25 |
106,950 |
2.06 |
44,205 |
3.05 |
4,884 |
8.38 |
14
| Washington |
181,118 |
1.77 |
37,580 |
1.06 |
113,486 |
2.19 |
27,448 |
1.89 |
2,604 |
4.47 |
15
| Ohio |
172,372 |
1.68 |
54,185 |
1.53 |
98,334 |
1.89 |
19,275 |
1.33 |
578 |
0.99 |
16
| Maryland |
145,006 |
1.42 |
47,261 |
1.33 |
71,921 |
1.38 |
25,254 |
1.74 |
570 |
0.98 |
17
| Virginia |
144,922 |
1.41 |
43,925 |
1.24 |
83,414 |
1.61 |
16,916 |
1.17 |
667 |
1.14 |
18
| Michigan |
144,113 |
1.41 |
43,841 |
1.24 |
83,673 |
1.61 |
15,977 |
1.10 |
622 |
1.07 |
19
| Louisiana |
120,788 |
1.18 |
75,762 |
2.14 |
40,653 |
0.78 | | | | |
