THE OVERVIEW 2010 CLIA

Transcription

1 THE OVERVIEW 2010 CLIA Cruise Market Overview Statistical Cruise Industry Data Through 2009 F:\MSWORD\REPORTS\OVERVIEW\ OVERVIEW2010\2010FINALOV.DOC

2 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 A. RECENT MARKET/GROWTH STATISTICS 1. OVERALL PASSENGER GROWTH -- NORTH AMERICAN CRUISE MARKET 2 2. GROWTH BY CRUISE LENGTH -- NORTH AMERICAN MARKET 4 3. AVERAGE LENGTH OF CRUISE 5 B. CRUISE MARKET POTENTIAL 6 PAGE C. SOURCE OF BUSINESS/PASSENGERS CLIA MEMBER LINES 1. REGIONAL PASSENGER CONTRIBUTION (1990 VS 2009) 6 2. REGIONAL CONTRIBUTION BY CRUISE LENGTH (USA) 2009) 7 3. NORTH AMERICA--BY STATE /PROVINCE 8 4. NORTH AMERICA- RANK BY STATE /PROVINCE.10 D. CRUISE CAPACITY 1. NORTH AMERICAN PASSENGER CAPACITY BY CRUISE LINE CAPACITY CHANGES COMPOSITE CAPACITY CHANGES AND CAPACITY UTILIZATION GEOGRAPHICAL DESTINATION/APPLICATION 16 E. CLIA-AS AN ASSOCIATION 1. CRUISE INDUSTRY REPRESENTATION TRAVEL AGENCY AFFILIATES 18 F. OTHER KEY SOURCES OF INFORMATION ON THE CRUISE INDUSTRY 1. BOOKS AND PAMPHLETS PERIODICALS/CONSUMER OTHER SOURCES Cruise Lines International Association All Rights Reserved F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC i

3 EXECUTIVE SUMMARY 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 7.2% per annum. The cruise industry is young. From , over 176 million passengers have taken a deep-water cruise (2+ days). Of this number, 68% of the total passengers have been generated in the past 10 years. Forty percent of total passengers have been generated in the past five years alone. The cruise market potential is strong. Over the next three years, over 50 million North Americans indicate intent to cruise. To date, approximately 20% of the U.S. population has ever cruised. By maintaining historical occupancy levels, the cruise industry will welcome million guests in 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 first 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 arrays 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 2009 the CLIA industry occupancy rate was 103.9%. For 2010 the Caribbean and Bahamas represents the number one destination with 41.3% of capacity deployment. 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 25 member lines and nearly 16,000 travel agency and individual agent 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. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 1

4 A. RECENT MARKET/GROWTH STATISTICS 1. OVERALL PASSENGER GROWTH-NORTH AMERICAN CRUISE MARKET 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 (000 s) THE BIG PICTURE 16,000 14,000 12,000 10,000 8,000 North American Passengers Foreign Passengers Total Passeengers 6,000 4,000 2, YEARS The above graph illustrates the increasing globalization (Foreign Passengers carried) within the cruise industry. A. RECENT MARKET/GROWTH STATISTICS F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 2

5 RECENT GROWTH TRENDS Annual Passenger Growth Actual (000 s) North America Foreign Worldwide , , , , , , , , , , , , , , , , , , , , , , , , ,472 1,176 8, ,990 1,536 9, ,870 1,590 10, ,671 1,509 11, ,078 1,928 12, ,247 2,316 12, ,093 2,912 13, ,198 3,244 13,442 Average Growth Rate % SOURCE: CLIA 2009 Year End Passenger Carryings Report as reported by CLIA member cruise lines only. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 3

6 A. RECENT MARKET/GROWTH STATISTICS 2. GROWTH BY LENGTH OF CRUISE (Total passengers carried) PASSENGERS: Passengers (000 s) % Growth 2-5 Days 1,434 4, Days 1,966 6, Days 358 2, Days TOTAL 3,774 13, SHARE: Category Shares % Point Change 2-5 Days 38.0% Days Days Days TOTAL 100.0% 100.0% 0.0 SOURCE: CLIA Year End Passenger Carryings Reports F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 4

7 A. RECENT MARKET/GROWTH STATISTICS 3. AVERAGE LENGTH OF CRUISE The average length of cruises remained 7.2 days in Average Length of Cruise (Days) % of Total North American Passengers in 2-5 Day Category % SOURCE: CLIA year-end Passenger Carryings Report. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 5

