CRUISE REVIEW 2014 PUBLISHED MARCH 2015

Transcription

1 CRUISE REVIEW 20 PUBLISHED MARCH 20

2 CONTENTS 20: A SPECIAL YEAR FOR UK CRUISING 20: A SPECIAL YEAR FOR UK CRUISING EXECUTIVE SUMMARY 20 MARKET BECALMED BEFORE 20 SURGE 6 CARIBBEAN COUP RECORD NUMBER OF UK PORTS VISITED BY CRUISE SHIPS 0 THE LONG GOODBYE (TO WINTER) CRUISING REMAINS BEST VALUE 2 SILVER TRAVELLERS BECOME COMPULSIVE CRUISERS WHEN IT PAYS TO PLAN AHEAD BRAND LOYALTY MAJOR FACTOR IN CRUISE CHOICE CRUISING S NORTH:SOUTH SHIFT A TALE OF TWO RIVERS All the indicators suggest that 20 will be the best year in the UK cruise market s history. Record numbers of cruises should be taken as a result of the higher profile created for cruising by a combination of events which include the arrival of two brand new ships operating out of Southampton. Britannia is the largest ship built for P&O Cruises and also the largest ever dedicated to the UK market. Royal Caribbean International s Anthem of the Seas is an even larger ship and sister to the groundbreaking Quantum of the Seas which created much press and social media coverage when it visited the UK last year. Both represent significant increases in capacity for the ex-uk market and they are not the only arrivals to do that. Cruise and Maritime Voyages has acquired a new ship, Magellan, for its fleet which will boost its own capacity in this market by 0. And Princess Cruises is also adding extra beds by bringing the Royal Princess to Southampton this summer just two years after the ship was named at the port. There has already been an upsurge in TV, radio, press and online marketing activity by the cruise lines in support of all the new ships and as a result, cruising has moved to the top of the agenda among the travel trade and their holidaymaking clients. There is confidence that 20 will reverse last year s one off dip in passenger numbers and almost certainly top the peak 20 total of.2m. 2

3 EXECUTIVE SUMMARY 20 Growth for Mediterranean and Caribbean means fly-cruises reverse trend towards UK port departures Increase in passengers taking -plus cruises a year Cruises to Western Europe top 200,000 for first time Fall in cruises from UK to Mediterranean and Norway and also in Arabian Gulf fly-cruises Small dip recorded in bed nights of less than Record number of UK ports visited by cruise ships UK cruise consumers choose longer itineraries, particularly in winter and they are also booking earlier All-inclusive packages are an increasing influence on cruise choice A fourth successive year of growth for the UK river cruise market

4 MARKET BECALMED BEFORE 20 SURGE Following a few years of slow growth, the number of UK and Ireland ocean cruise passengers has dipped. Several major cruise brands moved some capacity away from the traditional UK port market in 20 and, although that prompted a increase in Caribbean fly-cruises, there was an overall downturn in the number of UK passengers last year. Another factor in the fall was a trend towards longer cruise itineraries but this also meant that the number of bednights booked actually fell less than (0.). The. drop in passengers was the first since 6 when numbers fell by 00 to just,00. To put cruising s subsequent growth into context, 20 s total despite the decrease was.6m. It does, though, reflect the expanding reach of the now-global cruise industry and the increasing competitiveness between markets and destinations to secure cruise traffic which brings such significant local, regional and national economic benefits. Rapid growth in the German cruise market sees that country now ahead of the UK as the world s second largest source market for cruises taken, whilst UK recorded more bednights and its smaller population means that the UK still has a higher penetration of cruise-buyers. Since 200, UK-sold cruises have also doubled their share of foreign holidays booked from the UK and nearly trebled their share within the package holiday sector. However, renewed investment and a new focus from the major air-based tour operators on copying the cruise model by offering a more inclusively-priced product, has increased competition between the two sectors. UK Ocean Cruise Market 2 Bednights booked by UK passengers Ocean Cruising s Share of Foreign Holidays Market From The UK Year Passengers change 200, , , , ,. 200, , ,0 0 20,26. 20,6 (.) Year Bednights change 200,. 200, ,. 20,2. 202,2 (0.) 20,06 (2.2) 20, (0.) Year Foreign Holidays Foreign Inclusive Holidays/tours Ocean Cruise Holidays** Ocean Cruises share of inclusive foreign holidays 200,60 20, ,2,2, ,,0, ,,0,0.. 20,60,6, ,*,22*, * Estimated ** Includes Republic of Ireland Source: IRN Research; International Passenger Survey Crown Copyright 20 Ocean cruises share of all foreign holidays 6

