Cruise Review 2017
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cruiseexperts.org<br />
CRUISE LINES INTERNATIONAL ASSOCIATION<br />
CRUISE REVIEW<br />
<strong>2017</strong><br />
Published June 2018
CONTENTS<br />
PAGE - 04<br />
EXECUTIVE SUMMARY 2018<br />
PAGE - 05<br />
CRUISE MARKET CLOSES IN<br />
ON TWO MILLION MARK<br />
PAGE - 06<br />
WHO IS CRUISING?<br />
PAGES - 08<br />
CHOOSING A CRUISE<br />
PAGE - 09<br />
WHERE ARE THEY GOING?<br />
PAGE - 11<br />
DESTINATIONS<br />
PAGE - 12<br />
AGE GROUP<br />
PAGE - 13<br />
CRUISE LENGTH<br />
PAGE - 14<br />
AGE & CRUISE LENGTH<br />
PAGE - 15<br />
CRUISE BOOKING BEHAVIOUR<br />
PAGE - 16<br />
CONTACT<br />
02
INTRODUCTION<br />
The British cruise market saw another year of growth in <strong>2017</strong> with a record high<br />
of 1,971,000 cruise passengers setting sail on an ocean cruise, representing an<br />
increase of 4.3 per cent, against 2016.<br />
<strong>Cruise</strong> held its share of the overall holiday market in <strong>2017</strong> at just over four per cent,<br />
and just under 11 per cent of overseas package holidays, in line with figures seen<br />
in 2016.<br />
Andy Harmer, senior vice-president membership and CLIA UK and Ireland director,<br />
said: “We are thrilled to see the continued growth of the British cruise industry.<br />
This is a strong performance from the UK and Ireland market and indicates that it’s<br />
highly likely the total for 2018 will surpass two million for the first time.<br />
“With an unprecedented number of ships on the global order book, there has never<br />
been a better time to take a cruise, with a wider choice of ships, itinerary and style<br />
of cruise than ever before.”<br />
The overall value of a cruise holiday became a more important factor to consumers<br />
in <strong>2017</strong>, with price, value for money, and special offers cited as a key driver of<br />
choice. Specifically, the inclusive drinks package has become a significantly more<br />
important factor driving choice over the past two years, perhaps due to holiday<br />
habits from land-based resorts as more first-time cruisers set sail.<br />
Between 2007 and 2013, lead times were generally declining but since 2013 lead<br />
times have steadily grown, with an average now of seven months, the longest seen<br />
since 2009.<br />
Harmer, added: “We are delighted with this trend, which indicates a solidifying of<br />
consumer confidence, as people are prepared to commit to a cruise in advance.“<br />
03
EXECUTIVE SUMMARY 2018<br />
• A record number of British holidaymakers took a cruise in <strong>2017</strong>, with 1,971,000<br />
setting sail on an ocean cruise, a rise of 4.3 per cent compared to 2016<br />
• The UK and Ireland cruise market is dominated by The Big Three: the<br />
Mediterranean, Caribbean and Northern Europe<br />
• The Mediterranean remains the most popular cruise destination, accounting<br />
for 37% of the market, and growth of more than 12 per cent against 2016<br />
• The over-50s are leading the way in the adventurous exploration cruises to<br />
largely unexplored parts of the world including the Galapagos, and the Polar<br />
regions<br />
• For younger age groups, both Northern Europe and the Caribbean saw double<br />
digit growth from cruisers in their 40’s last year<br />
• Since 2013 lead times have steadily grown, with an average now of seven<br />
months, the longest seen since 2009, indicating a return to confidence<br />
• Nine in ten cruisers plan to take another cruise within a year, and 64 per cent<br />
of these within six months<br />
04
