2014 CLIA ANNUAL STATE OF THE INDUSTRY PRESS CONFERENCE & MEDIA MARKETPLACE
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1 2014 CLIA ANNUAL STATE OF THE INDUSTRY PRESS CONFERENCE & MEDIA MARKETPLACE
2 Welcome to 2014 Media Marketplace - Azamara Club Cruises - American Cruise Line - AMA Waterways - Carnival Cruise Lines - Costa Cruises - Crystal Cruises - Cunard Line - Hurtigruten - MSC Cruises - Paul Gauguin - Royal Caribbean - Seabourn - Tauck River Cruises - Windstar Cruises Port Representation - Port Everglades - South Carolina Port Authority
3 CLIA United Under One Banner NORTH AMERICA EUROPE BELGIUM & LUXEMBOURG FRANCE GERMANY NETHERLANDS SPAIN UK & IRELAND BRAZIL ASIA AUSTRALASIA December 17, 2012 Cruise Industry Forms Global Trade Association New Association Model to Promote One Industry, One Voice
4 Global CLIA Alaska UK & Ireland North America US NW & Canada Germany France Spain Italy Netherlands Belgium Europe Hawaii Brazil Asia Australasia
5 CLIA Members 63 cruise line members, representing over 95% of global cruise capacity 13,500 global travel agency members who reach over 50,000 agents 250 Executive Partners (port authorities, destinations, and maritime and industry suppliers)
6 Specialty Cruise Collection
7 CLIA Specialty Cruise Collection
8 Specialty Cruise Collection Top consumer interest in specialty cruising: Attractive destination options Scenic, cultural shore activities and sightseeing Smaller ship size and slower pace Inclusive pricing and offerings Thematic itineraries Personalized service Ability to meet and make new friends
9 Robust Investment for an Expanding Global Cruise Industry new ships with 20,000 beds new ships with 34,000+ beds 2014 Global Fleet 410 Ships 467,629 beds another 20 Ships 52,000+ beds
10 CLIA Member Lines New Ships ( ) 1. Royal Caribbean Quantum of the Seas (4,100) 2. Norwegian Getaway (3,969) 3. Costa Cruise Diadema (3,700) 4. Regal Princess (3,600) 5. Pearl Mist (210) 6. Avalon Illumination (166) 7. Avalon Impression (166) 8. Avalon Poetry II (128) 9. Tauck ms Inspire (130) 10.Tauck ms Savor (130) 11.Uniworld S.S. Catherine (159) 12.AmaSonata (164) 13.AmaReina (164) 14.Silversea Silver Discoverer (128) 15.TUI Mein Schiff 3 (2,500) 16.Scenic Cruises Scenic Gem (126) 17.Royal Caribbean Anthem of the Seas (4,180) 18. Norwegian Escape (4,200) 19.American Cruise Lines (TBD) 20.American Cruise Lines (TBD) 21.Aida Prima (3,250) 22.TUI Mein Schiff 4 (2,500) 23.P&O Brittania (3,611) 24.Compagnie du Ponant Le Lyrial (265) 25.Carnival Vista (4,000) 26.Royal Caribbean Oasis Class 3 (5,400) 27.Royal Caribbean Oasis Class 3 (5,400) 28.Royal Caribbean Quantum Class (4,180) 29.Holland America Pinnacle Class (2,660) 30.Regent Seven Seas Explorer (738) 31.Seabourn (TBD) 32.Norwegian Bliss (Breakaway) (4,200) 33.American Cruise Lines (TBD) 34.American Cruise Lines (TBD) 35.Star Cruises (3,364) 36.AIDA (3,250)
11 Passengers Passenger Growth Passenger Sourcing (millions) 2014 Forecast: 21.7 Million 400,000 growth in passengers carried (F) 2014 (Est) N. America 55.1% Europe 30.1% ROW 14.8%
12 Passenger Sourcing Continues to Diversify Global Passenger Share 5 Year % Change 1 USA 51.7% 15.1% 2 UK & Ireland 8.1% 16.4% 3 Germany 7.7% 80.5% 4 Italy 4.0% 26.1% 5 Australia/New Zealand 3.6% 130.3% 6 Brazil 3.4% 1.3% 7 Canada 3.4% 84.8% 8 Spain 2.8% 20.7% 9 France 2.4% 67.7% 10 Scandinavia & Finland 1.6% 184.6%
13 Global Economic Impact $100 billion in economic impact $33 billion in global wages 775,000 jobs around the world $42 billion U.S. economic impact $17.4 billion in U.S. wages 356,000 jobs in the U.S.
