THE STATE OF THE CRUISE INDUSTRY IN 2014: GLOBAL GROWTH IN PASSENGER NUMBERS AND PRODUCT OFFERINGS
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1 CONTACT: Lani Gerlak x22 THE STATE OF THE CRUISE INDUSTRY IN 2014: GLOBAL GROWTH IN PASSENGER NUMBERS AND PRODUCT OFFERINGS Cruise Industry Investment in Ship Innovations; Varied Market Segments Yield Impressive Outlook FORT LAUDERDALE, January 16, 2014 As the cruise line industry continues to strengthen its global presence and with the economy in an ongoing recovery mode, Cruise Lines International Association (CLIA) and its cruise line members are looking forward to a positive year of growth with a 2014 passenger forecast of 21.7 million worldwide guests on CLIA s 63 member lines, according to data released today in the association s annual State of the Cruise Industry findings. To meet demand, these member lines will introduce 24 new ships in adding a total passenger capacity of 37,546, representing a capital investment of approximately $8 billion in ocean going and river cruise categories. The global cruise industry is at an exciting juncture with strong consumer interest in cruising and significant cruise line investment in a diversity of exciting ships that travel to the most exotic locations in the world and offer one-of-a-kind vacation experiences, said Christine Duffy, CLIA President & CEO. Industry Growth CLIA 2013 global passenger numbers are estimated at 21.3 million, with a 2014 forecast expected to reach 21.7 million passengers. North America is the world s biggest cruise market (55.1 percent passenger source share) with significant growth of internationally sourced passengers especially Europeans at 6.4 million.
2 Global Passengers While North America remains the dominate source for cruise passengers, international source markets are demonstrating accelerated passenger demand for cruising: 2013* Top Ten CLIA Cruise Passenger Source Market Overview *2013 Passenger estimates (ooo s) Country 2013 Passengers Global Passenger Share 5 Year % Change 2013 Passenger Source Rank United States 11, % 15.1% 1 UK & Ireland 1, % 16.4% 2 Germany 1, % 80.5% 3 Italy % 26.1% 4 Australia % 130.3% 5 Canada % 1.3% 6 Brazil % 84.8% 7 Spain % 20.7% 8 France % 67.7% 9 Scandinavia & Finland % 184.6% 10 Cruise Ship Deployment The leading cruise destination in terms of ship deployments remains the Caribbean, accounting for 37.3% of all global itineraries followed by the Mediterranean (18.9%), Northern Europe (11.1%), Australia/New Zealand (5.9%), Alaska (4.5%), Asia (4.4%) and South America 3.3%). In 2014, markets experiencing increased ship deployments include the Caribbean (+12%), Northern Europe (+5.2%), Asia (+31.6%) and Australasia at +22%.
3 New Ships Globally, the 2014 CLIA fleet is comprised of 410 ships, up from 393 ships last year, and includes a wide variety of vessels from large- and mid-sized to small and intimate. The fleet covers all line categories: contemporary, premium, niche and destination focused, river cruises, expedition and adventure. Additionally, in 2014 and 2015, CLIA lines will introduce 24 new ships, representing a total capital investment of approximately $8 billion. Twelve additional new CLIA global and regional ships (Confirmed Orders and Options) for 2016 to 2018 represent an additional 33,192 passenger capacity and an investment estimated at $7.9 billion in ship development. New CLIA Global and Regional Member ships include: Ships Launching in 2014: 16 Ships - $3.9 Billion Investment Cruise Line Ship Passenger Capacity AMA Waterways AmaReina 164 AMA Waterways AmaSonata 164 Avalon Waterways Avalon Illumination 166 Avalon Waterways Avalon Impression 166 Avalon Waterways Avalon Poetry II 128 Costa Cruises Costa Diadema 3,700 Norwegian Cruise Line Norwegian Getaway 3,969 Pearl Seas Cruises Pearl Mist 210 Princess Cruises Regal Princess 3,560 Royal Caribbean International Quantum of the Seas 4,180 Scenic Cruises Scenic Gem 126 Silversea Cruises Silver Discoverer (Pre-Owned) 120 Tauck River Cruising ms Inspire 130 Tauck River Cruising ms Savor 130 TUI Mein Schiff 3 2,500 Uniworld Boutique River Cruise S.S. Catherine 159 Collection TOTALS 19,540
4 Ships Launching in 2015: 8 Ships - $4.1 Billion Investment Cruise Line Ship Passenger Capacity American Cruise Lines TBD (2X) AIDA Prima 3,250 Compagnie du Ponant Le Lyrial 265 Norwegian Cruise Line Norwegian Escape 4,200 P&O Brittania 3,611 Royal Caribbean International Anthem of the Seas 4,180 TUI Mein Schiff 4 2,500 TOTALS 18,006 Ships Launching in : 12 Ships - $7.9 Billion Investment Cruise Line Ship Passenger Capacity AIDA TBD 3,250 American Cruise Lines TBD TBD (2X) Carnival Cruise Lines Carnival Vista 4,000 Holland America Line Pinnacle Class 2,660 Norwegian Cruise Line Norwegian Bliss (Breakaway) 4,200 Regent Seven Seas Cruises Seven Seas Explorer 738 Royal Caribbean International Oasis Class 3 5,400 (2X) Royal Caribbean International Quantum Class 4,180 Seabourn Cruise Line TBD TBD Star Cruises TBD 3,364 TOTALS 33,192