CRUISE MARKET CLOSES IN<br />
ON TWO MILLION MARK<br />
Almost two million cruises were taken by British holidaymakers in <strong>2017</strong>, with<br />
a record high of 1,971,000 cruise passengers setting sail on an ocean cruise,<br />
representing an increase of 4.3 per cent, against 2016.<br />
This is a new total for passenger numbers in <strong>2017</strong>, and has been revised upwards,<br />
as all <strong>2017</strong> data from cruise lines has been received and corroborated by CLIA<br />
and its research partners.<br />
This is a strong performance from the UK and Ireland market and indicates that<br />
it’s highly likely the total for 2018 will surpass two million for the first time.<br />
<strong>Cruise</strong> held its share of the overall holiday market in <strong>2017</strong> at just over four per<br />
cent, and just under 11 per cent of overseas package holidays, in line with figures<br />
seen in 2016.<br />
Since 1997 cruise passenger numbers have<br />
grown by 636,000 passengers, an increase<br />
of over 47 per cent in the last ten years<br />
1 UK <strong>Cruise</strong> Market 2006-17<br />
Year<br />
Passengers<br />
(000s)<br />
2006 1,204 12.4<br />
2007 1,335 10.9<br />
2008 1,477 10.5<br />
2009 1,533 3.8<br />
2010 1,622 5.8<br />
2011 1,700 4.8<br />
2012 1,701 0.1<br />
2013 1,726 1.5<br />
2014 1,644 (4.8)<br />
2015 1,789 8.8<br />
2016 1,889 5.6<br />
<strong>2017</strong> 1,971 4.3<br />
Source: IRN Research for CLIA UK & Ireland <strong>2017</strong><br />
% growth<br />
05
WHO IS CRUISING?<br />
In <strong>2017</strong>, the UK and Ireland cruise market saw growth across all age profiles, clearly<br />
cruise is now resonating with all generations<br />
Bookings from those in their 20s increased by 4.4 percent, by 5.4 per cent for customers in their<br />
30s and by just over 10 per cent for those between 40 and 49.<br />
The biggest growth was seen from the over-50s customers who have the time and money and<br />
are becoming increasingly healthy and adventurous. And within this demographic the growth was<br />
driven by 60 to 69 year old age group, which saw an increase of more than 27 per cent last year.<br />
Born in the mid-1950s, they grew up with the Rolling Stones and the Beatles, are healthier and<br />
more active than any other generation before them at this age, and they want to travel widely,<br />
comfortably and with purpose.<br />
2 Destination By Age Group<br />
2 Trade Group & Age Group<br />
Central Mediterranean, Eastern Mediterranean,<br />
Western Mediterranean<br />
=70 % growth<br />
5% 4% 4% 5% 11% 21% 26% 24% 12.4<br />
Northern Europe 4% 4% 6% 8% 14% 23% 23% 19% 10.9<br />
Caribbean/Bahamas/Bermuda 5% 4% 6% 7% 12% 25% 26% 15% 10.5<br />
Canary Islands 3% 2% 2% 3% 6% 16% 30% 39% 3.8<br />
Other 1% 1% 3% 3% 7% 20% 40% 25% 5.8<br />
TransAtlantic 1% 1% 2% 3% 5% 16% 35% 38% 4.8<br />
Baltic 3% 3% 3% 4% 8% 19% 33% 27% 0.1<br />
Asia & China 1% 1% 2% 3% 6% 23% 40% 25% 1.5<br />
Africa /Middle East & Africa/Middle East 2% 2% 3% 4% 9% 24% 32% 23% (4.8)<br />
Alaska 1% 2% 2% 3% 6% 21% 43% 21% 8.8<br />
Exploration (Antarctic/Arctic/Galapagos/<br />
Greenland/Iceland/North Cape)<br />
1% 1% 2% 2% 5% 17% 36% 35% 5.6<br />
World <strong>Cruise</strong> 0% 0% 0% 0% 1% 9% 46% 43% 0.5<br />
Source: IRN Research for CLIA UK & Ireland <strong>2017</strong><br />
Often they are grandparents and will take their grandchildren away with them on a cruise, a trend<br />
known as ‘skip-gen travel’ as the children’s parents stay at home due to work commitments.<br />
The younger age groups, of 50 or less, preferred summer cruises to ones in the winter, sailing to sunny<br />