8 B. CRUISE MARKET POTENTIAL 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 C. SOURCE OF BUSINESS-PASSENGERS 3. REGIONAL PASSENGER CONTRIBUTION 1990 VS (USA) The South Atlantic and Pacific regions continue to be the largest source of passengers. Regional Shares 1990 vs Point change New England 5.78% 8.06% 2.28 (CT, ME, MA, NH, VT, RI) Mid-Atlantic 16.21% 8.52% (7.69) (NJ, NY, PA) East North Central 14.03% 6.48% (7.55) (IL, IN, MI, OH, WI) West North Central 4.50% 2.83% (1.67) (IA, KS, MN, MO, NE, SD) South Atlantic 24.16% 34.48% (DE, DC, FL, GA, MD, NC, SC, VA, WV) East South Central 2.86% 2.60% (0.26) (AL, KY, MS, TN) West South Central 5.42% 13.19% 7.77 (AR, LA, OK, TX) Mountain 3.86% 9.06% 5.20 (AZ, CO, ID, MT, NV, NM, UT, WY) Pacific 23.18% (8.40) (AK, CA, HI, OR, WA) TOTAL 100.0% 100.0% 0.00 SOURCE: 2009-Year End CLIA Passenger Carryings Reports. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 6

9 C. SOURCE OF BUSINESS-PASSENGERS 4. REGIONAL CONTRIBUTION BY CRUISE LENGTH (USA) Shorter cruises skew towards the South Atlantic Region while longer cruises skew to the Pacific Coast Region 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) Mid-Atlantic (NJ, NY, PA) East North Central (IL, IN, MI, OH, WI) West North Central (IA, KS, MN, MO, NE, ND, SD) South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) East South Central (AL, KY, MS, TN) West South Central (AR, LA, OK, TX) Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) Pacific (AK, CA, HI, OR, WA) TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% SOURCE: 2009-Year End CLIA Passenger Carryings Report F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 7

10 C. SOURCE OF BUSINESS-PASSENGERS 3: NORTH AMERICA BY STATE / PROVINCE STATE/PROV 2009 % OF TOTAL NORTH TOTAL CHANGE CHANGE TOTAL PASSENGERS AMERICA PASSENGERS AMOUNT PERCENT PASSENGERS Alabama 95, % 88,133 7, % 89,513 Alaska 19, % 25,137-5, % 7,550 Arizona 495, % 298, , % 306,181 Arkansas 39, % 36,971 2, % 41,123 California 1,111, % 1,202,708-90, % 1,282,999 Colorado 59, % 71,251-12, % 73,844 Connecticut 70, % 90,072-19, % 99,247 Delaware 18, % 21,670-3, % 21,875 Dist. Of Columbia 6, % 6, % 7,074 Florida 2,530, % 2,300, , % 2,274,707 Georgia 183, % 273,120-89, % 336,585 Hawaii 13, % 18,137-4, % 22,496 Idaho 12, % 17,701-5, % 18,456 Illinois 240, % 298,804-58, % 268,476 Indiana 71, % 81,440-10, % 84,790 Iowa 27, % 32,022-4, % 33,764 Kansas 34, % 40,103-5, % 42,639 Kentucky 36, % 41,529-5, % 43,749 Louisiana 106, % 112,031-5, % 120,788 Maine 12, % 14,853-2, % 16,429 Maryland 122, % 140,501-18, % 145,006 Massachusetts 586, % 478, , % 441,034 Michigan 106, % 133,431-26, % 144,113 Minnesota 83, % 87,260-3, % 95,948 Mississippi 32, % 34,898-2, % 37,958 Missouri 92, % 98,301-5, % 106,324 Montana 6, % 9,722-2, % 9,251 Nebraska 17, % 19,267-2, % 18,168 Nevada 192, % 117,448 74, % 69,687 New Hampshire 54, % 46,779 7, % 46,490 New Jersey 227, % 289,205-61, % 298,535 New Mexico 26, % 29,001-2, % 29,717 New York 382, % 435,956-53, % 444,176 North Carolina 174, % 199,109-24, % 218,785 North Dakota 4, % 5, % 7,335 Ohio 141, % 163,057-22, % 172,372 Oklahoma 41, % 44,208-3, % 47,631 Oregon 46, % 55,344-8, % 60,834 Pennsylvania 193, % 329, , % 361,903 Rhode Island 31, % 33,933-2, % 35,232 South Carolina 88, % 102,845-13, % 111,447 South Dakota 5, % 7,166-1, % 6,625 Tennessee 80, % 91,237-10, % 98,047 F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 8

