Hotel Online Special Report
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Cruise Market Potential Remains Very Strong, 
New Study Indicates
 
NEW YORK, Sept. 23, 1998 -  In 1986, a paltry 3.6 percent of Americans had ever taken a cruise, and the cruise industry had its work cut out for it.

In 1998, 11.3 percent have taken a cruise. And while the industry is pleased with the progress it's making in introducing the pleasures of cruising to all Americans, it still feels it has a lot of growing to do. According to the 1998 Market Profile Study sponsored by Cruise Lines International Association (CLIA), almost 75 million Americans have indicated a strong desire to take a cruise within the next five years. Even with an ambitious shipbuilding agenda, the industry expects to be busy trying to accommodate everyone's needs and preferences.

According to James G. Godsman, president of CLIA, the cruise industry market is expanding to record proportions. "When CLIA conducted its first consumer research study in 1986, we found that we had an extremely small -- but very loyal -- cadre of cruisers in the marketplace. Back then, only 20 percent of Americans fit our target definition of individuals 25 years of age or older with household incomes of $20,000 and above.

"Now that target market is 133 million, and more than half of them are seriously considering a cruise," he added. The cruise industry also knows that more than half of the target market -- or nearly 69 million people -- are experienced vacationers, who merely have yet to take their first cruise. With the number of first time cruisers inching up every year (industrywide it was 44 percent in 1997), the upside potential is very strong, Godsman noted.

The industry's strong optimism about growth potential also is based in part on the exceptional satisfaction ratings that cruises continue to receive. In the all-important "extremely satisfied" category, cruises rank above all other types of vacations.

The 1998 market Profile furnishes a snapshot of the current cruise customer, as well as the most likely candidates for taking a first cruise.
 
 

Current cruisers are:
Spread among all age ranges. Twenty-seven percent are under 40 years; 45 percent are 40-59, and 28 percent are 60 years or older. The median age of current cruisers is 50 years.
Pretty evenly divided between males (46 percent) and females (54 percent).
Predominantly married (73 percent), although one in four is single.
Less likely than the average vacationer to have children under 18 in the family.
Spread among all income ranges, too, with a median income of $58,800. One in five earns under $40,000 a year.

Cruisers are generally frequent travelers, with a special propensity toward taking independent trips, resort vacations and package tours. Their preference for cruise vacations, however, is very strong. Among cruisers, vacations at sea score much higher in such areas as fine dining, relaxation, the opportunity to visit several destinations, their hassle-free nature, pampering, ease of planning, entertainment, luxuriousness, value for money spent, variety of activities, as a means of meeting interesting people, excitement and adventurousness, fun, the ability to explore a destination that one might want to return to, safety, romantic atmosphere, learning experience, and comfortable accommodations.

But the research also shows that one doesn't have to have taken a cruise to have a positive impression of cruising. Vacationers who haven't yet taken their first cruise view cruises as better than other vacations for their pampering, their visits to several destinations, the relaxation and romance they offer, fine dining available and luxuriousness.

Said Godsman: "It's particularly interesting that even those who have never cruised paint such a rosy picture of a cruise vacation, especially since their profile is quite different in key respects than cruisers." For example, the research shows that prospects who have yet to take their first cruise tend to be younger, with a median age of 42 years; are much more likely to have children at home (52 percent); are slightly more likely to be single (29 percent); and have a slightly lower median household income ($51,600).

In previous research, CLIA defined these prospects and discovered that the most likely new cruisers among them were "Family Folks," those who have children and vacation with them; "Comfortable Spenders," couples in two-income households who are very oriented toward taking multiple vacations; "Want It Alls," couples on the way up who like shopping, dining and nightlife; and "Adventurers," independent-minded frequent travelers who are "ready to try new things."

Of cruise prospects, almost one-third -- or 21 million potential first-timers -- are in the "hot prospect" category, meaning that they have indicated they "probably" or "definitely" will cruise within the next five years.

The cruise industry has enjoyed an average year-over-year annual growth of almost 8 percent since 1980 when 1.4 million people took a cruise. In 1986, 2.6 million people took a cruise vacation, and last year a record 5.05 million vacationers went to sea.

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Contact:
Cruise Lines International Association
Diana M. Orban Associates 
973-605-2121
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Also See:
Design Innovations for World's Largest Cruise Ship the Voyager of the Seas / Sept 1998 

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