destinations. The cruise market is dominated by bookings from the south of England, accounting for<br />
40% of bookings in <strong>2017</strong>.<br />
06
2 Destination By Age Group<br />
Central Mediterranean, Eastern Mediterranean, Eastern Mediterranean,…<br />
Western Northern Europe<br />
Northern Europe<br />
Caribbean/Bahamas/Bermuda<br />
Caribbean/Bahamas/Bermuda<br />
Canary Islands<br />
Canary Islands<br />
Other<br />
Other<br />
TransAtlantic<br />
TransAtlantic<br />
Baltic<br />
Baltic<br />
Asia & China<br />
Asia & China<br />
Africa /Middle East & Africa/Middle East<br />
Africa /Middle East & Africa/Middle East<br />
Alaska<br />
Alaska<br />
Exploration (Antarctic/Arctic/Galapagos/Greenland/Iceland/North Cape)<br />
Exploration (Antarctic/Arctic/Galapagos/…<br />
World <strong>Cruise</strong><br />
World <strong>Cruise</strong><br />
=70<br />
07
CHOOSING A CRUISE<br />
The overall value of a cruise holiday became a more important factor to consumers in <strong>2017</strong>,<br />
with price, value for money, and special offers cited as a key driver of choice. Specifically, the<br />
inclusive drinks package has become a significantly more important factor driving choice over<br />
the past two years, perhaps due to holiday habits from land-based resorts.<br />
The average cruiser takes around two cruises per year and prefers to cruise in the summer, than winter.<br />
08
FAVOURITE DESTINATIONS<br />
In terms of destination, the UK and Ireland cruise market is dominated by<br />
The Big Three: the Mediterranean, Caribbean and Northern Europe.<br />
The Mediterranean remains the most popular cruise destination for the UK &<br />
Ireland, accounting for 37 per cent of the market. It cemented its number one spot<br />
further in <strong>2017</strong> with growth of more than 12 per cent against 2016.<br />
The second and third most popular destinations, Northern Europe and the Caribbean<br />
respectively, both saw increases of more than 10 per cent year-on-year. And, Alaska,<br />
the fourth most popular destination for British cruisers, saw growth of just under<br />
nine per cent in <strong>2017</strong>.<br />
The growth in the Mediterranean came thanks largely to increases in bookings from<br />
customers aged 50 or more. Mediterranean cruise bookings increased by 21 per<br />
cent on 2016 figures for the 50 to 59 age group. Even greater growth was seen<br />
from customers in their 60s, which were up 26 per cent, and sales from passengers<br />
in their 70s were up 24 per cent.<br />
DESTINATION WINNERS<br />
IN <strong>2017</strong>:<br />
Mediterranean +12.4%<br />
Northern Europe +10.9%<br />
Caribbean +10.5%<br />
The Mediterranean remains the most popular<br />
cruise destination for the UK & Ireland,<br />
accounting for 37 per cent of the market<br />
09
FAVOURITE DESTINATIONS<br />
Enticing people to cruise for the first time is crucial to safeguard the future of<br />
the industry. Seeing this level of growth for the Mediterranean, the most popular<br />
destination, from the 50-plus demographic is incredibly encouraging. These age<br />
groups make up the foundation of the British cruise market, as they have the<br />
time, money and inclination to cruise.<br />
The 50-plus cruise customers are not only cruising more than last year, they’re also<br />
setting sail in increasingly adventurous destinations. They are cruising increasing<br />
numbers in long-haul destinations, such as Asia and China which saw a 40 percent<br />
increase in bookings from those in their 60s for example.<br />
The over-50s are leading the way when it comes to going on exploration cruises<br />