11 C. SOURCE OF BUSINESS-PASSENGERS 3: NORTH AMERICA BY STATE / PROVINCE STATE/PROV 2009 % OF TOTAL NORTH TOTAL CHANGE CHANGE TOTAL PASSENGERS AMERICA PASSENGERS AMOUNT PERCENT PASSENGERS Texas 1,056, % 787, , % 758,752 Utah 57, % 71,223-13, % 76,364 Vermont 4, % 5,975-1, % 6,650 Virginia 111, % 140,771-28, % 144,922 Washington 203, % 185,972 17, % 181,118 West Virginia 13, % 14, % 15,789 Wisconsin 50, % 59,854-8, % 64,989 Wyoming 3, % 4,823-1, % 4,707 TOTAL U.S. 9,429, % 9,293, , % 9,452,194 Puerto Rico 70, % 88,771-18, % 119,351 Alberta 59, % 66,311-6, % 69,667 British Columbia 206, % 208,551-2, % 200,499 Manitoba 14, % 14, % 13,536 New Brunswick 6, % 6, % 5,573 Newfoundland 4, % 5, % 4,211 Nova Scotia 7, % 8,267-1, % 7,394 Ontario 270, % 273,646-3, % 258,456 Prince Edward Island 1, % 1, % 994 Quebec 119, % 118,082 1, % 108,315 Saskatchewan 6, % 7, % 6,516 North West Terr % % 152 Yukon Territory % % 275 TOTAL CANADA 698, % 710,607-12, % 675,588 TOTAL NORTH AMERICA 10,197, % 10,093, , % 10,247,133 Foreign 3,243,912 2,912, , % 2,315,449 TOTAL WORLD 13,441,680 13,005, , % 12,562,582 F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 9

12 C. SOURCE OF BUSINESS-PASSENGERS 4: NORTH AMERICA - RANK BY STATE / PROVINCE STATE/PROV TOTAL % OF 1-5 DAY 6-8 DAY 9-17 DAY 18 PLUS DAY PAX TOTAL PAX % OF PAX % OF PAX % OF AMOUNT TOTAL AMOUNT TOTAL AMOUNT TOTAL PAX % OF AMOUNT TOTAL 1 Florida 2,530, % 1,133, % 1,053, % 326, % 16, % 2 California 1,111, % 304, % 523, % 258, % 25, % 3 Texas 1,056, % 405, % 515, % 125, % 10, % 4 Massachusetts 586, % 243, % 279, % 60, % 3, % 5 Arizona 495, % 141, % 282, % 68, % 3, % 6 New York 382, % 112, % 204, % 62, % 2, % 7 Ontario 270, % 36, % 152, % 74, % 6, % 8 Illinois 240, % 101, % 112, % 24, % 1, % 9 New Jersey 227, % 69, % 114, % 42, % 1, % 10 British Columbia 206, % 38, % 109, % 48, % 9, % 11 Washington 203, % 41, % 117, % 37, % 6, % 12 Pennsylvania 193, % 55, % 100, % 36, % 1, % 13 Nevada 192, % 92, % 82, % 15, % 1, % 14 Georgia 183, % 109, % 60, % 12, % % 15 North Carolina 174, % 87, % 72, % 13, % % 16 Ohio 141, % 50, % 73, % 15, % % 17 Maryland 122, % 32, % 68, % 20, % % 18 Quebec 119, % 12, % 73, % 32, % 1, % 19 Virginia 111, % 35, % 58, % 16, % % 20 Michigan 106, % 36, % 57, % 12, % % 21 Louisiana 106, % 66, % 35, % 3, % % 22 Alabama 95, % 53, % 37, % 4, % % 23 Missouri 92, % 35, % 47, % 8, % % 24 South Carolina 88, % 47, % 34, % 6, % % 25 Minnesota 83, % 19, % 53, % 10, % % 26 Tennessee 80, % 40, % 34, % 5, % % 27 Indiana 71, % 30, % 34, % 6, % % 28 Puerto Rico 70, % 4, % 62, % 3, % % 29 Connecticut 70, % 18, % 37, % 12, % % 30 Alberta 59, % 6, % 31, % 20, % 1, % 31 Colorado 59, % 12, % 35, % 10, % % 32 Utah 57, % 15, % 35, % 6, % % 33 New Hampshire 54, % 6, % 28, % 18, % % 34 Wisconsin 50, % 14, % 29, % 6, % % 35 Oregon 46, % 6, % 29, % 9, % 1, % 36 Oklahoma 41, % 14, % 23, % 2, % % 37 Arkansas 39, % 19, % 15, % 4, % % 38 Kentucky 36, % 17, % 16, % 2, % % 39 Kansas 34, % 11, % 19, % 3, % % 40 Mississippi 32, % 23, % 7, % % % 41 Rhode Island 31, % 5, % 19, % 5, % % 42 Iowa 27, % 8, % 15, % 2, % % 43 New Mexico 26, % 6, % 14, % 5, % % F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 10

