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Cruise sector report
Market
focus
Mixed blessings: experts say cruise is bucking current
trends and showing good growth. But the economic
climate and greater choice means intense competition
and extensive discounting. Sara Macefield reports
C
ruising has enjoyed a meteoric rise With the strong bounce-back in January,
over the last decade and been widely cruise operators were rubbing their hands
acknowledged as one of the travel in glee as cruises started to get snapped up,
industry’s big success stories. but intense competition meant they were
In the last 10 years the number of Britons selling at lower rates.
taking a cruise has grown from just over As the traditional cruise peak period
660,000 in 1998 to almost 1.5 million “Wave” sales campaigns took off after
last year. Christmas, the market was awash with
But even this lucrative sector has been discounts and special offers such as onboard
unable to escape the effects of the global credits, free parking and even free flights.
economic downturn. These helped cruise lines to maintain sales
As the chill winds of recession blew across in the face of a tough market, but it is clear
the travel industry in the final few months of that profits have suffered in the process.
2008, the cruise market started to shiver as As Royal Caribbean International’s associ-
sales plummeted and demand dried up. ate vice-president, Jo Rzymowska says: “It is
Yet despite a “dire” December, which one going to be a challenging year from a yields
industry insider says was the worst he can point of view, and for exchange rates.”
remember, the start of 2009 has heralded a Cruise lines are tight-lipped over how much
Below: Ocean Village remarkable recovery – but at a price. of their bottom line they’ve had to give away,
but they agree that competition is intense as
there are more ships to fill and everyone is
fighting for market share.
It’s been a different story for river cruising,
which enjoyed strong sales at the end of 2008
and, according to Viking River Cruises, is
proving to be the “star” of the market.
“In real terms, business is up by 80% on
the same time last year,” says Viking chairman
Graham Clubb. “By the end of February, the
UK office was halfway towards its total sales
target for 2009 – an exceptional achieve-
ment, particularly in the current climate.”
DISCOUNTS AHOY
Some of the special offers have been
unprecedented. Cunard unveiled its first-ever
sale, with transatlantic crossings on the
Queen Mary 2 offered by agents for as little
as £629, while MSC Cruises led the market
4
TTG Knowledge – March 2009
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