to largely unexplored parts of the world including the Galapagos, and the Polar<br />
regions, with bookings up more than one-third for cruisers in their 60s and 70s.<br />
However, it’s interesting to note where the growth is coming from for the younger<br />
cruise passengers.<br />
Both Northern Europe and the Caribbean saw double digit growth from cruisers<br />
in their 40s last year, indicating that this age group prefers to use a cruise to<br />
explore places they might not have been to before, rather than the more familiar<br />
Mediterranean region. This trend is also reflected by patterns seen for younger<br />
cruisers in their 20s and 30s with the Caribbean and Northern Europe growth,<br />
slightly beating that seen for the Mediterranean.<br />
10
3 Destination & Quarter<br />
Destinations Q1 Q2 Q3 Q4<br />
Mediterranean 4% 32% 47% 16%<br />
Northern Europe 5% 37% 35% 23%<br />
Caribbean/Bahamas/Bermuda 40% 13% 10% 37%<br />
Canary Islands 23% 19% 19% 39%<br />
Other 37% 16% 18% 29%<br />
TransAtlantic 29% 12% 18% 42%<br />
Baltic 50% 50% 1%<br />
Africa /Middle East & Africa/Middle East 70% 7% 0% 22%<br />
Asia & China 48% 15% 10% 28%<br />
Alaska 42% 58%<br />
Exploration (Antarctic/Arctic/Galapagos/<br />
Greenland/Iceland/North Cape)<br />
25% 31% 37% 7%<br />
World <strong>Cruise</strong> 99% 1% 0% 0%<br />
DESTINATIONS<br />
Unsurprisingly the choice of destination and time of year is split between the<br />
Mediterranean and Northern Europe cruises in the summer, and the Caribbean<br />
for the winter months.<br />
Other popular cruise choices for the winter included the Canary Islands, and<br />
TransAtlantic sailings.<br />
Exploration cruise bookings were spread pretty evenly throughout <strong>2017</strong>, and<br />
world cruise departures dominated the first three months of the year.<br />
3 Destination & Quarter<br />
Mediterranean,<br />
Mediterranean<br />
Northern Europe<br />
Northern Europe<br />
Caribbean/Bahamas/Bermuda<br />
Caribbean/Bahamas/Bermuda<br />
Canary Islands<br />
Canary Islands<br />
Other<br />
Other<br />
TransAtlantic<br />
TransAtlantic<br />
Baltic<br />
Baltic<br />
Africa /Middle East & Africa/Middle East<br />
Asia & China<br />
Asia & China<br />
Africa /Middle East & Africa/Middle East<br />
Alaska<br />
Alaska<br />
Exploration (Antarctic/Arctic/Galapagos/Greenland/Iceland/North Cape)<br />
Exploration (Antarctic/Arctic/Galapagos/…<br />
World <strong>Cruise</strong><br />
World <strong>Cruise</strong><br />
11<br />
Q1 Q2 Q3 Q4
AGE GROUP<br />
Thanks to the necessity for young families to travel during the school holidays, cruise<br />
passengers in their 20s, 30s and 40s dominated bookings for the third quarter of the<br />
year, June, July and August.<br />
This is illustrated by the huge concentration of teenagers and those in their 40s<br />
sailing in Q3. More than two-thirds of all bookings for those aged between 13 and<br />
19, coupled with just under 40 per cent of cruisers in their 40s, fell between June and<br />
August in <strong>2017</strong>.<br />
<strong>Cruise</strong>s in the Spring and Autumn proved pretty evenly popular across most age<br />
groups, whilst those between January and March were dominated by those over 50.<br />
4 Quarter & Age Group<br />
Age Q1 Q2 Q3 Q4<br />
=70 17% 29% 28% 26%<br />
4 Quarter & Age Group<br />
=70<br />
Q1 Q2 Q3 Q4<br />
12
CRUISE LENGTH<br />
Once again the school holidays in August means that the biggest<br />
concentration of bookings come in the third quarter of the year,<br />
with the traditional seven-day itinerary accounting for just under<br />