13 C. SOURCE OF BUSINESS-PASSENGERS 4: NORTH AMERICA - RANK BY STATE / PROVINCE STATE/PROV TOTAL % OF 1-5 DAY 6-8 DAY 9-17 DAY 18 PLUS DAY PAX TOTAL PAX % OF PAX % OF PAX % OF AMOUNT TOTAL AMOUNT TOTAL AMOUNT TOTAL PAX % OF AMOUNT TOTAL 44 Alaska 19, % 2, % 14, % 2, % % 45 Delaware 18, % 5, % 9, % 3, % % 46 Nebraska 17, % 6, % 8, % 2, % % 47 Manitoba 14, % 1, % 7, % 5, % % 48 Hawaii 13, % % 8, % 3, % % 49 West Virginia 13, % 4, % 7, % 1, % % 50 Maine 12, % 2, % 8, % 1, % % 51 Idaho 12, % 2, % 8, % 1, % % 52 Nova Scotia 7, % % 4, % 2, % % 53 Montana 6, % 1, % 4, % 1, % % 54 Saskatchewan 6, % % 3, % 1, % % 55 Dist. Of Columbia 6, % 2, % 2, % 1, % % 56 New Brunswick 6, % 1, % 3, % 1, % % 57 South Dakota 5, % 1, % 3, % % % 58 Newfoundland 4, % % 3, % 1, % % 59 North Dakota 4, % 1, % 2, % % % 60 Vermont 4, % 1, % 2, % % % 61 Wyoming 3, % % 1, % % % 62 Prince Edward Is. 1, % % 1, % % 4 0.0% 63 Yukon Territory % % % % % 64 North West Terr % % % % 3 0.0% TOTAL NORTH AMERICA 10,197, % 3,668, % 4,920, % 1,498, % 109, % F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 11

14 D. CRUISE CAPACITY 1. NORTH AMERICAN PASSENGER CAPACITY INDIVIDUAL LINE DETAIL AT YEAR-END 2009 CRUISE MEMBER LINES NO. OF LOWERS NO. OF SHIPS AMA WATERWAYS 1, AMERICAN CRUISE LINE AVALON WATERWAYS 1, AZAMARA 1,420 2 CARNIVAL CRUISE LINES 54, CELEBRITY CRUISES 17,218 9 COSTA CRUISE LINES 28, CRYSTAL CRUISES 1,992 2 CUNARD LINE, LTD. 4,620 2 DISNEY CRUISE LINE 3,508 2 HOLLAND AMERICA LINE 21, HURTIGRUTEN 5, MSC CRUISES USA 21, NORWEGIAN CRUISE LINE 22, OCEANIA CRUISES, INC. 2,052 3 PAUL GAUGUIN CRUISES* 0 0 PEARL SEAS CRUISES PRINCESS CRUISES 37, REGENT SEVEN SEAS CRUISES 2,422 5 ROYAL CARIBBEAN INTERNATIONAL 56, SEABOURN CRUISE LINE 1,074 4 SEADREAM YATCH CLUB SILVERSEA CRUISES 2,028 6 UNIWORLD 1, WINDSTAR CRUISES TOTAL 290, PAUL GAUGUIN CRUISES WILL BEGIN OPERATIONS IN SOURCE: 2009 Year End CLIA 5-Year Capacity Analysis F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 12