5 Travel Agent Initiatives A key factor in the cruise industry s growth is its travel agent partners. Duffy stressed CLIA s continuous commitment to its more than 13,500 global travel agency members who reach over 50,000 agent members. Travel agents are the primary distribution channel for cruise sales and remain critically important to the cruise lines with a majority of cruise bookings made by travel agents, added Duffy. In 2014, CLIA s agent initiatives will include continuing the redesign of its agent educational curriculum and agent certification programs to ensure that both education and certification remain highly relevant for the agent community. In addition, CLIA will actively promote CLIA certification to consumers, reminding them of the benefits and importance of working with a certified CLIA professional. Highlights of a December 2013 survey of 500 CLIA agents showed positive indicators and optimism for 2014 customer cruise interest and sales, including: More than 60 percent of survey respondents say their 2013 overall travel sales ranged from good (steadily improving over the recent past) to excellent (their best year ever). 92 percent anticipate that their overall business in 2014 will be good or better than 2013 More than 70 percent expect their cruise sales to range from good to excellent in percent reported similar or increased new cruiser sales Consumers, according to agents, continue to have strong interest in all types of cruising. High interest in contemporary cruising was expressed by 76.7 percent of clients, followed by premium cruise lines (67.7percent) and destination/niche cruise products (66.2 percent). One of the most dramatic finds was the high interest in river cruising by 61.3 percent of clients. CLIA training continues to be a priority for member agents. Eighty-two percent have taken CLIA training and 80 percent say that training is extremely important to their business Cruise Industry Trends Top 2014 cruise trends identified by CLIA, its member lines and travel agents include: Improved technology to lower the cost of onboard communications and provide more efficient passenger servicing First-time passenger growth coming from younger generation travelers especially Millennials More luxury cruising (luxury category ships, onboard upgrades) stimulated by an improving economy and increased consumer confidence Growth of multigenerational and celebration travel as well as social/affinity groups
6 More all-inclusive options and packaging in accommodations, services and amenities Active vacations at sea with extreme and soft-adventure excursions, longer stays in ports for added sightseeing and high-energy onboard facilities Exotic locations driving new itinerary competition and cruise ship deployment Hot destinations for 2014 according to CLIA cruise line members include: Trans Pacific, World Cruises, U.S. Rivers, South America, Antarctic, Middle East, Canada/New England, Africa and Exotic Rivers CLIA Globalization After its first successful year as a global association, CLIA, serving as the voice and advocate of the worldwide cruise industry, has increased its presence in Europe with additional associations established in German and Spain, with Italy to follow later in The primary objective then and now is to support a One Industry, One Voice approach to policy development, advocacy, communication, issues management and industry promotional activities, said CLIA President & CEO Christine Duffy. CLIA global lines continue to bring to market an exciting offering of vessels that are stimulating an impressive interest in cruising as well as securing the cruise industry as one of the most in-demand sectors of the vacation market worldwide. New for 2014 is the formation of a CLIA Global Ports Committee comprised of itinerary planning and port development executives of the cruise lines and chaired by Giora Israel, Senior Vice President of Ports and Destination Development for Carnival Corporation. The committee will focus on creating opportunities to develop dialogue with port operators, port authorities, government, and port-related service providers on issues of mutual interest. Ports are making major commitments to the success of the cruise industry with significant capital improvement in modernizing existing ports and building new ones that are technologically and environmentally advanced, while also being very cruise and passenger friendly, said Duffy. This committee will help to more fully integrate port development and operations with the larger picture of the cruise industry. About CLIA Cruise Lines International Association (CLIA) is the world's largest cruise industry trade association with representation in North and South America, Europe, Asia and Australasia. CLIA represents the interests of cruise lines and travel agents before regulatory and legislative policy makers. CLIA is also engaged in travel agent training, research and marketing communications to promote the value and desirability of cruise holiday vacations with thousands of travel agency and travel agent members. CLIA's Associate Member and Executive Partner program includes the industry's leading providers of supplies and services that help cruise lines provide a safe, environmentally-friendly and enjoyable holiday vacation experience for millions of passengers every year. For more information on CLIA, the cruise industry, and CLIA-member cruise lines and travel agencies, visit CLIA can also be followed on the Cruise Lines International Association's Facebook and Twitter fan pages, and CEO Christine Duffy can be and cruising.org/ceoblog.
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