40 per cent of all bookings between June and August.<br />
Two-week cruises are more evenly distributed throughout the<br />
year, with more taken in Spring and Autumn, although a third<br />
were still taken in the summer months.<br />
Short cruises, of three days or less, proved most popular in the<br />
Spring, with one-third of bookings coming between March and<br />
June.<br />
5 Quarter and <strong>Cruise</strong> length<br />
<strong>Cruise</strong> Length Q1 Q2 Q3 Q4<br />
Up to 3 Days 13% 33% 25% 29%<br />
4-6 Days 11% 32% 23% 34%<br />
7 Days 14% 30% 39% 18%<br />
8-13 Days 13% 26% 33% 28%<br />
14 Days 22% 22% 34% 22%<br />
15-20 Days 17% 30% 20% 33%<br />
21 Days Plus 48% 12% 12% 28%<br />
>=70 17% 29% 28% 26%<br />
5 Quarter and <strong>Cruise</strong> length<br />
Up Up to to 33 Days<br />
4-6 4-6 Days Days<br />
7 Days 7 days<br />
8-13 Days<br />
14 Days 14 days<br />
15-20 Days days<br />
21 21 Days Plus<br />
Q1 Q2 Q3 Q4<br />
13
AGE AND CRUISE LENGTH<br />
The lowest age of cruise passengers is naturally seen in the Summer months, thanks to the<br />
number of families travelling. The average age of customers between June and August in <strong>2017</strong><br />
was 52.8 years’ old, and the average duration was just over nine days, reflecting the mix of<br />
young families taking seven and 14-night sailings.<br />
The winter months of January, February and March unsurprisingly see the oldest average age<br />
and the longest duration, just over 60 years’ old and an average of almost 12 days. The average<br />
age in this part of the year increased from 58 to 60 between 2016 and <strong>2017</strong>, indicating a link<br />
to repeat cruisers booking a trip for this time of year.<br />
Spring (March to June) and Autumn (September to December) departures saw a similar average<br />
age of around 57. However cruises taken in the Autumn tended to be slightly longer, perhaps<br />
due to time off around Christmas with family and friends.<br />
6 Age and <strong>Cruise</strong> Length<br />
<strong>Cruise</strong> Length 2016 <strong>2017</strong><br />
Age<br />
<strong>Cruise</strong><br />
Length<br />
Age <strong>Cruise</strong> Length<br />
Q1 58.59 11.98 60.13 11.89<br />
Q2 57.51 9.32 57.14 9.44<br />
Q3 52.24 9.61 52.83 9.46<br />
Q4 57.30 10.57 57.51 10.30<br />
Average 55.87 10.17 56.30 10.09<br />
6 Age and <strong>Cruise</strong> Length<br />
=70<br />
Up to 3 Days 4-6 Days 7 Days 8-13 Days 14 days 15-20 days 21 Days Plus<br />
14
CRUISE BOOKING<br />
BEHAVIOUR<br />
Around half of cruise holidaymakers who took a cruise in <strong>2017</strong> booked their last cruise within<br />
six months of departure, with just over one-third doing so within four months of departure.<br />
Between 2007 and 2013, lead times were generally declining but since 2013 lead times have<br />
steadily grown, with an average now of seven months, the longest seen since 2009. This indicates<br />
an increase in confidence as people are prepared to commit to a cruise in advance.<br />
7 Age Profile of UK & Ireland <strong>Cruise</strong> <strong>Cruise</strong> Passengers 2016-17<br />
Passenger<br />
2016 <strong>2017</strong> 2016 <strong>2017</strong><br />
Grand Total 1,960 1,971<br />
=70 333 347 22.5% 24.4%<br />
No Age<br />
Provided<br />
Total with<br />
data<br />
482 552 NA NA<br />
1,478 1,419 100.00%<br />
The average lead booking time<br />
for a cruise holiday in <strong>2017</strong> was<br />
seven months, the longest seen<br />
since 2009, indicating a return in<br />
consumer confidence<br />
15
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