15 D. CRUISE CAPACITY CAPACITY CHANGES. Based on public information, a total of 23 new ships are contracted or planned to be added to the North American fleet from 2010 through the end of The following summarizes all the information as of the date of publication ADD / DEL / DELIVERY SHIP NAME LOWER S CONTRACT / NEW / ADJUST DATE PLANNED USED AMA WATERWAYS DEL OCT TOLSTOY -150 C U AMERICAN CRUISE LINES ADD AUGUST INDEPENDENCE 104 C N AMERICAN CRUISE LINES ADD AUGUST QUEEN OF THE WEST 120 C U CELEBRITY CRUISES ADD JULY ECLIPSE 2,850 C N COSTA CRUISES ADD JAN COSTA DELIZIOSA 2,260 C N CUNARD ADD 2010 QUEEN ELIZABETH 2,092 C N HOLLAND AMERICA LINE ADD JULY NIEUW AMSTERDAM 2,106 C N HOLLAND AMERICA LINE ADJUST FEB RYNDAM 2 C U HOLLAND AMERICA LINE ADJUST APR STATENDAM 2 C U HOLLAND AMERICA LINE ADJUST JAN PRINSENDAM 42 C U HOLLAND AMERICA LINE ADJUST AUGUST NOORDAM 6 C U MSC CRUISES ADD MAR MSC MAGNIFICA 2,550 C N NORWEGIAN CRUISE LINE ADD 2010 NORWEGIAN EPIC 4,100 C N NORWEGIAN CRUISE LINE ADJUST JULY NORWEGIAN STAR 108 C U PAUL GAUGUIN CRUISES ADD AUGUST PAUL GAUGUIN 332 C U REGENT DEL JULY PAUL GAUGUIN -330 C U REGENT DEL 2010 EXPLORER II -200 C U ROYAL CARIBBEAN INT'L. ADD 2010 ALLURE OF THE SEAS 5,400 C N SEABOURN CRUISE LINE ADD 2010 SOJOURN 450 C N UNIWORLD DEL JAN LITVINOV -220 C U UNIWORLD ADJUST JAN RIVER TOSCA -2 C U UNIWORLD ADJUST JAN DOURO QUEEN 2 C U CLIA TOTAL 21, ADD / DEL / DELIVERY SHIP NAME LOWER S CONTRACT / NEW / ADJUST DATE PLANNED USED AMA WATERWAYS ADD MAY AMAKATARINA 212 C U AMA WATERWAYS ADD SEP AMALOTUS 124 C N AVALON ADD 2011 PANORAMA 162 C N CARNIVAL CRUISE LINES ADD 2011 CARNIVAL MAGIC 3,652 C N CELEBRITY CRUISES ADD Q4 SILHOUETTE 2,850 C N CELEBRITY CRUISES DEL Q1 MERCURY -1,870 C U COSTA CRUISES ADD 2011 COSTA FAVOLOSA 3,012 C N DISNEY CRUISE LINE ADD Q1 DISNEY DREAM 2,500 C N MSC CRUISES ADD Q1 MSC MERAVIGLIA 2,550 C N OCEANIA ADD Q3 MARINA 1,250 C N PRINCESS DEL MAR ROYAL PRINCESS -710 C U SEABOURN CRUISE LINE ADD 2011 QUEST 450 C N UNIWORLD ADD Q1 RIVER ANTOINETTE 164 C N UNIWORLD DEL Q1 DOURO QUEEN -126 C U UNIWORLD ADD Q1 DOURO SPIRIT 128 C U UNIWORLD ADD Q1 RIVER VICTORIA 206 C U CLIA TOTAL 14,554 F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 13

16 D. CRUISE CAPACITY CAPACITY CHANGES, Cont d ADD / DEL / DELIVERY SHIP NAME LOWER S CONTRACT / NEW / ADJUST DATE PLANNED USED CARNIVAL CRUISE LINES ADD Q1 CARNIVAL BREEZE 3,690 C N CELEBRITY CRUISES ADD Q4 SOLSTICE V 2,850 C N COSTA CRUISES ADD MAR COSTA FASCINOSA 3,012 C N DISNEY CRUISE LINE ADD Q3 DISNEY FANTASY 2,500 C N MSC CRUISES ADD Q1 MSC FAVOLOSA 2,550 C N OCEANIA ADD Q1 RIVIERA 1,250 C N CLIA TOTAL 15, ADD / DEL / DELIVERY SHIP NAME LOWER S CONTRACT / NEW / ADJUST DATE PLANNED USED PRINCESS ADD SPRING TBA 3,600 C N CLIA TOTAL 3, ADD / DEL / DELIVERY SHIP NAME LOWER S CONTRACT / NEW / ADJUST DATE PLANNED USED PRINCESS ADD SPRING TBA 3,600 C N CLIA TOTAL 3,600 F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 14

17 D. CRUISE CAPACITY 3. COMPOSITE CAPACITY CHANGES AND CAPACITY UTILIZATION-2009 In order to keep capacity in line with North American demand, average capacity rose at a rate of 7.69% from 1981 to Based on current known information, contracted capacity will be increased at an average rate of 3.47% the next five years. Total North American Industry Lower Berths % Change Capacity Utilization , , , , , , , , , , , , , , , , , , , , , , % , % , % , % , % , % , % 104.2% , % 103.9% Average Annual Change ( ) Total North American Industry Contracted Contracted & Planned Lower Berths Percent Change Lower Berths Percent Change , % 316, % , % 333, % , % 346, % , % 350, % , % 354, % Average Annual Change ( ) 3.76% 3.76% SOURCE: CLIA Five-Year Capacity Report and Passenger Carrying Report. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 15

