Cruises
Contemporary Cruises price level
100-250
Where are the passengers coming from?
14.2 M from North America 6.7 M Western Europe 4.2 Asia
travel agent usage non cruiser
40% work with 60% never with
Contemporary Cruise Brands
AIDA Carnival Costa Disney MSC Norwegian RCI
Cruising in the 60s & 70s
All About the Destination
"A True Departure" then "Designed for You"
Celebrity
Wholly Owned Subsidiaries of RCCL
Celebrity, RCI, Azamara
What is GRT (or GT) anyway?
Gross register tonnage (GRT, grt, g.r.t., gt) or gross registered tonnage, is a ship's total internal volume expressed in "register tons"
Signature of Excellence, Savor the Journey
Holland
Boeing 707 first flight
December 20, 1957
AMPLIFICATION MEANS
ENHANCEMENTS TO ALL AREAS OF THE SHIP Oasis of the seas had the biggest and longest
Millennial's have a preference for what?
Luxury cruising
The Service (Hospitality) Brand
Meanings Emotions Customers Experiences
River Cruising: Which Age Target?
Millennials find attributes of river cruising more appealing than any other generation, according to a study conducted by AAA in 2016.
"Escape Completely" then "Come Back New"
Princess
The Love Boat
Princess Cruises
"Get Out There" and "The Nation of Why Not?" and "Come Seek"
Royal
25% by 25
Royal Caribbean Cruises to reduce carbon footprint by 25% by 2025
The Britannia of the Cunard Steamship Company launched the first
Royal Mail Steamer and scheduled transatlantic service in 1840 (1,154 GRT)
What is Royal focusing on improving
WJ food quality Problem Resolution MDR Food Quality
contemporary target market
mass market
premium ship size
medium : large ships carrying 650-3,000
Important Factors influencing vacation choice non-cruise vacation
more care about overall experience and property and cost
luxury target market
discerning affluent, older, well-traveled clientele
premium target market
more sophisticated veteran cruisers, couples, families, empty nesters
Cruisers who repeat for the first time spend the ___
most
Cruise Market Motivators Gen X
mostly to relax
Cruise Market Motivators Gen Y/millennials
mostly to see and do new things
specialty service level
diverse service levels limited dining options focus on destination
Cruisers are more likely than non cruisers to
bring along spouses
Crew App
celebrity connects crew provide info HR tools
Premium Cruise Lines
celebrity cunard holland america oceania princess viking
What is the most important amenity on a cruise ship to those making 150- 200K
celebrity chef restuarants
Modern Luxury
celebrity, change from x the rules
"X The Rules"
celebrity, failure
repeat cruisers are more likely to
choose better cabins than new cruisers stay in balcony cabins than new cruisers more likely to stay in interior cabins than repeaters
contemporary service level
floating resorts offering quality value vacation
Royal Vision
generate returns for shareholders and empower employees to deliver best vacation experience enhance well-being of communities
skip gen-cruising
grandparents with grandchildren
specialty cruise lines
ama waterways american avalon truck river uniworld river viking windstar
luxury service level
attentive, refined,personal service
luxury cruise lines
azamara crystal paul gaugin pearl seas regent seven seas seabourn sea dream silversea
New objection to cruising
hidden fees
Cruise Behaviors: Amenity Interest vs. Usage suite and balcony
high importance but lower usage
premium service level
high quality service, fine dining, country club atmosphere
Reasons not to choose a cruise vacation cruiser
cost - 56% Safety (very low) - 17% Comfort - 27%
contemporary ship size
large: mega ships carrying 2,000 to 6,000 passengers
The Cunard Laconia arguably launched the
leisure cruise industry with the first world cruise in 1922 (20,000 GRT).
New cruisers spend ___ than repeaters
less
Reasons not to choose a cruise vacation non-cruiser
less about cost more about safety .. about the same with comfort
Cruise Behaviors: Amenity Interest vs. Usage Onboard entertainment shows
low importance but high usage
Cruise Behaviors: Amenity Interest vs. Usage casino
low importance but high usage
Cruise Behaviors: Amenity Interest vs. Usage pool
low importance but high usage
Once cruisers visit a destination there is a high likelihood they will
return regardless of income bracket
Gen Z at Sea
set to become the largest consumer generation by the year 2020 - putpacing millennials
who had higher overall rating for cruise reviews: structured dining or un structured
structured
What is the most important amenity on a cruise ship to those making 100 K
suite and balcony cabins
What is the most important amenity on a cruise ship to those making 200 K
suite and balcony cabins
more than three quarters of cruisers travel with
their spouse
Amplification helps with
ticket premium increases onboard revenue uplift NPS uplift
specialty target market
veteran cruisers, non-cruise, adventurers
How are Royal's decisions guided
years of measuring NPS annual survey responses NPS growth
Agentpalooza
Carnival Cruise Lines produced a first-of-its-kind bus tour
How many ships are scheduled to debut in 2020
19
What year was the titanic
1911
Birth of the Modern Cruise Era: NCL
1966 MS Sunward 8666 GRT Norweigian Encore (2019) 169116
Birth of the Modern Cruise Era: RCCL
1968 The Song of Norway (1968): 18,853 GRT Symphony the Seas (2018): 228,021 GRT
Birth of the Modern Cruise Era: CCL
1972 The Mardi Gras (1971), 27,284 GRT Carnival Panorama (2019), 133,500 GRT
premium price level
200-500
specialty price range
250-1000
Growth of Worldwide Passengers Carried in 2020
27.6 million
Projected ships in operation in 2020
278
2018 Global Economic Impact
28.5 million passengers 1.2 million jobs 50.24 B wages 150 B total output
NCL
3 brands 25 ships pioneer of freestyle cruising
Cruisers making over 200 K surprisingly go on the most
3 day vacations
luxury price range
300-1,500
2020 Deployment
32% Caribbean 17% Mediterranean 17% All other
Market Share Revenue
39% Carnival 25% Royal 13% Norwegian
RCCL
6 brands 70 ships largest ships at sea
Cruisers making less than 100 K typically go on
6-8 days vacations
The global cruise industry is one of the fastest growing travel verticals with an annual forecasted growth rate of
6.63% from 1990 - 2020.
____% of cruisers consulted a cruise lines website during decision making process
70
travel agent usage when booking cruiser
82% work with
Carnival
9 brands 104 ships the most capacity and passengers carried
How many ship classes does royal have
9, 26 ships
____ percent of cruisers say they consider their trips to be a good way to sample destinations for non cruise vacations
90
Cruise Market Motivators boomer
family time and see and do new things/relax
luxury ship size
small carrying fewer than 1,000 passengers
specialty ship size
small ships, yachts, river boats
Net Promoter Score =
% Promoters (9-10) - % Detractors (0-6)
Among consumers who have been on a cruise, ___% booked their most recent trip online
47
Market Share Passengers
47% Carnival 27% Royal 10% Norwegian
How many crew are on board royal ships?
47K
Who are the fun ships?
Carnival
Total Revenue of big three
Carnival - 39.4 Capacity, NCL- 12.6% Cap, RCCL- 25 Cap
Who are the big three?
Carnival - 43.2 Capacity, NCL- 9.7% Cap, RCCL- 24.50 Cap
Who's adventure at sea?
RCL
Renaissance Cruises
RIP 1989-2001
MSC Yacht Club
a ship within a ship
Important Factors influencing vacation choice cruise vacation
destination - 68% Overall Experience - 22% Property/ship - 10% Cost - 24% Amenities - 8%