United Kingdom
United States
Asia Pacific
Cruise prices fall but luxury sales hit new peak
Saturday, 18 May, 2010
0
The cost of summer cruises last year fell to below 2007 levels yet ultra luxury lines achieved record sales.
The average cruise price paid in 2009 was down by six per cent year on year to £1,330, with a summer rate of £1,238 coming in at £32 less than two years earlier.
But statistics released by the Passenger Shipping Association in its annual cruise review show that as the average cruise taken was longer than in 2008, the real price cut was almost 11% as the industry became more price competitive than ever.
Six top of the range cruise companies – Crystal, Compagnie du Ponant, Regent, SeaDream, Silversea and Yachts of Seabourn – saw 2009 sales soar by 51%. This resulted in the ultra luxury cruise sector’s share of the overall cruise markets rising by a similar amount.
UK passengers also appeared to defy the economic downturn by booking more top suites, with 31,000 paying more than £5,000 per person with a further 200,000 paying between £2,500 and £5,000.
The reason given was the result of “extra value for money” pricing which cruise companies adopted to ride out the economic storm.
“This was adopted by every sector of the cruise market but was particularly noticeable among the ultra-luxury brands which had also introduced new ships for the first time in several years,” according to the report.
This meant including more in the cruise price such as flights, drinks, excursions or on board credit.
Price and value for money are the top reason why people choose to cruise, followed by the on board atmosphere/service, dining, cabins/public rooms and special offers.
Entertainment came further down in the list of priorities along with pre- and post land stays and taking maiden voyages.
The main reasons prompting people to book a particular cruise is the itinerary and destinations featured followed by having a good previous experience with the cruise line.
The PSA report confirmed that the rate of growth in cruising declined in 2009 after three years of double-digit increases.
Passenger numbers were up by 3.8 per cent to 1.53 million, with 2010 levels forecast to grow by more than seven per cent to 1.65 million, 1.75 million in 2011 and hit the two million figure by 2014.
The number of passengers taking ex-UK cruises rose from 557,000 to 594,000, giving a share of almost 39%. People taking fly-cruises grew from 920,000 to 939,000.
There was a two per cent decline in the number of cruises taken to the Mediterranean and a six per cent drop to the Atlantic Islands, while cruises to Northern Europe – mainly the Baltics and Norwegian fjords – rose by 20% or more than double the increase to the Caribbean.
The length of cruise taken also went up, with the average standing at more than 11 days and 12.5 days in winter.
More people chose to book a cruise with an agent face to face last year than they did the previous year.
The proportion of consumers booking with a traditional travel agent rose from 20 per cent in 2008 to 25% last year.
This rise means that one in four cruises bookings was made face to face with an agent in 2009, according to the research.
Booking cruises with travel agents online also grew, from nine per cent to 17%.
At the same time the proportion of consumers choosing to booking with an agent over the telephone declined from 50% to 38% year on year.
Those booking direct with cruise lines remained almost stable at 20%, against 21% in 2008, with 12% of the total being made online.
A “remarkable” one in four cruises bookings in 2009 was made more than a year ahead of departure, despite the economic downturn. This represented a fourfold increase on 2001 and a big jump from 18% in 2007 and 2008 to 25% in 2009.
There was also a sharp drop in late bookings, with just one in six made within three months of departure compared with one in four in 2008 and almost one in two in 2001.
“In other travel and leisure sectors, bookings came in later rather than earlier because consumer confidence was low in 2009 and many delayed buying decisions because they were not sure of their own financial situation,” the report said.
“So, with more cruise capacity out there, this opposite trend for cruise bookings has to be a reaction to the revenue management policies of the cruise lines which ensure that prices rise, not fall, as departure dates approach.”
There was an “increasing promiscuity of frequent cruisers who are now more willing to switch between different brands than stick with just the one,” the report added.
“This is partly due to the importance of price in the decision making process when it comes to choosing a ship on which to cruise.
“Price and value for money was easily the main reason why survey passengers book a cruise on a particular ship and the availability of a special offer is also a factor.”
*See linked story.
by Phil Davies
Phil Davies
Mark Jaronski of Explore Georgia on FIFA World Cup 2026
Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange
North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
BA suspending all Heathrow to Abu Dhabi flights
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel
Foreign Office issues travel advisory for winter sun destinations