18 D. CRUISE CAPACITY 4. GEOGRAPHICAL DESTINATION/APPLICATION (000 S) DESTINATION TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS BED- DAYS CARIBBEAN 21,510 21,833 26,741 28,999 31,211 31,450 31,956 32,162 30,786 30,940 36,272 MEDITERRANEAN 6,277 7,547 6,497 8,153 9,704 9,735 10,504 14,748 16,271 17,536 18,538 ALASKA 4,197 4,699 5,053 5,265 5,914 6,417 6,356 6,927 6,968 6,864 5,959 BAHAMAS 3,200 4,699 2,876 3,306 3,657 4,398 6,073 4,634 3,477 4,699 6,795 TRANS CANAL 2,573 2,396 2,093 2,784 2,931 2,719 2,804 2,663 2,679 3,458 3,140 MEXICO WEST 2,681 1,167 3,387 3,391 4,827 5,760 5,214 5,948 6,451 5,529 4,947 EUROPE 3,745 4,837 6,923 7,722 7,560 5,522 6,800 6,798 7,592 8,739 9,029 BERMUDA 988 1,270 1,227 1,476 1,324 1,329 1,388 1,285 1,266 1,263 1,502 TRANSATLANTIC 1,016 1,129 1,006 1,146 1,425 1,748 1,467 2,209 2,830 2,560 2,691 HAWAII 857 1,557 1,903 1,953 2,629 2,907 2,885 3,826 3,031 1,858 1,770 SOUTH PACIFIC 1,155 1, , ,449 1,013 1,986 2,429 2,319 SOUTH EAST ASIA ,145 AFRICA CANADA\NEW ENGLAND 1,108 1,139 1,151 1,105 1,489 1,174 1,233 1,627 1,911 1,870 1,917 FAR EAST (ORIENT) ,303 1,313 MISSISSIPPI WORLD ,063 1,361 1,379 SOUTH AMERICA 826 1,423 1,395 1,654 1,089 1,417 1,446 2,129 2,676 3,370 2,348 U.S. COASTAL WEST 218 1, INDIAN OCEAN UNCLASSIFIED ,509 TRANS PACIFIC U.S. COASTAL EAST 1, ANTARCTICA PARTY CRUISES ZBROBEDDAYS 53,863 59,581 63,585 70,686 77,298 77,231 81,454 89,707 91,990 96, ,109 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== NOTE: Current destination classifications were established in Prior to 1985, Bermuda was included in Bahamas/Caribbean: Mississippi and Coastal East were not reported. Prior to 1992, Indian Ocean and Africa were part of unclassified. In 1993 Mexico East was changed to Western Caribbean. SOURCE: CLIA Brochure/Destination Analysis F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 16

19 E. CLIA AS AN ASSOCIATION 1. CLIA CRUISE INDUSTRY REPRESENTATION-2010 CLIA is an association that represents 25 cruise lines that market the majority of customers originating from the United States and Canada. MEMBER LINES AMA Waterways American Cruise Line Avalon Waterways Azamara Cruise Line, Inc. Carnival Cruise Lines Celebrity Cruises, Inc. Costa Cruise Lines Crystal Cruises Cunard Line Disney Cruise Line Holland America Line Hurtigruten, Inc MSC Cruises USA Norwegian Cruise Line Oceania Cruises, Inc. Paul Gauguin Cruises* Pearl Seas Cruises Princess Cruises Regent Seven Seas Cruises Royal Caribbean International Seabourn Cruise Line Seadream Yacht Club Silversea Cruises Ltd. Uniworld River Cruises Windstar Cruises * PAUL GAUGUIN CRUISES WILL BEGIN OPERATIONS IN F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 17

20 E. CLIA-AS AN ASSOCIATION 2. NORTH AMERICAN ASSOCIATION OF TRAVEL AGENT AFFILIATES CLIA finished 2009 with nearly 14,000 Travel Agency affiliates. The recent reduction in affiliate membership is a reflection of the general consolidation and attrition in the travel agency business. The trend has particularly affected corporate travel and has been accelerated as a result of the airlines reducing / eliminating travel agency base commissions. This is resulting in more travel agencies shifting their focus to cruise and leisure sales. % Growth Members vs. Prior Year , , , , ,700 (2.7) , , , , , , , ,952 (0.9) , , , , ,519 (5.3) ,450 (.6) ,665 (3.6) , ,895 (4.8) ,707 (5.9) ,900 (9.6) ,000 (5.3) , , ,110 (3.1) ,685 (2.6) ,953 (4.6) ,614 (9.0) SOURCE: CLIA data 2009 year-end actual. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 18