5 CARIBBEAN COUP Recent changes to the controversial Air Passenger Duty, which now make Caribbean flights more affordable for families, came too late to impact last year s fly-cruise sales. This makes their rise in 20 all the more impressive. It is a more mixed story for the Mediterranean as, although the number of people flying to join their cruise was marginally up at,000 (the second highest on record), the number of cruises taken from a British port to the region was down because of the reduced capacity. There was a 0 dip in cruises to Norway from a UK port but this did follow several years of unprecedented growth which meant that the 0,000 in 20 was still double the number taken just seven years earlier. Cruises to the Baltic, which had not grown quite so rapidly, continued to increase steadily increase in 20. Western Europe has also seen major recent growth and has not been impacted by capacity changes so cruises from the UK to Western Europe topped the 200,000 mark for the first time and was double the 20 figure. Asia and Australasia are the hot topics in global cruising right now, with the emergence of the Chinese and re-emergence of the Australians as enthusiastic cruisers. These two regions have also created interest in the UK with passengers rising by nearly a third last year. The Arabian Gulf, on the other hand, has seen passenger numbers dropping sharply in 20. However, recent moves by several major cruise lines to re-enter that region or increase their capacity suggests that this will be just a temporary setback. Destinations Booked by UK Passengers UK Port Cruises Vs Fly Cruises Destination change / Mediterranean () Northern Europe (2) Caribbean Atlantic Islands (6) Other Areas (0) Total 6,622,00,0,26,6 () UK Port Passengers Fly Cruise Passengers Year Passengers growth share share 200,, , , ,,000.,000., ,622,000. 6, , ,00,000. 2,000 2., ,0, ,000., ,26,000.,000.0, ,6,000 (), ,000.0

6 RECORD NUMBER OF UK PORTS VISITED BY CRUISE SHIPS THE LONG GOODBYE (TO WINTER) There was a 2 rise in passengers calling at UK ports during a 20 cruise so that their number had more than doubled in just five years. Another 2 rise this year would push the total over the million-mark and the benefits are being spread more widely with ports a record number handling cruise calls in Embarkations at UK Ports But that decline in UK passengers cruising from UK ports meant that overseas passengers embarking in the UK increased their share to 22. UK cruise passengers have been voting with their feet when it comes to coping with grey and gloomy British winters. They have taken longer and longer cruises with the average for 20 increasing by more than a night to. nights the longest for more than a decade. With a more modest increase in the summer average, the typical cruise length last year was just short of nights. Year Total Embarkations Increase (2) UK Passengers Overseas passengers share of overseas Source: CruiseBritain Port of Call Passengers at UK Ports Year Passengers change Ports Visited Average duration (nights) of cruises by UK passengers Year Summer Winter Year

7 CRUISING REMAINS BEST VALUE Cruises were even better value for money in 20 with passengers paying less per night than in 20 and 0 less than in 200. The fact that the average price paid for a cruise rose slightly by to, was simply because the average cruise booked was longer. This also explains the increase of in the ratio of 2,000-plus cruises booked. But the recent growth in the number of under- 00 cruises primarily short, taster voyages from UK ports - was also sustained. The best value cruises, though, were those off-season from the UK to the Baltic which worked out at just per night while Western Mediterranean fly-cruises were 0 a night. Meanwhile the ultra-luxury cruise companies had a mixed year with a slight increase in the number of guests taking a winter cruise while there was a slight decrease in passengers on summer cruise holidays. However, it outperformed the overall cruise market with less than a 2 decrease. 0 Average Revenue ( ) per UK Passenger Year Summer Winter Year UK Market Cruise Per Diems Year Price ( ) Trends In UK Cruise Market 0-,000,00 -,00,0-2,00 2,0 -,000 Year , Ultra-Luxury Cruise Passengers Year Summer Winter Total of all cruises Included Crystal, Ponant, Hapag-Lloyd, Hebridean, Regent, Seabourn, Seadream, Silversea 2

