Future Caribbean Cruise Travel Survey - Summer 2012

Transcription

1 Future Caribbean Cruise Travel Survey - Summer 2012

2 Presentation Outline Survey Data Sources; Survey Purpose; Research Objectives; Background to Survey Research; Preliminary Survey Results; and Next Steps.

3 Survey Data Sources Partnered with Virtual Tourist (global online travel community 65,000 members from all over the world (Europe, USA, Australia and Oceania, Africa, Caribbean, Central America and the Middle East) Incentive (Caribbean cruise for two in summer 2013 on Carnival Cruises)

4 Survey Purpose To gather data to understand the circumstances surrounding low demand for Caribbean cruises during the summer months; and To create an environment that would make it viable for cruise lines to operate during the summer months.

5 Research Objectives 1. To stimulate demand for cruises to the Caribbean during the summer months; 2. To identify from prospective customers what are the main factors that must be in place to motivate/entice them to take a Caribbean cruise during the summer months; 3. To determine what are the major deterrents to customers taking a cruise during the summer months; and 4. To develop strategies and put measures in place to better plan and develop the regional tourism industry

6 Survey Background Caribbean Cruise Industry Profile The Caribbean has experienced overall steady growth in cruise passenger arrivals over the last 30 years:- 3.8 m 1980 Record 21.2 m 2011

7 Figure 1: Cruise Passenger Arrivals in the Caribbean Source: Data sourced from the Caribbean Tourism Organisation. Percentage Increase Period Total Average

8 Figure 2: Cruise Passenger Arrivals Average Percentage Change in the Caribbean Source: Data sourced from the Caribbean Tourism Organisation.

9 Survey Background Caribbean s global market share has decreased from 46.69% in 2006 to 39.80% in Average annual growth rate in the last five years has been a marginal 2.1%; Overall growth rates in individual ports are erratic and some have shown steep declines; The Southern Caribbean has been the most vulnerable region to the declining arrivals; Some islands receive only a minimal amount, of cruise ships in summer, while others receive none at all; and Shift in capacity from the Eastern and Southern Caribbean to the Western Caribbean, including Mexico.

10 Reasons for the Decreases in Cruise Passenger Arrivals Major cruise lines have shifted their itineraries and have repositioned their boats from the Caribbean Sea, particularly to that of European waters. The following identify some of the major reasons:-

11 Demand Adverse Weather Conditions Cost Accessibility Need to Upgrade

12 Reasons for the Decreases in Cruise Passenger Arrivals Cost Higher yield markets in Europe; Vessels are taking advantage of shorter distances to achieve fuel efficiency; Higher operating costs due to cost of low-sulfur fuel.

13 Reasons for the Decreases in Cruise Passenger Arrivals Cont d Demand Increased competition from emerging markets; Growth in popularity of international travel and increased interest in exotic, offthe-beaten track destinations. Cruise ship policy of globalisation;

14 Reasons for the Decreases in Cruise Passenger Arrivals Cont d Accessibility Cost of airfare to region is prohibitive; Close to Home ports in US, Europe and Emerging Markets result in passengers having more disposable income to spend on cruise;

15 Reasons for the Decreases in Cruise Passenger Arrivals Cont d Adverse Weather Conditions The hurricane season falls within the summer months; Climate will increasingly have major influence on destination choice; Extreme weather will continue to reduce tourist seasons in many destinations

16 Reasons for the Decreases in Cruise Passenger Arrivals Cont d Need to Upgrade Caribbean is a mature/ tired product with high repeat visitation; Need for region to refresh and diversify its tourism product; New Mega ships require more dedicated berths with specialized infrastructure.

17 Preliminary Findings.. Approximately 2/3 of respondents are from the USA, followed by the UK and Europe; Approximately 3/4 of respondents have never cruised to the Caribbean; More women than men have responded; Cost and attractive destinations are the main motivators to taking a cruise Cultural Heritage and culinary activities are more desired than beach activities; and Adverse weather and temperature conditions and high costs are major deterrents.

18 The Good News is... Region continues to rank as the dominant global cruise destination, accounting for 39.8% of all itineraries in 2011;

19 The Good News is... The Caribbean is still the most appealing cruise destination in the world: Caribbean - 45% Alaska - 24% Bahamas - 23% Hawaii -15% Bermuda -15% Mediterranean/Greek Islands/Turkey -14% Europe -13% Panama Canal - 8% West Coast of Mexico - 8% Source: CLIA 2011 Market Profile Study

20 The Good News is... The region accounted for the largest share of the cruise industry s Passenger Bed Day capacity deployments in 2011: 1. Caribbean: 36.2 million bed days (33.7%) 2. Mediterranean: million bed days (20.44%) 3. Europe/Scandinavia: 8.47million bed days (7.9%) 4. Alaska: 6.65 million bed days (6.18%) 5. Bahamas: 6.5 million bed days (6.05%) 6. Mexico (West): 3.51 million bed days (3.27%) 7. Transatlantic: 3.1 million bed days (2.9%) 8. Australia/New Zealand/S. Pacific: 2.9 million bed days (2.7%) 9. Trans Canal: 2.69 million bed days (2.5%) 10. South America: 2.6 million bed days (2.4%) 11. Hawaii: 2.19 million bed days (2.14%)

21 The Good News is... The region ranked top of the list of the CLIA s top hot destinations for Caribbean Mediterranean/Greek Islands European rivers Panama Canal Europe (all regions) South America Hawaii South Pacific Baltics/Scandinavia

22 Food for Thought... A bold, aggressive, innovative, strategic, collective and immediate response is required; Develop a Caribbean brand that transcends seasonality and can sustain increased arrivals to the region on a year-round basis ; Refresh, Rebrand, Rejuvenate, Reinvent the region s tourism offerings i.e. Expand beyond the sand, sea and sun model;

23 Food for Thought... cont d Create stronger synergies between tourism and culture the major point of differentiation; Assess the region s vulnerabilities to exogenous forces and devise the appropriate crisiscontingency responses; and Focus on enhancing the factors over which the region can exercise control i.e. quality of products & service, research & development, sustainable development, marketing strategies and messaging etc.

24 Next Steps The final survey analysis and recommendations will be presented at the next CTO Board Meeting in January 2013.

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26 Contact Information: Dr. Kerry Hall