21 F. OTHER KEY SOURCES OF INFORMATION ON THE CRUISE INDUSTRY 1. BOOKS AND PAMPHLETS CLIA's Cruise Manual published by Cruise Lines International Association, 910 SE 17 th Street, Fort Lauderdale, FL (754) ; CD-DVD, $30 for CLIA affiliates. The manual is published mainly for the travel agency community as a reference source on CLIA s Member Cruise Lines. This annually updated, clearly organized, comprehensive volume reflects suggestions made by travel agents. In-depth information on cruise ship and their companies includes new, improved data on: dining aboard CLIA vessels, suggestions for on-board tipping and gratuities, summary of credit card policies of individual Member Lines, and lots more. Obtained by sending check or money order directly to Cruise Lines International Association (add $5.00 for postage and handling) or call to order with Visa, MasterCard or American Express. CLIA s Cruising: Guide to the Cruise Line Industry: is CLIA s cruise industry textbook designed for travel industry professionals and students of travel. This 10-chapter textbook approaches the topic of cruise vacations from the prospective of a working travel professional. Travel agents enrolled in the CLIA Cruise Counsellor Certification training program can earn 30 training credits by completing the textbook's corresponding exam. Cruising: A Guide to The Cruise Line Industry retails for $59.95 U.S and C$68.95 in Canada. CLIA affiliates save 25% off list prices. To order your discounted copy in the U.S. call and mention the CLIA promotion code 10CLIADISC. To order your discounted copy in Canada call and mention the CLIA promotion code BICL0410. Offer is valid through December 31, Cruise Industry News Annual - published yearly by Cruise Industry News, 441 Lexington Avenue, Suite 809, New York, NY 10017; (212) ; 400 pages, $750. This annual provides an objective overview and forecasts of the worldwide cruise industry, including supply and demand scenarios, and analysis of each market segment and sailing region. The book also provides expert discussions of relevant subjects and issues as well as analysis of the earnings reports of the leading cruise lines. In addition, the Cruise Industry News Annual profiles all cruise lines around the world and their ships, plus cruise ports, and shipyards. It also features directory listings of the entire cruise lines, ports, shipyards, and supply and service companies. Published since 1988, the Cruise Industry News Annual is mainly subscribed to by industry executives, financial analysts, port and tourism officials, and others on a decision-making level. Cruises-Selecting, Selling and Booking by Juls Zvoncheck. Both a training manual and guide to major cruise lines, includes useful appendices. Available on Amazon.com Cruising: Q&A Published by Cruise Lines International Association, 910 SE 17 th Street, Fort Lauderdale, FL (754) ; pocket size, 25 pages, free. Pamphlet answering most frequently asked questions about cruise vacations, with charts showing worldwide cruise destinations, ship line services for children, active adults, honeymooners, shipboard shopping, singles and shipboard cuisine. Obtained by sending a stamped, self-addressed envelope 75 cents postage) to CLIA. The Complete Cruise Handbook by Anne Vipond. Published by Ocean Cruise Guides Ltd P.O. Box 2041 Pt. Roberts WA Phone (604) , Fax (604) info@oceancruiseguides.com. A comprehensive introduction to cruising for first-timers. How to pick the cruise and ship that s right for you. Caribbean by Cruise Ship by Anne Vipond. Published by Ocean Cruise Guides Ltd., P.O. Box 2041 Pt. Roberts WA Phone (604) , Fax (604) info@oceancruiseguides.com. The complete guide to the Caribbean cruise experience. Over 80 maps and 300 photos. Cruise Business Review: Cruise Media, Ltd. Claughton Island Assoc., 9 Woods Way, Redding, CT International magazine focusing on the cruise business. Dictionary of the Cruise Industry: (Gioria Israel and Laurence Miller) Seatrade Cruise Academy, Seatrade Communications Ltd., Seatrade House, 42 North Station Road, Colchester C01 1RD United Kingdom or $25 or Euro Comprehensive dictionary of nautical and business terminology of the cruise industry. Seatrade Cruise Review: Seatrade Organization, Seatrade House, 42 North Station Rd., Colchester C01 1RB United Kingdom or Quarterly magazine reporting on the business of cruising worldwide. The Total Traveler by Ship: Northstar Travel Media LLC, 500 Plaza Drive, Secaucus, NJ Directory of ships, cruise lines and ports of call. (201) Alaska By Cruise Ship By Anne Vipond. Published by Ocean Cruise Guides Ltd., P.O. Box 2041 Pt. Roberts WA Phone (604) , Fax (604) info@oceancruiseguides.com. The complete guide to the Alaska cruise experience. Includes over 70 maps and over 300 photos. Mediterranean By Cruise Ship By Anne Vipond. Published by Ocean Cruise Guides Ltd., P.O. Box 2041 Pt. Roberts WA Phone (604) , Fax (604) info@oceancruiseguides.com. The complete guide to all Mediterranean cruises. Over 100 maps and over 400 photos. The Essential Little Cruise Book; Author, Jim West. This compact collection of cruise wisdom has everything you need to know for a perfect vacation at sea. Jim West has logged many nautical miles as a cruise director and doles out the answers to cruise questions with wit and style. How can you get the best cabin in your price range? The best table in the dining room? The best service from the crew? It s like having your own personal cruise consultant. The Essential Little Cruise Book will help you make the most of your time at sea. Available at local bookstores or by calling, toll free, Cruise Concepts at (888) West St. Paul Street, Springville, IL or amazon.com. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 19