14 Global Deployment Capacity Market Share Alaska 4.8% % 2014 Caribbean 34.4% % 2014 Europe w/o Med 10.9% % 2014 Mediterranean 21.7% % 2014 Asia 3.4% % 2014 South America 3.9% % 2014 Other Markets 15.8% % 2014 Australasia 5% % 2014
15 2014 Itineraries
16 Travel Agents - 40 years of sustained commitment In 2014: - Redesigned Training and Certification - Promote CLIA certification to consumers - Cruise3sixty 10th anniversary - 10 new courses and 25 ship inspections, more than any other conference - National Cruise Vacation Week - Global publicity to support agents
17 Global Executive Partner Program PORTS A dedicated, global community of partners united in its commitment to a strong, safe, growing industry DESTINATIONS TRAVEL SUPPLIERS Engagement and influence with each other and the cruise lines BUSINESS SERVICES PRODUCT SUPPLIERS
18 Events & Incentives at Sea 44% of planners say they are considering a cruise incentive for the future. Incentive Travel Buyers Handbook Nielsen Travel & Performance Group % of readers say they use cruises for all size groups. Corporate Meetings & Incentives 2007 Incentive Trends Survey 8% of companies surveyed listed cruise ships as their first choice for a meeting venue 33% growth over 2009 Employees choose cruising as top incentive choice 38.8% of employees prefer a cruise over land-based incentive options
19 JIM BERRA Chair, CLIA Marketing Committee Chief Marketing Officer, Carnival Cruise Lines
20 Industry Trends & Outlook
21 Top 2014 Cruise Trends Continued development and availability of technology to facilitate and lower the cost of onboard communications as well as to provide more efficient passenger servicing Expectation of first-time passenger growth driven by the 95 million Millennial generation based on population size and positive experiences cruising with their parents
22 Top 2014 Cruise Trends Rebound in luxury cruising (luxury category ships, onboard upgrades) based on an improving economy and increased consumer confidence Multigenerational and celebration travel increase for all passenger source markets with larger sized family as well as social/ affinity groups traveling together
23 Top 2014 Cruise Trends Cruise lines offering more all-inclusive options and packaging in accommodations, services and amenities for increased ease in booking and ship enjoyment Cruises increasingly attracting consumers seeking active vacations with extreme excursions, longer stays in ports for sightseeing and high-energy onboard facilities
24 Top 2014 Cruise Trends Seeing the world in comfort and ease, especially exotic locations, will continue to drive new itinerary creation 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
25 The Top Trend- Product Enhancements
26 What We Heard From Agents Increased use in domestic (US/Canada) ports of embarkation Exciting onboard innovation Global expansion of destinations/itineraries Shorter cruises Celebrations and multi-gen More informal environments Boutique ships
27 Focus Across the Industry Aligns with What Motivates Consumers Value Ease of booking Multiple destinations Recommendations: Travel agents, F&F Price Special experiences Convenience of foreign travel Family, friends bonding Meeting new people
28 These Trends are Helping to Attract First Timers 87.7% reported similar or increased new cruiser sales
29 Agents are Pretty Bullish on %+ report 2013 overall travel & cruise sales ranged from good to excellent best year ever 70%+ expect 2014 cruise sales to range from good to excellent An improving economy is seen by 95% to drive good to better sales over 2013
30 The Industry is Well Positioned for Continued Growth - Strong value proposition - New and relevant product innovation for our guests - Opportunities for global expansion and continued worldwide economic growth
31
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