Cruise Ocean passengers top two million


Cruise remains a small percentage of the total outbound market, but its growth has been remarkable. UK and Irish ocean cruise passenger


numbers topped two million in 2018, almost double the number of the mid- 2000s. Growth has been largely steady, with passenger numbers increasing even through the financial crisis of 2008-09, unlike the mainstream UK market. The average age of UK passengers


rose a year to 57 in 2018, confounding the drive to pull in younger, new-to-cruise clients. More than half of passengers were over 60 and cruise association Clia reported four times as many additional passengers aged over 60 as those under. The numbers are no less impressive for that and the rate of returning passengers is astonishing. Clia found nine out of 10 passengers intended to book a cruise the following year. It noted an average lead-in time for UK bookings of 32 weeks, up from 28 in 2017, and average duration of 10.1 days, although the single most-popular choice was seven days. Mediterranean cruises were a little


less popular in 2018, with passenger numbers to the central and western Med down 10% on 2016. But numbers were up 17% for northern Europe and 10% for the Caribbean over the two years. Clia also noted a “significant increase in the number of cruises to exploration


The Deloitte view


The cruise industry is going through an exciting period of growth, innovation and opportunity. Globally, the sector saw almost 7% growth in 2018. The UK and Ireland cruise industry touched a new milestone with more than two million passengers in 2018, and in 2019 it is forecast to generate £3.2 billion. Looking ahead, the signs are equally


positive. The number of ocean cruises taken by UK and Irish travellers is expected to grow by 22.5% between 2018 and 2023. The sector has responded by continuing to invest heavily both in terms of tailoring


the product to a wider range of segments and expanding capacity. The number of new ships is astounding


with several cruise companies set to welcome additions to their fleets between 2019 and 2022. However, the sector will need to continue


to innovate to keep demand growth in step with supply. There is also still more to do to change


consumer perceptions of cruise from being a travel experience for the ‘silver generation’ to a holiday that suits youngsters, older


single travellers, honeymooning couples and multigenerational family groupings alike. While some growth can be achieved by


persuading existing cruisers to cruise more frequently, filling the capacity is going to need new-to-cruise consumers and new source markets. New destinations will help attract new consumers. The growth in expedition cruising has shown consumers’ keenness to explore can


be a powerful driver. █Alistair Pritchard, lead partner, Travel and Aviation


The sector continues its upward trajectory but emissions rules are likely to tighten


destinations such as the polar regions, ەDFLWFUDWQ$ WKHb*DODSDJRV ,VODQGV DQG This remained under 2% of the total and it will be interesting to see whether the trend strengthens. UK river cruise passenger numbers


EUROPEAN CRUISE MARKET, 2018


FIGURE 30:


% of passengers by source markets


+3% 15% +3% +4%


7% 7%


+8% 12%


PASSENGERS 2018


EUROPEAN CRUISE


28% +2%


Germany UK & Ireland Italy


Spain France


Rest of Europe


% change in passenger numbers on 2017


Source: Clia +3% 7.17m 31%


rose 10% year on year to 232,000, with bednights up 12%, pushing the average duration to almost eight days. European cruise numbers rose 3% to 7.2 million, with Germany extending its lead as Europe’s biggest ocean cruise market with more than 2.3 million passengers. The average passenger age in Germany was lower than in the UK at 49, but average duration was a day less. Worldwide, passenger numbers rose 7% in 2018 to 28.5 million.


ENVIRONMENTAL PRESSURE Such growth is likely to see the sector come under increasing pressure over its environmental footprint. Cruising’s contribution to ‘overtourism’ in high- profile destinations such as Venice is only one aspect of this and, in the medium term, one of the more manageable. Ships will be subject to International Maritime Organisation limits on sulphur emissions from January 2020, which cut the permissible sulphur content in fuel from 3.5% to 0.5%. The limits, adopted four years ago, are likely to be just the start of new environmental requirements.


22 Travel Weekly Insight Report 2019-20


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