22 F. OTHER KEY SOURCES OF INFORMATION ON THE CRUISE INDUSTRY 2. PERIODICALS/CONSUMER Cruise Industry News Quarterly Magazine, published four times a year by Cruise Industry News, 441 Lexington Avenue, Suite 1209, New York, NY 10017; (212) ; $75 per year. The magazine s editorial focus covers all aspects of cruise operations; shipbuilding, new ships, cruise companies, ship reviews, onboard services, food and beverage, and ports and destinations. Published since 1991, it s worldwide readership includes cruise line executives, shipboard officers and crew, shipyards, ports, service and supply companies, and travel agents. Cruise Travel, 990 Grover Street, Evanston, IL Subscription price $ Color magazine with feature articles about ships and cruising; six issues per year. (847) International Cruise Market Monitor Prepared and published by G.P. Wild (International) Limited, 15 Gander Hill, Haywards Heath, West Sussex, RH16 1QU; +44 (0) An authoritative quarterly publication covering the economic, marketing and operational aspects of the cruise industry worldwide. Sectorial capacity growth, corporate activities, supply and demand are examined critically with a view to providing an independent, analytical and objective appraisal of the industry together with a guide to its future development. Price $ for all four quarterly issues. Lloyd s Annual Cruise Review Prepared by Management and Marketing Consultants G.P. Wild (International) Limited and published by Lloyd s of London Press. An authoritative study, published annually, covering the economic, marketing and operational aspects of the cruise industry world-wide. Sectorial capacity growth, corporate activities, supply and demand are examined critically with a view to providing an independent, analytical and objective appraisal of the industry together with a guide to its financial data and fleet details for future development. Subscriptions Dept., Lloyd s of London Press, Sheepen Place, Colchester, Essex, England CO3 3LP The Marine Log Builders Guide published by Simmons-Boardman Publications Corporation, 1809 Capitol Avenue, Omaha, NE 68102, (800) , Fax (402) ; $92.95 which includes shipping. Extensive listings of maritime vendors, services, associations, and port authorities. Official Steamship Guide International, 298 Village Square #145, Loundon, TN (865) Two double issues at $ Catalog of cruise ship departures listed by major cruising areas and date. Includes prices and itineraries. Porthole Cruise Magazine, published by Bill Panoff,. PPI Group, 4517 NW 31 Avenue, Fort Lauderdale, FL Phone (800) year subscription (6 issues) at $ year subscription (12 issues) at $ Devoted to the cruise industry and is the number one source of cruise information for the travel savvy cruise consumer. This publication provides in depth cruise ship feature reports, product evaluations and general cruise industry news. 3. OTHER SOURCES Porthole Insider, published by Bill Panoff. PPI Group, 4517 NW 31 Avenue, Fort Lauderdale, FL Phone 1 (800) A publication exploring industry issues, includes state of the industry reports on marketing, financial information, and integrates information on all aspects of the cruise industry from an operations standpoint. Directed towards cruise line executives and other industry decision-makers. Vacations on Video, 7662 East Gray Road, Suite 101, Scottsdale, AZ 85260, (480) Source for purchase of travel videos with list that includes 300 videos from 35 major cruise lines as well as other travel suppliers. Contact Vacations on Video for further pricing information. Lloyd s Cruise International, One Singer Street, London EC2A 4LQ, England, +44 (0) Covers important aspects of the cruise industry including marketing, passenger services and related equipment, port developments, business developments, regulatory issues and market trends. F:\MSWORD\REPORTS\OVERVIEWS\ OVERVIEW2010\2010FINALOV.DOC 20