8 SILVER TRAVELLERS BECOME COMPULSIVE CRUISERS WHEN IT PAYS TO PLAN AHEAD That old adage about longer cruises attracting older passengers appears to have been borne out in 20 as, with the length of booked cruises increasing, the average age of passengers also rose. This is an ongoing trend due to the high level of repeat business generated by cruise lines which continue to maintain one UK Cruise Market Age Analysis of the highest satisfaction levels in leisure travel. In 20, two-thirds of passengers were repeat guests and more than of all passengers took more than one cruise. Nearly a quarter (2) of multiple cruise guests took three or more compared with just in 20. A quarter of all cruises taken in 20 were booked at least nine months in advance. This was a significant increase on 20 and suggests a market swing back to consumers preferring to secure specific departures and accommodation rather than risking missing out on one or both in search of a last minute discount. UK Cruise Market - Trends in Booking Lead Times passengers Year Up to Average Age of bookings (no. of months) Year First Time Cruisers as of UK Market UK Passengers Booking Multiple Cruises Annually Year Cruises taken in last year () Year

9 BRAND LOYALTY MAJOR FACTOR IN CRUISE CHOICE Only the itinerary and destinations rate more highly than a positive brand experience among consumers when it comes to choosing a cruise. They are even more important than the price or perceived value for money. This became clear in the survey carried out for CLIA in the UK last year. Compared with previous years, the multiple answer questions were modified to secure a clearer message on what really drives people to choose to cruise at all and which cruises they pick. CRUISING S NORTH:SOUTH SHIFT When it comes to the ships, it was no surprise to see service, dining and on-board atmosphere as the top three decisioninfluencers but interesting that cabins and public rooms are not quite as important in the booking equation as they used to be a decade or more ago. The growing importance of an attractive pre-booked drinks package is clear, though, while possibly the big surprise is that the same cruise consumers who are increasingly researching cruising online appear to be less influenced by blogs or other online reviews as each year passes. 20 confirmed South East England as the UK s top source for cruise passengers. It also highlighted the north:south shift since 2006 with the former top source, the North West alongside the North East and Scotland losing significant share since then while the South West as well as the South East has gained ground. London, though, remains the worstperforming region for cruising. Its share fell again in 20 and now stands at less than a third of its 2006 level and means it comfortably has the lowest penetration rate of any other UK region. UK Passengers - Reasons* For Choosing To Take A Cruise Holiday Reasons Itinerary/Destinations 6 0 Cruised with this line before 6 6 Price/Value for Money Departure Date Cruised on this ship before 2 No flight Local departure port Duration To try another cruise line Special Offer All inclusive nature of the package To try another ship 0 0 Flights from local airport 22 2 Reccommendation family and friends (Personal) 6 Pre and post land stays Travel agent recommendation 2 Recommendation on web/review/blog 2 Cruise Passengers as by Region of Residence UK pop Region South East 22 North West South West Scotland Yorkshire & Humberside West Midlands East Midlands East of England 6 6 North East 6 Wales London 2 Northern Ireland 2 * Asked to select three principal reasons. Source: UK Cruise Survey 20 (IRN Research) UK Passengers - Reasons* For Choosing Their Last Cruise Reasons Service on-board Dining On-board atmosphere/service Facilities on board 2 2 Cabins and public rooms 2 Entertainment Loyalty membership benefits Special Occasion 20 All-inclusive drinks package Cruise themes Maiden Voyage * Asked to select three principal reasons Source: UK Cruise Survey 20 (IRN Research)

10 A TALE OF TWO RIVERS A fourth successive year of modest growth saw the UK river cruise market approach the 0,000 passenger mark but the real stories were the continued soaring popularity of the Danube as a river cruise destination alongside the continued decline of what used to be the most popular for UK river cruisers: the Nile. The political situation in Egypt saw the number of UK Nile cruisers drop below 0,000 for the first time in many years while a increase to the Danube established that river as second only to the Rhine as the UK favourite. The number of British cruising there has doubled in just four years and this is the main reason why the number of European river cruises booked from the UK has grown 60 over the same period. 20 UK River Cruise Market European Destinations change 20/ Rhine/Moselle/tributaries Danube Rhine/Danube Rhone/Seine Russian Italian (Po) (6) Elbe () Douro Other European (6) Total European Non European Destinations change Nile (2) Far East/China () Other non-european Total non-european (2)

11 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, travel agents, port authorities and destinations, and various industry business partners before regulatory and legislatory policy makers. CLIA UK & Ireland