SPOTLIGHT
INTRODUCTION (Anchors Aweigh)
The cruise industry, with new ships and new product niches, has
been the fastest growing segment of the leisure travel market
over the last ten years. Based on the number of ships under
construction and new entrants into the market, this trend will
continue for the next several years. According to the Cruise
Line International Association (CLIA), the industry capacity
in 2018 was 260,000 rooms (in cruise industry parlance, that
is 520,000 berths, which is measured by person assuming
two per cabin). Compared to the broader leisure industry,
opportunity abounds for continued growth. The state of Florida
has 440,000 hotel rooms, with 120,000 in Orlando alone.
The number of total annual cruise passengers is expected to
grow from 27 million in 2018 to more than 39 million in 2027,
with 106 new ships already on order to be delivered over the
next ten years. The trends behind this growth include new
entrants to the market and a boom in expedition/experiential
cruising in addition to organic growth. The trend of new players
in the industry has been primarily driven by the entry of well-
known hospitality brands. Although the industry’s growth
also creates business opportunities for companies providing
services and products to the leisure industry, this article will
focus on the expansion of existing brands that create new cruise
products.
NATIONAL GEOGRAPHIC HAS ENTERED
INTO A PURE LICENSING AGREEMENT AND
SELLS CRUISES THROUGH ITS TRAVEL
SERVICES GROUP.
Ritz Carlton, under the brand “Ritz Carlton Yacht Collection,”
and Virgin Group, under the name “Virgin Voyages,” each have
three ships under construction. Lindblad Expedition Cruises
also operates ships under the National Geographic brand.
Disney Cruises has been a player in the cruise industry for 20
years.
Other hospitality companies continue to explore options to
monetize their brands and marketing infrastructure in the
cruise industry. Companies that pursue this growth opportunity
should not do so without performing a serious analysis.
ILHA 47