The cruise industry expects that its nearly 20-year string of annual growth will continue this year, as the extraordinary values on the market are spurring record bookings for some lines, said Richard E. Sasso, president and CEO of MSC Cruises (USA) Inc. and chairman of CLIA's marketing committee.
In fact, according to the CLIA 2009 Cruise Industry Update, in 2008 CLIA cruise lines achieved 104% occupancy levels and hosted an estimated 13.2 million cruisers, up from 12.56 million in 2007. For 2009, CLIA is projecting 13.5 million passengers will sail on one of CLIA's 23 cruise line members.
Sasso pointed to the industry's track record of continued yearly growth since the 1980s as proof that 2009 will be a good year. According to CLIA, from 1980 through to the present, the average annualized growth of the North American cruise industry stands at 7.4%.
"We may actually be the most successful segment of the travel industry," Sasso said at today's media briefing in New York.
Recent announcements by Princess Cruises and MSC Cruises regarding "best ever" booking days is further proof the industry is well positioned for 2009.
"For MSC Cruises, the last three days have been record breaking booking days," said Sasso. (Oceania Cruises also reported a record week. Please see story below.)
Travel agents echo the optimism clearly displayed by Sasso. According to a survey of more than 900 travel agents conducted by CLIA last week, more than half (52%) said they expect cruise sales in 2009 to be "good" or "very good" compared to 2008, with another 28% anticipating a "fair" cruise sales season.
"Everybody we consider an expert in the industry is saying that things are going well in cruising," Sasso said.
The survey also found that the primary motivator for consumers booking cruises is the extraordinary value offered by cruise lines. According to survey findings, cruises out score all other types of vacations in terms of consumer interest and perceived value.
Cruise Trends
The 2009 Cruise Industry Update also included several trend forecasts for 2009. Among the trends to watch out for will be increased offerings of "value" packages and promotions. According to CLIA, many CLIA lines have responded to the economic crisis with hard-to-resist offers and special promotions, among them kids sail free, special prices on select itineraries, enhanced shipboard credit offers, free airfare and/or shore excursions and more. This will continue throughout Wave Season and likely beyond.
Another trend travel agents should be aware of is an increased focus on group travel, including family and multigenerational travel. A recent CLIA survey found that almost half (46%) of families have taken two to four cruises with children under the age of 18, while another 15.2% have taken five to seven cruises. Reinforcing the value proposition of cruises, families consistently cite outstanding value as their reason to take a cruise.
The coming year will also see the continued diversification and global expansion of cruise operations. While the Caribbean, Alaska and Europe remain the dominant markets, many CLIA lines have announced plans to increase their presence in other parts of the world. Cruise lines are adding new, more exotic ports to their itineraries creating new cruising opportunities for both veteran and first time cruisers.
At the same time, cruise lines are also expanding domestic homeports. As of 2008, CLIA member cruise lines offered cruises from more than 30 domestic ports along the East, West and Gulf coasts, as well as major rivers in Canada and New England and the American Midwest and West.
Other key facts presented during the media briefing were: 2009 will see 14 new ships creating a net bed day increase of 4.8%; 21 new ships will be introduced between 2010 and 2012, representing a $14-billion investment in the cruise industry; and travel agents collectively represent 85% to 90% of all cruise bookings made.
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